The Opportunity Cost of Not Using POP Displays

There is a lot of noise in the retail industry.

So much attention is given to the ever-growing ecommerce sector that it would lead some to believe that physical retail stores don't serve as an important source of sales for brands.

But, that couldn't be further from the truth.

In 2020, when the COVID-19 pandemic began, a whopping 82% of all retail purchases were made at a physical retail store. That may seem surprising to many, as 2020 was the year when ecommerce exploded.

The Annul Retail Trade Survey produced by the Census Bureau, for instance, reported that overall ecommerce sales increased 43% that year, rising from $571.2 billion in total sales in 2019 all the way to $815.4 billion the next year.

Even still, purchases in physical stores dominated the overall retail landscape that year, and it's expected to remain a large part of it in the future.

This emphasizes the importance of marketing and advertising strategies that are focused on driving retail sales in physical stores. And the best way to do that has consistently proven to be Point-of-Purchase (POP) displays.

Why POP Displays Work

There are many statistics that clearly tell the story of why POP displays work. As much as 75% of all consumer purchase decisions are made in-store, according to the Shop! Association. This means that three-fourths of all consumers don't make their final purchase decisions until they see specific products on the shelves in front of their eyes.

This provides an enormous opportunity for brands to market their products to consumers who may not have made their mind up on what they want to buy before they get to the store. Sure, they might have "dog food" on their shopping list, but they could be swayed on which product to purchase based on what they see in store.

To further this point, another study revealed that 69% of all consumers reported noticing product advertisements in store. If done properly, POP displays can help consumers notice specific products and sway them on their purchase decisions.

The Real Impact of POP Displays

Rhino Global Solutions, a leading POP display company, has worked with many clients over the years to help drive in-store sales through the use of POP displays.

Many of our clients have experienced significant bumps in sales as a result of the POP displays we have designed in coordination with their leadership teams.

• One of our clients, for instance, experienced a 14% increase in sales as a result of new POP displays that we designed for them.
• Another client uses POP displays we designed for only 10% of their product line, yet that line accounts for 30% of the company's overall sales.

Taken by themselves, these increases in sales are extremely impressive, but they're even more so when you consider the long-term implications for the brand.

In the short-term, our POP displays helped these clients boost their immediate sales. They attracted customers to their product and convinced them to try them out.

The POP displays also help brands increase their long-term sales. Successful displays serve not just as one-time advertisements for specific products, but as long-term branding opportunities for companies.

As consumers purchase new products and like them, they're more likely to return to that company for other, complementary product lines, while suggesting the company to other people as well.

Put the Attention on You

There is obviously a real cost of creating and using POP displays to market your products, but there is also a huge opportunity cost of not using POP displays.

No matter what retail store you enter, you're likely to encounter a POP display of some kind. Some stores may have more than others, but all stores will at least have a few dotted around the floorplan.

When your brand decides not to use a POP display to market your products, you are essentially allowing one of your competitors to step in and take attention away from you. That's because in most cases, consumers aren't going to purchase two products from competing brands in the same product category.

Put another way, a consumer who is looking for dog food isn't likely to purchase two bags of dog food from two different companies. Instead, they most likely will buy all the dog food they need from one company.

If your competitor has a POP display for dog food that attracts a consumer, then not only is that competitor converting a sale for themselves, they're also removing a potential sale from you. Over time, this can have a significant trickle-down effect on your bottom line.

One of the keys to success in a retail environment is capturing market share. If you're unable to increase your market share -- or maintain your market share if it's already high -- then you're unlikely to be able to build a growing and sustainable business.

So, instead of thinking about POP displays as a direct business expense, you should think of them as one of the most effective ways to drive immediate sales, separate you from the competition and fend off threats to your business all at the same time.

Work with a POP Display Company You Can Trust

Deciding to move forward with a POP display plan for your retail products is a great first step, but you need to ensure that you're working with a company you can trust.

While retail stores tend to give preferential treatment to products that have great POP displays that not only drive sales but don't take up a lot of floor space, they get annoyed and angered when things aren't done properly.

Contracts between retail stores and product manufacturers are modeled around specific POP display designs, delivery and set-up dates, and product quantity. If any of these things is off, you could lose a lucrative contract.

That's why it pays to work with a company such as Rhino Global Solutions.

With more than 10 years in the POP display market, we have helped product manufacturers of all kinds increase their sales through in-store marketing campaigns. Not only do we help our customers design top-notch displays, we also work in coordination with them to help handle the logistics of getting them created, delivered and set up on time -- the right time, every time.

Contact us today to find out more about how we can help you avoid the opportunity cost pitfalls of not using POP displays.