Do Point of Sale Displays Work? - Selby's

01 Jul.,2024

 

Do Point of Sale Displays Work? - Selby's

0.9 seconds.

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That is how long you have to grab the attention of shoppers with your POS displays.

According to POPAI, most shopping is done in autopilot mode. When a POS display grabs a shopper&#;s attention they will switch from autopilot mode to &#;manual control&#;. Kraft Heinz&#;s European president, Matt Hill recently claimed that supermarkets were turning into &#;libraries&#; with shoppers on autopilot as they go through the store. Because of this, they are not purchasing new products other than the ones they have been used to buying.

The goal here is to create POS displays that grab the shoppers&#; attention and get them to buy the product.

The question now is, which type of POS displays and message are the most effective? Before we get into that, how do we define success for a POS display? Here are four metrics to measure that.

Four metrics to measure the effectiveness of POS displays

The four metrics are:

  1. Impact ratio: Total shoppers who looked at the display / Total shoppers who have an opportunity to see it.
    A look means the shopper made eye contact with the display for a sufficient period of time (normally just under a second) for them to drop out of autopilot and into a conscious shopping mode, in order to make a conscious decision as to whether to engage with the promoted product.
  2. Engagement ratio: Total shoppers who interacted with the product / Total shoppers who looked at the display.
    An interaction could be reading, touching, testing, or opening the product.
  3. Conversion ratio: Total shoppers who bought the product / Total shoppers who looked at the display.
  4. Lost ratio: Total shoppers who interacted with the product but didn&#;t purchase it / Total shoppers who looked at the display.
    These are the shoppers who looked at the display, engaged with the product but did not make the purchase. Some factors of lost ratio could be the expiry date of the product, the content of the labels, or the influence of rival brands.

We will break down this study into two parts:

  • Part 1: Which POS displays are the most effective
  • Part 2: What type of message are the most effective

Which POS displays are the most effective?

POS display with the highest impact and engagement is in-store demonstrations

 

The most effective POSdisplay in terms of the highest impact and engagement by far is in-store demonstrations with over 4% look rate. That is over 4x higher than the average look rate for a POS display which is at 1%.

In-store demonstrations also have the highest engagement rate at 70%. The average engagement rate for POS displays is just under 30%.

The highest converting POS display is pallet displays

The highest converting POS display is pallet displays at 40%. That is double the average conversion rate for POS displays. Coming in at second are counter top displays at just over 30% and walk around displays at just under 30%.

What type of message is the most effective?

Message that gets most shoppers to buy are price reduction or new lower price

Price still remains king when it comes to getting shoppers to buy.

When it comes to new lower prices, shoppers want to be the first to get in on this &#;new price drop&#;. Subconsciously, it also has a scarcity play in this because shoppers might think that because this product has just recently got a price reduction, it may run out of stock soon.

Woolworths using price reduction messages

Price reduction message on Woolworth&#;s dump bins. Dump bins can be created and printed on Corflute sign.

&#;Was $1.65 now $1.50&#; &#; New lower price message

&#;and Coles

Price reduction messages on Coles&#; shelf talkers and shelf strips.

&#;Was $5 now $3.70&#; &#; New lower price message

The second best message to get customers to buy is the one that promotes a free product. For example, &#;Buy 1 get 1 free&#;.

Messages that don&#;t sell

Message 1: New product promotion with a price reduction

Surprisingly, messages with a new product promotion with a price reduction performed very poorly at 33%. These messages promote a new product and a discount both at the same time. You&#;d think these message will perform well because it combines two elements of a good message which is a new product at a discount. However, results show that this isn&#;t the case.

Message 2: Quantity discounts with savings messages

Messages with a new product promotion with a price reduction performed very poorly.

Quantity discounts with savings messages performed poorly too. These are your &#;Buy 2 Save $2&#; types of message.

Quantity discounts such as Buy 2 and Save $2 (40% conversion rate) didn&#;t perform as well as messages that promote an extra free product (60% conversion rate) such as Buy 1 Free 1. Depending on how you price the promotion, both message essentially says the same thing but one message performed far better than the other.

Bottom line

Creating an effective POS display is about using the ones that have been proven to work and aligning them with the most suitable and highest performing message for your goal. For example:

  • Have a big open space? Pallet displays with the message of a new lower price might be your best bet to maximise sales.
  • Want to clear off inventory for a product in an aisle? Shelf talkers and dump bins with buy one get one free offers might work well here.
  • Want to promote a new product? In-store demos have been proven to be the most engaging at POS display.

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Point-of-Purchase and Point-of-Sale Display FAQs

It can be challenging to make the products and services you want to promote stand out from the rest of the options on the shelf. This is why using point-of-purchase or point-of-sale displays is a great strategy to capture customer attention. It&#;s often too easy for stores to overlook the impact of visual merchandising on sales. 

A well-designed display helps create a focal point, builds brand recognition, and prompts impulse purchases. Use the right visual merchandising techniques to give your brand a voice, allowing it to speak directly to consumers as they shop.

What are Point-of-Purchase (POP) Displays?

POP displays are any display of printed or digital materials set up near a product with the goal of persuading customers to purchase it. POP displays offer a lot of flexibility since they can be added anywhere in your floor plan.

These displays are easy to incorporate or adjust later on to match your sales goals. Common POP displays include signs, freestanding units, kiosks, or elaborate &#;store within a store&#; models which separate a brand&#;s product and put it in a secondary store for a unique shopping experience.

What are Point-of-Sale (POS) Displays?

This display can be found in the transactional area of a store where customers check out their items. POS displays are used to boost impulse sales of low-cost convenience products.

Common POS displays include counter displays, floor displays, or &#;shelf talker&#; tickets attached next to the product to draw attention to a product. Convenience items like candy, magazines, souvenirs, or low-cost trinkets are the most common items to display.

 

 

What Are the Differences Between POP and POS?

As similar as these concepts seem, they both have different applications. While both use visual elements to promote specific items, here are the main differences to remember:

A POP display is: 

  • Located where the customer is making buying decisions

  • Intended to introduce consumers to the product

  • Stocked with any type of item, ranging from inexpensive to expensive

A POS display is:

  • Located where the customer is ready to complete the transaction

  • Intended to persuade customers to make an impulse buy

  • Stocked with smaller or low-cost items

    getell Product Page

A POP display is usually more flexible with its goals and placement, while the POS display has a fixed intent and location in a retail business. 

When Should I Use POP and POS Displays?

Either concept is a great way to use effective visuals that create an eye-catching display to ultimately influence customers. Both can work well when you&#;re looking to:

  • Supplement your seasonal sales

  • Showcase discounts or coupons

  • Advertise promotions

  • Increase brand presence

  • Boost retail sales

Consider your layout to determine which one adds the most value to your store. Then, strategically place them in a way that complements the shopping path of your customers.

What Types of POP and POS Displays are Available?

It&#;s important to use the right type of visual display to create an engaging shopping experience. 

The most common display types are: 

Free-Standing Display Units (FSDU)

These are typically made from corrugated cardboard or any light sturdy material and can be set up anywhere in a floorplan. They ensure the item is displayed differently from the traditional aisle.

Counter Display Units

Sitting directly on top or near the transactional point of the business, this display has high visibility and is great for boosting impulse purchases.

Display Packs

These are designed to surround the product with a special type of holder or dispenser to make it stand out. A display pack uses graphics and messaging to catch the eye of customers while they are scoping out their options.

Display Stands

Usually standing eye-level, this type of display can be set up almost anywhere in your layout and is a great way to create visual interest and draw attention. It gives your brand a presence.

Strut Cards

These are typically used on shelves or countertops to complement how your item is displayed. A strut card is usually printed on a high gloss, 2mm thick card attached to a strut on the back that props it up.

Standees

Used a lot for big events or movie promoting, this type of display is made from foam board and includes other design elements like special lighting, sound, or moving pieces. These are typically large in scale and self-standing.

What Are the Benefits of POP and POS Displays?

Both help you maximize wasted space in your store footprint, sell products without requiring more staff, fill the customer&#;s basket, and upsell items. The importance of visual merchandising is that it takes the hassle out of selling.

How Can I Create POP and POS Displays?

Start by sitting down and answering these questions first:

  1. Which item or brand do I want to promote?

  2. What is my conversion goal from this display?

  3. How is the current floorplan set up?

  4. Would a POP or POS display work better?

  5. Do I have the resources or should I outsource the design?

It&#;s important to execute the display well so it&#;s set up for success. Having an expert carry out your vision is the best way to ensure you end up with an effective piece of visual merchandising.

Why Should I Outsource My POP and POS Displays?

Sometimes turn-around time is tight. Other times you need some help getting started and executing your design ideas. At the end of the day, it can be convenient to have a one-stop-shop, like the Jay Group, run with your idea.

By using a team like Jay Group, you gain a group of experts that are on your side. You have a team that can use their knowledge of successful display strategies to create a custom display that delivers on your goals. Plus, instead of increasing your staff&#;s workload, you can rely on trusted professionals to handle the design, printing, building, and distribution details of your display. 

Are you looking for a full-service provider to handle your POP and POS display design, manufacturing, and retail distribution? We have the experience and expertise to handle POP and POS projects of any size. Contact us today for a complimentary quote.

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