Learn how to measure the effectiveness of your point-of-sale displays with these essential KPIs for marketing.
In today's competitive retail landscape, companies are constantly looking for ways to increase their sales and understand their customers better. One of the most effective marketing strategies is point-of-sale (POS) displays, which can be used to capture customers' attention and drive sales. But how can retailers measure the success of their POS displays? This is where key performance indicators (KPIs) come in, providing a measurable metric for POS display reach. In this article, we'll explore the different aspects of POS display reach and the KPIs that retailers should be tracking.
A point-of-sale display is any form of promotional material used in a retail store to influence customers' purchasing decisions. It can be anything from a simple sign to a complex display or kiosk. POS displays are essential because they enhance the visibility of products and can significantly increase sales. POS displays are used by retailers to bring attention to particular products, introduce new products, advertise promotions, and drive sales.
POS displays can be a game-changer for retailers looking to increase their sales. By using creative displays, retailers can make their products stand out from the competition and attract more customers. A well-designed POS display can also help build brand awareness and loyalty.
There are numerous types of POS displays, and each offers a unique way of showcasing products. Shelf talkers are small signs affixed to shelves that draw attention to specific products. End caps are displays located at the end of an aisle designed to attract customers with promotions or discounts. Floor stands are standalone displays placed on the floor, while counter displays are smaller versions placed on countertops. Kiosks are freestanding units that allow customers to interact with products and make purchases directly.
Each type of POS display has its advantages and disadvantages. For example, shelf talkers are inexpensive and easy to install, but they may not be as noticeable as other types of displays. End caps are great for showcasing a variety of products, but they can be expensive to produce and may take up a lot of floor space.
Several factors affect the reach of POS displays. One important factor is the placement of the displays. Displays located in high traffic areas are more likely to be noticed than those placed in low traffic areas. Another factor is the design of the display, including its size, shape, color, and messaging. The messaging should be concise and visible, and the design should be eye-catching and align with the brand's image.
In addition to placement and design, the timing of the display can also affect its reach. Retailers should consider the time of year, holidays, and other events when planning their POS displays. For example, a display promoting sunscreen and beach accessories would be more effective during the summer months than in the winter.
Finally, retailers should also consider the demographics of their target audience when designing their POS displays. A display that appeals to young adults may not be as effective for older adults. Retailers should conduct market research to determine the preferences and buying habits of their target audience and use this information to design their displays.
One KPI for POS displays is impressions and visibility. This refers to the number of times a display is seen by a customer. Impressions are usually measured using in-store analytics tools that track foot traffic and eye-tracking technology that detects where a customer is looking. Visibility is measured by analyzing the distance between the POS display and the customer and the angle at which it is viewed. Retailers can optimize their displays by placing them in high traffic areas and designing them to attract customers.
For example, a retailer selling makeup products can place a POS display near the entrance of the store, where customers are more likely to notice it. The display can be designed with bright colors and bold text to attract attention. Additionally, the retailer can use eye-tracking technology to determine which products customers are looking at the most and adjust the display accordingly.
The conversion rate measures the percentage of customers who make a purchase after seeing a POS display. This KPI is essential because it shows how effective a display is at driving sales. Retailers can track conversion rates by monitoring sales data or using in-store analytics tools that track purchases made after viewing a display. A high conversion rate indicates that a display is effective and is driving sales, while a low conversion rate suggests that the display needs improvement.
For instance, a retailer selling snacks can place a POS display near the checkout counter, where customers are more likely to make impulse purchases. The display can be designed with mouth-watering images of the snacks, and the retailer can offer a discount for customers who purchase multiple items. By monitoring the conversion rate, the retailer can determine if the display is effective or if changes need to be made.
Customer engagement measures how customers interact with a POS display. This KPI can be tracked using in-store analytics tools that detect how long a customer spends looking at a display or interacting with it. Customer engagement is essential because it indicates how effective a display is at capturing a customer's attention and keeping it. Displays that are creatively designed and interactive are more likely to generate high levels of customer engagement.
For example, a retailer selling sports equipment can create an interactive POS display that allows customers to try out the products. The display can include a basketball hoop, and customers can take shots to see how the product performs. By tracking customer engagement, the retailer can determine if the display is effective or if changes need to be made.
Sales lift is a common KPI used to calculate the impact a POS display has on sales. It measures the change in sales in a specific product category after the introduction of a POS display. Sales lift is calculated by subtracting the sales during a baseline period when no display was present from the sales during the display period. A high sales lift indicates that a POS display is effectively driving sales and generating revenue for the retailer.
For instance, a retailer selling electronic gadgets can introduce a POS display for a new product line. By tracking sales lift, the retailer can determine if the display is effective in driving sales for the new product line or if changes need to be made to the display.
ROI measures the amount of revenue generated by a POS display compared to the cost of implementing it. ROI is calculated by dividing the sales generated by the display by the cost of creating and implementing it. Retailers should aim to achieve a positive ROI, indicating that the display is generating more revenue than it costs to produce and implement.
For example, a retailer selling home decor items can create a POS display for a new product line. The display can be designed with eye-catching images and placed in a high traffic area. By calculating the ROI, the retailer can determine if the display is generating enough revenue to justify the cost of creating and implementing it.
Point-of-sale (POS) displays are a powerful tool for retailers to increase brand awareness, drive sales, and generate revenue. However, it can be challenging for retailers to measure the reach and effectiveness of their POS displays. Fortunately, there are several methods that retailers can use to track the reach of their displays and optimize them for increased success.
One effective way to track POS display reach is by using in-store analytics tools. These tools provide retailers with valuable data on foot traffic, customer engagement, and conversion rates. By analyzing this data, retailers can gain insights into how customers interact with their displays and make informed decisions on how to optimize them for increased reach.
Some popular in-store analytics tools include ShopperTrak, RetailNext, and Nomi. These tools provide real-time data on customer behavior, including how long customers spend in-store, which displays they interact with, and which products they purchase. Retailers can use this data to optimize their displays for increased reach and revenue.
Another effective way to track POS display reach is by gathering customer feedback through surveys. Surveys can provide valuable insights into the effectiveness of displays, including customer engagement, conversions, and preferences. Retailers can use this data to optimize their displays and improve their reach.
Surveys can be conducted in-store, online, or via email. In-store surveys can be conducted at the point of sale, allowing retailers to gather feedback from customers immediately after they interact with a display. Online and email surveys can be used to gather feedback from a broader audience, including customers who may not have visited the store recently.
Sales data analysis is another effective way to track the reach of POS displays. By analyzing sales data before and after the introduction of a display, retailers can gain insights into the success of a display in driving sales and generating revenue.
Retailers can use POS data to track sales trends, including which products are selling well and which are not. By comparing sales data before and after the introduction of a display, retailers can determine whether the display had a positive impact on sales and revenue. This data can also be used to assess the ROI of a display and make informed decisions on how to optimize it for increased reach.
A/B testing and experimentation are two methods that retailers can use to optimize their POS displays for increased reach and revenue. A/B testing involves creating two versions of a display and testing them in different stores or at different times. This allows retailers to gather data on which display is more effective at driving sales and generating revenue.
Experimentation involves trying out new ideas and designs in displays to see how they perform. By experimenting with different designs and layouts, retailers can gain insights into what works best for their customers and optimize their displays for increased success.
In conclusion, retailers have several methods at their disposal for measuring and tracking the reach of their POS displays. By using in-store analytics tools, gathering customer feedback, analyzing sales data, and experimenting with different designs and layouts, retailers can optimize their displays for increased reach and revenue.
In conclusion, POS displays are an effective way for retailers to drive sales and provide customers with an engaging shopping experience. To measure the success of their POS displays, retailers should track KPIs such as impressions and visibility, conversion rates, customer engagement, sales lift, and ROI. By using in-store analytics tools, customer feedback, sales data analysis, and experimentation, retailers can optimize their displays for increased reach and revenue.