Consumers’ Checkout Preferences Are Changing
If your company has been considering POS equipment leasing, it’s important to first understand where the industry as a whole stands in terms of how people prefer to pay. For example, there are several generations — Baby Boomers, Generation X, Generation Y (Millennials), and Generation Z — actively involved in making purchases, but the manner in which they buy varies greatly. For organizations that process consumer payments, knowing the key differences between each generation will guide what POS strategy they take in their organizations.
For example, 84% of Baby Boomers prefer to shop in stores, which stands in stark contrast to Millennials, of which only 13% prefer to buy in stores. However, it’s not just about where consumers prefer to buy, but also how. In a recent study, Generation Z — the youngest working generation which is soon expected to command more than 40% of all consumer spending — is leading the charge on mobile payments, both to other consumers and to businesses. More than 80% of this generation is actively involved in using mobile for payments.
When it comes to POS equipment leasing, understanding which generation is driving the significant portion of your sales — both in-store or online — will help you understand what type of equipment you need to be using. It will also inform the parameters and longevity of your POS hardware program. For example, while in-store shopping still commands the dominant portion of all retail sales, the manner in which sales are completed is changing. We’re all familiar with the advent of stores like Amazon Go, which allow consumers to enter a store and take what they want. Their Amazon account is charged later for the items they’ve taken.
These trends are expected to continue changing as well. Wearables and other smart devices are changing the way that consumers pay for their purchases. It’s because of this that more fluid and easily implemented solutions are ideal when it comes to your POS needs. Frequent hardware refresh cycles will keep your organization ahead of the curve and well-positioned to speak to newer generational preferences. But what type of POS leasing program is right for you?
What to Look for in a POS Equipment Leasing Solution
While you could always purchase your POS hardware, doing so would be extremely costly and requires a significant investment upfront. Because of this, it will take your organization some time to recoup that capital investment and begin to see a return. By then, consumer payment preferences may have yet again changed or be in the process of shifting, and your organization’s sales could be getting stifled for not having the payment capability that consumers expect.
Instead of buying hardware outright, consider Hardware-as-a-Service (HaaS) for your POS equipment leasing needs. HaaS is a unique approach to POS equipment leasing that gives your organization a number of strategic advantages — not only over the competition but also financially and for your own internal operations.
1. Your Hardware Gets Updated More Frequently
The most immediate benefit of the hardware-as-a-service model is that it delivers more frequent hardware refresh cycles and upgrades to the organization. This means you no longer need to worry about researching and investing in new hardware every few or several years. Since HaaS is a contract, the provider will be in touch with you throughout the relationship to ensure your hardware is working well for you and to touch base when the time to renew comes. When it does, you’ll be able to swap hardware out seamlessly for new devices.
2. Your Hardware is More Reliable Because It’s Newer
A resulting benefit of more frequent refresh cycles is reliability. At the start of your contract, you get brand-new hardware that meets your goals. Because it’s new, you don’t have to worry about dealing with the frequent breakdowns and problems that come with older hardware. Everything just works. Any device repairs or swap-outs can be handled on a case-by-case basis. This reliability keeps your retail floor or other payment processing channels running smoothly.
3. You Realize a Lower Total Cost of Ownership
On the financial side, HaaS provides a lower total cost of ownership (TCO) in that you get the hardware you need without that heavy upfront investment. Whatever devices you need are rolled out throughout your organization, allowing team members to start using them right away. This produces more immediate benefits to the organization in that you can start earning more revenue by using higher-quality devices sooner (without the expense). Without this immediate benefit, your organization would lose valuable time in researching and building up to a different hardware solution when you could’ve been achieving your goals sooner with HaaS.
4. Your ROI is Almost Immediate
One of the leading metrics for any hardware program is the return on investment you realize. While a company that purchased its hardware might not realize a positive ROI for a few years (or more), those who use a POS equipment leasing solution like HaaS will have a very different experience. First, because the hardware solution is delivered sooner and for less expense, your organization isn’t out on any significant capital. This means the company can put that hardware to use right away and start seeing tangible gains from that use. Less money spent with more money gained means a higher ROI. This ROI is measurable almost from the start.
Achieve Your Goals with a Better POS Equipment Leasing Solution
POS equipment leasing doesn’t have to be difficult or expensive. Instead, let the hardware experts at River Capital Finance help you achieve your goals. We offer a HaaS solution that is completely customizable to your hardware needs. And, because you’ll already have an agreement in place with us, you’re free to update or expand your hardware contract at any time. Fill out the form below to get in touch with our team today.