Point-of-Sale Marketing: Elevating Your Retail Business Success

Point-of-sale Marketing is the collective term for all activities intended to boost revenue at the actual point of purchase.

This generally revolves around a check-out counter (however a purchase point for a business may be a meeting table or an Internet website), and it is a standard in retail and restaurant settings?.

The use of signboards, invoices, and suggestive attempts to sell by the retailer at the POS are additional point-of-sale marketing strategies. The most popular method is the merchandise display. 

At the check-out counter, for example, POS marketing tempts customers to make an additional buy near the cash register. POS displays are frequently utilized for products that a consumer probably wasn’t intending to buy when they walked into the shop?.

What to know 

The goal of point-of-sale marketing, commonly referred to as check-out marketing, is to persuade customers to buy more merchandise before leaving the shop.

Point-of-sale (POS) marketing is, in other words, the activity of persuading customers to make larger purchases than they had anticipated before they reach the check-out counter?.

POS marketing products are typically considered to be non-essential items that consumers choose on a whim, such as gum, sweets bars, or other snacks. The things placed surrounding the check-out counter, however, can also be mini versions of necessities. 

This can include toiletry items found next to the POS in airport stores or petrol stations, depending on the kind of establishment?.

What is Point-of-sale Marketing?

Marketing entails a wide range of actions, including TV and email advertisements, in addition to physical promotions like exhibitions and flyers.

Point of sale marketing, also known as POS advertising, is a type of in-store advertising or advertising campaign that is conducted right where a transaction takes place to boost sales?. 

No matter the industry, POS advertising uses a variety of marketing displays to advertise a name, a thing, or a service.

When properly executed, a point-of-sale strategy can be utilized to develop enduring relationships with customers, raise brand awareness, and boost sales without being intrusive.

How it works

▶️ A marketing tactic known as point of sale (POS) marketing seeks to sway consumer decisions at the point of the actual transaction.

This practice entails employing a variety of techniques, such as product displays, promotions, and signs, to persuade customers to upgrade their purchase or buy more. The objective is to raise overall sales and average transaction value?‍?.

▶️ Product displays are one of the most popular types of POS marketing. To boost product visibility and promote impulse purchases, retailers can arrange products strategically close to the cash register or in busy locations. 

A grocery shop might, for instance, place snacks and drinks next to the check-out counter to tempt customers to buy more.

▶️ Promotions are another powerful POS marketing strategy. Businesses may provide customers who spend money in their store discounts, freebies, or other rewards. 

Signage, posters, and other marketing materials can be used to promote these deals to get people to notice them and take advantage of them.

▶️ Signage is another important aspect of POS marketing. Retailers can use signs to highlight the features and benefits of their products, promote special offers, and guide customers to different areas of the store. 

Effective signage can help retailers to communicate their message clearly and attract the attention of customers?.

▶️ Retailers can also employ technology to improve their POS marketing initiatives. For instance, businesses could employ digital screens to show off product pictures or videos and give clients more in-depth product information. 

Additionally, they can personalize offers and promotions depending on a customer’s past purchases by using consumer data.

How do businesses conduct Point-of-Sale Marketing?

Point-of-sale marketing strategies are widely used by restaurants and businesses to entice customers to buy last-minute items. Point of sale marketing is important to every firm that sells items at or close to a retailer’s POS since retailers resell the goods of other companies?.

➥ Supermarket stores frequently display merchandising shelving with goods like magazines, candies, gum, and batteries in between each open register. At the end of these displays, sodas are frequently displayed in a little refrigeration unit. 

In high-traffic supermarkets, some products have indeed been reported to sell up to 64 times faster than those in less busy supermarkets. Items near this same POS frequently move at a rate of 1.5 to 3 times faster than the same good or service on a shelf in another store.

➥ Similar product lines can be seen at petrol station registration counters. Here, supplements for energy and beef snacks are added to the things that are frequently purchased at grocery store check-out lines.

➥ Even though their displays and commercials are subject to greater legal restrictions than those for other products, tobacco businesses concentrate much of their marketing efforts on the point of sale?.

➥ Businesses can spend money on POS display space or even utilize the POS software system to advertise their goods. 

For instance, Hellman’s created a program that printed recipes using Hellman’s mayonnaise (and others pay for the goods at the same time) on customers’ receipts. This increased sales as consumers used their mayonnaise in more creative ways.

➥ Non-profit organizations and causes may offer paper plaques (also known as pictorials, icons, or mobiles) for sale at the point of sale. 

These plaques provide a visual representation of a donation made and provide the buyer with a social reward (such as displaying the donor’s name) for their donation?.

Point-of-Sale Marketing Strategy

• Eye-catching Displays:

Create visually appealing displays that draw customers’ attention. Use signage, banners, or digital screens to highlight key products, promotions, or new arrivals. Make sure the displays are strategically placed to attract customers as they navigate through the store or website.

• Product Placement:

Position high-margin or popular items near the checkout counter or in other high-traffic areas. This increases the chances of impulse purchases as customers wait in line or browse the store.

• Promotional Offers:

Offer limited-time discounts, bundle deals, or loyalty rewards specifically at the point of sale. These incentives encourage customers to make immediate purchases and can also help build customer loyalty.

• Cross-selling and Up-selling:

Train sales associates or utilize automated systems to suggest additional products or upgrades that complement the customer’s intended purchase. For example, if a customer is buying a camera, recommend related accessories like memory cards or camera bags.

• Samples and Demonstrations:

Provide product samples or demonstrations near the point of sale to encourage trial and create a hands-on experience. This can be particularly effective for food, beverage, or beauty products.

• POS Materials:

Make use of branded materials such as shopping bags, receipts, or packaging to reinforce your brand identity and messaging. Add promotional messages, social media handles, or calls to action to these materials to increase engagement and encourage customers to share their purchases.

• Customer Engagement:

Use technology like interactive displays or touchscreens to engage customers and provide product information, reviews, or personalized recommendations. This can enhance the overall shopping experience and increase the likelihood of purchase?.

• Digital Integration:

If you have an online presence, ensure consistency between your online and offline marketing efforts. Display online promotions, encourage customers to leave reviews, or offer incentives for online purchases made in-store.

• Data Collection and Analysis:

Implement systems to collect customer data at the point of sale. This data can be used to understand customer preferences, improve inventory management, and tailor future marketing strategies.

• Staff Training:

Train your sales associates to be knowledgeable about your products, promotions, and cross-selling opportunities. They should be equipped to provide excellent customer service and answer any questions customers may have?.

Tips on Point-of-Sale Marketing

• Profit from impulsive purchases:

Place little, less-priced goods — impulsive purchases — next to the counter if your objective is to increase the typical ticket of each customer. Imagine a grocery shop where sweets, gum, and magazines are kept next to the cash counter. 

Or a brand and store with racks of inexpensive accessories where people wait in line to buy them. You can base your impulsive purchases on the season or a special occasion?. 

• Display exceptional discounts:

Consider marketing a certain item or collection of goods at your retail location if you want to move more of them. You can decide to discount a product that isn’t doing well on the market. 

Alternatively, you may match a product with strong sales with a weak one. Then you may design signage to display at your point of sale to advertise the exclusive deal.

• Launch a loyalty scheme:

Many companies focus their marketing efforts on attracting new clients, yet your loyal clients are the lifeblood of your company. 

According to studies, returning customers pay nearly half more than new ones, and their lifetime value is ten times more than that of their initial purchase?.

• Train your staff:

Make sure your sales staff is knowledgeable about your products and can provide helpful recommendations to customers. 

Provide them with training on how to effectively communicate with customers and make sales.

• Cross-sell and upsell:

Encourage customers to buy complementary products or upgrade to higher-end options. 

For example, if a customer is buying a camera, suggest additional lenses or accessories that might?.

• Analyze your results:

Measure the success of your POS marketing efforts by tracking sales and analyzing customer feedback. Use this information to refine your approach and make improvements over time.

Pros and Cons of Point-Of-Sale Marketing

Pros	Cons
Increases impulse purchases	Limited audience reach
Increases brand visibility	Requires physical presence
Targets customers at the point of purchase	Can be expensive to implement and maintain
Encourages upselling and cross-selling	Limited space for messaging
Provides immediate feedback on customer preferences	Requires effective in-store execution
Enhances customer engagement	May lead to cluttered store displays
Offers opportunities for product demonstrations	Potential for oversaturation or repetition
Can lead to increased customer loyalty	Limited control over customer experience

Point-Of-Sale Marketing Examples

The Body Shop:

In a bid to persuade consumers to make another last purchase, The Body Shop, a UK-based eco-friendly beauty and skincare company, places miniature dumpsters in front of its pay registers and runs specials like “3 for 2” offers on mini versions of its standard items✌. 

The Body Shop, on the other hand, takes its POS marketing initiatives a step further by utilizing the surface behind the cashier counter to strengthen its brand identity in the eyes of customers and to advertise its eco-conscious initiatives.

Nestle:

Nestle uses POS marketing to promote its various food and beverage products by creating attractive and eye-catching displays with promotions, coupons, and product samples.? 

They often feature these displays in retail stores and supermarkets to catch customers’ attention and encourage them to make a purchase. Nestle also uses POS marketing to launch new products and to highlight seasonal items.

Bed Bath & Beyond Store:

Another shop that uses a multilevel POS marketing strategy is the American chain store for home items, Bed Bath & Beyond.

First, as they wait for the cash machines to open, shoppers can explore hundreds of little but useful things, including the scrubbing brushes, dishcloths, and other kitchen gadgets in this picture?. 

When clients finally arrive at the point of sale, they have one final chance to choose something from a smaller variety of goods, in this scenario, gift vouchers and munchies like sweets.

Walmart:

Walmart uses POS marketing in various ways to promote its products and services. One example is the use of in-store displays, such as endcaps and aisle displays, that highlight specific products or promotions??.

Walmart also uses signage and posters throughout its stores to promote sales and other special offers. Additionally, Walmart uses digital POS marketing, such as electronic shelf labels and mobile promotions, to enhance the customer experience and drive sales.

FAQs on Point-of-Sale Marketing

Keep Exploring. Don’t Miss Out The Following ? Articles

Similar Posts:

• Counter Marketing 101: How to Stand Out in a Competitive Market
• What Is a Point-Of-Sale (POS) Transaction?: 15 Tips & Types
• In-store Promotions: An Ultimate Guide To Increase Sales
• 20 Retail Design Tips To Boost Your Sales
• 13 Best Retail Display Ideas That’ll Captivate Your Customer