When it comes to retail, every dollar counts. Businesses spend significant amounts designing, producing, and installing point-of-sale (POS) displays, hoping to boost sales, increase brand visibility, and enhance the overall shopping experience. But how can you determine if your investment in POS displays is truly paying off? Understanding the ROI (Return on Investment) of your POS displays is essential for making informed decisions, refining strategies, and maximising your retail impact.

In this guide, we’ll explore practical ways Australian retailers and brands can measure the ROI of their POS display investments, from tracking sales metrics to evaluating customer engagement and beyond.

---

What is POS Display ROI?

POS display ROI measures the financial return your business gets from investing in a point-of-sale display. Unlike general marketing campaigns, POS displays interact directly with customers at the critical point where purchasing decisions are made. A high-ROI display not only attracts attention but also influences consumers to purchase, increasing revenue without unnecessarily inflating costs.

Measuring POS ROI goes beyond simple sales numbers. It considers incremental sales, brand awareness, customer engagement, and operational efficiency. By calculating ROI accurately, retailers can identify which displays work best, optimise future designs, and justify their marketing spend.

---

Why Measuring POS Display ROI Matters

Investing in POS displays involves several costs:

• Design and prototyping

• Materials and manufacturing

• Installation and maintenance

• Storage and logistics

Without measuring ROI, these expenses become blind investments. Understanding ROI provides clear insights into:

1. Sales Performance: Identifying which displays actually drive purchases.

2. Design Effectiveness: Assessing the visual appeal, functionality, and placement of displays.

3. Resource Allocation: Determining which displays deserve more investment.

4. Marketing Strategy: Aligning POS initiatives with broader marketing objectives.

For Australian retailers, where competition is fierce in both physical and online stores, knowing the ROI of your POS displays is critical for maintaining profitability and growth.

---

Step 1: Set Clear Objectives for Your POS Displays

Before you can measure ROI, you need to define what success looks like. POS displays can have multiple objectives, including:

• Increasing Sales: The most direct and measurable goal.

• Boosting Brand Awareness: Creating visual recognition and differentiation.

• Driving Impulse Purchases: Encouraging shoppers to buy items they hadn’t planned to purchase.

• Promoting Specific Products: Highlighting new arrivals, seasonal items, or high-margin products.

For example, if your goal is to increase impulse sales of chocolates at supermarket checkouts, your ROI measurement will focus on sales lift in that category rather than overall store revenue.

---

Step 2: Track Sales Metrics

The most straightforward way to calculate ROI is through sales data. There are several key metrics to consider:

1. Incremental Sales

Incremental sales measure the additional revenue generated by the POS display compared to a baseline without the display. To calculate:

1. Identify a baseline period without the display (e.g., the previous month).

2. Measure sales during the display campaign.

3. Subtract baseline sales from display period sales.

Example:

• Baseline sales: $10,000

• Sales during display period: $15,000

• Incremental sales: $5,000

This shows that the display directly contributed $5,000 in extra revenue.

2. Average Transaction Value (ATV)

ATV indicates whether the POS display encourages customers to spend more per purchase. Track the average spend before and after installing the display to identify trends.

Example:

• Pre-display ATV: $35

• Post-display ATV: $42

• Increase in ATV: $7 per transaction

3. Units Sold

Some POS displays aim to increase the quantity sold rather than revenue. Tracking units sold helps determine whether a display motivates customers to buy more items or larger packs.

---

Step 3: Calculate Your POS Display Costs

To measure ROI, you must account for the total cost of the display. Costs typically include:

• Design Costs: Fees for graphic designers, 3D modelling, and prototyping.

• Production Costs: Materials, printing, and assembly.

• Logistics and Installation: Transport, setup, and staff time.

• Maintenance: Repairs, replacements, or updates during the display period.

Once you have a total cost figure, you can use it in your ROI calculation.

---

Step 4: Calculate ROI

The standard formula for ROI is:

Example:

• Incremental sales generated: $5,000

• Total display cost: $1,500

• Net gain: $5,000 - $1,500 = $3,500

• ROI: ($3,500 ÷ $1,500) × 100 = 233%

A 233% ROI means that for every dollar invested in the POS display, the business gained $2.33 in additional revenue.

---

Step 5: Analyse Customer Engagement

While sales are the most direct metric, customer engagement offers deeper insights into ROI. Understanding how shoppers interact with your display can inform future designs and placement.

Metrics to Track:

• Dwell Time: How long customers spend at the display.

• Interaction Rates: How often customers handle, test, or engage with the products.

• Foot Traffic: Increase in store or aisle traffic around the display.

• Social Shares or Mentions: Customers photographing or talking about the display online.

Tools like motion sensors, heat maps, and loyalty app data can provide valuable information for Australian retailers looking to optimise their POS strategy.

---

Step 6: Consider Long-Term Effects

Some POS displays generate immediate sales, while others enhance brand perception and loyalty over time. To fully measure ROI, consider:

• Repeat Purchases: Did the display encourage customers to return?

• Brand Recall: Are shoppers more aware of your brand after seeing the display?

• Customer Feedback: Surveys or online reviews indicating satisfaction with the display or product experience.

Long-term effects may not show up in immediate sales, but they contribute to overall business growth and justify display investments.

---

Step 7: Compare Different POS Display Types

Not all displays are created equal. Measuring ROI across different types of displays can reveal what works best for your target market. Examples include:

• Freestanding Displays: Great for high-traffic areas but may cost more to produce.

• Countertop Displays: Ideal for impulse items at checkout.

• Shelf Talkers or Danglers: Cost-effective but may have lower engagement.

• Digital Displays: Can offer interactive experiences and track engagement digitally.

By comparing ROI across these types, retailers can make informed decisions for future campaigns.

---

Step 8: Optimise and Iterate

Measuring ROI isn’t a one-time exercise—it’s part of a continuous improvement process. Use the insights gained to:

• Adjust display placement

• Update graphics or messaging

• Experiment with new materials or designs

• Allocate resources to high-performing displays

For Australian POS display designers, this iterative approach ensures clients receive maximum value and businesses stay ahead in a competitive retail environment.

---

Step 9: Best Practices for Australian Retailers

Here are some tips specifically for Australian retailers investing in POS displays:

1. Localise Design: Consider local culture, demographics, and shopping habits.

2. Seasonal Campaigns: Use POS displays to boost sales during Christmas, Easter, or back-to-school periods.

3. Sustainability: Highlight eco-friendly materials, appealing to increasingly environmentally conscious consumers.

4. Integration with Online Channels: Encourage social sharing and online engagement alongside in-store displays.

5. Data Tracking: Use POS software to link display campaigns with sales analytics for accurate ROI measurement.

---

Conclusion

Measuring the ROI of your POS display investment is crucial for understanding its impact on sales, customer engagement, and brand perception. By following these steps—setting objectives, tracking sales metrics, calculating costs, analysing engagement, and optimising over time—Australian retailers can make data-driven decisions that maximise their investment.

A strong ROI not only justifies your POS spend but also provides valuable insights into what resonates with your customers. Investing in professional POS display design, backed by careful measurement and optimisation, ensures your brand captures attention, drives purchases, and achieves long-term retail success.

---

Call to Action

If you’re looking for an experienced Australian POS display designer to help you create high-impact displays that maximise ROI, contact us today to discuss your retail needs. Let’s transform your store into a revenue-generating powerhouse!