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How POS Promotions Can Benefit Your Retail Business?
Anna Dawal
Anna Dawal
January 29, 2024
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How (well-implemented) POS promotions can benefit your retail business?

In modern retail, a noticeable shift away from traditional monolithic POS systems reflects a growing need for personalized in-store promotional experiences that align with the evolving expectations of today’s consumers.

In 2020, Go-Globe found that 59% of retailers wanted their POS systems to be all about omnichannel capabilities; another 52% were keen on upgrading their POS setups. Clearly, there's a push for better POS technology. In this situation, turning to omnichannel POS promotions and loyalty programs isn't just a trend; it's a savvy step to elevate the customer experience.

In this blog post, I'll explain why a flexible point of sale is the solution for today's retail promotions. I'll cover the types of supported POS promotions and explore the advantages of using POS-focused promotions and loyalty programs.

Why monolithic POS systems don’t work anymore?

Point of sale (POS) system is a technology that facilitates transactions between a business and its customers. While some associate the POS solely with payments, it is in fact multifunctional – enabling brands to not only process sales, but also manage inventory, track customer preferences, and run promotions and loyalty programs.

The POS market has various solutions with different features. However, big corporations dominate the industry with inflexible POS systems, making customization and integration difficult. This creates challenges for buying, integrating, and maintaining POS systems, especially for large enterprise companies with extensive shop networks.

Traditional, all-encompassing POS systems, which were once reliable for transactions, are now revealing their limitations in the realm of retail promotions:

  • Customization challenges: Integrating customizations or additional features is difficult, limiting adaptability to unique business needs.
  • Scaling complexity: Brands with extensive store networks find scaling with monoliths challenging, as accommodating increased promotion and loyalty needs the entire POS to be restructured.
  • Tech constraints: In monolithic POS, changes to promotional features may impact the entire system, potentially leading to delays when implementing new promotions. Legacy vendors are also known for high latency and delays in data sync which can expose your brand to fraud. 
  • Omnichannel limitations: Monolithic POS systems may struggle with providing omnichannel capabilities, affecting the overall customer experience in multichannel retail environments.
  • Vendor lock-in: Traditional POS providers go out of their way to make the replatforming to a new system as difficult and costly as possible. 

Why is composable architecture better for POS promotions?

By adopting a composable approach to POS, brands can build their point-of-sale systems by combining individual components like payment processing, inventory management, and promotion engines. This approach allows for customization to meet specific needs and makes it easier to adapt to changes in technology or business requirements.

Here are some benefits that come with using a composable POS:

  • Creative displays for incentives and rewards: Composability empowers retailers with unique interfaces for creative POS discounts, coupons, loyalty programs, and more.
  • Dynamic POS promotions: By separating the backend logic from the frontend, brands make it easier to adapt and integrate POS with external services like CRM or CDP.
Voucherify: An omnichannel solution for effective POS promotions, discounts, and loyalty
  • Omnichannel promotion personalization: Integration of a specialized promotion engine into the POS enables granular offer personalization based on customer data across all channels without disrupting the entire POS architecture.
  • Scalable POS discounts: Scalability that comes with composability lets brands add new features or channels on demand.
  • Real-time insights: Composable POS systems consolidate data for up-to-date insights into customer behavior and ongoing promotions, constituting 51% of retailers' most valuable data (Go-Globe).

Types of promotions supported by POS

The modern point of sale system integrated with a promotion engine provides retail businesses with opportunities to run various types of promotions and loyalty programs, collect customer data, and offer a memorable omnichannel shopping experience. 

Below, you can explore various types of promotions that can be orchestrated using POS integrated with a promotion engine:

1. Omnichannel loyalty programs

Loyalty programs play a crucial role in omnichannel retail, combining online and offline interactions to reward and nurture customer loyalty. With a modern POS system, salespeople can automatically give and redeem loyalty points during in-store transactions. The POS not only keeps track of loyalty points as customers make purchases but also provides real-time access to accumulated rewards, eliminating the hassles of manual point tracking. And doing so with minimal latency. 

The integration of a loyalty program into in-store POS empowers sales staff to engage with customers through personalized recommendations based on their loyalty history, enriching the omnichannel shopping experience. For example, customers might receive a special birthday product as a loyalty reward when visiting a physical store. Whether redeeming points instantly or across different channels, the POS-first loyalty program ensures a seamless and satisfying process, bridging the gap between physical and digital retail spaces.

Learn more: How to Create an Effective Omnichannel Loyalty Program in 2024?

2. POS discounts and coupons

Coupons and discounts are still a popular choice for incentivizing purchases, and a POS system should simplify their usage, not complicate it. The physical POS terminal integrated with a promotion engine allows salespeople to easily scan or input coupon codes during in-store transactions, streamlining the redemption process. Omnichannel capabilities extend this convenience, enabling customers to receive and redeem digital coupons both in-store and online, creating an interconnected shopping journey.

For more advanced POS deployments, it’s possible to integrate dedicated components for listing and hinting more available offers that customers can claim right at the counter, making the transaction even sweeter and more memorable. 

3. Buy one get one (BOGO)

BOGO promotions are an effective strategy for boosting sales, and when coupled with a modular POS system, the administration of these promotions is much more streamlined. The POS terminal simplifies the implementation of BOGO deals in face-to-face transactions, enabling salespersons to add complimentary items to the shopping cart while ensuring real-time inventory updates. Some POS systems even offer customization options, allowing users to specify the quantity and type of items required to qualify for the buy X get Y offer.

4. Flash sales 

Flash sales build a sense of urgency, and a POS system makes executing them a breeze for businesses. The POS automatically applies time-limited discounts, prompting customers to make swift purchasing decisions. This not only increases sales during specific periods but also adds an exciting element to the shopping experience. With the quick application of discounts at checkout, customers feel the urgency to seize the deal, creating a dynamic and engaging shopping atmosphere.

5. Tiered pricing

Tiered pricing, made easy with a POS system, lets businesses set flexible prices based on order quantities. This motivates customers to purchase more by offering increasing discounts as they buy larger quantities. The POS system streamlines the handling of tiered pricing structures, ensuring a clear and fair approach that benefits both customers and businesses with quick transactions and accurate discount allocations.

Imagine a clothing store employing tiered pricing through their point of sale system. As customers decide to purchase multiple items, the POS system dynamically adjusts the prices. For instance, buying two or more pieces from a specific clothing line might trigger a tiered discount – the more items in the basket, the higher the discount percentage.

What are the benefits of running point of sale promotions and loyalty programs?

  • Consistent customer experience: Implementing promotions through a point of sale ensures a smooth customer journey across all touchpoints, fostering strong loyalty. Customers appreciate the convenience of receiving and redeeming discount codes across various channels.
  • Data-driven adaptability: The integration of customer data empowers businesses to gain valuable insights, enabling the adaptation and personalization of promotions based on customer preferences.
  • Cross-selling and upselling opportunities: Utilizing omnichannel promotions allows businesses to present tailored discount recommendations, leveraging customer history and preferences. This creates opportunities for effective cross-selling and upselling.
  • Increased sales conversion: Effortless transitions between online research and in-store purchases, or vice versa, contribute to higher sales conversion rates. Customers can easily move through the buying journey without disruptions.
  • Flexibility and agility in marketing: Point of sale promotions with an omnichannel approach offer the flexibility to adapt marketing strategies swiftly to changing market trends. This ensures businesses remain relevant and competitive.

How to connect Voucherify to your point of sale system to run POS promotions?

By linking Voucherify to your POS system, you can enhance your incentive redemption process and boost customer satisfaction by guaranteeing your customers the best omnichannel experience. Opting for API integration provides the utmost flexibility, enabling you to tailor how Voucherify interacts with your POS system. This approach is ideal for both in-house built POS systems and those that can connect to a 3rd party API, ensuring adaptability and customization.

Below, you can see an exemplary simplified integration diagram of a POS integration:

Voucherify: Exemplary POS promotion integration diagram

Many of our customers have opted to integrate Voucherify into their in-house built POS via SDKs, while others have implemented successful integrations with the following POS systems:

How Munhowen runs an omnichannel POS loyalty program with Voucherify?

Munhowen, a part of the Brasserie Nationale Group, is the largest beverage wholesaler in Luxembourg. To guarantee recognition and appreciation of loyalty members across web and physical touchpoints, the Munhowen Drinx team integrated Voucherify into their in-store POS system via a Java SDK to enable functions such as:

  • Physical loyalty cards scanning for earning and spending loyalty points. 
  • Redeeming loyalty rewards in-store. 
  • Printing receipts with real-time loyalty score and loyalty tier. 

Thanks to the POS integration, Munhowen Drinx customers can receive tangible cards and scan them during each purchase while earning points on the go. As a result, Munhowen Drinx ensures an omnichannel customer experience that spans both online and offline interactions, making it possible for loyalty points to be collected and spent at various touchpoints.



Deploy POS promotions for your retail business with Voucherify

Integrating POS promotions is a game-changer for retailers prioritizing top-tier omnichannel experiences. These promotions not only ensure untroubled customer journeys but also foster customer loyalty. As you embark on this retail revolution, remember that choosing the right promotion and loyalty engine is like finding the perfect accessory for a stylish outfit. So, in the world of modernized POS and promotions, pick your software wisely – because in retail, the right tech is the ultimate trendsetter.


Connect your POS with Voucherify

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