Harvard Business Review predicted more than 30 years ago that point of purchase sales would only continue to become more important as impulse buying increased and customers became less inclined to listen to the more direct suggestions of out-of-store advertisements.

The best POP areas for profits and increased sales work with the power of suggestion, and these strategies will take you all the way to the bank.

Strong Signage

Having well-branded, captivating signage is a vital component for an effective POP area. Utilize:

  • Posters for new or seasonal items. Include the item name, price and a strong image.
  • Danglers, signage that hangs from the ceiling, to capture the attention of the distracted customer.
  • Counter cards or register cards to identify items placed on the counter for purchase.

Restaurants should tailor their signage to meet the needs, brand and feel of their business. For example, Starbucks— which uses chalkboards and handwritten messaging for a more personal feel—uses a different approach from an eateries like Dunkin Donuts or Panera Bread— which are more comfortable with using photographs of their food on their signs.

Displaying Merchandise

Remember: as they say, “eye level is buy level.” Stocking “grab and go” items at the POS area is both:

  1. Convenient for customers in a rush and
  2. An effective way to take advantage of impulse buying.
  3. Your merchandise display should include low priced or novelty items, like seasonal gifts, mugs, gift cards and other items. Your displays can be organized to include:
    • Counter displays with neatly organized racks and sections for different kinds of items
    • Floor displays that capture the attention of customers waiting in line before they reach the register. These displays can consist of cardboard racks or baskets.
    • Case displays like pastry cases or open-refrigerators for drinks, sandwiches, etc. for easy access as customers approach the front of the line.

 

Keep Them Coming Back

The National Restaurant Association measured that returning customers comprise more than 60 percent of a business’ revenue, and returning customers routinely spend more during each visit. Facilitate this trend by:

  • Implementing a loyalty program that offers rewards for a certain amount of visits. If you feel the need to create stipulations, you can specify a base amount that customers need to spend for their visit to count. Example: “Purchases over $15 qualify for our loyalty program.”
  • Offering gift cards, which can introduce new customers to your business when given by their friends who already appreciate what you have to offer. Gift cards can also be a strategic award for your loyalty program, considering that customers are likely to pass them along and help expand your customer base.