How POS VARs and ISVs Can Find Customers and Achieve Business Growth in 2022

Although the U.S. is facing tough economic times, smart value-added resellers (VARs) and independent software vendors (ISVs) are finding opportunities – some that even rank among the top in their careers.

Somewhat ironically, a number of opportunities to sell or upgrade IT solutions are directly related to the changing economy and your prospects’ drive to overcome those challenges and keep their businesses viable. Merchants that survived pandemic shutdowns, supply chain disruptions, and labor shortages are fighters. Now, they’re looking for investments they can make into their businesses that will help them get in front of their audiences on every channel, increase engagement, and capture revenues, even as inflation rises. Furthermore, some of your customers or prospects may see peers wavering and consider it an opportunity to grow their market share.

If you’re taking a similar, aggressive outlook, make sure your portfolio includes these solutions that growth-minded merchants demand.

Self-Service unattended applications

A key to building repeat business is giving consumers what they want. And research shows many want self-service options. A study from digital signage provider Raydiant found that 59 percent of merchants have seen an increase in self-service checkout in 2021, and 52 percent expect even more use through 2022. Additionally, 85 percent of consumers believe self-service checkouts are faster than waiting in line, and 60 percent prefer self-checkout.

Furthermore, self-service solutions provide merchants with operational efficiency and cost savings, particularly during the ongoing labor shortage. With retail job openings at more than 1.1 million as of May 2022 and accommodation and food services openings at 1.4 million, your clients need to find ways to do more with fewer employees. Self-service ordering at a restaurant or self-checkout at a retail or grocery store allows one employee to supervise several kiosks or lanes at once rather than serving customers one-to-one.

Where VARs and ISVs Can Find Opportunities

Although there’s a demand for self-service solutions in just about every niche of the point of sale (POS) market, VARs and ISVs may see a heightened interest with:

• QSR: Self-service kiosks adoption is sweeping the quick service restaurant space. When software developers engineer optimal user experiences, self-service kiosks offer consumers convenience and the satisfaction of taking their time to order exactly what they want. They also give restaurant managers an additional way to capture data, and, with consistent upselling, kiosks tend to increase average sales.
• EV Charging Stations: As the number of electric vehicles (EVs) on the road increases, the demand for EV charging stations will also rise. Restauranteurs, retailers, malls, and shopping centers with parking lots can install self-service EV charging stations to provide their customers with convenient places to charge – and create a new revenue stream.

Buy Now, Pay Later (BNPL)

As the consumer price index rises, consumers will look for more budget-friendly ways to make purchases. It’s especially a priority for Gen Z and the massive millennial consumer demographic in their “spending years,” buying and furnishing homes, purchasing apparel and tools for their careers, buying electronics, and raising children. Statista reports that 36.8 percent of Gen Z and 30.3 percent of millennial consumers use BNPL to make purchases more affordable, making an established number of payments rather than paying the entire amount upfront.

Where VARs and ISVs Can Find Opportunities

• Businesses with millennial and Gen Z customers: Merchants with a business plan that involves providing the best possible customer experiences will want solutions that integrate with BNPL to meet their customers’ expectations and capture sales.
• Retailers that sell high-value merchandise: Consumers may hesitate to run up credit card balances to make major purchases, but they may be willing to purchase if they can split the cost into payments.
• E-commerce businesses: BNPL options online can increase conversions and reduce shopping cart abandonment.

Omnichannel

The pandemic accelerated omnichannel commerce. Furthermore, consumers not only engage with merchants on different channels but are also accustomed to using multiple channels for a single purchase. For example, Shopify reports that 54 percent of consumers will shop for products online but then purchase them in a store. On the other hand, 53 percent browse in physical stores and then buy online.

Additionally, eMarketer predicts that buy online, pickup in store (BOPIS) use will increase from $73.16 billion to more than $154 billion in 2025. Food ordering, too, has grown 300 percent faster since 2014 than dine-in, and it’s now nearly half of all restaurant sales.

Where VARs and ISVs Can Find Opportunities

• Restaurants using third-party ordering platforms: ISVs and VARs can help restaurants operate more profitably by accepting online orders directly rather than using third-party platforms that charge fees, diminishing profits.
• Retailers that offer BOPIS and curbside pickup: Many retailers quickly established BOPIS and curbside pickup offerings during the pandemic. However, now they’re looking for ways to manage them more effectively.
• Brick-and-mortar retailers new to e-commerce: Retailers serious about competitiveness need an online presence. Show them how to create a fully integrated system that gives them visibility into all channels and creates seamless customer experiences.
• Businesses without an omnichannel payment platform: Using different payment solution providers for different channels (i.e., one for card present attended application, one for unattended application, one for payments on mobile devices. one for e-commerce, ) is an inefficient way for merchants to manage their businesses. Partner with an omnichannel payment provider to give your clients the advantage of working with one vendor offering a single, integrated platform for greater back-office and end-of-day reporting efficiency.

Where’s Your Next Big Opportunity?

Solutions are in demand now, and VARS and ISVs have an opportunity for growth.

It all starts with a conversation. Listen to your clients and prospects, understand their pain, and then do what you do best. Provide the solutions that will help them overcome their challenges and achieve their goals.