Digital signage has increased in popularity as businesses come to realize how much value it brings. Properly executed digital signage can provide consumers with much more valuable and memorable interactions with the brands they love, and more and more companies are pursuing digital signage as a major focus of their marketing efforts. However, business is increasingly fast-paced, data-dependent, and competitive. Therefore, it’s vital that marketers know the return they’re getting from their investments — the ROI of digital signage.
Calculating the return on investment (ROI) of digital signage can be complicated, as it might not be directly tied to purchases. However, there are several things you can do to measure just how effective your digital signage campaign is, and whether it’s worth investing in it. Here are a few things to keep in mind when calculating your digital signage ROI:
Make Sure Your Digital Signage Furthers Your Goals
The first step of any marketing campaign is to clearly define goals. Are you investing in digital signage to benefit your employees, and keep them informed of company processes? Or are you focusing on customer-based digital signage to increase brand recognition and convey value to your audience? You may simply want to boost sales in key areas.
To gauge the effectiveness of your digital signage campaign, you need to determine your goals before you begin. It may sound simple, but ensuring a solid return on investment begins in the earliest planning phases of any marketing campaign.
Recognize Return on Investment vs. Return on Objectives
When gauging the effectiveness of your digital signage, the goals you establish are your benchmarks to evaluate success. For example, if the goal of your digital signage was to boost sales at a nearby location, you would need to compare the sales increase to the cost of the signage to determine the ROI. However, sometimes digital signage has a different objective, such as freeing up employee time, and this can’t be measured monetarily.
Instead, you’ll need to determine the tangential benefits of your signage. For example, digital signage meant to keep employees informed of new developments could cut down on time spent looking up answers to customer queries, resulting in higher overall customer satisfaction and better feedback, which in turn bolsters your status in the eyes of your consumers. Digital signage doesn’t have to be directly tied to sales figures, but you need to determine the goals for your signage at the outset of your campaign. As you can see, digital signage can help boost your sales and decrease your operational costs.
Determine Your Sales ROI
If you created your digital signage campaign to boost sales, you’ll need to calculate the effect your digital signage had on sales. This is your sales ROI. Compare the number of transactions and the value of those transactions before your digital signage launch to the same figures afterwards. Did your sales improve? Can you find a distinct boost to your sales figures that directly coincides with your digital signage launch? If not, then your digital signage may not be as effective as you thought. However, it could be benefiting your company in other ways.
Calculate Your Savings ROI
Digital signage can also work to offset advertising costs and decrease overall operational costs. When used to the benefit of your workforce, you’re going to see various improvements thanks to time and manpower saved by your digital signage. A wayfinding display can cut time spent directing customers, freeing up employees to do more valuable work for your business.
Digital signage also has the potential to generate social impressions, or word-of-mouth marketing. Never underestimate the value of positive consumer reviews of your brand. Most people check online reviews for stores before they shop, and will ask friends and family about past interactions with brands before committing to purchases. Digital signage is a fantastic method for staying relevant in those conversations by making lasting impressions on your customer base.
Ask for Feedback
It may sound obvious, but far too many business leaders neglect to do one of the simplest tasks when it comes to calculating digital signage ROI: Asking customers what they think of it. Offer your customers the chance to provide feedback, and they will appreciate having their input valued. Interactive displays are a great way to drive engagement, but only if your customers enjoy them. Find out what works and what doesn’t, and this will help you gauge the overall effectiveness of your digital signage campaign.
Ultimately, every business is going to have different goals for their digital signage, so it’s important to consider the various ways a digital signage campaign can positively impact your business in the planning phases. Keep these tips in mind when it comes time to measure your success, and remember that the true ROI of your digital signage may not be immediately apparent since it involves various factors.