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Understanding the buying habits and behaviours of customers is key to developing the most effective marketing strategies that will lead to sales. Even with the increase in online shopping, the majority of UK consumers today prefer purchasing from physical stores. Key to this trend is how sales displays are presented in-store and how they can influence customers to make a purchase. In addition, a successful sales display promotes brand loyalty and can bring in even more customers through word-of-mouth promotion. To understand what makes a sales display successful, it is useful to understand what POS and POP displays are, how they work, and how to plan one to achieve the maximum marketing effect.
The most effective forms of sales display in stores are POS and POP displays. While these terms are sometimes used interchangeably, there are some key differences between the two.
POS stands for Point of Sale and refers to promotional displays found near or at the point where a sale is made, such as the cash register. POS displays can include display racks or cabinets near the cash register as well as banners, signs, and free-standing displays. The idea behind POS displays is to encourage the customer to add additional products to their overall purchase even if they believe their shopping journey is concluded. If effective, it makes the consumer question whether they have truly collected everything they need, and perhaps they need the additional product featured on the POS display. This is often known as a “problem recognition response”, which puts these products at the top of customers’ thoughts even if they weren’t being considered for purchase before.
While there are similarities between the two terms, POP stands for Point of Purchase. POP Displays can be found throughout the store, from the entry point to a centralised location within the store. Anywhere that the customer is likely to make a purchase but before a sale is made. POP displays can often be found in special product placement zones and can include eye-catching displays that provide information on the products and their unique selling points. For example, to sell the products of a confectionary company at Easter, a special easter display with bunnies and easter eggs will catch the eye of children and parents, while a sophisticated display of a beauty product line is perfect for boutique stores.
Before you begin planning the design of your displays, you need to understand the layout of your store. First, stand outside the entrance to your store and consider things from the perspective of a potential customer walking in.
From eye-catching posters to floor stickers that direct customers to specific products, visibility is key if you want to create an effective display layout.
Each type of customer has its own buying habits, and marketing that works for one group may not work for another.
There are 11 main types of consumer buying habits, and understanding these is key to creating a successful sales display.
Once you have an idea of the buying habits of your target audience, you can begin looking at the types of displays that will appeal to them. Look at each product type you are trying to sell. Consider what they are, what they look like, and what their purpose is. With this information and knowledge of your customer’s buying habits, you can begin looking at how to promote your products and how to price them.
A colourful and eye-catching display of cosmetic items, for example, will appeal to impulsive and variety-seeking buyers, while habitual, frugal and dissonance-reducing buyers will likely be attracted to a display that promises reduced prices on familiar products. At the same time, displays that offer information about a brand’s history or a product’s features will appeal to more discerning buyers over ones who may simply purchase based on impulse.
In any case, remember to create a display that is easy to change with shifting buying habits or when new brands and products come out.
The purpose of any promotional display is to draw attention to a specific product while making the most of its position in the retail setting. How this is achieved depends largely on the type of display used. There are many different types of promotional displays you can use in retail, but here are some of the more well-known ones:
To maximise the revenue potential of a store, it is best to create an effective layout. Here are the steps needed to create an efficient store plan.
There are multiple layouts that can improve a customer’s buying experience depending on the space you have, and the products being sold.
These are just a selection of the layouts available, and you can always combine them where needed.
Consider how customers are likely to flow through your store and try to factor this into your layout. Aim to create an area within the entrance where that is clear and uncluttered, so they won’t feel overwhelmed. Also, keep in mind which direction they are likely to turn first within your store and plan that area out accordingly.
This is the last step of a customer’s shopping journey within your store and should be placed at the natural end point of their path. Make sure your checkout area does not take up too much valuable retail space but is still large enough to process items efficiently.
Place your products in locations where they are most likely to catch your customer’s eye. Find out what your most popular products are so you can display them prominently. Also, create space for display items and limited-edition products.
Consider ways to optimise your fixtures (permanent elements such as rooms, lights, counters, etc) and displays. Make sure your fixtures are of the best available quality and that displays are flexible and can be repurposed where needed.
Making customers feel welcome and not overwhelmed is also key to improving their overall shopping experience. Amenities such as seating, customer service areas and dressing rooms are a few ways to encourage shoppers a more enjoyable experience.
Ensuring your store is accessible to all customers is important. This includes everything from disabled parking and wheelchair-accessible ramps to navigable bathrooms, dressing rooms and lifts. Make sure your display areas are wide enough and unobstructed so that it is easy and safe to move through them.
When it comes to promoting seasonal holidays such as Christmas and Halloween, it might be tempting to extend the promotional period for as long as possible. While the obvious aim is to maximise sales, in truth this can have the opposite effect. While you might get a few sales putting out Christmas merchandise in October, most people won’t be purchasing such products this early, particularly when they are more likely to be in the Halloween spirit. As such, it is important to time your seasonal promotions so they can meet demand when it is at their maximum.
Another factor to consider in promoting seasonal products is how much space should be allocated in your store and how much seasonal stock to purchase. Determining how much seasonal stock you need is crucial. Too much and you could lose money from wastage as unwanted seasonal products continue to take up space. On the other hand, too little stock means you will sell out quickly, costing you sales as you wait for more orders to ship. There’s also the issue of not having enough space for seasonal products, leading to unpurchased stock idling in the back room.
To plan out your seasonal displays effectively and make the most of your sales period, keep the following points in mind.
One of the first things to work out is when your seasonal promotion period should begin and end. In addition, you need to determine when demand is at its highest compared to at the start and end when it drops significantly. Keep an eye on demand forecasts as well as past purchase histories to create a calendar that will help you make the most of each seasonal period.
You will need to have enough space set aside for your seasonal products, but not so much that will lead to wastage. Refer to your calendar and adjust your space accordingly. At first, you will only need a small amount for your seasonal merchandise, ramping up your displays as the season moves into full swing, and then reducing it as things wind down. Consider moving any excess stock to discount sales displays at the end of the season.
The primary purpose of your seasonal displays should be to bring new customers into the store and encourage them to make purchases. This can be done by mixing contrasting colours and well-placed display objects to entice buyers. However, the displays should also be used to direct customers to the products you wish to sell most. Examine the buying habits of your customers and the sales methods they are likely to respond to.
In this guide, we have discussed the difference between POP and POS displays, how to lay out your store for maximum sales, and the different buyer profiles you are likely to find in your store. Please refer to this guide whenever you need extra guidance on how to plan your retail and merchandising displays to create the most positive shopping experience for your customers.
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