We live in times where we can shop any product of our choice while sitting at drawing room, or lying on the bed, thanks to the magic of the internet.
Though e-commerce is a flourishing sector today and many online portals cater to specific product needs of consumers, traditional shopping methods are yet to go out of style. People still visit nearby stores, supermarkets and restaurants despite having the choice of getting the essentials home delivered through online.
Though retailers use Point of Sale technology to reach customers with their new products and offers, they use the spaces around Point of Sale counters to display the new arrivals and offers through standees, display racks and banners for in-store customers to promote sale.
What is POS Marketing
Point of Sale (POS) is the time and place where transactions are completed i.e., the buyer pays the seller for his purchases. A POS at a supermarket might be at the billing counter when the bill is generated and settled.
Point of Sale Marketing encompasses all the efforts taken by sellers in order to increase sales at the point of purchase or the sales counter. For example, when a consumer stands in line for billing, he might view a rack full of new products next to the counter and may feel the impulse to pick one.
Thus, by adding an extra item to their original purchase, they increase the sales of the store. Similarly, goodies for children can be the best bet for POS marketing.
If you have not considered POS as an important marketing strategy, you might want to reconsider after you read the following reasons:
- POS Works: The shoppers who pre-plan their purchase are less in number and most shoppers tend to make in-store buying decisions. They go through the variety of products and select one. POS plays a crucial role in helping the consumer navigate through the products and also influences them to make decision. POS displays trigger impulsive purchases. Even new arrivals of branded items can be displayed to boost stale. According to studies, products displayed at POS can increase the overall store sale up to 75%.
- POS is measurable: Marketing specialists analyse and measure the impact of the products displayed near POS where customers do impulsive purchases. Depending upon the area-wise demand of a product, manufacturer can alter their strategy to maximise their Return On Investment. For example, if a particular product has a higher response rate in one area and lower response rate in another area, the brand can target stores where the response would be maximum.
- POS breaks up brand loyalty: Retailers may have to alter the outlook of their stores to display most favoured or new arrivals at POS. The display can be altered regularly for festivals or to showcase new arrivals. This enhances shopping experience of consumers and motivates them to return. The aim of POS marketing is to disrupt the consumer’s rigid mindset so that he/she can notice other brands.
- POS builds and strengthens brands: Brands are arranged in an appealing way and are segregated based on categories. Their co-existence provides a platform to educate consumers about various brands and also presents an opportunity to compare two brands simultaneously. Brand positions can also be strengthened by investing in POS advertising. For example, brands can change the colouring of their products to red and white during Christmas, to resemble candy canes and have them effectively positioned in the store for consumers to view. Thus, POS can establish an effective relationship between the consumer and the brand by projecting a good brand image.
- POS allows Reactivity: Today’s trends are extremely short-lived. Producing an advertisement which is relevant to current times may be time and cost consuming but POS can be utilized effectively. POS can capitalise on these trends before they fade away. For example, chocolates, gifts or sweets might be put on display during the festival seasons as people would want to celebrate the occasions with some sweets and gifts. Hence, POS allows Retailers and Brands to react to market trends quickly and remain relevant to present times.