POS is the abbreviated version of the marketing term “Point of Sale”. It refers to a place where a sale occurs. It could be a product or a service. Either online or offline. For the purpose of this blog post, we’ll stick to products sold offline. In a supermarket the point of sale would be the checkout counter or cash register. In a bar it would be the tables guests sit at and or the bar top.
Point of Sale materials, short POS materials, are promotional products you’ll find near the place a sale happens. Slightly different are Point of Purchase materials, short POP materials, since these are located anywhere within a store, e.g. in a supermarket aisle.
It helps to think about POP materials from the perspective of you as a consumer. Imagine you’re walking through a retail store. You’re able to pick up products anywhere within it. The promotional products that are close to the checkout counter are called POS materials. Those that aren’t POP materials.
What do trade marketers use as Point of Sale materials?
Signage
Posters, banners and signs that communicate a promotional message, something product value or price input. As with all other POS materials the objective is to attract attention and provide relevant information to customers at the point of sale.
Displays
These highlight products in a visual manner. Besides vision, depending on the design, they can link to other senses, e.g. touch, sense and hearing, too. Applying modern technology, displays can include screens and be interactive, thus offering an additional entertainment value.
Brochures and flyers
Brochures or flyers close to the checkout counter offer customers the chance to read about products or special promotions. Customers can browse through them whilst waiting in line.
Product samples
The fifth and last sense we have not covered yet, taste, can be covered by this POS material type. Consumers try out products they have not tried before, thus potentially leading to an immediate or later purchase.
Discounts
Handing out coupons or discount vouchers near the checkout area can lead to additional sales and an increase in customer loyalty.
Dump bins and merchandising tubs
These house a bunch of product units, thus creating visual appeal towards customers.
Packaging inserts
Promotional material, most often in the form of a printed leaflet or card. It could be a thank you or a referral card, a coupon or discount offer, a product review request which e.g. leads customers to a landing page or a sticker. Packaging inserts are normally unexpected and can build goodwill with new customers. A product sample could be a packaging insert, too, which would mean a brand is combining two different categories of POS material.
Counter mats
Usually thin, durable, printed items made from plastic or rubber that communicate a particular product or promotion. They direct customers, during the payment process, to place their money onto them, thus attracting attention.
Shelf, floor and wall signs
Elements that are attached to the edge of shelves, the floor or the wall, highlighting a promotional message, e.g. a discounted price or additional information that helps customers make a purchase decision.
Neck hangers
Often used in the beverage industry, these materials are placed around the neck of bottles to communicate a promotion and/or product features.
Cardboard cutouts
Often life sized, cutouts show people, fantasy characters or product images that create visual appeal and elevate branding. If done well, they can even lead to shoppers making images and posting them online.
Investing and using coherent POS material in a retail enviornment, as part of your overall trade marketing strategy, is important to achieve your branding and sales goals. POS materials do not only communicate a specific product. They also play a significant role in conveying your brand world.
Increase sales
POS materials are placed near the checkout counter or cash register, where customers are more likely to make impulse purchases. These materials highlight what is on offer and, if done well, increase overall sales.
Enhance brand visibility
Brands take customers on a journey. Based on the quality of design choices, POS materials will increase brand visibility and brand recognition, with the aim to eventually lead to product trial or repeat purchases. Overall, they can make the shopping experience more pleasant. This can lead to to repeat visits and word-of-mouth referrals.
Maximise space utilisation
One of the most valuable resources in retail is space. POS materials take advantage of otherwise unused space to direct promotional messages towards customers.
Provide information
Retail environments are often cluttered. There are a lot of products and a lot of things to take in. Point of Sale materials do not only help elevate a retail space visually but, through their messages, provide customers with additional information about specific offerings or brands in general.
Measure results
POS materials can offer retailers and their supplier partners the possibility to track and measure the effectiveness of promotional campaigns. Through concrete sales data or by or by receiving customer feedback, e.g. via touchscreens. This type of information can then be used to optimise the next campaigns.
Same as marketing in general, so does Point of sale marketing continuously evolve and undergoes certain trends which are based on ideas for innovation, changing consumer behavior and technological developments.
Omnichannel integration
Brands are focused on implementing omnichannel strategies that provide a seamless experience within both online and offline stores. Point of sale marketing is aligned with digital channels to harmonise promotions and branding across all touchpoints, avoiding unnecessary friction in the customer journey.
Personalisation
Companies use data to personalise the shopper experience for potential buyers and current customers. Based on the customer journey phase an individual is in, brand and product related messages are adapted to make them more relevant. Based on insights gained via customer relationship management systems, brands are able to segment customers and tailor their messages. This leads to personalised discounts and recommmendations.
Sustainability and Ethical Branding
When judging brands consumers, above all Gen Z ones, evaluate a company’s performance regarding environmental and ethical issues. More often than before do point of sale materials include sustainability and ethics related messaging linked to a specific product or initiatives backed by the overall company. Additionally, the POS materials themselves are often made from eco-friendly raw material to appeal to eco-conscious consumers. Systems to gain insights into lifecycle, to eliminate waste and to reduce pollution are becoming the norm.
Influencer and Social Media Integration
Nowadays social media platforms such as Tiktok or Snapchat have a major influence on POS marketing. Influencers help brands promote their products and connect to their target audience. This way brands amplify their brand messaging, drive online engagement and bring new customers into physical stores.
Our client, Campari Germany, approached us with a brief, about concept development and the production of three custom retail shelf-tools. For SKYY vodka, Frangelico liqueur and Bulldog London Dry Gin.
Our in-house product design team chose to present a SKYY display made from acrylic glass and aluminium. With optional lighting that can either be run via a rechargeable battery or via a plug. For Frangelico we picked a display made from plastic, with a hand that shows a printed, 2D mini replica of the bottle itself. This element protrudes into the aisle and therefore stands out amongst the multitude of bottles on the shelf.
The Bulldog display is made from black and white plastic. A custom frame on the front is covered with small spikes. A characteristic element of Bulldog's visual identity.
Following a proven process of product development, we managed several phases. After each one of these, rendering, prototyping, tooling/PP sampling, we received feedback from our client, who tested the products in-store. We incorporated this feedback to fine tune the displays which significantly increased our client's sales results.
With ever evolving consumer behaviour, brands need to anticipate future trends and adapt their Point of sale marketing strategies accordingly.
Artificial Intelligence (AI)
AI run technologies will play a significant role in POS marketing, enabling brands to analyse data, predict consumer behaviour and personalise interactions in real-time. AI algorithms will adapt pricing strategies, recommend products and enhance the overall customer experience at the point of sale. Chatbots and virtual assistants will play a more important role in supporting customers at the point of sale.
Augmented Reality (AR) and Virtual Reality (VR):
Augmented reality (AR) and virtual reality (VR) technologies, interactive displays and touchscreens, will be used to provide immersive product demonstrations, personalised 3D try-on experiences, and gamified promotions at the point of sale.
Voice Integration
With the growing popularity of voice-activated devices and virtual assistants, brands will integrate voice commerce capabilities into POS systems. Voice-activated POS terminals, voice-enabled product searches, and voice-driven promotions will provide customers with a convenient and hands-free shopping experience.
Blockchain Technology
Blockchain technology holds promise for enhancing transparency, traceability, and trust in retail transactions. Brands will leverage blockchain-based POS systems to show product origins, proof product authenticity, and provide transparent supply chain information to customers, building trust and confidence in their products.
Social Commerce
Social media platforms will continue to play a significant role in POS marketing, with brands leveraging social commerce features to drive sales and engage with customers. Social media integrations will enable customers to discover products, make purchases, and share their shopping experiences directly within social platforms, blurring the lines between social media and retail.
Innovative Payment Solutions
As payment technology evolves, brands will explore innovative payment solutions such as biometric authentication, facial recognition, and cryptocurrency payments at the point of sale. These technologies will provide customers with secure, convenient, and frictionless payment options, enhancing the overall shopping experience.
Subscription-Based POS Marketing
Brands will increasingly adopt subscription-based POS marketing models to drive customer loyalty and recurring revenue. Subscription services, membership programs, and VIP clubs will offer customers exclusive benefits, discounts, and personalised experiences at the point of sale. These will incentivise repeat purchases and foster long-term customer relationships.
Point of sale materials will continue to play a significant role when marketers aim to develop brand awareness, create a positive shopping experience for customers and drive sales.
Looking for custom POS material for your brand? Take a look at our work or contact us to explore a potential cooperation.
