Retail Merchandiser

We all know much is at stake at point-of-sale. Indeed, there is no shortage of studies pointing out how shoppers make impulse decisions in-store.

One of the most widely quoted studies on the topic comes from OgilvyAction. The findings from more than 6,000 US shoppers across multiple channels and categories underscored the importance of developing smarter, more targeted in-store marketing programs to capture impulse decisions. What readers may not realize is how much digital technology can sway those decisions in a retailer’s favor.

Retailers have tens of millions of dollars in new purchases up for grabs when shoppers enter stores thanks to impulse buying. Our study found impulse purchases are more driven by tactics in-store than previously believed:

• 29% of shoppers impulsively buy from categories they didn’t plan to when they enter a store.

• Of that group, 24% said they were influenced by secondary displays (away from the product’s usual aisle), and of that amount, 18% said in-store demonstrations influenced their impulse decision. These were the two most influential communication elements.

What’s New in Digital POS
Much of the discussion around POS today centers on the advancements in digital POS displays and signage. This, coupled with rapidly decreasing costs for both hardware and software, creates opportunities for new forms of engagement as shoppers embark on the last mile.

Retailers can effectively influence behavior at the point of decision to reinforce and build on a shopper’s attitude. Ultimately, the retailer wants to turn that attitude into action, turning a consumer into a shopper and a shopper into a buyer.

Digital POS is attractive because it not only offers stronger targeting capabilities and the potential to create interactivity, but also can play a significant role in category building.

Here are a few innovations designed to drive impulse decisions:
Digital Aisle revolutionizes the way consumer packaged goods companies merchandise products at retail by combining powerful touch-screen technology with what the group calls Virtual Interactive Shopper Intelligence software. One implementation for a beverage company gave shoppers the opportunity to learn about making cocktails, carrying out party planning, and printing shopping lists.

Cellfire allows shoppers, before they go to the grocery store, to access coupons from mobile devices or PCs for free from retail partners. Shoppers can save coupons to grocery savings cards; once they enter checkout, a swipe of the card is all that’s needed to redeem the product discounts.

Latte from Kinetic provides brands and marketers with state-of-the-art planning tools to serve their needs in targeting shoppers along their journey. With so much fragmentation in the digital media network space, tools like this make the business of shopper marketing more effective.

Red Dot Square offers the latest in virtual reality shopper research by giving agencies the tools they need to prove the use of innovative in-store formats before capital investments need to be made.

On-the-Go Mobile Interaction
Mobile convergence has become a hot topic in the digital out-of-home space. Using SMS and MMS messaging and Bluetooth technology, advertisers increase interactivity and engagement along the last mile.

Ideal for retailers, this area introduces shoppers to useful content in and around the actual POS. Digital signage can interact with mobile phones outside and inside a store as shoppers increasingly access content on the go.

Ultimately, the mobile screen is a discovery vehicle to help introduce consumers to a broad range of products and branded utility. Three companies forging new ground in the on-the-go mobile space are:
1. Jag-Tag developed an innovative solution to support the use of 2D codes that does not require shoppers to download an application. This serves as a great way for brands to provide on-the-go engagement for promotions or brand content.
2. Aerva offers mobile integration to help activate consumers and shoppers on premise—e.g., in bars or ballparks. Its service provides brands with the opportunity to have people interact on the fly with competitions and promotions, seeing their results instantly on the screen.
3. Target is taking the initiative with its iPhone app. It allows shoppers to preview sales before entering the store. Shoppers can search by zip code to see the weekly deals at their local Target.
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As director of digital for OgilvyAction, Gareth Ellen helps clients create and optimize digital connections and influence behavior in turning shoppers into buyers. He focuses on bringing best-in-class digital experiences and technology to activation programs.