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Sign up for digital signage in retail 101

The retail industry is one of the key drivers of the U.S. economy, supporting one in four jobs and generating a more than $2.6 trillion impact on gross domestic product each year. Here's how digital signage can help all of the nearly 3.8 million retail establishments of all types across the country.

January 14, 2016

By Richard Slawsky, contributing writer

The retail industry is one of the key drivers of the U.S. economy, supporting one in four jobs from Portland, Oregon, to Portland, Maine, generating a more than $2.6 trillion impact on gross domestic product each year. There are nearly 3.8 million retail establishments of all types across the country.

It stands to reason, then, that any tool that can help retailers increase sales not only would be in demand, but also could have a significant impact on the economy as a whole.

A study conducted by Mississauga, Ontario-based digital signage provider SignAd Network found that digital video in public venues reaches more Americans each month than online videos do (70 percent for digital signage vs. 43 percent for online videos). The study also showed that nearly 1 in 5 of those who have seen an ad via digital signage have made an unplanned purchase after seeing an item featured on a screen.

And retailers are recognizing the power of digital signage. According to the Framingham, Massachusetts-based research firm International Data Corp., the use of digital signage in retail outlets is projected to grow from $6 billion in 2013 to $27.5 billion in 2018, equating to a 35.7 percent compound annual growth rate.

But while many retailers think of digital signage as an eye-catching replacement for printed promotional material, its power goes far beyond that.

Wayfinding

Think of shoppers in a mall, department store or other retail environment as people on a journey. Maybe they are familiar with the lay of the land, and maybe they aren't.

But like many people, they're hesitant to ask for guidance to help them reach their destination.

One of the key functions digital signage can serve on the retail journey is wayfinding. Strategically located signage can help shoppers find their way by providing clear directions to various destinations.

Point of decision

Once shoppers arrive at their destinations, the next function digital signage can serve is to assist them with deciding what to purchase.

Many shoppers today view the hovering salesperson as the enemy — someone who's interested only in fattening his or her commission and who should be avoided at all costs.

On the other hand, digital signage located throughout the retail location can serve as a silent salesperson, promoting products with audio and full-motion video.

Point of purchase

Once shoppers have made their selections, the next stop on their retail journey is the point of purchase, typically at the sales counter, and hopefully accompanied by a cart full of product ready to bag up. That's one of the last opportunities the retailer has to create a conversation with the consumer.

In many cases, digital signage at the point of purchase is used to promote add-on purchases. A shoe retailer, for example, might promote socks or shoe polish at the point of purchase, while a hardware store might promote batteries or flashlights.

Branding/ambiance and customer experience

With the right content, a digital signage network moves beyond being just a tool to display product information — it becomes a brand experience. Giving content a look and feel consistent with the store's identity can help turn an in-store digital signage network into a representation of that store's brand.

Last word

Although the evidence is overwhelming that digital signage can enhance nearly every aspect of the retail environment, all too often businesses deploy a fancy technology simply for technology's sake. Investing in a digital signage network without a clear idea of how that network will be used can be a recipe for disappointment, if not disaster.

Before investing in digital signage, it's important to research what is involved in a deployment, what the options are for hardware and software and who are the established providers with a proven track record.

(This article is excerpted from the guide "Digital Signage in Retail 101" sponsored by Mvix and now live on both Digital Signage Today and Retail Customer Experience. To read more about digital signage in retail, click here to download the free guide.)

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