POS strategies are essentially an attempt at upselling and they deploy tactics to trigger impulse buys and increase profits. Successful POS strategies really do deliver excellent ROI. Studies have shown that customers are greatly influenced by POS promotions. They outperform every other marketing device including price discounting. At POP, price is very much secondary to the strong burst of desire that flashes just momentarily, triggered by some promotion, but which results in an impulse purchase.

POS strategies almost always involve displays of some description. Most common are custom printed cardboard stands containing products but there are other successful methods also. All have just three things in common – (1) the customer’s attention needs to be drawn to the promotion (2) the customer must understand it immediately (3) it must not hold up flow unduly through the checkout.

Strategy #1 – Test, Test, Test

Books have been written about the scientific approach to split testing but the basic principle is very simple. In a retail space, the primary factors involved in POS promotion are location and signage. Some products simply work better when placed in a countertop display than others. Chewing gum may be frequently displayed by a large supermarket chain but may flop in a convenience store compared with snacks, for example. So testing different products in the same location is vital. Testing the signage and how the message is displayed is just as important.

Strategy #2 – Experiment with Active V Passive

You don’t want to hold up a queue at the checkout by engaging customers in conversation. However, it takes just a moment to actively engage and verbally draw the customer’s attention to a countertop display while ringing purchases up on the till. That does not inject delay and the customer has a few moments to ponder the offer while checkout is progressing.

This strategy is used successfully by well know UK high street budget cosmetics / grooming products chain savers to promote their range of perfumes or other products such as razor systems for men. The products being promoted are simply stood beside the till and change every day. Nothing could be simpler and it must work for relatively expensive products (compared with soap and shampoo) or otherwise they would be trying something else. POS display does not always have to be a passive cardboard stand.

Strategy #3 – Innovative Signage

We say ‘innovative’ but that can be nothing more than a large handwritten sign suspended over the counter that says something like “All batteries half price today only” or something like that, and the batteries are on display, of course. The sign’s size makes a statement in itself – like “they really want to let me know about this offer, and it’s probably worthwhile”. Signage that provides information like that should be plain, clear and simple. If it’s printed, then simple fonts are important. Don’t distract from the core message. It is not advertising per say – it is a trigger to act. Also, handwritten signs have a quaint and curious appeal and strength in the day of printed everything in retail stores.

POS strategies and devices don’t change very much over time. They may vary by the type of outlet and the product range (garden centre V convenience store) but the principles remain the same – attract attention and trigger an impulse action. Keep changing them so that they are fresh, to maintain the attention and interest of customers.

More information about POS strategies can be found in our eBook: The Point of Sale Marketing Guide. Claim your free copy today by clicking here.