The Power of POS

Understanding the psychology behind purchase decisions is crucial for retailers. According to Liljenwall (2004), there are four key stages of influence that guide a customer’s journey from need to action. Let’s break down these stages and explore how point of sale (POS) advertising can play a pivotal role in influencing those decisions.

1. The customer is driven by a need

The first stage begins with the customer recognising a need. Whether it’s a quick snack, a household item, or something more indulgent, this need motivates them to visit your store.

2. Motivation spurs action

Once the customer is in-store, the motivation to satisfy that need pushes them to take action. At this point, they are primed to make a purchase, and their decision-making process is actively underway.

3. Environmental cues shape their decision

This is where point of sale advertising plays a powerful role. As customers navigate the store, they pick up on subtle (or not-so-subtle) cues from their surroundings that influence their buying choices.

The true power of POS marketing shines here: well-placed signage, shelf talkers, wobblers, vouchers, posters, and leaflets can guide customers toward higher-margin items or encourage impulse buys. By using the right cues, you can steer customers toward specific products or promotions.

4. Action is taken

Finally, the customer makes a decision and completes the purchase. The journey, from the initial need to the final action, is heavily influenced by how effectively the environment and marketing cues support the decision-making process.

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The Power of Point of Sale Advertising

At its core, advertising is about delivering the right messages at the right time - when a customer’s need is most pressing. POS advertising is one of the most effective ways to capitalise on these moments. Every piece of POS material, from shelf signage to digital displays, has the potential to influence buying behavior. But not all POS displays are created equal.

Traditionally, static POS like posters and leaflets have been widely used, but advancements in technology have shifted the focus toward dynamic, digital solutions. The shift from static printed materials to digital screens has been transformative for retailers, providing a host of new opportunities to capture customer attention and influence purchases in real time.

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The Shift to Digital POS

Digital screens are reshaping the way retailers approach point of sale advertising. Studies have shown that adding motion and sound to POS materials significantly boosts customer interaction, leading to increased sales. When digital screens with dynamic content are used, customer engagement can skyrocket.

Consider these statistics:

• 90% increase in customer interaction when promotional POS is added to a display.
• 44% increase in sales when motion is incorporated into POS displays compared to static alternatives.

The reason for this is simple: movement and sound capture attention. They create a more engaging and memorable experience for customers, increasing the likelihood of making an impulse purchase or upgrading to a higher-margin product.

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Real-Time Flexibility and Personalization

One of the greatest advantages of digital POS systems is their flexibility. Unlike traditional printed materials, digital screens can be updated instantly to reflect local needs, market trends, time of day, or seasonal fluctuations. This allows retailers to personalise promotions and tailor their messages to specific customer groups or situations in real time.

For example, a convenience store can display different promotions during morning rush hours compared to the evening, maximising the relevance of the message to the target audience at any given moment. This real-time adaptability gives retailers an edge in staying responsive to customer behavior and market demands.

Visual ID is at the forefront of this shift toward digital POS innovation. By pioneering Digital Screen Feed technology, we are enhancing the Marketing Toolkit for retailers, empowering them to harness the full potential of digital POS solutions. Our cutting-edge technology is designed to integrate seamlessly into retail environments, allowing for interactive promotional displays that engage customers more effectively than ever before.

As the trend toward digital and interactive POS continues to grow, retailers who invest in these tools stand to benefit from increased customer engagement, higher sales, and a more tailored shopping experience.