Consider this hypothetical situation: Peggy is a woman who shops frequently. On Wednesday, she walks into a store intending to spend whatever is required to fulfill her shopping list. Today she is particularly focused on a few household necessities, which she considers “everyday things,” that she has waited two weeks to purchase. Peggy has a finite amount of time to complete her shopping. What can electronic digital signage do to influence her buying decisions?
A good start is to evaluate whether the retail environment is the right fit for digital signage. With all of the displays and messaging that can become part of a store, it’s sometimes difficult to determine the most effective means of communication.
“Digital signage is necessary for retail,” says Darren Altman, business development manager, DSCE (Digital Signage Certified Expert) for Almo Professional A/V. “Digital signage allows the retail chains and stores to showcase merchandise in ways that would otherwise not be possible.”
But what about all of the other signage options available? Put on a retail store operator’s shoes for a moment and consider everything he or she has to address on a day-to-day basis. These business professionals have expenses. They also have sales goals, inventory concerns, and perhaps other signage commitments. Most of all they have questions: Which signs will bring the most return on investment? How much do they cost? What kind of maintenance is required?
Above all, why should retailers implement an electronic digital signage system?
The Difference
“Digital signage is a natural in the retail environment because of its ability to constantly change,” says Jennifer Davis, vice president of marketing and product strategy at Planar Systems, a manufacturer of digital signage display screens.
That means it affords the retailer and the viewer the experience they are seeking through customization. For the retailer, the ability to sell more product and keep customers returning is a huge benefit. For the customer/viewer, gaining more product knowledge and finding the best deals may be most important.
Our hypothetical Peggy is prime target of digital signage, and retailers should know that. She is shopping for multiple products in-store with a somewhat open mind when it comes to budget.
“Digital signage allows retailers to cross-promote multiple products at the point of sale,” says Matt Deaton, marketing manager at Codigo, a retail solutions firm based in Louisville, Kentucky. “Additionally, a digital signage message can change throughout the day to adapt to the changing demographics within a retail space, providing a well-targeted advertisement which can increase the odds of a sale.”
Remember that Peggy is also short on time and is susceptible to making quick decisions—which is also a positive in the digital signage environment.
“When digital signage is used within a P.O.P display, the dynamic qualities attract the attention of the viewer,” says Julie Gederos, marketing product manager for Roland DGA. “Combine that with an effective message, and sales are likely to increase substantially.”
So, if Peggy stops in the makeup section to check in on the new colors of her favorite lipstick, there is a great opportunity for digital signage to help guide her decision. She may even decide to buy more than what she initially anticipated based on the display’s messaging.
“There are hundreds of proven ways that businesses have improved their P.O.P. sales with digital advertising,” Davis says. “By suggesting an add-on item that is currently in inventory. By offering cross-sell or up-sell items. By giving people an excuse to try something new on the menu.”
The Value
Figure that many retail stores already have a signage system in place, which promotes specific products, short-term sales, and seasonal offerings. These signs might be static or include an element of interactivity. The nice part about digital signage is that it can work with other signage components in virtually any setting.
“While printed signs aren’t going away anytime soon, now is a great time to complement existing print campaigns with a digital sign system,” says Gederos pointing to Roland’s DisplayStudio digtial signage product as one such solution. “By combining both printed and digital signage, companies can take advantage of the benefits of both channels and move into the wave of the future.”
During most people’s shopping experiences, they will notice a large printed sign that may attract them to a product display. Once digital signage is added to the platform, the customer can engage with the display to receive more information and product details. In Peggy’s situation, she might have seen a static image of lipstick tubes and decided to take a closer look. From there, the digital signage display helped her choose a particular color based on her skin tone, the current season, her lifestyle, etc.
“Brands want the ability to create a two-way dialogue with their customers,” says Deaton. Not only does this enhance the shopper’s experience but it gives the company promoting the brand valuable feedback. This is done in a number of different ways.
“We’ve seen interest in polling,” says Kevin Goldsmith, director of digital media operations for digital signage solutions provider Ping HD. “Imagine on-screen there’s a quiz. You can text your vote to a five- or six-digit short code. The system receives that information and you’ve got a real-time graph on the screen based on the votes coming in. That can be used for different applications.”
Going a step further, companies can offer future promotions through text message alerts after they have initially engaged the customer through the digital sign.
“Customers can transfer coupons or promotions,” says Kevin Schroll, senior product marketing manager, large format displays, Samsung Electronics. “They are able to communicate quickly from their mobile device to a large display.”
Peggy might want to know about the new summer colors or a lip gloss that is perfect for her summer vacation. She may even receive a promo code for special discounts after leaving the store.
“Digital signage is evolving and becoming so technically advanced that some systems can identify the exact demographic and identity of anyone in close proximity to the digital signage monitor,” says Gederos. “As a result of having this information, campaigns can include very specific and targeted marketing or informational messages that are directed to the individual.”
The Implementation
To the retailer, adding digital signage can seem like a huge, time-consuming, expensive endeavor; but really it has become quite simple through the years. Large retail outlets as well as smaller-scale shops have successfully implemented digital signage systems.
“Our largest customers are sports stadiums and arenas,” Goldsmith says. “And our smallest customers can literally be one screen in a corporate reception area or state park; pretty much anywhere.”
In some cases, a smaller venue may provide the most benefit to the retailer. According to Gederos, mom and pop shops can use digital signage to effectively highlight sale items that are slow movers.
“Smaller signage products are less intrusive and don’t clutter stores as much,” Schroll says. “Smaller signage is being looked at where it wasn’t previously available. In addition, with digital signage, retailers can access the system remotely and update content.”
The way digital signage systems are set up now also contributes to a more successful small-scale model. There is less of a need for extra hardware and media players as most of the functionality can be run on a network directly through the display.
Davis says that each display’s set-up can vary, “but in general it can be as simple as putting a thumb drive of JPG images into the side of a display, such as Planar’s Simplicity Series of display screens, and choosing simple slide show playback; or using a sophisticated digital signage CMS software to do more advanced content management on a larger display or network of displays.”
At Samsung, the SMART Signage package gives small business owners “an easy, all-in-one-box business solution to amplify their business and engage customers on new products and services,” according to Schroll.
With all of the different display options available to retailers, it really comes down to how the signage is being used and what is trying to be accomplished. Is the message a branding campaign? Is it a sales-driven message? What content is being delivered?
“Once this information is obtained,” Gederos says. “Then you can move on to variables like the number of monitors, the number of locations involved, and who will be creating and managing the content – factors which will also greatly influence the type of equipment and software needed for a project.”
Along with deciding on the system’s arrangement, users have the ability to capitalize on new technologies. Nowadays, digital signage comes with a lot more than just a monitor and a slideshow.
There are “higher resolution displays that can deliver stunning realism in photography and highly readable text, especially the 4K or ultra high definition displays now available in a multitude of sizes in single screens and tiled video wall configurations,” Davis says.
Deaton notes that screen sizes can fluctuate with the popularity of portable devices. “We’ve seen more and more companies installing large-format and tablet sizes in kiosks to create dialogue,” he says.
To Schroll, the advancements in content delivery are most impressive technologies. He says that, “digital signage with an embedded media player is becoming more popular. There are usually a lot of back end components, and simplifying with an embedded media player can help with the rollout and on-going maintenance.”
All of this put together can drastically enhance a digital signage system’s functionality and overall effectiveness. And surprisingly, the price is still affordable to the retailer.
“The significant decrease in hardware size and cost have made digital signage an affordable option for projects of all shapes and sizes,” Deaton says.
Schroll agrees and adds that, “there is still a cost with traditional signage. Traditional signage can still be expensive. Digital signage is becoming one of those necessities, and retailers are seeing this first.”
The Payoff
As Peggy mulls over her next purchase, deciding if she should pick up some eyeliner to complement her new lipstick, the digital signage system engages another customer. The display has accomplished its task of generating business and boosting profits for the retailer. Make no mistake, digital signage systems are money makers.
“Digital signage helps drive revenue,” Altman says. “It can entice the consumer to come into the store and look at a particular product and then make a purchase. It can also be used to inform the consumer about new products coming out.”
Beyond the financial gain, digital signage provides so much more.
“Digital signage has a multitude of benefits,” Schroll says. “Customers can view up-to-date information, such as daily specials, and can have shorter wait times. Customers can also retrieve digital coupons and product information through their smartphones.”
If installed, maintained and operated properly, digital signage solutions will have customers like Peggy excited about their recent purchase and willing to go back to the same store for future shopping trips.
“Digital signage is a way for retailers to interact and provide a better experience,” Schroll says, “especially when trying to fight online sales. It helps keep customers in the physical store and from going online.”
Many other factors make digital signage relevant in today’s retail store including convenience, ease-of-use, flexible content, and visual stimulation.
It also “gives a modern and dynamic feel to the space. Beyond just the advertising messaging, having digital signage communicates the forward-thinking and innovation attributes of the brand,” Davis says.
Schroll agrees, “The concept of ‘techorating’ is of interest to retailers where signage is being used as part of the decorating itself, creating a cool experience for customers.”
So the question for retailers isn’t “Why should you have a digital signage system?” The question is: “Why haven’t you already implemented a digital signage system?” Peggy will soon be in the market for perfume.