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The Business Case for Digital Media Signage

Posted by Jason Ault on Jun 25, 2015 9:00:00 AM

The Business Case For Digital Media SignageThere are many questions you can, and very well may BE, asking yourself about digital media signage. Are there any best practices? Should I be more concerned with ROI or ROO? How do I decide what is best for my needs? 

Today let’s address a few questions we run into frequently and see if we can’t give you a few answers. Keep in mind that just as every business is different, so is every system. But there are a few common threads, like these: 

  • What can digital signage do for sales in my store?
  • How has it affected traditional marketing strategies, especially point of sale? 

These may be two of the most important questions to ask yourself. This is the medium that has to both save you costs and increase your sales as compared to the traditional in-store communications that you have been using for years. The way you are used to doing things. The rut you are in, but the familiar, comfortable rut. Shopper engagement is where the solution lies. From the size and position of the screen, to the content displayed on it. When it is properly executed, your in-store digital signage can reinforce a shopper’s purchase behavior or it can create an impulse to make incremental purchases. Of course, in order to accomplish this, your content has to be specifically targeted, the merchandise needs to be close to the message and the call to action needs to be communicated very clearly. If you can accomplish that, you can logically anticipate significantly greater sales than those generated by traditional signage. You should also keep in mind that traditional signage typically only has 60-percent compliance. Digital signage is able to better guarantee 100-percent compliance; in itself is a 67-percent performance increase.

The Strategy Institute of Toronto reported that in the retail sector digital signage receives 10 times the eye contact of static signage, boosts sales of new productsadvertised on in-store digital signage by 30 to 300 percent, increases revenue bymore than 30 percent for profiled products and reduces customers’ perceivedwait times by 15 percent or more. 

Digital media signage has multiple applications which all lead to increased information and that equals increased sales. Consumers today are smart, so your content must have integrity that in turn will have a direct effect on your sales uplift. The biggest challenge in the retail environment today is all about creating a relationship with the consumer by delivering some form of branded “experience,” not just products on a shelf. Digital signage done correctly, with engaging, relevant, content that is delivered within a cohesive retail environment having featured products that are easily located, has been proven to deliver significant lift. By integrating this capability into your promotion strategies as well as comprehensive branding, you have the potential to drive traffic throughout your store and build strong customer loyalty that does lead to repeat sales. When digital signage is aligned with your company’s integrated communication strategy it should help you realize your business objectives. Sometimes, to increase sales, a marketing goal might be to increase patron browsing in your store by 25 percent. If this were the case, the digital signage could be used to provide the customer an engaging experience that would assist them in finding what they want, give additional product information or maybe a perk like printing a coupon. This sales assistant may provide the additional information needed to help the customer make a purchase decision, thereby increasing sales. Digital signage should always be thought of in context with your overall marketing communication strategy, the media channels you currently use and what processes will enable you to realize your ultimate objectives. 

As for traditional product marketing strategies, digital signage has enabled marketing campaigns to be more adaptable to local markets. This ensures higher compliance at the store level and, most importantly, enables the marketing strategies to feature more campaigns and more promotions in a targeted and timely manner. All of this can very easily be updated to reflect time of day, new pricing, new products, stock status, etc.

Rather than older media that must be printed, delivered, and frequently replaced, digital signage lets you be sure your information, branding and delivery is consistent and relevant for your customers. It’s called the last three feet. Getting within the last three feet can really make a difference in convincing people to buy a product. There is a huge opportunity for retailers to cash in on this qualified target market — because they are in the store already. Using dynamic digital signage, a shopper will make a snap decision.

Consumer shopping habit studies have shown that the majority of purchase decisions are made in the store. This shows that customer-buying decisions can be influenced at the point of sale. With this in mind, the product marketer has an incredible opportunity to address the questions and objections they know their customers most want answered —how much does it cost, what does it replace, what is it, how easy is it to use, why do I need it, etc. Combine this with the dynamic nature of this medium and now it becomes possible to test several offers and presentations in order to determine which of your messages delivers the greatest consumer response. There are unlimited variations of this approach, but only with dynamic digital signage.

Why Digital Signage

 

Topics: Digital Signage Basics

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