Marketing campaigns are not just located outside of store walls. In fact, promoting sales and brand awareness inside the establishment is an effective method that directly reaches shoppers.
Point of sale marketing targets consumers in check-out lanes to increase purchases by using suggestive selling face-to-face. This technique has proven to be a useful strategy in several industries, from restaurants to grocery stores.
What is Point-of-Sale Marketing?
Point-of-sale (POS) marketing includes all efforts to improve sales at the final transaction. This typically revolves around the cash register or POS system, where businesses place product displays and advertisements.
POS marketing also involves promotions printed on receipts and suggestive selling, where the cashier offers an additional product that complements the customer's order.
Research shows that products placed near the POS system move up to three times faster than the same items stored elsewhere. While the primary goal of POS marketing is to persuade consumers to make a purchase, by promoting products at check-out, retailers can also-
- Increase revenue through impulse purchases.
- Expand brand awareness by placing product displays near transaction lanes.
- Personalize the customer experience by increasing shopping convenience.
- Enhance customer engagement with products.
Various types of retail businesses use POS marketing because of its effectiveness. The most common retailers include-
- Grocery Stores typically have merchandise shelves on either side of each checkout counter that holds candy, gum, batteries, drinks, and other small on-the-go items. Some high-traffic grocery stores have reported that their products sold at checkout sold up to 64 times faster than other items.
- Gas Stations also place merchandise around the cashier counter, including energy shots, snacks, and phone chargers for customers on-the-go.
- Fast-Food Restaurants commonly showcase their desserts and gift cards near the POS system to prompt dine-in and carry-out customers to make an additional purchase.
- Retailers, including clothing, hardware, auto parts, and craft stores, place lower-priced items near check-out locations.
- Tobacco Companies focus most of their advertising efforts on POS marketing by promoting products through showcases and displays.
- Brands can pay for a display case at their retailer's stores or even program software to integrate with their POS system. For example, Hellman's created a program that printed signs and recipes on receipts that featured their products.
- Starbucks has capitalized on POS marketing by promoting low-ticket items at the final transaction, printing customized receipts, and utilizing suggested selling software.
- Non-Profit Organizations often sell pins, shirts, pens, and other products representing their institute at check-out in exchange for a donation.
5 POS Marketing Tactics
Depending on the industry, the merchandize promoted in POS marketing strategies may vary. However, every business can utilize the best practices, including-
1. Capitalizing on Last-Minute Purchases
Companies focusing on increasing the average order value (AOV) should consider placing small, inexpensive items near the check-out counters. This merchandise should be appealing to every type of customer to promote impulse buys.
For example, gum, snacks, and drinks are not directed towards a specific buyer persona, whereas accessories and niche items depend heavily on customer preference. Just by increasing each customer's order by a dollar through last-minute purchases, businesses can significantly increase their revenue.
2. Creating a Loyalty Program
As important as acquiring new customers is, retaining a loyal clientele is what runs a business. A study shows that returning customers spend nearly 67% more than unique consumers, making their lifetime worth 10 times more than their original purchase.
Offering a loyalty program is a great way to make first-time buyers regular customers. Loyalty programs can offer members exclusive discounts, showing customer appreciation while increasing revenue and AOV.
Businesses often inform customers of their loyalty program at checkout with signs and suggestions by the cashier. The attendant must be trained to quickly set up a member account, so customers are not stuck waiting in line.
3. Advertising Special Promotions
Businesses wanting to increase the turnover rate of slow-moving products can showcase it at the final POS.
Many retailers often discount these items to further promote sales or pair them with popular merchandise. It is important to place signs at the checkout point to inform customers of the special discount.
4. Advertising Gift Cards
Offering gifts cards helps extend customer reach, as customers often purchase them as gifts for others. This also presents a great opportunity to upsell.
For example, Target frequently offers a $5 gift cards to customers that reach a price threshold from a specific brand or department. This persuades customers to grab an extra item to get the deal.
Many retailers provide an array of customized gift cards, such as holiday, birthday, and generic designs, at checkout for an easy, last-minute purchase.
5. Informing Customers of Other Marketing Programs
Companies can also showcase their other marketing programs at checkout through signs and sales pitches to improve customer engagement. Whether the organization is throwing a holiday event, holding a product demonstration, or introducing a new product line, it is important to involve customers in various activities.
Hosting events is a great way to build customer relationships and raise brand awareness. However, it is crucial to limit the number of signs at the POS to avoid overwhelming shoppers.
A business's POS is a high traffic area, making it valuable real estate. Retailers can use this space to promote customer loyalty incentives, events, and impulse sales.