Point of Sale (alternatively known as Point of Purchase) is where customers and products come into contact. It could be in a shop or catalogue or a computer pop up but the same rules apply.
Some 30 per cent of supermarket and 26 per cent of mass merchandise purchasing decisions are made before even entering a store but location, atmosphere, prices and displays can still help to influence shoppers choosing one store over another.
Shoppers might think they are immune to advertising and retail forces but they are very wrong.
Let’s look at the figures another way – a staggering 70 per cent of shopping decisions are not made in advance and this is where they can come under the marketers influence.
This explains the importance of POS in influencing impulse decisions. We might not be understand how it works psychologically, but when there no questioning its value, it amazing that only five per cent of UK marketing budgets are spent on POS.
POS displays make all the difference in retail environments. Free standing displays have the most impact but are unpopular as they take up too much space which leaves rack, shelf and counter signage. Within these restraints, POS displays still need to be creative and originally eye catching.
Top tips for POS displays
Research from the Point of Purchase Advertising International (POPAI) has found permanent displays fare the most popular form of POS for retailers followed by media and sign options. Temporary displays come in last. For maximum impact make them:
- Attention grabbing. Entertaining, unusual
- Get involved. Use an image or headline that will relate to the customer and draw them in
- Sell, sell, sell. A POS display is not an end in itself. It’s there to sell a product. Make its USP prevalent!
- Work together. If possible try and liaise with the retailer before the POS goes into production. Up to 60 per cent of material is binned and never makes it.
- The relationship between retailers and marketers is an interesting one – retailers need POS displays to create a more exciting shopping environment than their competitors, while marketers want to promote particular product. The division between retailers purchasing POS and marketers donating it is equally divided.
Costs and benefits
Costs are obviously going to be effected by volume, scale and the materials used. But at the end of the day the most expensive example of POS might not be the best. It’s creativity that is key here.
To determine how much to spend on POS is difficult to put a cost on, but it is a vital channel that should not be overlooked. Maximise opportunities by working with distributors to pull together an integrated strategy.
The impact it can makes depend on the type of product it promotes. The POPAI has found a typical percentage lift rate in sales for a particular product might be as follows:
| Film/Photo finishing|| 48|
| Socks/Underwear/Tights|| 29|
| Dishwasher powder || 22|
| Biscuits and crackers|| 18|
| DVDs|| 12|
| Butter/margarine|| 6|
| Pet supplies|| 6|
| Stationery|| 5|
| Salty snacks|| 4|
| Salad dressing|| 3|
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