Our lives are becoming increasingly driven by technology. Quite frankly, if you were born after the baby boomer generation, you're probably almost dependent on technology. We have become accustomed to automated processes and convenience. We have come to expect convenience.

At the same time, the world has become so much more competitive. And we, the consumers have become so much more discerning. With all the choices we now have in the retail space, retailers have to work a lot harder and smarter to attract and retain business. Customers demand value for money, simplicity and efficiency.

One of the risks retailers face nowadays is cart abandonment. When customers have an unpleasant shopping experience, many will just abandon the transaction. Whilst this is mostly an online problem, physical stores also stand to lose a percentage of their sales. With today's competitive market, even 2% is too much to throw away. Retail POS solutions play a significant role in mitigating these risks.

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Payments in the retail space

Ensuring a positive customer experience requires several things from a retailer. A key factor in the customer experience is the time spent waiting in a line to pay for goods. Another factor that has arisen in recent times is the effects of the Covid-19 pandemic on people's shopping mindset.

Many people have adapted their habits in order to comply with social distancing and the various other measures implemented to curb the spread of the virus. Some people will revert to normality once all the measures are eventually lifted. However, there are many that will continue to take precautions.

Another development, thanks in part to the economic fallout of the pandemic, is that many people are suddenly on much tighter budgets. More often now, people who need to purchase big ticket items have to spread the cost over a longer period. 

All of these considerations have contributed to a total rethink of retail POS solutions and some exciting innovations in payment technology. Retailers have recognised that the payment process is an important component of the customer experience, both online and in the physical realm.  

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What technologies are retailers using in the U.K.?

Although the world is increasingly going digital, the traditional payment technologies are still commonly used in many parts of the world. In the UK, this is no different. Perhaps the proportion of payments processed in cash and by cheque is now far less than digital methods, they still exist.

On the digital front, though, the UK is one of the leaders in retail POS solutions. Retailers generally offer a choice of electronic payment options. Failing to do so would be economic suicide. Digital payment options currently offered in the UK include:

• Established credit cards through gateways like Visa, MasterCard and American Express. 
• Debit cards linked to current or savings accounts. 
• E-wallets such as PayPal and AliPay
• Mobile payments 
• Cryptocurrencies

Going beyond the payment phase of a retail sale, we have to consider the overall business impact of the transaction. We also have to look after inventory management and planning and ancillary costs. Using good retail POS solutions to analyse sales data will provide a business with a lot of key information in this area. Some of the most common metric businesses would look at include:

• Customer behaviour. Among the multitude of customer-related metrics, most businesses would concentrate only on a few of the most important.
• Customer satisfaction and loyalty by identifying repeat purchases. Once off sales can also flag possible dissatisfaction. 
• Sales volume by product helps with inventory planning but can also highlight cross-selling or upselling opportunities.
• Tracking sales of items on promotion shows whether a campaign is successful or not.
• Business performance. Sales trends by product or in total can provide early warning if something is starting to go wrong. Trends also assist with procurement planning and supply chain management.

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What are retail POS solutions of the new era?

There are dozens of systems available in the market today, catering for all business types and sizes. Cost and functionality differ widely, but we will have a brief look at some of the most popular retail POS solutions.

• Shopify. The developers claim that this is the most widely used system, although this statistic is difficult to verify. The cost is at the lower end of the scale and the system accepts all payment methods.
• TouchBistro. This is a popular solution for restaurants. It offers a range of hospitality-oriented features. The price is a little on the high side and payment options are limited.
• Quickbooks POS. With a once-off payment, this solution may be more economical depending on the buyer’s requirements. On the downside, payment is only by debit or credit card.
• Elly. Although a relative newcomer in this space, Elly offers one of the best retail POS solutions available today. This system accepts all payment methods on a single, fully portable hand-held terminal. It also comes with a very versatile integrated POS system.

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What are the advantages of using digital retail POS solutions?

Using some form of POS system is no longer a luxury. Even the simplest of businesses need every tool they can get to compete in this retail environment. A POS system provides a wide variety of these tools. Let’s have a look at some benefits.

• Cost savings. With fixed monthly costs, the system itself has very little overall impact on profit. Improved business intelligence also helps to reduce losses due to shrinkage or poor supply chain management.
• Accept more payment methods. Never lose a sale because you cannot accept the customer’s preferred payment method.
• Transaction processing fees. Selecting wisely may save substantially on transaction fees. These fees can range from less than 1% of sales value to more than 3%.
• Contactless payments. With the recent experience of the Covid-19 pandemic, this is something that many customers will continue to demand. 

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Elly is the perfect retail POS solution for your business

Elly has developed a state-of-the-art POS solution that provides businesses with all the tools they need. Ease of use, multiple payment options and a range of reports make this the obvious choice. Add to that one of the lowest fee structures in the industry and you have a sure winner.