Think about it: You leave a store without a printed receipt, but instead you receive a message, “Thank you for your purchase! Tap here for your digital receipt and an exclusive 10% off your next visit.” Sounds convenient, right? You’re not alone. 75% of customers prefer digital receipts and real-time offers over traditional interactions at checkout.
SMS has become an essential part of many of today’s POS systems. Companies and organizations across every industry have found ways to develop SMS to improve customer experiences, improve their operations, and increase customer engagement after a purchase.
In this article, we will highlight how SMS is helping with real-time updates, personalized promotions, digital receipts, loyalty programs, customer feedback, and many other elements of the point of sale.
What is SMS Messaging in the Context of POS?
SMS (Short Message Service) messaging refers to sending a text message to a customer’s mobile device during point of sale (POS) engagements to provide transaction-related messages and information, promotional messages, or service messages. SMS messaging is a direct, real-time, and succinct method of communication.
The best POS systems enable SMS messaging in conjunction with an application programming interface (API) or through a third-party messaging platform. The best POS systems can use automated texts to send messages of their own during the sales transaction process, triggered by events like completing a sale, successfully completing a payment, or shipping an order from a third-party shipping provider.
For example, a retailer’s POS can send a text message with the order details to customers who complete a sale online for in-store pickup (BOPIS). Cloud-based POS solutions that take the client database into account can personalize SMS messages (ex, “Thanks, Sarah, for your purchase!”) while also ensuring they follow opt-in regulations like the TCPA.
Types of POS Communication Methods
Traditional Methods (Paper Receipts, Email Notifications)
Historically speaking, the communication methods were strictly POS methods, which consisted of handing the customer a paper receipt at checkout or emailing their receipt. To elaborate, a grocery store would print the receipt for a customer, online retailers would email a summary of the order, which more than likely would be cumbersome, maybe missed altogether or maybe in a spam folder or deleted should there have been a delay in receiving the confirmation.
Turn Communication Digital, Although Mostly Mobile
The introduction and increase in usage of smartphones opened up the door for digital/tech approaches, which in most functionalities would be communicated digitally via email receipts and app notifications (with or without tracking). However, emailing receipts and app notifications are cumbersome again, because the notification requires another step that involves connectivity issues, and downloading the retailer’s app for tracking.
Why Choose SMS (Immediate Delivery, No Barriers, Open Rates Above 98%)
SMS texts every single time are received immediately, with open rates above 98% per SMS text, the average email has open rates at 20-30%. Imagine a restaurant texting you, “Your takeout order is ready!” and the restaurant received confirmation it was sent. The SMS text is immediate, does not require an app or Wi-Fi. SMS texts as a communications method work universally for POS – immediate and accessible, ideal for time-sensitive transactions and interactions.
What SMS Looks Like in Real Point-of-Sale Moments (With Use Case-Based Examples)
Point-of-sale (POS) systems have advanced beyond just processing transactions. As integration with SMS technology has developed, businesses can now easily turn an every day purchase into a seamless personalized experience for the customer. Below are some real-world scenarios from different industries that highlight how SMS can improve customer experiences and create long-term loyalty:
1. Retail Store Example: From Transaction to Loyalty in One Text
It’s a Saturday afternoon, and Emma is shopping in a local fashion boutique. She is there to purchase a dress for an upcoming event. After searching, Emma finds the perfect dress and makes her way to the counter for checkout. When she reaches the counter, the cashier asks her, “Would you like your receipt sent to you by text instead of paper?” Emma agrees and provides her phone number.
No sooner has she paid than Emma gets the following text message:
“Thank you for shopping with us, Emma! Here is your receipt: [link]. Use code DRESS10 at your next visit for 10% off.”
Pleased with the receipt and their offer, Emma clicks the link and saves her coupon. A few days later, Emma receives another message:
“You have received 50 loyalty points! You only need 50 more for $10 off your next purchase.”
What began as a simple transaction now feels like the start of a relationship. Emma is more likely to return, not just for the dress, but for the experience and the perks.
2. Quick Service Restaurant (QSR): Speed, Satisfaction, and Smart Feedback
On his lunch break, Josh walked into a busy burrito place downtown, placed his order through a self-service kiosk, and gave his phone number so he would get notified when it was ready. The line was long, but Josh found a place to sit and scrolled through his phone.
A few moments later, a message arrives:
“Hey Josh, your burrito bowl is ready! Pick up at Counter 3.”
No shouting. No waiting in line. Just simple, efficient service.
After finishing his meal, another text comes in.
“Thanks for stopping by! Let us know how we did and get a free drink on your next visit [link].”
Josh quickly leaves his feedback on his way back to work, and he knows he will return, not just because the food was good, but because the whole experience felt modern, respectful of his time, and rewarding.
3. Salon or Spa: Personal Touches That Keep Clients Coming Back
Olivia has just had an enjoyable massage with her favorite massage therapist at her favorite spa. When Olivia checks out, the receptionist asks if she would like to receive her receipt by text. Of course, she says yes! A second later, Olivia’s cellphone buzzes:
“Thank you, Olivia! Here’s your receipt: [link]. You can rebook your next massage now and get 15% off.”
Olivia smiles. No paper, no mess. She clicks the link and books her next massage for two weeks from today.
On the fourteenth day after her massage, she receives another text:
“Hey Olivia, it’s time for some self-care again! You have a massage this Friday at 3 PM. Reply YES to confirm.”
Olivia replies right away and feels like the spa treated her like a special person, not just someone who went to a spa to receive a service. The spa remembered her, cared for her, and made it easy.
4. E-commerce POS at Events or Pop-Ups: Turning Moments into Long-Term Customers
At a Saturday street fair, a new skincare brand has ecstatic a fabulous pop-up booth. Samantha stands to the attraction and samples a face serum. The serum instantly provides a glow to her skin, and she decides to buy it.
The vendor processed her transaction on a tablet and asked, “Would you like your receipt and exclusive offer by text?” It captured her attention, so she answered, yes, and provided her phone number.
As she walks away, we hear the phone buzz:
“Thanks for stopping by our pop-up, Samantha! Here’s your receipt: [link], and use code GLOW20 for 20% off on your next online purchase.”
The next morning, while using the serum, she clicked the link and browsed the brand’s site. Several days passed, and a follow-up message was sent.
“Our bestsellers are back in stock! Tap here NOW and shop before your exclusive discount expires.”
And just like that, the brand turned a spur-of-the-moment event experience into an ongoing customer relationship, all through expertly-timed SMS.
How SMS Creates Smarter Point-of-Sale Experiences
While contemporary point-of-sale (POS) systems traditionally serve as a transaction for payment, SMS is creating a smarter and better POS experience. Here are some of the ways SMS is smarter:
1. Digital Receipts via SMS
No more ripping and losing flimsy paper receipts that fade away! SMS provides an environmentally friendly benefit of sending digital receipts straight to consumers’ mobile devices. Not only do retailers add a measure of sustainability to their operations, but they also add an extra element of convenience for the consumer.
Unlike email (which might not be read or might even end up in the spam folder), SMS gets delivered instantly, and depending on the consumer’s mobile habits, it is likely highly visible. It allows consumers to receive their receipts instantly and also return to them later if they need to reference due to warranty, returns, or expense tracking for personal or business purposes.
The use of digital receipts also reduces the time spent at checkout! Digital receipts help to facilitate a quicker, cleaner checkout experience for the multi-tasking / mobile-first consumer.
2. Instant Promotions and Discounts
There is nothing more impressive than a timely, relevant, personalized offer. SMS enables automated promotions to trigger from customer activity, such as sending a discount right after a qualifying purchase or a dollar amount they have hit.
You can also create coupons that expire quickly, to get something sold quickly, as in clearance for the season, or drive an impulse buy. SMS campaigns can be segmented into campaigns that allow for past purchase history; this way, the promotions appear relevant and personalized.
This benefits the shopper and likely encourages more return visits or purchases.
3. Loyalty Program Integration
SMS makes loyalty programs more dynamic and engaging. Rather than relying on the customer to find those loyalty apps or emails, you can send them real-time updates via text when they earn and redeem their loyalty points.
Just imagine a message that says:
“You have earned 75 points! You are just one purchase away from a $10 reward.”
These types of real-time messages continue to enhance your customers’ experience through continuous engagement. This level of current feedback keeps your customer engaged and encourages them to keep coming back.
By offering SMS only exclusive perks or reminders, you take loyal customers who remain inert and convert them to active, engaged, repeat customers who look forward to every single transaction.
4. Real-Time Order Updates
With SMS, businesses that do food, beverage, or retail pick-ups are particularly benefiting. No more will customers be waiting and wondering when their food or product will be ready. Instead, they will get a real-time message saying “Your order is ready to pick up at Counter 3.” Clearly, this creates a smoother, faster, and more predictable experience.
Certainly, this works well for cafes, quick-service restaurants, and curbside delivery models, which fundamentally depend on speed and convenience. With less waiting, customers are more satisfied, operations can be more efficient, and it creates a more engaged customer.
5. Customer Feedback and Review Requests
Listening is one of the greatest tools to better your service. SMS is a quick, simple, and unobtrusive way to ask for feedback immediately after a purchase.
You can send an automated SMS like this:
“Thanks for visiting! How was your experience? Tap here to leave a quick review.”
This will prompt in-the-moment feedback, while allowing you to collect Google or Yelp reviews while the experience is still fresh to them.
You should be able to collect Net Promoter Scores (NPS) via SMS as well, which will help measure customer loyalty and satisfaction in a simple, mobile-friendly format.
6. Abandoned Cart Recovery (In-Store Tablets or Kiosks)
Numerous businesses now have in-store tablets or kiosks for product browsing or even self-checkout. Those touchpoints present an opportunity to gather customer phone numbers (even if the purchase is not happening right then).
If a customer browses products and leaves without buying, then send them a follow-up SMS like:
“Still thinking about those sneakers? Here’s 10% if you finish your purchase today!”
This tactic creates a bridge between in-store behaviors and online behaviors to help re-engage customers who may have been “lost”. It also creates a consolidated omnichannel shopping experience by connecting every touchpoint.
Conclusion: Ready to Transform Your POS Experience with SMS?
As you can see, SMS is not just a communication tool. It is also a powerful extension of your point-of-sale (POS) strategy. You can use SMS to send instant digital receipts, customize promotional messages, collect real-time feedback, and leverage the potential of SMS to create valuable customer relationships out of simple transactions.
Whether you run a retail shop, quick service restaurant, spa, or pop-up brand, integrating SMS into your POS workflow can increase engagement, efficiency, and positively affect your bottom line.
Want to see how SMS powered POS can apply to your business?
Book a free consultation with Magestore and see how a unified POS system can help you create smarter, connected customer experiences in real time and be mobile-friendly!
