Return On Investment (ROI) is probably one of the most important calculations a business has to be able to figure in order to determine how long it will take to recover the cost of the investment. However instead of thinking strictly in financial terms, you should also consider the effect on culture in your corporation, brand image and the effect on long-term goals.
How to measure this non-financial success needs to begin long before you deploy your first sign. When determining digital signage ROI, consider:
- Content strategy
- Costs for capital investments and operation expenses
- Venue and scope (how many locations, how many displays, where)
- Goals of the network (customer experience, sales, advertising, training)
During your initial planning state, you will be developing a content strategy. Be sure you remember to include a call to action. Detail exactly what you want the viewer to remember. Cite your goals in your plan, but remember that your objectives will likely change over time, so leave some wiggle room. Most important, be sure you having some built-in measurement tools so you can assess and adjust as you go. Perhaps a website or email address for your viewers to go to or use.
There is, of course, a cost for your investment in hardware and probably software. Perhaps you will also have a design cost or someone to write your content. Do you have to delegate personnel to change or update content? Will that result in overtime pay?
Corporate Digital Signage ROI also depends on where you are placing your screens. Will they be in your corporate lobby? A storefront? Perhaps your building cafeteria or the break room on each floor. Maybe one in each department of your store. If you are considering the sidewalk in front of your location, will you need permits?
What goals have you set for your digital signage network prior to launching your campaign? Was it to increase sales? To inform viewers about new work policies or internal contests? How about to encourage participation in a specific charity event? Or did you want to welcome customers and provide something fun and/or interesting to keep them occupied while they wait? All of these goals have different measurements to gauge success.
How can you tell what your company gets back based on what your digital signage content was presenting? If the goal is to inform casual lunchroom polls or email surveys might show how much information was taken in. Were you trying to encourage more participation in a charity or special event? How many people showed up or how much did you collect? If you are using revenue figures to determine your ROI, here is how it works:
Below is a hypothetical scenario for determining ROI. This is based on a typical medium-sized deployment, and should give a template for understanding how to calculate ROI.
|No. of screens||@ $2,000 5 ($10,000)|
Keep in mind that your ROI will be measured based on many metrics. What you get back on your corporate digital signage will depend on what you put in to it, and what your expectation for return is.