Definition of Point of Sale Marketing
Point of sale marketing entices customers to make a last-minute purchasing decision. How many times have you stood in line waiting to cash out at a store, and noticed a brightly colored and flashy display with low price-point products near the checkout? This is an example of point of sale (POS) marketing. For many businesses, the point of sale marketing display is designed to increase the customers’ basket size or spend-per-visit amount by helping them make a quick buying decision.
Point of sale marketing refers to any marketing effort that attempts to increase sales at the point the purchase is made; this is usually at the checkout.
Point of sale marketing involves advertising, displays, marketing communication and brand messaging all rolled into one. While the main goal of POS advertising is to compel the customer to make a purchase, there are several other goals organizations may wish to achieve:
- Increase revenue through last-minute purchasing decisions of low-priced items.
- Create brand awareness by placing the POS display in high-traffic areas such as near the cash register or by the store entrance.
- Build a meaningful customer experience by making it convenient to purchase products.
- Create customer engagement by using mobile marketing and offering personalized information or product discounts.
Regardless of what your goals are for POS marketing, it is important to ensure that they align with the goals of your overall marketing strategy and product vision. For example, if you sell a high-end product that is marketed as something exclusive and luxurious, a POS marketing campaign may not fit with the brand. However, you can include things other than your product in the point of sale display. For example, you could include an attachment or accessory for the main product instead of the high price-point product itself.
Aside from increasing your sales, there are several benefits to point of sale marketing. One of the key benefits of POS marketing is that it creates awareness for your organization and your products. Prospects who may not know anything about your company and what you do can discover you just by being in close proximity to the display. Carefully craft the messaging for your point of sale display so that it informs new prospects about your benefits as well as reminds old prospects about what you do.
Another key benefit of POS marketing is that it helps to move product that may not sell otherwise. If you have a product that is slow to move, you can put it in the spotlight through POS marketing and supercharge its sales. More customers become aware of it and may be persuaded to purchase it, compared to when it is in the back of the store or hidden on a shelf.
Building customer loyalty is another key benefit of using POS marketing. Many businesses offer extra loyalty points or incentives for purchasing point of sale products. This rewards customers for making a purchase and gives them a reason to come back and make another purchase.
There are many ways to take advantage of point of sale marketing in your small business. Some common examples of point of sale display ideas include:
- Free-standing display units: These are perfect for stores that do not already have shelving available for POS marketing. They can be used to extend your shelf space in high-traffic areas such as at the end of an aisle.
- Counter-top units: These small displays are placed at the checkout on the counter. They are good for small products or marketing brochures.
- Dump bins: When the product does not quite work on a shelf, a dump bin is a good option. You can increase the number of items in the display considerably by going this route.
Regardless of what kind of display you use, be sure to spend some time coming up with the messaging so that your value proposition is clear and aligns with your overall brand. Make your point of sale display eye-catching to capitalize on the foot traffic in the busy store areas.