How can brands prepare for the future of point-of-sale?

However, with 61% of Gen Z consumers still preferring to shop in physical stores, the key to harnessing digitalization is not about completely replacing traditional POS.

Instead, success lies in achieving a seamless blend of physical and digital elements that enhances the customer experience. So, what’s the secret for brands to thrive in this new retail landscape?

Omni-experience

While omnichannel refers to a brand presence that seamlessly connects across multiple platforms, this concept often leads brands to lose sight of purpose and effectiveness. Simply using multiple channels is not enough.

Instead, an omni-experience approach should be adopted – one that prioritizes choosing the right channel for the right experience at the right time. And not digitalizing for the sake of it.

As well as seamless transitions, brands should make each touchpoint intentional and purposeful, considering how they meet customer needs. As the lines between digital and physical become increasingly blurred through new technology, like AR and VR, gen Z views brand engagement as a single experience. So, a consistent one with intent is essential.

Lush is a great example of this. The cosmetics brand has stepped away from mainstream social media platforms, including Instagram and Facebook, until they: “take action to provide a safer environment for users.” Instead, Lush connects campaigns to platforms that align with its brand identity, such as Spotify playlists that enhance its “at-home spa” experience.

Some 70% of consumers want retail and online experiences to be part of a consistent shopping journey, according to a 2024 survey from RSR. Yet, this journey needs to prioritize the quality of engagement over mere presence.

When it comes to the future of POS, digital can elevate its delivery, engagement, and effectiveness. But these transformations need to have a considered purpose.

Brand opportunities

This can provide the opportunity for an authentically personalized experience. Technology makes POS dynamic, and one of the greatest strengths of bringing it to life is to deliver a uniquely tailored experience for every customer.

From enabling product customization to leveraging AI for personalized recommendations and interactive screens, giving customers increased control of their shopper journey, digitalization transforms POS into a tool that supports the shopper’s journey while fostering brand loyalty.

These innovations not only enhance POS effectiveness but also demonstrate that the brand values customer satisfaction. Dynamic POS lets brands more actively engage customers, and interactivity creates more memorable brand experiences. Digitalization can facilitate this on a more high-quality, immersive, and impressive level.

Gamification generates not only action but emotion. A two-fold approach combining in-store screens and installations, or QR codes that connect to personal devices means digitalizing also allows POS to tap into the consumer desire for multi-sensory experiences.

POS no longer becomes an invisible background within a shopper journey but actively draws in customers through intrigue, fun, and excitement.

Path to conversion

From AI delivering the best experience for the environment – think weather-reactive screens advertising ice cream over coffee in a heatwave – to virtual try-on technology that reduces time and consumer effort, digital innovation can make shopping smoother and easier.

However, it’s crucial not to lose sight of the tactile appeal of physical shopping. The focus should remain on using digital tools to complement, rather than replace, physical elements for a truly blended experience.

Through the expanded capabilities of digitalized POS, brands can strengthen their brand identity by extending their storytelling.

Some 68% of consumers say brand stories influence their purchasing decisions. Therefore, brands can gain an increase in connection with customers through communicating values, background, and unique selling points (USP) in the short window that in-store POS allows.

The importance of communicating brand purpose should not be underestimated, as sustainability and environmental impact play an increasing role in consumer conversion. Some 60% of consumers globally report that their climate concerns have intensified over the past two years, creating an appetite for brands that can deliver on sustainability initiatives.

More than ever, brands can now support consumers in making the right decisions for their well-being and the environment – and use POS to do that.

Stay agile

In the digital age, brands must stay agile. Avoiding the integration of technology into traditional physical strategies risks falling behind competitors and losing consumer interest.

Yet, a complete shift to digital also risks losing the appeal of what has made POS invaluable. The solution lies in blending physical and digital elements. Brands that master this balance while embracing innovation will continue to attract, resonate with, and retain loyal customers in this evolving landscape.