3 Growth Markets for POS ISVs
The book Disturb you! by Jay Samit contains a quote that applies to value-added resellers (VARs) and independent software vendors (ISVs) vying for a share of growing markets:
“…To stay relevant, you need to keep your career in permanent beta. It means committing to a life of learning and professional growth, a life of strategic adaptation.
VARs and ISVs have been challenged to find new customers and sell deeper in saturated markets. However, those willing to disrupt the status quo and adapt can reap significant rewards. In 2022, these three verticals project remunerative opportunities.
The cannabis market is growing at breakneck speed with a projected global CAGR of 14.5% over the next five years. Business owners in this growing market are experts in growing cannabis and manufacturing products, but are often overwhelmed by the technology behind running an efficient business.
Additionally, they need solutions that address a variety of industry challenges, including:
- Unable to accept digital payments
- Highly regulated reporting mandates
- Increased risk of theft from the public and employees
- Demand for better customer experiences that are both efficient and profitable
Cannabis businesses need ISVs and VARs who understand the industry and can create technology solutions that help dispensaries run efficiently while creating a frictionless customer experience.
Prior to COVID 19, global e-commerce retail sales exceeded $3.5 trillion. By 2023, this growing market is expected to reach $6.542 trillion in sales. The pandemic has accelerated the adoption (and development) of technologies that have transformed the way consumers do business online. Consumers now ruthlessly expect to engage and buy online and switch seamlessly between platforms, and business owners are under pressure to deliver or become redundant.
You can expand your portfolio or partner with a vendor to optimize point-of-sale solutions for e-commerce while positioning merchants for emerging trends like social media selling and voice assistant shopping.
Solutions that will become ubiquitous for merchants include:
Integrated e-commerce: Automated, real-time data transfer between applications, marketplaces, and web platforms and accounting, inventory, sales, and a CRM platform is essential to running an efficient and profitable business.
Fulfillment of online orders: According to the National Retail Federation, 75% of consumers expect free delivery, which means businesses need creative solutions like a micro-distribution center to automate fast and accurate distribution .
Integrated omnichannel payments: Crucial to streamlining workflows, saving money and staying relevant to modern customers, point-of-sale retailers in the growing e-commerce market must be able to provide all payment collection methods from a myriad of ways customers prefer to pay.
Alternative payments: Merchants with physical locations or pop-up stores need the ability to turn tables faster or stop queues using alternative payment methods such as Text-to-Pay, QR code and TextPay Invoicing.
The automotive industry operates on a legacy retail model that brings friction to the consumer experience, providing a highly stressful and unreliable transaction. According to Deloitte’s 2021 Global Automobile Consumer Study, most consumers still buy their vehicle in person. They prefer to go online for the parts of the process that will streamline, increase transparency, or give them more control. This includes research, paperwork and funding. VARs and ISVs can create solutions that will help car dealerships implement these online processes in this growing market.
When it comes to servicing and repairing vehicles, most car dealerships lack point-of-sale systems that can efficiently and accurately track the high volume of SKUs in dealer inventory. Implementing technologies that can help automate processes, track available stock parts against project assigned parts, track price changes, and recalculate costs will go a long way to improving profitability. Additionally, many stores can benefit from integrated payment solutions as more consumers want to use digital wallets to pay for services and repairs.
Strategic adaptation to stay relevant
The growing market in these three verticals provides opportunities for VARs and ISVs to strategically tailor their point-of-sale solutions and services to capitalize on these markets. Innovation, agility and courage will define those who are ready to win market share in 2022 and beyond.