The Global Digital Display Market
The global digital signage market is projected to reach $23.76 billion by 2020, growing at a compound annual rate of 8.18%. Given this impressive statistic, it’s no surprise that businesses of all sizes are making investments in digital signage to engage with their customers in a flexible and exciting way. It’s also no surprise that one of the most common questions we get in our community and support channel is: “How will digital signage help me increase revenue?”.
Digital signage is a powerful tool that can be used for a host of applications. Besides attracting the attention of your target audience and increasing engagement, digital signage gives you the flexibility to update your messaging in real time and reduces the costs related to print advertising.
Without further ado, here are five ways how digital signage can help boost revenue for your business. We hope they will inspire you to “go digital” if you haven’t already!
How Digital Signage Helps Boost Revenue
- Turns Customers into Evangelists
Given that your in-store customers are happy with your product or service and had an overall enjoyable experience, they may also go so far to become advocates for your brand. This is where the power of digital signage comes in. With a gentle nudge while in your location, these satisfied customers can easily be reminded to write a review, invite a friend, or connect with you on social media. To stay competitive, today’s businesses’ must connect with customers before, during, and after the transaction. That’s where a powerful message on your digital signage can encourage customers to maintain the relationship and to spread the good news long after they leave your physical location.
- Educates Your Audience
Digitally-savvy customers are expecting more and more from the companies they chose to do business with. It’s not enough to just post a static sign advertising your coffee and hope it will actually engage your audience. This is where informative and educational digital signage comes into play. What if you created a short video showing where the coffee was sourced, the fair trade agreement you have and a quick recipe that customers can make at home? Surely this would do a much better job at getting your customers to stop and stare. You would need a lot more than one poster or sign to communicate that kind of information!
Now, if you were the manager of any business, which medium would you want to have to educate your audience? Educational information in the form of eye-popping images or interactive videos is the perfect way to grab the attention of your audience, which helps to increase revenue and money spent in your location.
- Reduces Overhead Costs
Compared to flyers and printed posters, digital signage is a more cost effective tool to spread your message and connect with your audience. Unlike print advertising, it allows you to update your messages in real time, with a few clicks and no extra costs. It can upsell, inform, and entertain your audience all at once. This is virtually impossible with printed signage, as it has to be designed, reviewed, and sent to the printer. By the time it’s ready to be posted it’s not timely and has no sense of immediacy. Static signs are pale in comparison to how you can update your digital screens a few times a day (or week), stream live events and even include your social media feeds.
Printed materials are expensive (for materials, designers, agencies), and worst of all, it’s not a quick or effective process, to say the least. If you’re spending your money on sending out flyers or other prints, know that 44% of direct mail will never be opened (HubSpot).
You may argue that printed posters, as opposed to displays, don’t consume energy once they’re posted on your walls. Consider the fact that displays can be used for up to a decade, and with the growth of the market, we’re now seeing greener and less expensive options every year. It’s clear that screens are the better investment in this case as they have a better ROI in the long run and don’t have the same recurring costs associated with storage, distribution, updating and changing print signage.
- Monetizes Your Screens
Digital signage allows you to promote your products and services, but also provides you with the platform to collaborate with partners who want to gain access to your audience as well. While you certainly don’t want to overwhelm your customers with ads, you can create some strategic partnerships with related businesses to create a new revenue stream. For example, if you’re a community center, you can use your digital displays to promote your events, but also feature ads from a local market or a massage therapist. This allows you to charge the businesses that advertise with you while providing your audience with information that’s useful and relevant.
- Real Time Promotions
Since we’ve already established that digital signage allows you to update your messages almost instantaneously and with just a few clicks, this also means you can hyper-target your promotions to account for changes in demand, weather, or any other factors. For example, if you own a small grocery store and have a ton of overly ripe bananas ready to be picked up, you’d naturally cut the price and announce a sale. This way, you’d sell the fruit (although at a deep discount), without having to toss them in the trash. This is a perfect example of a timely promotion and another place you can use digital signage.
The sign announcing the sale on bananas can be transformed into an engaging and powerful promotion using digital signage. When done properly, a digital advertisement can grab your audience’s attention much more quickly, and adapt to be hyper-relevant to different situations. For a business, timely promotions translate to more engagement and better performing ads which drive revenue.
Think Strategically About Digital Signage
Although digital signage is quickly becoming the standard in engaging with customers, the power of your digital signs ultimately depends on the rich content you put on it. The goal is to make your signage work for you, to help boost revenue, and connect with your audience in a new and exciting way.
If you’re interested in getting some help with designing your digital content, please contact us. We’d love to learn more about your objectives and how we can create something beautiful together.