Point of purchase
Point of purchase (POP) is a term used in marketing to refer to the moment when a customer makes a decision to purchase a product or service. POP involves a combination of factors such as product placement, customer service, and customer experience. It is a critical moment in the customer journey and an opportunity to influence the customer’s decision. From a management perspective, POP is the time when customer engagement strategies, promotions, and incentives are best implemented to maximize sales. POP is also the time when retailers have the most influence on customer behavior and can create a unique customer experience to drive customer loyalty.
Example of point of purchase
- Grocery stores use point of purchase (POP) merchandising to influence customer buying decisions. Customers are often presented with a range of products placed near the checkout counter or in strategic locations throughout the store. For example, a grocery store may place candy and snacks near the checkout counter in an attempt to encourage customers to purchase them.
- Fast-food restaurants also use POP to influence customer decisions. For example, they may place pictures of their most popular menu items near the cash register to increase the chances of customers ordering them. Additionally, they may offer combo meals that come with a discount when purchased together.
- Online retailers also use POP to influence customers. For example, they may use pop-ups to display special offers to customers when they are browsing their website. Additionally, they may use advertising banners on their website or in emails to target specific customers with personalized offers.
When to use point of purchase
Point of purchase is an important part of the customer journey and can be used to influence the customer’s decision to purchase. Here are some applications of POP:
- Displaying relevant products at the checkout counter to drive impulse purchases,
- Showcasing promotional items like samples or discounts to entice customers,
- Utilizing digital signage to advertise new products and services,
- Offering personalized customer service, such as product recommendations or tips,
- Leveraging interactive technology like augmented reality to create a unique shopping experience,
- Implementing loyalty programs to reward customers for repeat purchases, and
- Emphasizing visual merchandising to create an attractive and inviting store.
Types of point of purchase
Point of purchase (POP) is an important moment in the customer journey, where retailers have the most influence on customer behavior and can create a unique experience to drive customer loyalty. There are several types of POP, each of which can be used to influence the customer’s decision to purchase. These types include:
- Store-based POP: This type of POP is used in physical stores, where product placement and customer service are leveraged to maximize sales.
- Online POP: This type of POP is used in online stores and websites, where promotions and incentives are used to attract customers and drive sales.
- Mobile POP: This type of POP is used on mobile devices and apps, where targeted ads and personalization are used to reach customers and increase sales.
- Social Media POP: This type of POP is used on social media platforms, where influencers are used to create awareness and boost sales.
Overall, the goal of POP is to create an engaging and memorable customer experience that will lead to increased sales and customer loyalty.
Advantages of point of purchase
Point of purchase (POP) is an important part of the customer journey and offers a variety of advantages for businesses. POP provides businesses with an opportunity to drive sales, build customer loyalty, and increase profits. Here are some of the advantages of POP:
- Increased visibility: POP increases the visibility of products, allowing customers to easily find and purchase items.
- Increased sales: POP can be used to drive sales by providing customers with promotions, discounts, and incentives.
- Improved customer service: POP can be used to provide customers with personalized service and create a unique customer experience.
- Increased customer loyalty: POP can be used to build customer loyalty by providing customers with a positive buying experience.
- Cost-effective: POP is a cost-effective way to market products and reach potential customers.
- Branding: POP can be used to build brand recognition and create positive associations with the brand.
Limitations of point of purchase
Point of purchase is an important marketing strategy that can be a powerful tool in influencing customer decisions. However, there are some limitations to be aware of when using POP. These include:
- Limited reach: POP campaigns are limited to a specific store, so they can only be used to reach customers who are physically present in the store.
- Short duration: POP campaigns are often short-term and can’t be used to build long-term customer relationships.
- High cost: POP campaigns can be expensive, particularly for small businesses.
- Difficult to measure: It can be difficult to measure the effectiveness of POP campaigns, making it difficult to determine return on investment.
- Lack of personalization: POP campaigns can be difficult to personalize, which can reduce their effectiveness.
- Competition: POP campaigns can be crowded out by other campaigns and promotions in the store.
Point of purchase (POP) is a critical moment in the customer journey and an opportunity to influence the customer’s decision. There are several other approaches related to POP that can be used to maximize sales and increase customer loyalty. These include:
- Product placement - Placing products in strategic locations in a store or online can make them more visible to potential customers and increase the likelihood of purchase.
- Promotions and incentives - Offering discounts, coupons, and other incentives can encourage customers to purchase products or services.
- Customer service - Providing quality customer service and making sure customers feel valued can increase the chances of return visits and purchases.
- Customer experience - Creating a unique and memorable experience for customers can keep them coming back and encourage repeat purchases.
In summary, there are several approaches related to POP that can help maximize sales and increase customer loyalty. These include product placement, promotions and incentives, customer service, and customer experience.
|Point of purchase — recommended articles|
|Pull strategy — Social media marketing — Forms of promotion — Manipulation advertising — In store marketing — Benefits of social media marketing — Types of advertising — Customer benefits — Social media advertisement|
- Wertenbroch, K., & Skiera, B. (2002). Measuring consumers' willingness to pay at the point of purchase. Journal of marketing research, 39(2), 228-241.