According to an industry surveillance report, developments and evolution in technological solutions have made digital signage, both software and hardware, relatively affordable than in the recent past. Unlike in the early 2000s, today's retail-store managers only incur half the costs of installing and maintaining digital signage networks for three years. The impact of digital signage is so profound that eight out of 10 consumers said that they entered a particular store because of the attractive visual elements displayed on the signage.
In the US, digital signage marketing is a billion-dollar industry. It brings in tremendous revenue to the economy. The machinery/equipment, software, hardware, services, and the DS media revenue totals about $20 billion. That's according to estimates acquired from publicly available data. Of the $20 billion, media revenue contributes $7 billion, while the other variables account for the remaining $13 billion.
Widespread Reach with Plummeting Costs
To a large extent, digital displays in screens located on public streets and venues do a better job reaching out to more consumers than online videos and static printed media. That tells you the size and scale of digital media and signage screens.
Every year, the cost of deploying and running digital media on billboards keeps on falling by 10%. That offers store managers an opportunity to use digital signage across different strategic locations. Apart from the plummeting costs, the number of brands leveraging digital signage solutions has also increased significantly.
The best spots for placing digital signage and maximizing their benefits are grocery stores. They make up 28% of all the total advertising venues. Others include shopping malls (27%), health facilities (20%), and bigwig retail stores (20%).
Furthermore, restaurants and coffee shops are increasingly replacing printed menu boards with digitized counterparts. They are trying to create a balance between the UX in online stores and brick-n-mortar locations. That's why it is not a surprise to see the massive screens at the entry of coffee shops, banks, and shopping malls. Consumers can learn about the products on offer and make purchases through the screens.
Relevant Content to Improve Consumer Experience
As new technologies emerge, consumers begin to discover new points of value in indirect communications and marketing. While digital signage is becoming a standard feature for engagement and education in most retail stores, it takes robust signage planning to create a high-quality and interactive consumer experience.
An estimated 94% of retail store owners say that they leverage in-store digital signage to change, augment, and enhance the consumer shopping experience. Eighty percent of those think that digital signage is critical or essential to customer experience. Why? Because digital signage software offers them the ability to create and manage content in real-time. Since the shift from passive to interactive displays is here to stay, in-store retailers have endless opportunities to develop targeted content for improved customer experience.
Despite the improved customer experience that digital signage solution offers, some retailers have reported that the marketing approach did not appeal or influence consumer behavior. More than a quarter of retail-store managers can say the same. One thing you need to understand is that many factors affect the overall UX. Besides the scale of adoption, you also need to consider the content, function, competitive value, and placement. Failing to deliver in all these may adversely affect the expected consumer experience.
Digital signage is popular because it boosts in-store sales margins. The visual effects on the screens in your retail store engage the consumer at the point of sale and may lead them to make impulse purchases. Moreover, it improves your brand awareness, which leads to more sales.
Couple that with the fact that digital signage is no longer financially engaging, retail managers can deploy it to bolster their in-store consumer engagement further. They also understand that networks are essential in training in-store personnel who will further interact with consumers to enhance their shopping experience. Hence, do not only focus on the content; you also need to consider the context.
How Can Retailers Leverage Digital Signage?
Digital signage comprises a wide range of displays in different categories. Hence, there are limitless ways through which retailers can use them in their stores. The most significant advantage of digital signs is controlling and managing the content in real-time in-store. That said, you can use them for timely and seasonal signage. We've researched and gathered information from retailers about how digital signage can enhance your overall business performance. Read on for more insights.
Increase Foot Traffic in Your Store
The first thing that captures any potential customer is the compelling visual displays running on your storefront's screens. That pushes them to want to check out what your brand is all about. For instance, you can lure window shoppers [who can turn into actual customers] by updating your window displays to tell consumers whatever sales offer is happening in your store.
While printed displays only feature content that remains in the consumer's mind for as long as they read, digital signage keeps changing in context. That evokes a sense of curiosity to want to set foot in your store.
Share Interactive Product Information
We understand the importance of having a sales team to answer any questions that consumers have regarding your product. Instead of having the team explain over and over again, why not use digital displays to highlight your products' features and benefits?
With digital displays, you have the chance to relay product information to your consumers in a more engaging way. Additionally, you can provide powerful product descriptions and comparisons to help consumers make the right purchasing decisions.
Replicate Your Online Efforts In-Store
As mentioned earlier, retailers are trying to bring a similarity between eCommerce stores and physical retail stores. Thus far, it is right to say that enhancing shopping convenience and ease is not enough for retailers to drive sales. However, digital signage solutions provide a balanced playground with multiple sales channels.
Online retail stores focus much on digital marketing, and that's imperative to them. Digital signs allow brick-n-mortar stores to take advantage of their online marketing strategy. You can use social media to reveal your robust social proof and change the content to appeal to those viewing the on-screen displays.
As the business world shifts from the static printed billboards to digital signage, the consumers' perceived value of in-store digital signs continues to grow. That said, it has become imperative [rather than an option] for retailers to digitalize their signage to attract high foot-traffic volume in their physical stores. The chances are that the consumers entering your store because of the on-display visual effects will make purchases, which takes your sales to a higher margin.
If you are looking for reliable and sales-driven digital signage solution for your retail store, then you’re on the right way and the Look service definitely deserves your attention. With our easy-to-use CMS we can help you to cover all your needs concerning in-store media communications, being it audio streaming, dynamic ad videos or up-sell interactive scenarios. To make sure we can, just try us absolutely for free within the 14-days full-featured trial. We will be more than happy to become a part of your success story.
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