Point-​of-​Purchase Garnering more Marketing Funds

For many consumers, the recession is not over. They’ve learned how to hunt for bargains and experts say this behavior may stay entrenched for years. As a result, more purchase decisions are being made in the store, a trend which has profound implications for marketers.

The Point of Purchase Advertising International (POPAI) association just released its 2012 Shopper Engagement Study. The organization has been studying shopper behavior for over 30 years and notes that today’s shopper exhibits specific new tendencies. For example, up to 76% of purchases are made in-​store and can be segmented into the following categories: generally planned, unplanned, and substitutes.

To capture these sales, marketers should deploy specific in-​store techniques:

1.      To encourage a shopper to purchase a branded product in the store, marketers must post signs or other promotional material on the shelves. Doing so results in up to 16% of product purchases. This strategy is especially effective for items like pet supplies or dish soap  and works best when loyal female shoppers are targeted.
2.      Up to 60% of store signs are placed in secondary locations to sway shoppers who might have missed the first sign. Brands that use this strategy have a better chance of influencing shoppers who are spending less time than ever before in the physical retail environment.
3.      Because shoppers are bombarded with a large number of products on the shelves, marketers must create compelling displays and content. Just over half of surveyed shoppers say they noticed endcap and free-​standing displays.
4.      Marketers should work to target shoppers who use debit or credit cards and perhaps even develop promotions with card companies. Research shows that consumers who do not pay cash overspend significantly on impulse buys.

Marketers who are selling products that consumers purchase frequently or that fall into the unplanned category have plenty to gain by adjusting their media mix and spending more on the point-​of-​purchase channel.

[Source: Shoppers are Making More Purchasing Decisions In-​Store. Popai​.com. 9 May 2012. Web. 1 Jun. 2012] 
Kathy Crosett
Kathy is the Vice President of Research for SalesFuel. She holds a Masters in Business Administration from the University of Vermont and oversees a staff of researchers, writers and content providers for SalesFuel. Previously, she was co-​owner of several small businesses in the health care services sector.