Every product has a journey — from catching a customer’s eye to ending up in their basket. Along the way, point of purchase (POP) and point of sale (POS) each play an important role.

Think of it like this: POP displays get customers interested and encourage them to buy, while POS displays help complete the sale. Both are essential, but they work in different ways.

In this guide, we’ll break down what makes POP and POS different, how they work together, and how you can use them to boost sales.

But first, let’s understand a key concept that ties both together: Point of Sale Marketing (POSM).

What is POSM?

POSM refers to the tools and materials retailers use to showcase products and catch a shopper’s attention, whether in-store or online.

The purpose of POSM is simple: to make products noticeable, provide key information, and encourage purchases. It’s a direct way to influence buying decisions and enhance the overall shopping experience.

POSM comes in many shapes and sizes, designed to fit different retail settings. Some common examples include:

• Posters, banners, and other signage
• Shelf wobblers or danglers to highlight promotions
• Product displays at aisle ends or checkout areas
• Digital screens with advertisements or product details
• Online tools like related product suggestions

POP and POS are integral parts of POSM, working in tandem to boost sales.

POP Vs. POS

POP and POS are the backbone of the customer shopping journey.

The POP is where the shopping journey begins to take shape. Here, the customer encounters a product in a way that grabs their attention. It is placed at points in the store where a customer is considering buying a product.

Think strategically placed displays or promotional signage.

The goal of the POP is to move customers from passive browsing to active decision-making. You can do this by presenting products in a way that feels relevant and hard to ignore.

On the other hand, a POS system is the final stop in the shopping journey. This is where customers pay for the items they’ve chosen. They include:

• Traditional checkout counters
• Mobile checkout devices
• Self-service kiosks
• Online shopping carts
• Pop-up store payment stations

POS systems can make or break a customer’s shopping experience. A smooth, hassle-free checkout reinforces trust, while a clunky or slow process risks frustrating customers and leaving a bad impression.

Why POP and POS matter together

Think of POP as sparking interest and POS as closing the deal. Neither works well in isolation. An uninspiring POP won’t drive choices, no matter how smooth the POS is. Similarly, an engaging POP won’t matter if the POS causes friction. The best retailers recognize this balance and optimize both touchpoints to:

1.Highlight the right products at the right time.

2.Streamline the path from interest to purchase.

Ultimately, a thoughtful approach to POP and POS can turn casual visitors into loyal customers. Smart retailers use both systems to create better shopping experiences:

Inventory Management

The POS system tracks which products sell best, helping retailers decide what to feature in POP displays.

Customer Flow

POS data shows peak shopping times and popular paths through the store. Retailers use this information to place POP displays where they’ll have the most impact.

Digital Integration

Modern retail combines digital displays with POS data:

• Digital shelf labels update prices automatically based on POS inventory levels
• Interactive kiosks show detailed product information and real-time stock levels
• Digital signs display different content based on time of day and sales patterns

Practical applications for different store types

The way POP and POS strategies are implemented can vary depending on the size and type of store. Here’s a closer look at how different retailers can use these tools effectively:

Small retailers

Small stores, like local boutiques or neighborhood shops, can benefit from flexible and cost-effective solutions:

Mobile POS systems:

Process transactions anywhere in the store, creating a seamless and personal checkout experience.

High-impact POP displays:

Focus on strategic locations, such as near the entrance or checkout counter, to grab attention and drive impulse buys.

Frequent display rotations:

Change displays regularly, based on sales trends or seasonal products to encourages repeat visits.

Mid-size stores

Regional chains or medium-sized retailers have more resources to create a cohesive in-store experience:

Integrated POS systems:

Implement systems that connect inventory, sales, and customer data across the store to ensure efficiency and consistency.

Dedicated POP areas:

Designate specific zones for promotional displays throughout the store to maintain customer interest as they shop.

Digital displays:

Use screens to showcase real-time promotions, dynamic pricing, or product information, adding a modern touch to the shopping experience.

Large retailers

Big-box stores and national chains have the scale to leverage advanced technologies and comprehensive strategies:

Enterprise-level POS systems:

Handle high transaction volumes while offering detailed analytics for decision-making.

Multiple POP zones:

Create distinct POP areas in each department, tailored to the specific products and customer behaviors in that section.

Advanced analytics:

Use data from POS systems to track customer behavior and optimize display placements. Tools like heat mapping can identify the most effective areas for POP displays.

By tailoring POP and POS strategies to your store type, you can maximize customer engagement and drive sales.

4 steps to revamping your POP and POS strategy

Implementing or improving your POP and POS strategy requires a clear, structured approach. Here’s how to get started:

1. Audit your current setup

Begin by understanding how your existing systems are working:

Map out all POS locations:

Identify every checkout point, whether it’s a traditional cash register, a self-service kiosk, or an online payment portal.

List existing POP displays:

Take note of all displays currently in use, their placement, and their condition. Are they attracting attention or blending into the background?

Track customer paths:

Observe how customers move through your store. Identify high-traffic areas where POP displays can have the most impact.

2. Collect data

Once the audit is complete, gather actionable insights to guide your strategy:

Monitor sales patterns:

Track sales at different POS locations to see which ones perform best.

Test POP display positions:

Experiment with moving displays to various locations to measure their impact on customer engagement and sales.

Survey customers:

Ask shoppers about their experience — what caught their eye, what they found helpful, and what could improve.

3. Make informed changes

With your data in hand, make strategic updates:

Upgrade POS technology:

Invest in mobile or integrated POS systems to enhance convenience and efficiency.

Reposition POP displays:

Use insights from testing to place displays where they’re most effective, such as high-traffic zones or decision-making points.

Train your staff:

Ensure employees understand the role of both POP and POS systems and how to use them effectively to enhance the customer experience.

4. Measure results

Track the effectiveness of your changes and refine your strategy over time:

Monitor sales data:

Compare sales figures before and after implementing updates to gauge their impact.

Gather feedback:

Continue collecting customer input to understand how changes are perceived and identify further improvements.

Adjust strategies:

Use the results to fine-tune both POP and POS elements for optimal performance.

Wrapping up

Understanding the distinction between POS and POP can help you develop more effective store layouts and marketing strategies. POS systems provide the data and transaction capabilities, while POP displays influence buying decisions. When used together strategically, they create a more profitable retail environment.

Success comes from viewing these systems as complementary tools rather than separate entities. Start with clear goals, measure results, and adjust your strategy based on what the data tells you. If you need any help along the way, get in touch with our team for a free consultation!