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The Point of Sale, or POS, and the Payment Over Protocol (POP) are two different methods for processing transactions in a retail environment. With both options available to retailers today, it is important to understand how each operates so that you can choose best suited for your business needs.
The “pop vs pos marketing” is a question that many ask. The difference between the two is that POS stands for point of sale, while POP stands for point of purchase.
Every retail business has two crucial transactional elements: the point of purchase (POP) and the point of sale (POS). POP and POS are not interchangeable words, despite the fact that some individuals use them interchangeably.
So, what’s the difference between the two?
The point of purchase (POP) is when a consumer chooses to buy something, and the point of sale (POS) is where they pay for it. The POS system conducts transactions and helps you manage other aspects of the company, while POP displays promote items and raise awareness. Let’s look at it more closely.
In-Store Promotions and Point-of-Sale Systems in Brick-and-Mortar Stores
- The point of purchase (POP) is the place where a consumer decides whether or not to buy a product. The point of purchase, contrary to popular belief, may be located anywhere in the shop, not only where the transaction takes place. When it comes to in-store displays and marketing methods, POP is often employed.
- A point-of-purchase display (POP) is a piece of signs or product that attracts the attention of a buyer. POP displays are often seen around cash registers or in areas where consumers are waiting to make a purchase. Endcaps, shelving, cardboard signs, and other in-store advertising and visual merchandising may all be used as POP displays.
- The point of sale (or POS) is the point at which a consumer makes a purchase (including the time and location). The point-of-sale (POS) is where the transaction takes place.
- In-person selling settings need the usage of a point-of-sale system. The hardware and software that manages and processes the transaction are referred to as transaction processing hardware and software. A card reader, barcode scanner, receipt printer, computer or mobile device, and cash drawer are examples of hardware. Payment processing, Management of Inventory, warehousing, and accounting are all handled by the program. The point-of-sale system is often known as the POS terminal or simply the POS.
Ecommerce Stores’ POP and POS
- POP: While they both serve the same objective, in-store and digital POP displays are not the same. From branded shopping apps to pop-up bargains at checkout to sample-size items, ecommerce POP displays can be anything. Expect to see new methods to install digital POP displays in the near future as online shopping evolves.
- The point-of-sale (POS) is no longer restricted to the register and checkout counter. Mobile (mPOS), ecommerce, and Omnichannel have all expanded the POS’s reach, allowing sales to take place almost anywhere. Many POS systems accept credit/debit cards, mobile wallets, digital currencies, gift cards, subscriptions, payment installments, and other payment methods online.
The Importance of Points of Sale in Retail Sales
POP serves a variety of purposes in retail. Its purpose is to attract clients’ attention, educate them about your goods or services, and persuade them to make a purchase. POP displays may also add to the consumer experience by emphasizing brands.
Both Lego and Wonderful Pistachios feature aisle POP displays that are easily recognized. Fixtures Close Up (L) and System Design Studio (L) (R)
POP displays are generally used to advertise “nice-to-have” things or impulsive purchases. If you go into a Marshalls or TJMaxx, for example, you’ll see the POP displays at the registers, which are full with little, enticing products that are simple to pick up and add to your basket. The majority of consumers do not go to shops particularly to buy POP display products, but many do.
POP displays are a simple technique to boost average order value (AOV) or shift out of-of-date inventory. They also allow you to put fresh ideas to the test. For example, you may test a POP display in one shop to determine whether it works before implementing it throughout all of your locations.
Tips for Creating Eye-Catching POP Displays
You want your POP displays to inform and excite potential customers to make a purchase. Here are some pointers to remember while putting up your POP displays:
- Choose places of your shop that get a lot of foot activity. Use a foot traffic analysis tool to figure out how customers travel around your store and how long they stay there. Increase POP engagement and revenue by focusing on places with long stay times.
- Small or seasonal products should be promoted. POP displays may advertise nearly any product, however the most typical products are impulsive buys or tiny needs (such as batteries or hand sanitizer).
- Experiment with new tools and technology. POPs in stores have progressed well beyond cardboard cutouts and placards. With Bluetooth technology, merchants can now gain extensive data about how consumers travel around their stores and target in-store customers on mobile devices. You may even design your own mobile app; according to one study, those who use mobile apps make more purchases.
- Analyze and improve your point-of-purchase displays. You can monitor how well your POP displays work using data from your POS system. To increase performance, make modifications based on these findings.
Increasing Purchases by Optimizing the Point of Sale
Let’s begin with the most classic kind of point of sale: the checkout counter. Every consumer who makes it to the checkout line has seen your items on the point-of-purchase or point-of-sale displays. Make the checkout procedure clear and entertaining for consumers to take advantage of this opportunity.
Promotional Vocals
Associates may communicate to clients about popular goods or promotions in addition to physical displays. Customers are typically turned off by overbearing advertising scripts or approaches.
Transactions That Are Stress-Free
The POS experience should be fast, straightforward, and stress-free. You may speed up the checkout process with a sophisticated POS and well-trained employees. Additionally, mPOS solutions allow employees to meet consumers where they are—on the floor. There will be no lines to wait in, and there will be less reasons to second-guess your decision.
Recommendations for Individualized Shopping
You may also utilize the POS to learn more about your consumers and provide targeted suggestions based on their data and behavior. Management of Customer Relationships (CRM), loyalty programs, gift cards, discount coupons, and other promotional possibilities are all possible with POS technology.
Self-Checkout
POS technology enables consumers to self-serve in specific situations, such as grocery shops. Customers who aren’t in the mood to socialize or who are self-conscious about their purchases are more likely to add to their cart if they have the option of self-checkout.
How Do POS Systems Connect the Purchase and Sale Points?
All of your systems must function together to meet consumer expectations and the fast-paced nature of retail. Businesses are increasingly requiring their IT systems to “communicate” with one another. This necessitates the use of integrated systems or the use of bespoke API solutions to link them.
There are a few crucial characteristics and capabilities to look for if you want to utilize a POS system to assess and improve both your POP and POS:
Management of Inventory
Most POS systems provide inventory management capabilities. Many of them let you establish and maintain SKU numbers, bar codes, product categories, supplier profiles, shipping labels, and other crucial product data.
Many POS systems will also keep track of stock levels across all of your channels of business. This connects your POS and POP displays by synchronizing inventory levels and notifying you when there’s a problem, such as if an item is selling out too quickly or not fast enough, giving you ample time to make adjustments.
- When products sell out, you’ll either want to restock promptly (some POS software can do this for you automatically) or include a message indicating the items are about to sell out.
- If such things aren’t selling, try putting them on the POS and POP displays, or asking personnel to promote them.
Management of Customer Relationships (CRM)
You may capture client information with your POS system at every encounter. You could include client names, phone numbers, ZIP codes, or email addresses into the POS system, which would be ideal for loyalty programs, birthday presents, and other purposes.
Customers’ purchase histories will be tracked by your POS system, including how much they spend, what they buy, which payment methods they use, where they shop, and whether and when products are returned, among other things.
These information may be used to develop POS and POP strategies. Create displays based on your most valuable segments and segment your consumers based on comparable behavior. This aids you in developing insight-driven, targeted digital marketing campaigns for your online business.
Reporting
POS systems analyze sales data in great detail, noting when things were acquired and who made the transaction, among other details. Advanced point-of-sale systems may also reveal where the purchase decision was made.
Data from your POS system may inform you a lot of things, such as:
- What are the most popular goods from POP displays?
- What are the most effective POP displays?
- The real POP is when and where people make their purchasing decisions.
- Increases or decreases in sales as a result of POP displays
- What personnel are in charge of the most sales?
- When things are shown in a POP display vs. when they are not displayed in a POP display, how fast do they sell?
- Which displays do customers engage with the most?
Omnichannel
Customers now have a plethora of ways to interact with companies. Even if they’re communicating with you via a variety of channels at various times and on different days, it’s critical to deliver the same quality of service and experience regardless of where or how you’re engaging with them. Your POP and POS can assist create that seamless experience in your permanent shop, at events and pop-ups, on social media, through email, and on your internet store.
Customers want a flawless shopping experience. Small companies must have transparency, data security, numerous payment alternatives, and a positive customer experience. According to recent data, 18% of US online buyers abandoned a purchase in the previous quarter owing to a long or confusing checkout procedure, and 17% abandoned because they didn’t trust the site with their credit card information.
This is particularly significant since customers no longer buy in a straight line. Before a client feels motivated to make a purchase, they go through a number of research channels and other touchpoints in a nonlinear pattern.
New technologies combine several business tools and systems to consolidate data and deliver comprehensive evaluations of your POP and POS.
Conclusion
When utilized successfully, the POP and POS are two critical drivers in any retail shop, and they may increase the consumer experience and sales for your company. It’s critical to understand how they differ so you can take advantage of both to grow your retail company. With the materials listed below, you may learn how to get most out of your POS.
The “point of purchase examples” are a type of POS. The difference between the two is that the point of purchase system is used to track transactions, while the point of sale system tracks inventory.
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