Steve Lowell
Steve Lowell 01 May 2020

How to measure the effectiveness of your point of sale marketing

It’s now possible to track the incremental sales driven by your POS campaigns, as Indicia’s Director of Insight and Data Steve Lowell reveals…

Steve Lowell
Steve Lowell 01 May 2020
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It’s now possible to track the incremental sales driven by your POS campaigns, as Indicia’s Director of Insight and Data Steve Lowell reveals…

It’s far easier to measure the effectiveness of digital marketing than in-store POS.


That’s why many big global brands are disrupting the traditional brand-to-retailer-to-consumer model by acquiring and developing direct-to-consumer brands themselves. Unilever’s acquisition of Dollar Shave Club for $1bn cash is a case in point.

So there’s no doubt digital channels will continue to grow and place more and more pressure on the traditional retailer model. But what does this mean for brands and retailers in-store, and how can you win in the bricks and mortar world?

Get POS ROI 

Our clients always ask us where they should place their marketing efforts. It’s no longer a simple model of in-store POS coupled with some tactical price promotions. Digital demands a share of your budget, but how much should that be and how do you effectively plan between digital and physical channels?

At the heart of this dilemma lies the age-old challenge of knowing what works and what doesn’t.

Measuring in-store marketing effectiveness is notoriously difficult, particularly compared to digital channels. Our perception of what we can and can’t measure is influenced by our perception of the data we have available.

We tend to think this is restricted to ePOS data, which can be expensive and difficult to use if you’re trying to prove the incremental value of your marketing. After all, that impressive spike in sales could just be down to the sunny weather we’ve been enjoying.

To truly measure your in-store marketing against your key performance indicators in retail, we need to think differently about the data we have available.

Data is constantly generated as we move around the store, stand in front of the shelf or talk to our neighbour at the checkout. The problem is you've never been able to harness this.

Until now – how to measure success of POS marketing …

Image capture and the algorithmic translation of this data into a useable format is uncovering game changing insights about in-store marketing effectiveness.

Images from discrete cameras installed in POS can be pushed to a server through a 4G connection. This provides a rich dataset to measure things such as dwell time in front of POS and physical engagement with the POS (did you pick an item up off the display?). Depending on the quality of the algorithm, it’s even possible to estimate the demographic profile of who’s using the POS.

Delivering this in real-time opens up a world of possibilities for dynamic content in-store as well. For example, digital signage can change depending on who’s shopping.

All of this is now possible. But it still doesn’t answer the million-dollar question: ‘did my POS drive incremental sales and, if so, what’s the return on investment?’

Our three-stage approach to measuring in-store POS effectiveness.

1: Initial attention demanded by your point of sale design

Does your POS grab attention?

2: Engagement with the point of sale design

Who are your consumers and how do they engage with your POS?

3: Financial performance

Has your POS driven incremental sales?

Regression modelling against a set of control stores allows us to model what sales would have been without your POS. We then use ePOS data to compare this baseline to the actual sales performance, revealing the incremental sales driven by the POS.

Digital channels will continue to disrupt the traditional retail model, but in-store is here to stay. So accurately measuring its effectiveness has never been more important. If you’d like to find out how we can help, get in touch.

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