When your goal is to increase sales each time a customer makes a purchase inside your store, getting better at point of sale display marketing is the key to success. Let’s show you how to improve revenue in this manner by first identifying exactly what point of sale marketing is.
What is Point of Sale Marketing?
Point of sale (POS) marketing is a process by which you entice customers to make a last-minute decision to buy more items as they’re checking out.
Have you ever noticed a flashy or brightly colored display while you’re waiting to pay at your favorite store? It might encourage you to buy one more low-price item. That’s a perfect example of POS marketing.
Your goal with this type of display is to increase the size of your customer’s basket. You’d like to increase customer spend-per-visit totals via a quick and impulsive purchase decision. In essence, POS marketing is any marketing attempt to increase revenue at the point of purchase, which is normally at checkout time.
What Is the Difference Between POP and POS?
Often, business owners use the terms point of purchase (POP) and point of sale interchangeably, thinking the two types of marketing are the same. In fact, POS and POP displays are quite different.
The difference revolves around which section of the store customers are in when their attention is caught by a display that encourages them to purchase a product being promoted. POP displays can be found almost anywhere in the store:
- In the aisles
- Near the entrance
- In the back
POS displays are only found in one place: where the actual sale is made, which means they are located next to the checkout counter.
Types of POS Displays
POS displays are normally made of corrugated cardboard and are used to capture attention the moment a shopper is ready to pay for their already selected items. Typical POS items might include:
- Seasonal products, such as cough syrup during winter or sunscreen during the summer
- Chocolate or other kinds of candy
- Impulse items
There are a variety of methods to use when implementing point of sale marketing inside your business. Here are some common ways to display your point of sale items:
- Counter-top displays – These are small displays that are situated on the counter near the checkout. They are useful when you need to present marketing brochures or small products.
- Pallet displays – These are great for fast-moving and popular items. A pallet display presentation allows you to highlight these key offerings quickly to all store customers, which makes them easier to get discovered.
- Free-standing displays – If you don’t have shelf space already available for point of sale marketing, a free-standing display is perfect because it will extend shelf space. Placing them at the end of the aisle in high-traffic areas works well.
- Dump bins – This is a good option whenever a product doesn’t seem to work well on the shelf. It also allows you to increase the number of display items considerably.
- Point of sale wobblers – These are inexpensive options, yet quite effective. Wobblers are signs placed on product displays or store shelves and help make product offerings pop out. They are useful to advertise discount messaging or other unique selling propositions that persuade buying decisions.
No matter what type of point of sale display you decide to utilize, the important thing is to invest quality time brainstorming your messaging. Effective messaging will clearly communicate product value in a way that matches your overall brand. Create a captivating POS display that takes advantage of all the foot traffic at your checkout area.
It’s important to also identify point of purchase displays. This is because it helps to further your understanding of what POS displays are all about. POP displays are similarly created out of corrugated cardboard and promote all types of products, ranging from cosmetics to food to household items. Here are examples of POP displays:
- Endcap displays – These are considered to be the most successful types of POP displays because they’re located right at the end of an aisle.
- Three-tiered displays
- Standees – These stand tall and appear to look into the eyes of customers
Benefits of POS Marketing
The first and foremost benefit to point of sale marketing is to increase your sales, of course. However, there are several other benefits to the marketing technique.
One of the other big benefits of POS marketing is that the process helps to create awareness for your company and products. Potential customers who have never heard of your company and what you’re all about gain the opportunity to discover your product offering because they’ve been exposed to the display.
Take care to create messaging for your POS display in a way that educates your new potential customers all about the benefits they’ll achieve via your products. Prospects who have already heard of you are also reminded of why they need to purchase from you.
A second big benefit to point of sale marketing is that it aids in moving products that may not be selling through other channels.
Any product that has been slow to move off the shelves can have a spotlight placed on it through your POS marketing efforts. The sales of this product now have a chance to skyrocket as customers become more aware of it. Instead of getting lost or staying hidden at the back of the store, the item is now front and center in the minds of your customers.
Building stronger loyalty with customers is a third important benefit of using point of sale marketing. It provides an opportunity to offer additional loyalty points or incentives for buying the products on display. Customers are rewarded for their buying decision and given a good reason to revisit the store and make more purchases.
Best Practices for Point of Sale Displays
Use the following tips to increase the effectiveness of your point of sale displays.
Using digital signage makes it easy to keep your sales messaging fresh. Digital displays allow you to change images and market new discounts on the fly. It’s also an opportunity to use video in order to capture attention.
Marketing well means taking advantage of all the senses. Using hearing, smell, touch and taste helps increase the overall customer experience. Let’s take a look at how to do this:
Hearing – Different types of background music create various kinds of moods and feelings. Slower tempo music will encourage customers to slow down and mill about. Faster tempo music heightens the senses and encourages excitement.
Smell – Scent has a powerful impact on influencing customer behavior. If you have items that can make use of scent, such as food or perfume, use them as point of sale marketing items.
Touch – Giving customers the chance to touch and feel items is one big reason that encourages them to shop inside physical stores against the option of shopping online. You can optimize this type of experience by putting your point of sale products within reach and by encouraging people to touch and feel the items.
Taste – Tasting a sample is a fantastic way to know for sure whether someone likes the product. If at all possible, provide this option at your point of sale displays.
The use of height is another point of sale best practice. Use varying levels of height in your point of sale displays. This can help draw your customer’s eye to higher margin product offerings. Experiment with different heights and test which ones increase engagement most effectively.
Get good at telling stories through your displays. Remember that point of sale displays are all about up-selling into higher purchase amounts. The more you can present the full picture or sell a story that shows customers an attractive vision, the more you’ll create those important up-sells.
You might have a display that shows a full outfit, as opposed to just a shirt, for example. Get creative. Pair various colors and accessories in a way that sells a full vision of lifestyle and watch as the sales increase.
Important Point of Sale Statistics
- 74 percent of all purchases made by customers inside mass merchandise stores are not planned in advance. Instead, they are made through impulse purchases at the store.
- 70 percent of purchase decisions at grocery stores are made inside the store.
- 68 percent of in-store purchases at grocery stores are impulse buys.
- Packaging displays has a big effect on buying decisions. It’s estimated that customers see packaging five to six seconds earlier than they do price.
- Point of sale offers are important because 91% of shoppers say they enjoy doing business with stores that are willing to offer them products that relate to their personal needs.
- One study (with 46,000 customers) discovered that seven percent of people shopped only online, 20 percent bought only in-store, but that 73 percent used a combination of online and in-store purchases. When those shoppers visit your store, it’s vital that you increase sales via point of sale marketing efforts.
- 83 percent of retailers say they will use some form of suggestive selling based on histories of customer purchases.
- 31 percent of businesses say they are making plans to use artificial intelligence to help increase point-of-sale purchases.
- Artificial intelligence has transformed the way purchases are made in physical stores and 40 percent of today’s customers expect to see it used to help improve their buying experiences.
- 80 percent of customers say they use some form of digital technology (smartphone, tablet, etc) when shopping inside physical stores, which can be connected to digital POS displays.
Don’t feel overwhelmed with all the options and ideas available regarding your POS marketing. Take it one step at a time and implement what you can. You will see increased revenue with each improvement you make over time.