In retail, the final moments of a customer’s journey are often the most influential. This is the stage where a casual browser becomes a committed buyer, and much of that transformation happens at the point of purchase. It is the physical and psychological space where marketing efforts converge to guide a consumer’s decision.
Defining Point of Purchase
A point of purchase (POP) refers to any location within a retail environment where a customer interacts with a product before making a buying decision. It is not a single spot but the entire area where product engagement occurs, such as an aisle, a promotional display, or the shelf space a product occupies. The concept centers on the customer’s journey through the store, encompassing all the touchpoints that influence their choice to add an item to their cart.
The point of purchase is the “where” of the choice. For instance, when a customer pauses in the beverage aisle to examine a new energy drink, that aisle becomes the point of purchase. Similarly, a special display featuring seasonal items near the entrance creates a point of purchase zone designed to capture attention early in the shopping trip. This space is where brands have the opportunity to communicate directly with potential buyers.
Common Types of Point of Purchase Displays
Freestanding Displays
Freestanding displays are standalone units placed in high-traffic areas of a store, such as main aisles or near entrances. Often made of corrugated cardboard for temporary promotions, they can also be constructed from more durable materials like metal or wood for long-term use. Their primary advantage is visibility; they physically interrupt the customer’s path to introduce a new product or highlight a special offer.
Countertop Displays
As the name suggests, countertop displays are smaller units placed on checkout counters or other flat surfaces. They are designed to encourage last-minute, impulse buys as customers are waiting to pay. These displays often hold smaller, low-cost items like candy, batteries, or travel-sized products. Their compact size and strategic placement make them effective for cross-selling and upselling.
Shelf Talkers
Shelf talkers are signs or tags that attach directly to the edge of a retail shelf. They are designed to grab a shopper’s attention as they scan the products in an aisle. These small but impactful displays can communicate key information such as a sale price, a special feature, or a customer review. By breaking up the visual monotony of a long shelf, they help a specific product stand out from its competitors.
End Caps
End caps are displays located at the end of store aisles. This prime real estate is highly visible to shoppers as they navigate the store’s main thoroughfares. Retailers often use end caps to feature high-margin products, seasonal items, or major promotions. Because of their prominent location, they are one of the most powerful types of POP displays for driving sales and moving large volumes of product.
Dump Bins
Dump bins are large, open containers typically filled with a single type of product that is on sale. These are often used for items that don’t need to be neatly stacked, such as snacks, toys, or seasonal goods. The “dumped” appearance can suggest a bargain or clearance, encouraging customers to browse through the items in search of a good deal.
Banners and Posters
Banners and posters are versatile forms of POP marketing that can be hung from the ceiling, placed on walls, or displayed in windows. They serve to create a general atmosphere of promotion within the store or to direct customers toward specific products or sale sections. This type of signage is effective for communicating broad marketing messages and reinforcing brand identity throughout the retail space.
The Importance of Point of Purchase Marketing
Point of purchase marketing is a powerful tool for influencing consumer behavior directly at the moment of decision. Its primary function is to capture the attention of shoppers who may be undecided or simply browsing. Well-designed displays can interrupt a customer’s routine shopping pattern, introduce them to new products, and provide information that can sway their choice in the final seconds before a selection is made.
A significant portion of purchasing decisions are made impulsively inside the store. POP displays are specifically designed to capitalize on this tendency by showcasing items, often at a discount or as a special offer, in a way that encourages an unplanned purchase. For example, placing low-cost, high-margin items near the checkout capitalizes on a customer’s willingness to add a small treat or convenience item to their basket while they wait.
POP marketing serves to reinforce brand messaging and build awareness. For both new and established brands, these displays offer a platform to communicate value, highlight unique features, and create a memorable presence that stands out from competitors on the shelf. By using distinctive colors, logos, and taglines, a POP display can make a lasting impression, helping to foster brand recognition and loyalty over time.
Differentiating Point of Purchase from Point of Sale
A common area of confusion in retail terminology is the distinction between the point of purchase (POP) and the point of sale (POS). The point of purchase is where the customer makes the decision to buy a product. It is the area on the sales floor—an aisle, a promotional display, or a shelf—where they interact with items and choose what to put in their cart.
In contrast, the point of sale is the specific location where the financial transaction is completed. This is the checkout counter, the cash register, or the self-service kiosk where money is exchanged for goods. The POS system is the hardware and software that processes the payment, tracks inventory, and generates a receipt.
An easy way to distinguish the two is that the point of purchase is where the product goes into the shopping cart, and the point of sale is where the cart is paid for. While POP marketing aims to influence the selection process throughout the store, POS marketing focuses on the checkout area, often with smaller displays of impulse items to increase the final sale amount.
Creating an Effective Point of Purchase Strategy
Developing a successful point of purchase strategy begins with a deep understanding of the target audience and their shopping habits. The design, messaging, and placement of a display should align with the preferences of the intended consumer. For instance, a display for a high-tech gadget might feature sleek, modern visuals, while one for a children’s snack would use bright colors and playful characters to attract attention.
The visual and textual elements of the display must be compelling and clear. High-quality graphics, bold headlines, and concise messaging are necessary to capture the interest of a shopper in a matter of seconds. The display should quickly communicate the product’s value proposition and provide a clear call to action, such as “New Flavor” or “Special Price.”
Proper placement and maintenance are just as important as the design itself. A POP display should be situated in a high-traffic area where it is most likely to be seen by its target audience. It is also important to ensure the display remains well-stocked, organized, and clean. An empty or messy display can create a negative impression and undermine the entire promotional effort.