Does In-Store Marketing Really Influence Shopper Engagement?

Akshay KaulMarketing Director

You see them in every retail grocery: shelf signage, endcaps, displays, power wings and other in-store marketing vehicles. These tactics seem more present and popular than ever. But are they really effective in raising brand awareness and motivating shoppers to buy?

The short answer: Yes! Point-of-purchase (POP) signage and displays offer CPG brands and retailers an effective way to attract attention, engage shoppers and entice them to try products, which can result in incremental sales. But success depends on understanding the potential of these tactics and why they work so well.

A Brief History of POP Marketing

Point-of-purchase (POP) or point-of-sale (POS) marketing tactics like signage and displays have evolved in the last few decades—in scale, appearance and in-store placement. In the beginning, these types of retail displays were usually located up front by the registers. Their presence at this final stage of the shopper’s journey was meant to help trigger last-minute, impulse purchases. However, retailers soon discovered that this strategy was unnecessarily restrictive. Although strategic placement was still important, limiting POP displays to one area meant they were missing out on a bigger goal: keeping customers engaged and in the store longer.

Today, POP displays can be found in any area of a retail grocery store, from the perimeter to the center store and from fresh to frozen. Signage, endcaps and other types of displays help promote brand awareness, launch new products, keep customers engaged and increase sales.

Why POP Marketing Is So Effective

POP marketing works because it delivers its punch where the action is—in the store.

Up close and personal. Today’s consumers are bombarded with information, and the average consumer recalls only 17 percent of the messages he or she is exposed to. So it’s imperative for brands to identify ways to help shoppers retain more of their messaging. The great strength of POP is its emphasis on proximity and relevance. In-store marketing tactics capture shoppers’ attention at the very time and place they are most receptive to engaging with content relevant to their current purchase journey and decision making—while they are shopping in the grocery store.

Eye-catching and engaging. POP signage, shelf talkers, displays and other tactics can help guide the shopper’s journey, keeping them informed and entertained. As noted in a USA Today blog, “The more consumers have to look, marvel at, and read, the longer they’ll stay in the store. And the longer they find themselves wandering around . . . the more they’re likely to end up taking home.”

 Home and away. POP merchandising displays also draw the shopper’s attention to brands that may be away from their home locations in the store. When a brand is featured using free-standing displays, power wings and sidecaps, it will get noticed even when the shopper isn’t walking that brand’s usual aisle. These displays can be custom designed to fit almost any fixture or space to promote a unique brand identity and increase sales.

Happy returns. Almost 90 percent of grocery purchases are made in the store, so return on investment for in-store promotion is likely to be much better than any other type of marketing spend. Because they drive engagement among captive and receptive shoppers in the store, marketing signage and displays are known to deliver strong sales lift and ROI for your brand.

A Creative Opportunity

Just as retailers discovered there was more opportunity in strategically placing POP displays throughout the store, CPGs and retail marketers are finding out that the more engaging their displays or signage are, the higher the conversion rate. This requires an inspired creative team to conceive and execute effective in-store marketing programs that kick things up a notch. Going beyond conventional POP materials to embrace customizable in-store displays will enable more flexibility and transparency in promoting your brand and building customer loyalty.

Understood well and done right, POP marketing is a winner!

Next: In the next installment of this blog series, we’ll discuss the different types of in-store marketing solutions available and which ones are best for your brand.

Looking for an experienced partner to help you navigate the complex process of creating unique POP signage and displays? Insignia is here to help! We’ll meet with you to discuss your goals and marketing strategy, so we can design and develop a custom in-store marketing solution that keeps shoppers coming back for more. Contact us today!