5 Ways A Point Of Sale Can Increase Customer Loyalty

5 Ways A Point Of Sale Can Increase Customer Loyalty

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Ask any retailer what a Point-of-Sale (POS) system is and they'll most likely tell you it's the central component of their business. A combination of software and hardware, your POS system is so much more than a cash register. It's the main hub at your business where everything comes together!

By recording every transaction, collecting customer data, and tracking inventory, your Point-of-Sale system is the most valuable business tool you have in your retail store.

But have you optimized your POS system to build long-term and profitable relationships with your customers? Here are 5 ways a modern POS system can increase loyalty all around:


Having a loyalty program that integrates into your retail POS system plays a key role in the overall success of the program itself. Generally, the most challenging aspect of launching a customer loyalty rewards program is getting customers to sign-up. When your POS prompts cashiers to invite shoppers to join the program, however, those challenges virtually disappear. Collecting customer information at the POS is no longer a time consuming, frustrating process. Advances in digital POS systems, as well as digital loyalty rewards programs, have made the enrollment process fully automated. All your cashiers will need to do to enroll customers at the POS is scan their drivers' licenses and collect their first name and email address. Once enrolled, new members can download the loyalty program app, familiarize themselves with the program, and start getting excited about earning and redeeming points at your store.    

Concerned your casual customers will decline to enroll in your loyalty rewards program when cashiers tell them about it during the checkout process? Offer enrollment incentives at the POS. You can provide a percentage discount on their current order, a dollar-off value on their next trip, or even a free item. One of the greatest benefits of using a digital loyalty program that's integrated into your POS system is that you can track historical sign-up trends to leverage for future sign-up promos and incentives.

When it comes to turning new program members into long-term, loyal customers, the first six months are critical. Use the comprehensive reporting from your POS system to analyze new members' shopping habits to gain an understanding of customer engagement for members who have been with the program less than six months. Are the redemption cycles healthy? If not, adjust the redemption thresholds in order to stimulate customer engagement and boost sales.


POS system software is capable of collecting complex data in the most vital areas of your retail business. With each transaction, your POS picks up multiple pieces of information that you can use to improve your business. By collecting customer data, inventory management data, sales reporting data, and other data relevant to income, expenses, COGS, and fluctuations in your industry, your POS is a powerhouse of information. POS data provides valuable insights, which you can take into consideration as you manage, adjust, and maintain your loyalty rewards program. After all, everything you could ever possibly want to know about who your customers are and what they want most from your store is sitting right there within your POS.

Review your inventory data to identify your best selling products and services. With comprehensive reporting built right into the POS, you can cross-reference your best sellers with customer profiles and develop demographic trends to use in your future targeted promotions. You can also analyze product sales fluctuations from one season to the next for accurate sales forecasting.

By far, the CRM (customer relationship management) data of your POS should be the most valued and most leveraged information, if your goal is to increase customer loyalty. With seamless integration connecting your POS to your rewards program, your cashiers will be able to make the most of every upselling and cross selling opportunity when they interact with your customers at the checkout registers. 


When a customer signs up for your loyalty rewards program at the POS during checkout, the POS automatically creates a customer profile for them, and from that moment forward, every item they buy is recorded. Having a constantly developing database of CRM profiles can help you connect and interact with customers in ways they'll appreciate. Loyalty program data collection is even more detailed than CRM, which means that the promotional campaigns you launch to segments of your loyalty program customers can be all the more targeted.

When retail POS systems include customer-facing screens, loyalty members who are going through the checkout process will see personalized product suggestions they might like to add-on to their order, right there on the spot. This POS feature has the power to generate higher spend-per-visit sales.

In 2021, it has been fully established that the more personalization used in an advertising campaign, the more successful that campaign will be. With the right POS system in place at your business, the level of personalization your customers experience will not only lead to increased loyalty and revenue, but will also lead to the long-term accumulation of high-star and five-star reviews online.


In today's digitized society, the reality is that every consumer's needs depend on context and convenience. How do the products you sell and the services you offer alleviate your customers' pain points? Will the items you offer solve their problems quickly, conveniently, and affordably? Let's face it, promotions and discounts are crucial to driving sales, but if they aren't relevant to your customers' individualized preferences, they won't be successful and increase your bottom line. Your POS should allow you to target a specific segment of customers and offer them items based on their collective purchase behavior. When you show customers you appreciate them for patronizing your business by giving them special discounts or thoughtful perks, true loyalty is fostered, and the profitable cycle of purchasing, earning, redeeming, and saving builds momentum.

During the checkout process, your POS system will tell cashiers how many points each loyalty member has racked up and how close they are to redeeming products that might personally interest them. When your cashiers see personalized recommendations on their POS screens that are relevant to the customers they are helping, they can upsell and cross sell at the register.  

In order to avoid one-size-fits-all loyalty promotions, use customer segmentation and actually tailor your loyalty campaigns so that each customer segment receives promotional offers for products and services they definitely want.


Don't make the threshold of redeeming earned points so high that customers have to wait before they're rewarded. Make your rewards instant, or as close to instant as possible! Your POS system should be able to automatically apply loyalty discounts and promotions without any hassles. As humans, consumers desire instant gratification--we all like to experience immediate results when we commit to important, long-term relationships, including the relationships we have with brands. The same principle applies to loyalty participants. When customers know they'll be rewarded for their purchase, it becomes an incentive for them to buy low-risk, impulse items at the register.

If your loyalty rewards program comes with an app--and we strongly recommend you include an app as part of your program--the app itself can be a source of instant gratification, both in-store and at home. Mobile apps provide a way to shop and pay without coming into physical contact with cashiers at the checkout registers. Tap-to-pay loyalty app capabilities make the checkout process a breeze, and when members aren't in your store, they can still shop, earn, and redeem points from anywhere!

When you set up your loyalty program mobile app to function as though it's an extension of your POS, then the potential for keeping your customers engaged and shopping is endless. Remember: instant gratification = instant purchases!

Your Point-of-Sale system should streamline your workload, engage your customers, and drive sales. Having the right POS solution will not only make your operations more efficient, but can actually grow your business and loyal customer base! If it doesn't, then it might be time for you to look for a new one. FTx POS Solutions is custom software built by retailers for retailers!

Our solutions integrate Loyal~n~Save with FTx POS to provide the best software tools on the market to help you:

  • Develop more personalized customer experiences
  • Encourage customers to engage in new experiences
  • Create automatic customer profiles
  • View transaction data in relation to marketing campaigns
  • Generate in-store analytics to quantify business performance

Contact us to learn more, or visit goftx.com for a FREE POS & Loyalty demo. 

This article was written by Loyal-n-Save, an omni-channel customer loyalty solution for retailers looking to increase customer retention and new customer acquisition.
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Douglas Nolan
Written by Douglas Nolan

He believes in solving real problems with realistic technological solutions that stand the test of time. Seeing his clients struggle to retain consumers, Douglas decided to help his clients by offering affordable and top-class loyalty solutions. Doug loves transforming the lives of his employees by assisting them to develop a solid blend of TQ (Technology Quotient) & SQ (Spiritual Quotient) to excel in their professional & personal lives.

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