What Is a Point of Purchase (POP)?
Let me explain what a point of purchase, or POP, really means. It's the specific time and place where a customer completes a retail transaction. As a marketer or retailer, you use this term to identify that crucial moment in the shopping journey where you can influence the customer to finalize their buy or add more items. Think about how we strategically place product displays right near the checkout in a grocery store aisle—that's POP in action.
This concept is closely related to the point of sale (POS), which is where the actual payment happens, like at a store counter or on a website. But POP extends to the surrounding area, where customers often see promotions or tempting add-ons that encourage extra purchases.
Key Takeaways on POP
To break it down simply, the point of purchase describes when and where a customer makes a retail transaction. You, as a retailer or marketer, view POP as a prime opportunity to sway customers toward completing or expanding their purchases. It can be physical, like in a traditional store, or virtual for online sellers. POP display manufacturers help brands stand out with eye-catching, innovative designs tailored to retail environments. And here's a fact: the global POP displays market is set to grow at an 8.4% CAGR from 2023 to 2031.
Understanding Point of Purchase
At its core, the point of purchase is where everything converges in the customer's buying process: the buyer, the payment, and the product. This could be a physical spot like a checkout counter in a brick-and-mortar store, or a virtual one like the cart in an e-commerce site. In recent years, I've seen retail marketers zero in on this area, using tactics like cross-selling, discount codes, and impulse buys to get customers to spend more.
POS vs. POP
Don't confuse POP with POS. The point of purchase covers the time and place of the entire transaction, while the point of sale is specifically where the payment is processed. That's the key distinction you need to remember.
POP Marketing
Retailers, whether online or in physical stores, deploy various strategies to shape customer decisions at the POP. This includes product stands, brochures, discounts, ads, or even sales staff. A classic example is the candy and magazines at grocery checkouts, but online, it's evolved into personalized upsell offers before you hit 'buy'. According to the 2024 POP Display Market Outlook, the global market for these displays will grow at 8.4% CAGR from 2023 to 2031, hitting $19.5 billion by the end.
POS Systems
The point of purchase encompasses the POS and its hardware and software. These systems are customized for industries—like handling orders in restaurants or inventory in retail. While some small shops use basic cash registers, most are digital, integrating scanners, printers, and touchscreens. Customers often handle tasks themselves now, like scanning items or swiping cards. Beyond transactions, POS software manages inventory, prevents theft, and integrates with accounting, making it a backbone for business operations.
POP Innovation
To keep up in competitive retail, POP display makers are pushing aesthetics and innovative designs. With fierce competition, retailers demand custom displays that fit specific needs, boosting brand identity through looks, capacity, and mobility. AI is transforming POP with facial recognition and machine learning for personalized promotions. Digital displays add interactivity via videos, animations, and AR. On the POS side, systems are programmable, often with AI, to gather data and run loyalty programs. Touchscreens and cloud tech let customers interact directly, like ordering from table terminals in restaurants or hotels.
Frequently Asked Questions About POP
- What types of POPs are there? They can be physical checkout counters in stores or virtual carts in online retail.
- How does POP work with POS? POP includes POS systems, which use tailored hardware and software for specific businesses.
- What’s the future of POP? Intense retail competition is pushing AI, digital innovations, and strategies to enhance purchases and customer experiences.
The Bottom Line
In summary, the point of purchase is a vital part of the customer journey that you should weave into your marketing and service strategies. It goes beyond just the POS hardware and software. With AI and digital advancements, retailers have new tools to influence buying in both physical and online spaces.
Other articles for you
Debt consolidation combines multiple debts into one loan to simplify payments and potentially lower interest rates.
The nonce is a critical number in Bitcoin mining that miners adjust to generate valid block hashes meeting the network's difficulty target.
This text explains student loan forgiveness options for federal loans, including eligibility, types of programs, and recent legal developments.
A 125% loan allows homeowners to borrow up to 125% of their property's value for refinancing, often to access extra cash despite risks and high rates.
The quantity theory of money explains how changes in money supply directly influence price levels and inflation.
Operations management involves planning and overseeing business processes to maximize efficiency and profitability.
Unamortized bond premium is the remaining portion of a bond's premium over face value that hasn't been written off as interest expense yet.
This text explains the definition, operations, funding, regulations, and challenges of nonprofit organizations.
Share classes designate different types of securities like stocks or mutual funds with varying rights, fees, and privileges.
A bank account number is a unique identifier that allows access to and management of a specific bank account.