One of the best strategies to increase your product sales is implementing point of sale (POS) marketing. When done right, point of sale displays can account for a high number of unplanned purchases made by the customers at the end of their buyer’s cycle. Thanks to an effective point of sale strategy, you can get your product noticed using consumer psychology principles and increase your sales without invasive and expensive advertising tactics. In this article, we will explain what point of sale advertising is and how you can start using it.
What is a Point of Sale (POS)?
POS stands for point of sale and refers to the place of the final stage of the customer’s buying cycle. In simple terms, it is the place where the customer ends their purchase process and makes their final payment, which is usually at the cash register in a shop or at the checkout page in an e-commerce store.
In order to enable your customers to pay for the products, your business needs a point of sale system. The point of sale system is the hardware and the software that allows your business to accept and process payments. Hardware components of a POS system in a brick-and-mortar business include a cash register, bar code scanner, credit card reader, a monitor or tablet, cash drawer, and a receipt printer. The point of sale software is simply a program installed on your device or the cloud that allows you to accept and process payments.
So, What is Point of Sale Advertising?
Point of sale advertising refers to all advertising efforts designed to catch the consumers’ attention at the point of sale before they finalize their purchase. It aims to upsell additional products to the customer and increase each sale before the customer leaves the store.
Imagine the following situation: while the customer is standing at the counter ready to pay, waiting for their products to arrive at the cashier’s hands, they start glancing around. Their eyes land on the chewing gum and chocolate bar display next to the counter, and they start wondering whether they feel like having a chocolate bar. They haven’t initially planned on buying one, but it caught their attention. If they reach for this additional product and add it to their final purchase, the POS advertising strategy has achieved its goal.
Where Can Point of Sale Advertising Be Used?
Advertising at the point of sale is usually implemented in retail stores and other places where customers go to purchase goods. Hence, it is frequently used in grocery stores, supermarkets, gas stations, restaurants, or clothing stores. However, point of sale strategies can also be used in e-commerce stores and other businesses that allow their customers to buy their products or services online.
There are different strategies of point of sale advertising designed to increase sales, depending on the type of business. The most common method of POS advertising in retail stores and other brick-and-mortar businesses is a carefully planned merchandise display at the counter, which is designed to draw the customers’ attention to additional products that they hadn’t initially planned on buying. Other strategies include colorful posters, huge signs, floor stickers, or audio messages. On the other hand, the most effective POS advertising tools in e-commerce stores include flashy banners, low-cost add-ons, or discount coupons for specific products at the checkout page.
A more modern approach to point of sale advertising is displaying additional items directly on your POS system while your customer is checking out. This strategy helps businesses draw their customers’ attention to specific products and increase the final sale. Some POS systems also allow you to create loyalty programs, gift cards, or discount coupons for your customers directly on your POS system’s screen.
What are the Benefits of Advertising at the POS?
Implementing advertising at your point of sale gives you many benefits that can lead to increased profits and the growth of your business. Point of sale advertising can help you improve your sales drastically by up-selling low-cost, additional products to your customers at the checkout. It can also help you direct your customer’s attention to products they wouldn’t otherwise notice and sell out less attractive harder-to-sell products. Psychologically speaking, when your customer arrives at the point of sale, they are ready to buy, and as a result, they are more prone to purchasing additional products. In addition, using loyalty programs, gift cards, and coupons at the POS helps to increase customer loyalty and motivate them to come back for more. Most POS systems also allow you to track customer behavior and analyze which products and which ads perform well. This feature allows you to optimize your advertising strategy in the future.
How Can You Start Advertising at the POS?
The first step to start advertising at the point of sale is to choose the right POS system for your business. Having a POS system that is well-suited to your business needs and goals can help you build an effective advertising campaign at the point of sale and increase the spend-per-visit of a big percentage of your customers.
Most modern POS systems allow you to collect data about the purchases your customers make. Getting to know your customers and their buying habits and preferences can help you create a better-optimized point of a sale advertising campaign with higher conversion rates. Some POS systems also offer a customer-facing ad screen. Businesses can use this feature to promote special deals, advertise specific products, or offer their customers loyalty cards.
Finding the right POS system for you and your business is essential to the success of your point of sale advertising strategy. Now that you understand what a POS is and how it works, you can choose the best POS software that fits your needs and goals. Contact us today to see how you can start accepting and processing payments thanks to the Elly POS solutions.