One Blog |February 18, 2022 | Blog
The Vital Role of POS in Your Sales Strategy
Beverage-alcohol (BA) retail marketing is different from virtually every other CPG marketing because the marketing and promotional materials deployed to force-multiply brands’ “innate” persuasive characteristics are typically the sole responsibility of the distributor.
Today’s BA distributors typically have within their facilities, elaborate print shops and permanent point-of-sale (POS) fabrication capabilities. Further, BA distributors generally have millions of dollars’ worth of purchased permanent POS on their balance sheets including display racks, furniture, electric and mechanical signage, tap-pulls, light fixtures, mirrors, menu covers, bar mats, coasters, and more. All these items, if not tracked and managed, become liabilities, often written off – simply put, unmanaged POS is useless in terms of assisting your marketing and sales teams with their marketing and promotional initiatives. Knowing what you have and where it's located in your warehouse is vital.
Also, vital to know is where (both at which customers and where on the “path to purchase” within the retail locations) you’ve placed your POS promotional materials and how long they’ve been there. Increasingly, state ABCs are adopting regulations stating how long promotional materials can remain in situ at retailers. In some cases, stiff fines have been levied – on distributors – when promotional materials have overstayed their welcome, so to speak.
Finally – for this blog at least – POS’ reason for being is to give distributors a competitive advantage. POS, according to numerous studies, is perhaps the only advertising that customers seek when they’re shopping. POS is responsible, overwhelmingly so, in turning a shopper into a buyer. But, like so many other tools, it is important to deploy the most effective materials possible. With today’s POS tracking and management software, it’s possible to determine the best (most effective and efficient) promotional materials in terms of increasing sales of your brands of beer, wine, and spirits. Moreover, if your suppliers offer marketing allowances, POS management software will make the job of filing your claims every month a matter of hours, not days or weeks. In fact, some distributors have found that by using POS management software, they can turn their point-of-sale initiatives from cost centers into revenue drivers.
For more information – please reach out to our team of product experts. We're happy to discuss your POS plans and challenges, and share ideas for growing your POS presence and product sales.
Mark Fullerton is the chief executive officer and president for OnTrak Software. He launched OnTrak Software in 2007, after several large beer distributors subscribed to the company's first product, SignTrak. OnTrak Software has grown substantially since 2007, now providing Marketing at-Retail software solutions to many US alcohol beverage distributors, several of them in Beverage World's Top 25 Wholesalers.