New Study Uncovers Untapped Opportunity at Retail Checkout
National survey from Popspots reveals point-of-purchase influence on awareness, engagement and conversion in stores
AUSTIN, Texas, Sept. 24, 2018 /PRNewswire-PRWeb/ -- Popspots, a company that's modernizing the retail checkout using smart displays and AI-powered technology, today announced new national data that reveals the checkout's increasing influence on the in-store shopping experience, and the growing impact of point-of-purchase advertising on consumer awareness, engagement and conversion.
Among the findings, for nearly 50% of consumers, checkout ranks as the primary influencer of their in-store experience, with 70% citing it as one of the most important factors shaping their perception of a store. What's more, the study revealed how much is on the line for brands and retailers alike, with 88% of consumers saying a bad checkout experience negatively impacts their perception and nearly 4 out of 5 saying it would make them less likely to shop with that store or brand in the future.
"For brands and retailers alike, the in-store checkout offers one of the best opportunities to reach, engage and convert shoppers, driving both immediate impact and long-term loyalty. Despite its importance, for decades the opportunity has been largely untapped due to limited visibility and outdated tools," said Marlow Nickell, co-founder and CEO of Popspots. "Now, smart technology is closing that gap and redefining both the retail checkout and the future of digital out-of-home advertising, providing actionable insights to brands and stores that help grow brand equity and drive conversions in the moments that matter most."
Helping Stores Recapture Critical Sales
The checkout line serves as one of the biggest drivers of in-store purchases today. The study uncovered that 77% of consumers have selected and purchased additional products at the checkout and 57% have purchased a new brand/product after seeing it in the checkout line. In fact, more than 1 in 3 shoppers say they are more influenced to purchase products at the checkout than anywhere else in store.
Despite the incredible sales opportunity, US grocery retailers alone lose nearly $500M in annual sales at checkout due to out-of-stock and misplaced products. Beyond the immediate hit to the bottom line, inventory mismanagement at the checkout has long-term impact. The Popspots study revealed that nearly half (47%) of consumers find out-of-stock products to be more frustrating at checkout than any other place in the store, and 69% agreeing that out-of-stock products make them less likely to shop at that store in the future.
Reviving Advertising's Impact
In addition to helping stores recapture point-of-purchase sales, the study shows that the retail checkout offers one of the best -- and most underutilized -- opportunities for advertisers to
reach, engage and convert today's consumers. While 68% of consumers say online, TV and radio advertising no longer captures their attention, the study revealed that out-of-home (OOH) advertising continues to cut through the noise. Consumers were nearly 3 times less likely to ignore OOH ads than online video ads, with 61% saying they have learned about a new brand or product from an OOH ad, and 41% having purchased a new brand or product after learning about it on an OOH ad.
What's more, while consumers turn away from digital advertising, the study indicates that the retail checkout is shaping the future of advertising success. 62% of consumers said they would be more likely to watch an ad shown in a retail checkout line than other ads, including online and TV. Beyond awareness, ads shown in the retail checkout boost both engagement and conversion. 56% of consumers said they would be more likely to engage with a brand after seeing an ad for it in a retail checkout line, 43% would be more likely to immediately purchase a product as a result, and 62% would be more likely to look for the product on their next visit. Additionally, over half (51%) of consumers said ads served at the point of purchase would make them more likely to buy than those served at any other point in the shopping process.
For additional data and insights on how stores and advertisers can better leverage the retail checkout to reach, engage and convert the millions of U.S. consumers who shop in physical stores every day, download the full report, Checking Out: Retail's Untapped Opportunity, at https://getpopspots.com/resources/check-it-out.
About Popspots
Popspots is modernizing the retail checkout with AI-powered technology that helps brands and retailers drive awareness, engagement, and conversion — directly at the point of purchase. Popspots' smart checkout devices combine video advertising with a product management platform to better capture the mind and wallet share of U.S. consumers who spend 98% of their grocery dollars in physical stores. With actionable reports and access to both current and historical performance, brands and retailers can make data-driven decisions that deliver immediate, impactful value. Popspots technology is already used by many of today's leading brands and grocers including Red Bull, Pepsi, and Hy-Vee, and can be found in more than 200 stores across the United States. Founded in 2016, Popspots is headquartered in Austin, TX. For more information, visit http://www.getpopspots.com.
SOURCE Popspots
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