With new innovations in digital signage, an increasing number of organizations are exploring the many ways it can be used to engage prospective clients, employees and visitors. As a marketing or communication tool, digital signage also is gaining more recognition as an essential way to reach a more digital savvy audience.
But, as with many other marketing plans, it may be challenging to show ROI with your digital signage strategy. Whether you’re using it to showcase products, drive traffic to your business or engage internal audiences, you may find it difficult to show improvements on your organization’s bottom line due to the complexities of business operations and the subtle nature of marketing solutions.
Derek Paquin, Principal at Sensory Technologies, noted that there’s a lot of buzz around engagement. However, he said, that buzz is valid because engagement is one of the single most important aspects of a successful company.
“With engaged audiences, you’re positioned to improve the bottom line of your company by getting discretionary effort from employees and clients interacting with the brand and driving sales,” he said.
So, the question is, how can you demonstrate the ROI of your digital signage efforts? Here are 5 key ways to reach that goal.
- Define a specific ROI. A digital signage solution isn’t one size fits all. It’s essential to get a good understanding of your organization’s objectives since there are many different metrics and returns you can measure. Depending upon your industry, you may value some ROIs over others. Talk to key stakeholders in your company to determine how and what type of digital signage components will add to your existing marketing plan; enhance your current business practices and, ultimately, improve your bottom line. Consider metrics like increased traffic, revenue growth, and safety milestones. Keep in mind that you can define ROI using a combination of various metrics.
- Create measurable goals. After defining the goals you want to hit with a digital signage strategy, start setting measurable goals. Keep your expectations realistic so that you’re accurately measuring the strategic execution and benefits of the signage solution. For example, it’s unrealistic to set a goal of 100% growth in sales from an initial digital signage integration alone. However, recognizing that digital signs increase impulse buys, increase sales, and motivate customers to take action, a realistic set of goals could include consistent sales growth and developing repeat business relationships with new and returning customers. Setting realistic goals that are in line with the growth of the company will help you see ROI clearer and sooner.
- Fostering and measuring engagement. If your digital signage strategy includes a measurable call to action on the display, such as a link to the Intranet or feedback options, you’ll find it easier to measure ROI. Consider ways to invite your audience to engage, such as visiting a specific page (with metrics embedded) for information, discounts, special offer codes, or to like a Facebook page. Don’t just focus on prospective clients. Explore ways to foster engagement among your employees as well. By fostering a more engaging and connected work environment, you’ll give employees incentive to perform – which, in turn, can help improve the company’s bottom line.
A study featured in Harvard Business Review revealed that companies with measurably engaged employees experienced a 22% higher rate of productivity, along with many other benefits. The study also cited 25% lower turnover, 48% fewer safety incidents, and 41% fewer quality incidents (defects) among companies with engaged employees.
- Test different strategies. When creating digital signage and engagement strategies, various communication avenues and styles should be explored to measure and understand what your audiences are more likely to respond to. Using coupons, internal servers, and social media accounts and call-to-actions from signage solutions encourage audience engagement and interaction that drives feedback metrics. As a result, you can review those interactions and make adjustments and improvements.
“Digital signage offers our clients the ability to be adaptable and responsive to the unique and often evolving demands of their clients and employees through data-driven solutions,” Paquin pointed out.
- Analyze and incorporate metrics. Analyzing data is a crucial aspect of creating responsive and effective engagement and signage plans. Data allows you to see the effectiveness of the plans in a real and measurable way. Metrics inform your team of areas where you need to improve, cut costs and measure brand recognition. If your company implemented a social media campaign, analyze whether a hashtag trended and how many likes you received on the page since the launch. You can also track interactions, comments and shares. Depending on what you are measuring, there are several other options for data collection as well.
Develop a custom approach to ROI
One of the most important things to discuss when talking about the benefits of digital signage with your organization is that ROI can be measured in many ways depending on your organization’s goals. Further, digital signage and engagement strategies can be thought of as one big experiment to see what works best for that specific business.
With numerous resources and options, the potential for creative uses of digital signage is virtually limitless.
When revamping or creating your marketing and communications strategy, talk to Sensory Technologies. We’ll help you explore digital signage strategy, metrics, delivery and content. We can also give you insights on the type of digital signage strategies that have boosted ROI for other companies.