Research shows that 76% of purchase decisions are made in-store. Another study revealed that in-store sales can increase by up to 65% when a business uses POS materials.
These stats alone paint a pretty clear picture. With the right strategy, POS marketing works.
But how can your retail business reap the rewards (increased sales, brand building, more control over your product placement)?
Keep reading to learn six strategies that work.
What is POS marketing?
Point-of-sale marketing is a form of in-store promotion that happens at the point of sale (where the transaction takes place). Retailers strategically place POS materials like branded display stands or shelf signs near the checkout to increase impulse purchases and boost sales. For instance, placing low-ticket items like candy next to the checkout counter to encourage customers to grab them at the last second.
The goal is to encourage consumers to increase their spend-per-visit by buying something they hadn’t originally come into the store to purchase. A smart POS marketing strategy can also enhance the shopping experience.
What are the benefits of POS marketing?
We already know that POS displays can enhance marketing efforts and increase sales, but what other advantages do they offer? Here are the biggest benefits associated with this kind of in-store advertising:
Advantages for retail businesses
- Enhances shopping experiences for customers
- Promote new products and offers (boosting the top line)
- Encourages impulse purchases
- Allows you to run targeted promotions on specific items or categories
Advantages for brands
- Reinforces brand identity and recognition
- Gives your brand control over where your product is placed in a store (ahem, away from your competitors)
- Gradually enhances customer loyalty
- Differentiates your brand from your competitors
If shoppers are in a store, they usually intend to buy something. Maybe not the product you’re promoting, but they’re expecting to make a purchase.
POS marketing simply targets these shoppers to encourage them to also buy a product they didn’t come into the store for. In other instances, it turns browsers into shoppers.
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Six POS marketing strategies for success
POS marketing entails a lot more than simply plonking displays or digital signage in a store. In order for it to work (i.e., convert into increased in-store sales), you need to be strategic.
These six tips will help you create point-of-sales strategies that drive tangible results.
1. Understand your target market
This is key. Start by defining who your target customers are for the product you’re advertising. A detailed customer persona will help you understand what drives this person to purchase.
Once you have this information, you can make a more informed decision about the type of point-of-sale display to use. Or perhaps a point-of-purchase promotion would work better for this customer persona?
The more you know who this audience is, when they typically shop, and what they typically buy, the easier it will be to create a targeted POS advertising campaign to drive sales.
You can get more POS marketing tips in our ‘How to make an ad’ guide.
2. Select the right products
For your POS marketing strategy to drive growth, you need to pick the right products to promote. Now that you understand your customers, use this knowledge to determine what kind of last-minute purchases they would typically make.
Typically, customers will pick up small, low-ticket products, gifts, or novelty items as impulse purchases. So, select items from your inventory that meet these requirements.
Once you have your shortlisted items, choose the most visually appealing products with bright colors and dynamic packaging. These are most likely to attract customers’ attention.
In other cases, you may want to promote certain products because they’re new, end-of-line, or discounted. Just always have a clear idea of the “why” behind your strategy.
Our product marketing guide has more useful tips.
3. Choose the right point-of-sale materials for the product
Design, position, and branding. These are the three biggest factors to consider when choosing the type of point-of-sale marketing materials for a campaign.
If you’re struggling for inspiration, here are X of the most popular POS displays and what types of products they work best for.
- Shelf talkers – best for promoting individual products or product categories
- Posters – ideal for special events, seasonal products, and wider marketing campaigns
- Pallet displays – effective for showcasing bulk products or seasonal items
- Free-standing display units (FSDUs) – excellent for creating thematic displays or showcasing a product line
- Dump bins – best for displaying clearance items and impulse buys
- Countertop displays – ideal for small impulse-buy items (like gum) that increase average transactional value
- Digital signage – great for highlighting real-time product pricing and availability
This award-winning point-of-sale display from Sensations is a great example of how excellent design can disrupt the customer journey and grab their attention.
Source: Smurfit Kappa Group
Need more inspiration? Check out our favorite POS materials for in-store marketing.
4. Be strategic about point-of-sale (POS) placement
Efficient use of floor space is a big consideration for retail businesses. So, you should factor that in when deciding where to place POS displays.
Of course, you want to put them in high-traffic areas with maximum visibility. But POS materials must also work with the store layout and not restrict movement around the store or block other items.
Here are five golden rules to follow:
- Make POS displays easily accessible and avoid overcrowding cash registers
- Bundle similar products and offer discounts to promote underperforming products
- Opt for POS displays that align with your store’s aesthetics and audience
- Remember the saying, “Eye level is buy level”
- Create thematic promotions for seasonal events
This Martini point-of-sale display is a great example of how in-store promotions can tap into seasonal events.
Source: ATS Display
5. Get the design right
I’ll keep this one short and sweet.
Use.
Visual.
Design.
Remember that the main goal of your POS marketing strategy is to capture attention. That means tossing the generic countertop displays and dump bins aside in favor of something eye-catching.
Look for interesting designs, visually appealing colors, and clear messaging, like this example from Georgia. It’s both practical and attention-grabbing.
Source: ODM Group
6. Build customer loyalty (low and slow)
As a retailer, I don’t need to tell you that returning customers are your bread and butter. And if you don’t believe me, here’s some pretty compelling proof.
Research from Bain & Company shows that the average repeat apparel customer spends 67% more in months 31-36 of their shopping relationship than in the first six months.
No matter the industry, a customer loyalty program can help you retain your existing consumers and increase average spend. It’s also cheaper than acquiring new customers.
Where does POS marketing fit in? You can add signage at POS displays to tell your customers about the program and the benefits they’ll enjoy if they sign up. That sets up employees at the checkout area to close the “sale” and get more signups to your program.
Gift cards are another effective tool for growing a base of loyal customers and encouraging customers to spend more to reach the limit of their gift cards. Try advertising gift cards at your POS promotions to grab customers’ attention at the point of purchase.
Source: Genesis Retail Displays
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POS marketing FAQs
What does POS stand for?
POS stands for Point of Sale. We use it to describe the exact moment and location where a transaction between a customer and a vendor takes place. POS systems are a mix of hardware and software used to process payments for a business, including cash registers, online checkout systems, and electronic payment terminals.
What is POS strategy?
POS strategy is the overall term used to describe the tactics a business uses to maximize sales and customer experience at the point of sale. A solid strategy will increase the average customer spending and drive sales.
A POS strategy typically consists of the following tactics:
- Advertising gift cards at the cash register
- Offer customer loyalty programs
- Placing low-ticket items at the POS to encourage impulse buying
- Showcasing discounted items at the point of sale
What are the best practices for a successful POS marketing strategy?
A successful POS marketing strategy should be tailored to your business, goals, and audience. That said, there are some general best practices you can follow:
- Consider the positioning of the POS display – Where can you place it to catch customers’ attention at the right time?
- Get the layout right – Consider different types of POS materials and choose the one that best fits the product you’re trying to promote
- Experiment with design – Play around with interesting colors, shapes, and messages to understand what your target audience responds best to
- Invest in good quality POS materials – Choose premium materials to make your POS displays stand out and showcase the quality of the product you’re promoting
What’s the difference between POP and POS displays?
Point of purchase (POP) and point of sale (POS) materials have a lot of similarities. For instance, they’re both marketing tools to promote products and drive in-store sales. But there’s an important difference between how they’re used:
- POP materials – These are strategically placed in a customer pass-through area so they will see the display during their buying cycle
- POS materials – These are located at the final stage of the customer’s buying journey (at the cash register)
Usually, marketers choose a place in the store for POP materials based on the product. POS materials are almost always located right when customers pay.
Speed up POS marketing reviews with Filestage
We’ve seen the stats. POS in marketing can increase spend-per-visit and create a memorable customer experience in your stores.
To reap these rewards, your displays should be carefully chosen, positioned, and aligned with your business. The right design and message will catch shoppers’ attention and encourage them to make that all-important impulse buy.
If you’re looking for a tool to review and approve your POS marketing materials, Filestage could be the right solution. It’s a leading artwork approval software with features to manage content reviews, automate workflows, and track approvals. You can centralize feedback on POS materials, manage content versions, and easily spot errors.
