How to implement a connected global point-of-sale system

Author: Jennifer Goforth Gregory

Date published: October 17, 2024

When a customer makes a purchase, the payment experience should be accurate, streamlined and easy. However, today's shoppers want even more. Whether they are shopping online or in-store, they want an experience that's personalized to their needs and preferences. Customers also have higher expectations for inventory visibility. They want to know what's available and where with the ability to use their phone to check if a specific product is in stock at their local store or at another nearby location. To meet these customer needs, retailers need a connected global point-of-sale system.

According to the Verizon 2022 Connected Retail Experience Study, retailers are very aware that shoppers want digital experiences that integrate with their in-store experience, yet only 39% of retailers are satisfied with the digital experience their store provides. Retailers that lag behind their counterparts in providing an engaging experience may quickly lose customers to competitors. Global retailers face an even higher bar, as they want to ensure service and customer experience is consistent across countries and continents.

To close the gap, multinational retailers require a dynamic global supply chain and higher-level technology that can predict demand, a connected point-of-sale system and data that provides greater visibility across the globe.
 

Challenges in global retail

Retailers' top priority should be focusing on providing customers with a fast, easy and optimized buying journey. However, there are many challenges in today's environment that make this goal hard to achieve, particularly for global retailers operating in multiple regions. Common issues include:
 

Blending of channels

The line between online and in-person shopping has become increasingly blurred. A Verizon study found that 73% of all store visits start online, with customers researching products on their computer or mobile device.
 

An unstable supply chain

Many may have thought the supply chain would have stabilized by 2023 or 2024, but instability is still causing problems for large and small retailers around the world. A recent survey on supply chain revealed that 84% of respondents noted that they have re-evaluated or modified their supply chain strategy over the past year as a result of some of the global obstacles to goods and materials sourcing.
 

Staffing challenges

Retailers struggle to find enough staff for stores. According to a survey conducted by Quinyx, 59% of retail workers in 2024 considered quitting their jobs—an increase of over 20% from 2023.1 The survey also found that 85% of frontline workers are feeling workplace stress.
 

Shrinking margins

Many retailers are struggling with lower margins due to increased labor and materials costs as well as inflation. According to Deloitte's 2023 retail industry outlook report, almost all retail executives expect inflation to put pressure on their profit margins in 2023.
 

Poor connectivity

The quality of a global retail digital experience depends on near real-time data and reliable connectivity. However, some locations do not have the infrastructure and connectivity they need. For example, a store in a rural area or less developed country may not have the bandwidth to provide the high speeds needed for an augmented or virtual reality (AR/VR) experience.
 

Using technology and IoT to improve the customer experience

While point-of-sale systems are not new to the retail industry, businesses are now using the technology for much more than a simple transaction and payment platform.

By using new retail technology such as automated retail machines and kiosks, retailers are putting the Internet of Things (IoT) to work to improve their operations and customer satisfaction. IoT solutions allow retailers to automate the point-of-sale system process, as well as provide a wide range of data that can help improve customer personalization. The global market size of IoT in retail is projected to reach $177.9 billion by 2031, up from $28.14 billion in 2021. When a customer uses an in-store kiosk on a self-service device, retailers reduce costs and protect data with a secure POS network. Moreover, retailers can quickly adjust messaging on the kiosks based on trends as well as the specific customer’s preferences. These automated solutions can help create new revenue opportunities for retailers, while also helping streamline operations and improve customer experience. Automated retail also makes it easy for companies to respond quickly to changing trends while keeping transactions secure and private.
 

Global IoT eSIM technology streamlines multinational POS operations

Global IoT point-of-sale systems must operate effectively, affordably and consistently regardless of the location. eSIM technology can help organizations operate more efficiently and lower inventory management costs while increasing scalability. Using eSIM technology, POS device manufacturers can simplify the number of SIM SKUs in their connected POS devices such as mobile scanners, registers, kiosks, and other machines. For retailers, these POS devices can work right out of the box with eSIM connectivity localized to their markets for global distribution. In other words, with eSIM technology, multinational retailers can use the same hardware in different countries and standardize functionality regardless of country deployment, which helps streamline manufacturing and hardware management.

In recent years, POS systems have moved from primarily serving as a cash register to a system that creates personalized customer experiences and provides key information to help retailers standardize operations and service around the world. Verizon Global IoT Orchestration can enable POS manufacturers to build, deploy and manage connected point-of-sale systems across the globe. By building the foundation now through a global retail technology system, retailers can be prepared for the next shift.

For a solution tailored to your enterprise and point-of-sale system needs, learn how Verizon can create a connected experience for your global retail organization.

The author of this content is a paid contributor for Verizon.

Quinyx, 2024 State of the Frontline Workforce, 2024, page 3.

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