Digital signs aren’t inexpensive, but the marketing benefits for retail stores and restaurants can be significant. Here are ten ways digital signs help retail marketing.
Invest in Digital Signs, Reap These 10 Benefits – Digital Signage Statistics Infographic
Some of the benefits of installing digital signs in your restaurant or retail store are readily apparent. Unlike non-digital signage, marketing messages can be changed more frequently and video-based marketing is a proven winner with today’s shoppers. Even so, the cost of using digital signs for marketing can seem prohibitive, since retail stores or restaurants may need to be prepared to pay for:
- Screens (often LCD televisions) and mounts
- Player hardware
- Software purchase or subscription
- Installation, on-boarding, setup and initial training
- On-going support or maintenance
All of this, before the unit is even turned on. Given that this could mean an expense of a few to many thousands of dollars depending on the number of digital signs installed, it’s not a strategy to be implemented lightly. Fortunately, statistics seem to show that the investment is well-worth the cost. As you evaluate which marketing strategies you might use to grow your retail store or restaurant business more quickly this year, consider these ten marketing benefits enjoyed by businesses with digital signs.
Digital Signs Statistics Infographic Shows 10 Retail Store and Restaurant Benefits
1. Improves Recall
Marketing displayed on digital signs have a recall rate of 83 percent. A 2015 Nielsen survey of travelers found that 82 percent recalled specific ad campaigns they had seen during the last month. Plus, since digital displays can be changed frequently and used to display multiple messages over the course of a given customer’s or diner’s visit, they capture 400 percent more views than static displays.
2. Increases Spending
Digital marketing displays bump up average purchase amount by nearly 30 percent. One big reason for this is how they “feed” the impulse-buy-friendly consumer’s brain. One in five consumers say they made unplanned, impulse buys of products they saw advertised digitally. Additionally, businesses that use digital signage enjoy a 32 percent upswing in overall sales volume. Digital marketing signs provide the opportunity to make shoppers or diners aware of special or limited-time offers, closeouts, or to introduce them to previously-untried menu options or products.
In one experiment, two static signs went head to head with one digital display in an effort to prompt customers to go to the help desk to receive a free tote bag. Both locations had similar amounts of traffic during the experiment; however, only six people took advantage of the offer in the location where static signs were displayed, while 610 people grabbed the free tote bags in the location where the digital display conveyed the offer – over 100 times more.
3. Increases Retention
Not only do digital signs improve the customer’s ability to recall specific marketing messages, they also improve customer retention for the businesses that use them by 30 percent. Digital signage gives the retailer or restaurateur a uniquely powerful way to engage and interest patrons, which in turn, can help the shopper feel more personally connected to the business.
4. Improves Satisfaction
Using digital signage boosts customer satisfaction by 46 percent. Digital messaging can help patrons feel like they’re “in the know” and make them aware of anything from a flash-sale to in-store only offers, closeouts, and other sale-related data that makes them feel reassured they are getting a great value for the money they spend at a business. They can also be used to let customers know about how the business is participating in the community, charitable give-backs, brand story, company history, and other information that can make the consumer feel happy about choosing to do business there. Digital signage can also be used to help guide the shopper to the items they’re looking for more quickly, giving them additional time to browse before they need to leave or helping the consumer who doesn’t particularly like shopping expedite the process.
5. Generates New Traffic
Businesses that implement digital signage generate a 33 percent increase in the number of repeat buyers; moreover, they also increase in-store traffic by 33 percent. Improved brand and marketing message-awareness can lead to more word of mouth marketing and referrals occurring outside of the business. In fact, in one study of small businesses that had installed outdoor LED digital signage, an impressive 86 percent – nearly 9 out of 10 – believed the new signs had brought them new customers, and nearly as many (83) noticed an increase in sales after installing the digital signs.
6. Keeps Customers In-Store Longer
In retail, the longer a customer stays in the store to shop and browse, the more they’re likely to spend. Using digital signage in-store produces a 30 percent increase in the length of the shopper’s visit.
7. Reduces Perceived Wait Time
Digital displays with engaging content serve as an entertaining distraction, reducing the dissatisfaction that waiting engenders. Whether patrons are waiting to be seated, waiting for their food, waiting for a sales person, waiting to check out, digital signs can be used to amuse, educate and interest. As a result, even if wait time is equivalent, consumers perceive wait-time to be as much as 35 percent less at businesses where digital signage is present vs. those without.
In addition, digital devices can be used to set expectations and display information about wait times, call customers forward, and let people know which cash registers or stations are available for whoever is next. Expediting the queueing process reduces wait time for everyone, and also helps to manage expectations and reduce customer anxiety (such as the anxiety that they might have been overlooked or forgotten).
8. Significantly Improves Brand Awareness
It should come as no surprise that digital signs are 47.7 percent effective when it comes to brand awareness. A 2010 Nielsen study on “Awareness and Effectiveness of Digital Display Screens in Grocery Stores” found that patrons exposed to point-of-sale digital ads exhibited a 31 percent increase in brand awareness and recall.
9. Creates Intrigue
59 percent of people who saw digital signage wanted to learn more about the advertised topic. Digital displays can often be programmed to display many different messages, exposing the patron to many different brand and marketing impressions during a given visit to the retail store or restaurant. The more retailers and restaurateurs recognize and take advantage of the medium to entertain and engage, the more they can create interest and intrigue among customers.
In addition, digital signage can be used to display information about offers scheduled for the future, helping to spur repeat visits and to potentially increase the frequency at which the customer regularly visits the business.
10. Improves Employee Engagement, Productivity
Customers aren’t the only ones whose behavior is impacted in ways that benefit the retail store or restaurant. Businesses with digital signs had improvements of 20 to 25 percent in employee engagement, with a corresponding increase in employee productivity. Digital displays can also help employees remember to engage with patrons about specific special offers or new products, or motivate the customer to ask the salesperson for more information as a conversation starter.
The good news for retailers and restaurateurs who have been discouraged from installing digital signage due to cost concerns is that unlike the cost of most things – which only rises over time – the cost of this technology has decreased significantly. While the average cost of digital signage was $8500 in 2004, that number dropped to $3720 in 2010. Like similar technologies, it’s one whose highest cost is at the pioneering phase, that is reduced significantly and quickly as more companies enter the marketplace and volume as well as continued advancement decreases the cost of equipment, software, and infrastructure for everyone.
Digital Signage Infographic: Source, MVIXdigitalsignage.com