Object As Point-of-Sale

Moving the point of sale to the point of consumption

Object As Point-of-sale Business Model Pattern

Object As Point-Of-Sale Business Model Pattern Featured Image

The Object As Point-of-Sale business model pattern reimagines the sales process by integrating the transaction point within the object or device that uses the consumables. This strategic shift brings the marketplace directly to the point of use, enhancing customer stickiness and driving repeat purchases.

This model enhances convenience, reduces price sensitivity, and generates valuable data insights.

Implementing this pattern requires identifying suitable objects, designing for seamless integration, developing e-commerce capabilities, optimizing consumables, educating customers, and leveraging data analytics.

What is the Object As Point-of-Sale Business Model Pattern?

Object As Point-Of-Sale Business Model Pattern

The Object As Point-of-Sale business model pattern is a strategy where a company shifts the point of sale for consumable products from traditional retail channels to the object or device that uses those consumables. In this model, the object itself becomes the point of sale, making it more convenient for customers to purchase the necessary consumables at the point of consumption. This approach creates a stronger lock-in effect, as customers are more likely to purchase the consumables directly from the object, rather than seeking out alternatives from competitors.

Why is the Object As Point-of-Sale Business Model Pattern Important?

The Object As Point-of-Sale business model pattern is important because it offers several key benefits for businesses:

Impact on the Business Model

This innovative model offers significant advantages:

  • Increased Customer Retention: Convenience is king. By simplifying how consumers repurchase consumables, businesses ensure users stay within their ecosystem, boosting retention.
  • Elevated Customer Lifetime Value: Continuous, direct purchases from the object increase the customer’s value over time, stabilizing revenue streams.
  • Diminished Price Sensitivity: The ease of repurchasing directly from the object makes price a secondary concern for consumers, prioritizing convenience and reliability.
  • Improved User Experience: Integrating sales into the object itself streamlines the buying process, offering a frictionless transaction experience.
  • Rich Data Insights: Sales data collected offers deep insights into consumer behavior, allowing businesses to refine their offerings and marketing strategies.
Object As Point-Of-Sale Business Model Pattern

The Object As Point-of-Sale business model pattern significantly impacts various aspects of a company’s overall business model:

  • Value Proposition: The company’s value proposition extends beyond the object itself to include the convenience and seamless experience of purchasing consumables directly from the device.
  • Revenue Streams: The company generates recurring revenue from the sale of consumables through the object, in addition to any initial revenue generated from the sale of the object itself.
  • Customer Relationships: The Object As Point-of-Sale model creates a direct and ongoing relationship between the company and the customer, as the object becomes the primary touchpoint for consumable purchases.
  • Key Resources: The company’s key resources include the technology and infrastructure necessary to integrate the point of sale into the object, as well as the supply chain and distribution capabilities to ensure a reliable supply of consumables.
  • Key Activities: Key activities include the design and development of the object with integrated point-of-sale capabilities, as well as the ongoing management and optimization of the consumable sales process.

How to Implement the Object As Point-of-Sale Business Model Pattern

To successfully implement the Object As Point-of-Sale business model pattern, companies should follow these steps:

  1. Identify Suitable Objects and Consumables: Identify objects or devices that require regular consumable purchases and have the potential to integrate point-of-sale capabilities.
  2. Design for Seamless Integration: Design the object to seamlessly integrate the point of sale, making it intuitive and convenient for customers to purchase consumables directly from the device.
  3. Develop Robust E-commerce Capabilities: Invest in the development of robust e-commerce capabilities, including secure payment processing, inventory management, and order fulfillment, to support the integrated point of sale.
  4. Optimize the Consumable Offering: Ensure that the consumables offered through the object are of high quality, competitively priced, and readily available to meet customer demand.
  5. Educate and Incentivize Customers: Educate customers about the benefits and convenience of purchasing consumables directly from the object, and consider offering incentives or loyalty programs to encourage adoption.
  6. Leverage Data and Analytics: Use data and analytics from consumable sales to gain insights into customer behavior and preferences, and use these insights to continuously optimize the product offering and user experience.

Trigger Questions

  • What physical objects or devices can we transform into points of sale for our products or services, and why?
  • How can we design and integrate a seamless and secure purchasing experience into these objects or devices?
  • What partnerships or collaborations do we need to form to gain access to or develop the necessary technology and infrastructure?
  • How can we leverage data and analytics from object-based transactions to gain insights and improve our offerings?
  • What marketing and communication strategies can we use to educate and encourage customers to use our object-based points of sale?
  • How can we measure and optimize the ROI and customer adoption of our object as point-of-sale initiatives over time?

Examples of the Object As Point-of-Sale Business Model Pattern

  • Ubitricity: A pioneering approach in the energy sector, Ubitricity’s electric vehicle charging cables have built-in metering capabilities, allowing users to pay for the charging power directly through the cable. This model simplifies the process for electric vehicle owners, making it easier to charge and pay at any compatible station.
  • Bird Scooters: Bird’s electric scooters utilize a mobile app for transactions, turning the scooter itself into a point of sale. Users unlock and rent scooters through the app, which facilitates direct payment for the duration of use. This seamless integration of service and payment enhances user convenience and encourages repeat usage.
  • Amazon Alexa: Amazon’s Alexa-enabled devices offer voice-controlled shopping, allowing users to order a wide range of products, including consumables, directly through voice commands. This integration transforms Alexa devices into active sales platforms, streamlining the purchasing process for users.


The Object As Point-of-Sale business model pattern represents an innovative approach to consumable sales, leveraging the power of connected devices and e-commerce to create a more convenient and seamless experience for customers. By shifting the point of sale to the point of consumption, companies can increase customer retention, enhance the user experience, and generate valuable data insights to drive ongoing optimization and growth. As the Internet of Things (IoT) continues to evolve and more devices become connected, the Object As Point-of-Sale model is likely to become increasingly prevalent across a wide range of industries.

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