subject: Encouraging a Critical Decision at Point Of Sale [print this page] Encouraging a Critical Decision at Point Of Sale
Now, more than ever, UK businesses need their point of sale displays to work their magic. The recession is over, the country is pulling slowly out of the financial doldrums like an ocean liner leaving port; and companies whose profit margins have been reeling are looking to their impulse buy sections to redress some of the balance. They know that POS displays are a unique opportunity to increase the actual spending figures of each "buy committed" customer which means, in turn, of course, that companies that sell point of sale kit are experiencing a pretty quick upturn in their fortunes.
A "buy committed" customer is a customer who has already decided to purchase something from the store in question. He or she has made a commitment to open his or her wallet and part with money in exchange for goods. That makes him or her, an important target. While other customers in the store have not yet undertaken definitely to spend money, the buy committed customer is ready; there will be a definite transaction; and so the job of the store is to persuade him or her to spend a little more.
A "little" is a very operative word here. Point of sale displays and merchandise only work if they are targeted carefully to the average spend either in store or in general across that store's market. There's no point, for example, in trying to encourage people at till to buy an extra item worth more than the stuff they came in for in the first place. POS merchandise is intended to encourage a larger spend by getting customers interested in things that cost a minimal percentage of their overall bill. Price POS gear too high and it will seem like a whole new purchase, which isn't the point at all. The point of point of sale is to get a customer to add to his or her purchase almost without noticing that he or she has done it.
The kind of things that go in a POS display, then, are absolutely critical to that little extra bit of money. POS items have to be attractive; small enough not to seem over the top; and desirable in a particular way. That way has a lot to do with perception. If a customer can be convinced either that the POS item is indispensable so something actually useful around the home or a real treat, then he or she is quite likely to take the bait. Point of sale works best when it convinces the customer that he or she has stumbled either across something he or she cannot do without; or that he or she has found the perfect little treat, to reward him or her self for being so good with the rest of the shop.
It's all about psychology, clever tricks, persuading a customer into a critical decision at a time when they are already committed to paying some money into the till. In a nutshell, the trick of point of sale can be summed up thus: "why not?" Get customers saying that to themselves and you've won a little extra money from each one.
