The book Disrupt You! by Jay Samit contains a quote that applies to value-added resellers (VARs) and independent software vendors (ISVs) vying for a share in growth markets:
“…To stay relevant, you must keep your career in permanent beta. That means committing to a lifetime of learning and professional growth, a lifetime of strategic adaptation.”
Point of sale VARs and ISVs have been challenged to find new customers and sell deeper into saturated markets. However, those willing to disrupt the status quo and adapt can reap significant rewards. In 2022, these three verticals are projecting gainful opportunities.
The cannabis market is surging full speed ahead with a projected global CAGR of 14.5 percent over the next five years. Business owners in this growth market are experts at growing cannabis and manufacturing products but are often overwhelmed by the tech behind an efficient business.
Additionally, they require solutions that address a variety of industry challenges, including:
- Inability 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 build tech solutions that help dispensaries run efficiently while creating a frictionless customer experience.
Pre-COVID 19, global ecommerce retail sales surpassed $3.5 trillion. By 2023, this growth market is projected to reach $6.542 trillion in sales. The pandemic accelerated the adoption (and development) of technologies that transformed the way consumers do business online. Consumers now unforgivingly expect to engage and purchase online and move seamlessly between platforms, and business owners are under pressure to deliver or become irrelevant.
You can expand your portfolio or partner with a provider to optimize point of sale solutions for ecommerce 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 apps, marketplaces, and web platforms and accounting, inventory, sales, and a CRM platform is critical to running an efficient and profitable business.
Online order fulfillment: According to the National Retail Federation, 75 percent of consumers expect delivery to be free — which means businesses require creative solutions like that of a micro-fulfillment center to automate fast and accurate fulfillment.
Integrated omnichannel payments: Crucial for streamlining workflows, saving money, and remaining relevant to modern customers, point of sale retailers in the ecommerce growth market need the ability to provide all methods of collecting payments in a myriad of ways customers prefer to pay.
Alternative Payments: Merchants with brick-and-mortar locations or pop-up shops need the ability to turn tables faster or bust lines 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, delivering a high-stress, low-trust transaction. According to the 2021 Deloitte Global Auto Consumer Study, most consumers still buy their vehicles in person. They prefer to go online for parts of the process that will streamline, increase transparency, or give them more control. This includes research, paperwork, and financing. VARs and ISVs can build solutions that will help automotive dealers implement these online processes in this growth market.
When it comes to servicing and repairing vehicles, most automotive dealers do not have point of sale systems that can efficiently and accurately track the high volume of SKUs in dealer inventories. Implementing tech that can help automate processes, track parts in stock that are available versus parts allocated to projects, track price changes and recalculate costs will go a long way to improving profitability. Additionally, many shops can benefit from integrated payments solutions as more consumers desire to use digital wallets to pay for service and repairs.
Strategic Adaption to Stay Relevant
The growth market in these three industry verticals brings opportunities for VARs and ISVs who strategically adapt their point of sale solutions and services to capitalize upon these markets. Innovation, agility, and grit will define those poised to win the share of the market in 2022 and beyond.