POP or POS ? What is the difference ? Why is it important for your retail visibility ?
They sound similar and we'll see they overlap – or flow into – each-other. That's why both abbreviations are regularly used interchangeably.
POP (point of purchase) refers to the physical location in the shop where the consumer decides to examine and consider buying a product. For example, in the confectionery department a client chooses a chocolate bar from the range on the shelves and she puts it in her shopping basket.
POS (point of sale) is the area in a store where the customer completes the last leg of the purchase. At the cash desk, also known as the check-out area, the supermarket completes the transaction, calculates the amount owed for the chocolate and indicates the options to make payment. Before the cashier thanks her for her visit, the purchase is turned into a sale.
Before you move on
We are a team of point-of-purchase strategists, industrial designers and production specialists. With over 20 years in retail marketing, we combine imagination and technical know-how to tackle our clients' point-of-purchase challenges with multi-material POP solutions, display and merchandising materials for brands and retail, 100% custom made.
What significance does the difference have for instore communication ?
Retail visibility and instore communication strategies are carefully planned based on a clear understanding of who the target shopper is, her shopping behaviour, and how (and where) she can best be influenced.
POP communication catches consumers who rush through the shop, navigating and searching the aisles for what they have in mind to satisfy their needs. POP communication on the shelves can call out the primary product placement for any item to get shoppers to take notice. There are many good solutions to improve the findability of a product on its home shelf. The best POP material, such as a shelf stopper or a shelf management material, succeeds in slowing down and ultimately stop the hurried shopper at the location of the product (and seduces him to purchase it).
POP communication can also create second product placement. A freestanding fixture, such as a display material, is placed at a strategic spot in a store, a subtle but extremely effective way to move merchandise. In this case, the POP area is the entire shop floor. You can find this fixture just about anywhere in a shop, preferably at the end of high-traffic aisles. Brands like to use a display material because it can increase the visibility and the space taken up by the product. Retail likes to use them because the most creative ones keep the sales space dynamic and exciting, and can break the shopper routine.
Among a number of other benefits, the profitability of POP material depends on the extent to which it keeps the customer alert, the extent to which a brand succeeds in activating impulsive or latent needs and, above all, the response to extra visibility and space taken up.
→ According to research shelf-space elasticity is on average .17 to .20. In others, if shelf allocation doubles demand will increase by average 17 to 20%, with stronger increase for impulse-sensitive items. The elasticity is stronger when increasing than decreasing shelf-space!
POS communication (s!) aspires engagement with products in the area where purchases are processed, the final stage of the buying journey. While the average aisle penetration per trip in a grocery store is only 20% to 30%, the transactional area is the most visited of any shop.
In the last one-third of their shopping trip shoppers are more likely to shop for impulse and indulgent items (snacks, drink, magazine, cute gadget, etc.) Most of us don't enjoy shopping. We consider it a task-driven exercise. In the end we deserve a reward, right? It's no wonder that on the way to the checkout (or presented on a counter-top or checkout display unit) all kinds of smaller items are offered as impulse purchases. This offer is fast and direct ... eventual negative consequences of a careless purchase are not that dramatic.
Because it is always busy at the checkout, everything revolves around visibility and quick choice. That's a tricky challenge today with clients waiting at the checkout completely taken by the small screen in their hands - alas for the industry that suffers from this behaviour.
Because we better remember the beginning and the end of any experience, retail pays a lot of attention to a hassle-free checkout scenario, also with regard to product range, presentation and image. This is the place where customers are most likely to receive their last impression of the store.
It is worth mentioning that POS also refers to various check-out technologies, such as scanning and payment systems.
In marketing and instore communication both POS and POP are used interchangeably, with a tendency towards POP.
Date: Sept. 2020
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