Point-of-purchase marketing is one of the most effective selling techniques that can drive higher sales for a business. For beginners, this type of marketing refers to messages that are delivered at the exact points where consumers make their selling decisions such as near the cash register or product aisles.
According to statistics, 70 percent of consumer decisions are actually made at the store despite buyers having a shopping list or agenda beforehand. This makes a well-executed strategy for your point-of-purchase displays a must-have for your business.
Let’s explore this psychology better and further break down the ways you can tap into your market’s buying decisions using a POP strategy.
Understanding the psychology behind impulse buying
When encouraging customers to buy more from you, you are actually engaging their impulse buying behavior. In fact, recent industry research states that impulse purchases actually account for between 40 percent to 80 percent of sales—a whopping number despite the era of online shopping!
An article by Shopify breaks down the elements of impulse buying furthermore. According to the popular eCommerce platform, this behavior is mainly triggered by three factors: emotions, self-control, and past experiences.
To put it simply, the message that you should send to your market should tap into these things with the goal of driving a buyer into making an action. For example, talking about a big sale can send the message that your consumer is getting a special deal, which can challenge their self-control while also inciting emotions such as excitement, happiness, and fulfillment.
However, crafting a special message is just half of the work. For a marketing strategy to actually be effective, you need to support it with an equally well-designed point-of-purchase approach.
Research has proven that displays like retail signage positively affect consumer behavior and that the right execution taps into the impulse buying behavior of the buyers because it sends them the message at the right place and time. This is supported by research from Princeton University which states that when someone sees something they think they need, their brain sends the signal to take action.
How to use point-of-purchase displays to boost sales
So how do you exactly incorporate a good point-of-purchase display into your marketing strategy? Here are a few tips you can consider.
1. Use block placement and highlight the products
As an alternative, simply group items that are related to each other. For example, you can place shampoos with conditioners on one display shelf since they usually go in pairs. To go the extra mile, you can even put them on a branded display rack exclusive to them to better highlight the items.
2. Follow vertical placement
Design your displays according to customer experience. The natural behavior of shoppers is to start scanning products that are on their line of sight before moving down the shelf so you can simply place the items you want to prioritize on their eye level.
3. Place them on hotspots
Who hasn’t experienced grabbing a small item near the counter when they are already at the cashier? Another effective tactic is to utilize the hotspots in your store where your customers usually linger and make last-minute buying decisions. This can be near places where you have your store baskets or—the easiest—near your cashier. Putting small products there that don’t cost too much is effective because it usually makes the buyer think, “Oh, it’s just a small thing. I’ll get this!” You can install acrylic containers near these spots or small counter stands to highlight the items.
4. Put “impulse-buy products” near high-demand ones
Another strategy that leverages bundling, this one involves grouping smaller-priced items near products that are hot-selling in your store. This doesn’t entirely need to be near the cashier or other hotspots, but you can create a point-of-purchase display beside the shelf where your best-selling item is. A simple free-standing display that you can put beside the main shelf can do wonders.
5. Use banner stands
Banner stands can sometimes be such an underestimated point-of-purchase marketing material. If you want to encourage your buyer to do something, you have to send the message about what they can get from you. A simple banner stand can do this, where you can talk about a hot sale, a huge discount, or even a new release in your store. You can also use them to guide your customers where you want them to be, by using them as direction materials.
Invest in excellent point-of-purchase displays
Display marketing may be about strategy and creativity, but psychology definitely plays a huge role in it, too. Consider these tips when coming up with your point-of-purchase display plans and see how they can influence your store’s performance.
Need help in choosing the best displays for your store? We here at BrandMaximizers will be more than happy to help out. We’re a business that offers a wide variety of display options that we can customize according to your needs. Visit our website to know more about our products or contact us here.
