What is Point of Sale Marketing?
According to INSEE, point-of-sale marketing refers to ” all the marketing techniques deployed at a point of sale and allowing it to increase its commercial efficiency ».
In other words, point-of-sale marketing consists of setting up action plans that will encourage customers to make a purchase, most often on impulse, in the store. Point-of-sale marketing, which can be implemented in any type of business (boutiques, large retailers, etc.) will also improve store traffic and the customer experience while building customer loyalty. The purpose of point-of-sale marketing is to achieve the commercial objectives set by the management of the brand, with the aim of increasing turnover and store performance.
As you will be able to realize later, these techniques are numerous and require adaptation to the sector of activity of the trade.
What are the different point of sale marketing solutions?
The implementation of point-of-sale marketing aims to capture consumers in order to direct them towards targeted products. To achieve this, several strategies can be deployed:
Deployment of display stand and door displays
To convert visitors into customers in a store, it is essential to define a business strategy that is based on marketing tools. This can be based on displays and poster holders. In effect, with a display or a well-placed point-of-sale (POS) advertising, stores offer an interactive shopping experience to the customer, who finds himself immersed in the intimacy of the product as he sees it displayed or reads information about her. In a way, the consumer appropriates the product throughout his customer journey in the store. Of course, this encourages the purchase.
The deployment of commercial animations
Point-of-sale marketing can also be implemented in a commercial brand by animating the store. In this case, the points of sale deploy marketing communication which can be global (POS, displays, animators, street marketing, in-store soundtrack, etc.) or at the local level, in the linear of the brand. The quality of commercial animation is based on a good presentation of products and promotions through excellent merchandising, as well as on the quality of animators and salespeople to encourage visitors to make purchases. The ability to establish a close relationship with the consumer is one of the keys to success. Digital plays an important role these days and makes it possible to relay information with the help of a film broadcast in stores which invites customers to discover the latest trends and enrich their experience.
The return on investment and the possible solutions to measure it
All merchants know that successful brands are those that know how to measure the real impact of their investments on their profitability. Good store management in mass distribution or local trade must be based on a precise analysis of different marketing tools to hope to attract, retain and increase the average customer basket. Here are some performance indicators to keep in mind:
- The attractiveness rate
The attractiveness rate makes it possible to measure the impact of a product in the standard basket of consumers. This makes it possible to measure the weight of a brand in animation and its influence during and outside commercial animation.
Also called conversion rate measures the number of customers compared to the number of visitors. It measures the attractiveness of the store and the ability of sellers to convert visits into sales.
The loyalty rate measures the number of customers who check out and have a store loyalty card. The loyalty card makes it possible to establish a marketing strategy towards its best customers during commercial events and to reward them.
- The average basket and the number of items per customer
These metrics are critical to the success of a retailer because they show how many items are purchased on average by a consumer and what the average purchase amount is. A precise analysis makes it possible to adjust prices and review the product offer in the store.
Other measurement indices exist and each business must use the tools it considers necessary for its growth and its attractiveness. Each year, a point should be made to measure the store’s progress and establish areas for improvement.