To compete with online retailers and bring shoppers back to the high-street, brick-and-mortar stores are increasingly turning towards retail technology to entice shoppers into their stores and create new shopping experiences.
But any business investing in new retail technology will expect that investment to provide a return – not only to offset the initial cost, but to create additional revenue.
Here’s how the business case for digital signage stacks up;
The cost of digital signage vs static displays
The global digital signage market is expected to reach a value of £25.5 billion (USD 34.9 billion) by 2026 and installations in retail environments are currently leading the industry growth, accounting for 25% of sales.
As manufacturers scale up production to meet this growing demand, the cost of digital signage hardware is decreasing – almost to the point where digital displays will become more affordable than static displays – especially if you consider the limitations and ongoing costs associated with printed materials.
Static posters are, by definition, static. With fixed content and design, they can only show a single advertisement per location and, when the content becomes outdated, retailers face the time-consuming and expensive process of going back to the printers.
The fact is, time is money and digital displays save both by providing the ability to make quick changes to in-store advertising based on the time of day, shopper demographics, current events, special offers or just about any other factor. This ability to update digital signage content, anytime and seamlessly, at the press of a button – not only in one store but across multiple venues – mitigates the cost of the initial investment.
How digital displays increase sales
The first step to increasing sales is increasing footfall and seven out of ten surveyed customers say they’ve entered stores they’ve never visited before based solely on the appeal of the shop’s signs. Because digital displays capture 400% more attention than static displays, there’s little doubt that this retail technology is an effective method of increasing footfall.
But digital signage doesn’t only attract people into stores, it also keeps them there and leaves a lasting impression – customers spend 30% more time in shops that have digital displays and digital display advertising has been revealed to be the most memorable form of advertising available with a recall rate of 52%.
Research has also revealed that 68% of consumers agree that digital signage would “influence their decision to buy the advertised product in the future” and 44% agree it would “influence them to buy the advertised product instead of one they planned to buy.”
Video walls and screens near the point of purchase are particularly effective – a recent study revealed that over 40% of shoppers say that these displays can change what they buy. This feedback is backed up by cold, hard sales figures – 80% of brands reported a significant increase of up to 33% in sales after using digital signage for POS advertising.
Digital signage can also reduce perceived waiting times at checkout by as much as 35%, creating an improved customer experience.
The importance of choosing the right retail technology provider
46% of shoppers say that interactions with functioning in-store technology increases their confidence in a brand and nearly half of them say that stores with highly reliable, technology driven customer experiences will earn more of their business.
But retail technology can also be a point of friction for shoppers if it’s not well designed, implemented and maintained. More than 80% of shoppers report having technical issues at stores, with 60% having multiple encounters with technical problems.
These figures demonstrate the importance of sourcing retail technology from reputable providers who understand both the retail environment and how customers will engage with the technology.
Start getting an ROI on your retail technology
As illustrated by the statistics provided, digital displays increase footfall, improve customer experience and help brick-and-mortar stores increase sales and stand out from the competition. They’re undoubtedly worth the investment.
Get in touch with Anna Valley, to see how we can help you implement a retail digital signage solution that earns more than it costs.