Why Is POS Merchandising Important In Retail?

Why Is POS Merchandising Important?

POS merchandising display Mustard

Point of sale or POS merchandising refers to any effort to increase sales at the point of purchase. If done well, POS merchandising can help you increase retail sales by 445%.

POS and POP displays come in many forms, and their effectiveness varies depending on the location, product and consumer demographic. To pick the most effective POS design for your product, consider consumer demands, the retail space available, as well as your overall marketing goals.

Read on to find out:

  • Why POS merchandising is so important in retail.
  • The main advantages of point of sale merchandising.
  • What makes a good POS display


The Psychology Behind POS Merchandising

There’s no denying that consumers expect more from brands than they used to. Shoppers actively seek out special deals and will wait for sales to purchase large items. Modern consumers tend to want a rich level of interaction, distraction and want to feel important. 

The beauty of POS merchandising displays is that they catch customers’ attention while they’re in the ‘buying mindset’

Therefore, they’re more likely to add more products to their shopping basket. Retailers also look to product marketers to provide POP and POS merchandising throughout the store to occupy customers while they wait for sales assistance. 

Product marketers have a golden opportunity to increase revenue by strategically placing POS displays where consumers are likely to stop and pause. The end of an aisle or the checkout are the most common locations for POS merchandising displays.

Point of Sale Displays - The Ultimate Guide


What Are the Main Advantages of POS Merchandising?

To give you a better idea of why POS marketing is so effective, we’ve listed some of the main benefits of including POS visual merchandising in your product marketing plan.

  • POS marketing appeals to customers’ impulsive side

As 74% of all purchases made in-store are impulse buys, POS merchandising is ideal for enticing consumers to buy your product by appealing to their impulsive nature. A well-placed POS display with an attractive design and message encourages the customers to buy that item then and there. Since most purchases are unplanned, especially in the food and beverage industry, point of sale visual merchandise and marketing can profoundly affect your sales. 

  • POS merchandising allows you to position your products strategically

POS merchandising offers a lot more flexibility in terms of where you place your product in a retail store. Instead of your products hiding on the back of a shelf, your retail partners put the display front and centre to attract maximum attention. Although, it’s always a good idea to send someone from your own team to each contracted store. This means you can make sure your retailers place your POS merchandising in the optimal place. And as a result, you can also make sure to pair the POP and POS merchandise with the products that will encourage more sales.

  • Precise and targeted product marketing

Consumer demands can vary region-to-region, and you can easily tailor POP and POS merchandising to the needs of local markets. Alternatively, you can present your POS merchandise in split samples of stores to monitor their effectiveness.  If your retailer has a checkout scanner system, they can quickly provide sales data to evaluate your POS display’s impact and how much it benefits your brand and the retailer. 


What Makes a Good POS Merchandising Display?

Successful point of sale displays ultimately attracts consumer attention by responding to their needs, informing and entertaining them, and stimulating unplanned expenditures. Secondly. when designing the optimal POS merchandising plan, there are four key aspects that make POS displays effective:

POS display for darts

1. Practicality and positioning

Your POS merchandising display should fit as many items as possible while making them look accessible and tidy. Ensure your display doesn’t cover any of the products and that consumers can easily access the products. Ideally, your POS display should give easy access to multiple consumers at the same time and make it easy for retail staff to re-stock and tidy up.

2. Tailored to the specific retailer and store

Effective POS displays are designed for a particular type of store and often for a specific store department. Each store has different layouts and clientele. That means the art of designing a winning point of sale merchandise concepts involves tailoring the design to fit the retailer as well as your consumers.

3. Appeals to your target audience

The most successful POS displays allow consumers to experience your brands through the visual components you choose. For instance, promoting a beauty product to a younger audience may call for vibrant, colourful displays with bold signage. An older audience responds better to sophisticated and classy designs. Adding specific design strategies to the brand draws in the demographic and opens up the customer to the brand experience, which will increase the chances of a repurchase.

4. Consistent with your branding

As you know, all your marketing efforts should remain consistent with your branding. You should tailor your POS displays to meet specific retailer needs, store layout and appeal to local markets. Similarly, your brand personality should always be noticeable. Designing your POS stand to convey your brand’s look, feel, and uniqueness is key to strengthening your consumers’ connection with your brand and helping you achieve your brand vision.


Get the Most Out of Your POS Merchandising with KSF Global 

Here at KSF Global, we have plenty of experience creating winning POP and POS merchandising strategies. We complement our retail knowledge with well-produced and attractive product displays solutions.

Do you need inspiration to design your next winning POS merchandise concept? The team of experts at KSF Global has collected 30 Point of Sale Displays Ideas that are both stunning and well-planned.

Creative POS Ideas CTA

To find out how we can help you make a roaring success of your next product launch through effective POS merchandising techniques, get in touch today.