During the COVID-19 pandemic, many shoppers shifted a larger portion of their shopping journeys from brick and mortar stores to e-commerce activities. According to Forrester, 40% of U.S. online adults said they enjoy shopping in stores a lot less than they did before the pandemic.1 Faced with this dip in customer sentiment, many companies are wondering how they can make shopping more engaging and meaningful again. Digital signage can offer them an effective way to achieve both goals. Here are the benefits of digital signage and how organizations are using it to boost business growth.
Advantages of digital displays: Understanding the benefits of digital signage
Digital signage is a digital display that shows customers video or multimedia content while they're passing through a store. Digital signage is often used in movie theaters, fast food restaurants, airports and subway stations. While the global digital signage market is predicted to grow to $27.8 billion by 2026, it is important to understand that most digital signage solutions require fast and reliable network connectivity in order to operate efficiently.
Although it's often used to display advertisements or helpful information, one of the other benefits of digital signage is that it can enable a personalized customer experience that was previously limited to web and mobile settings. When brands make their digital signage customer-aware, using it to establish a meaningful connection at the right moment, it can result in a powerful digital retail experience.
For example, customers sometimes engage in "showrooming," briefly visiting a store in person to check the price of a particular item before going home and purchasing it from another vendor online. As they're doing this, their attention may be fragmented because they're looking up product information on their smartphones. Dynamic digital screens in retail stores can capture their attention before they leave, show them exactly where to find the item they seek and invite them to complete the shopping experience in the store. Research suggests digital signage can increase average purchase amounts by 29.5%. For customers that opt-in to digital identification on a retailer’s loyalty app, digital signage can suggest the perfect accessories and add-ons that would complement items the customer has previously purchased.
Using winning strategies for digital signage
Organizations can maximize the benefits of digital signage by integrating it into their overall customer experience strategy. Rather than deploying digital signage like a stand-alone advertising kiosk and running something akin to traditional television commercials on it—an experience that would interrupt rather than support customers as they were browsing the store—organizations should consider how to deliver simple, relevant messaging just as they would in an e-commerce or mobile app environment. The language and visual communication should be consistent with the messaging customers encounter in those other digital contexts, indicating the organization has a cohesive brand identity.
When appropriate, digital signage should also leverage customer data to provide the same personalized experience customers have come to expect while shopping online. For example, it may give them insight into special deals or give them information about a particular item they're looking for. Digital screens in retail stores may also feature self-checkout capabilities, just like the ones customers regularly use on a website or mobile app. By creating continuity between the online and in-store customer experience, organizations have a greater chance of capturing customers' attention, showing them that they're valued and inspiring them to convert on-site.
For organizations to further reap the benefits of digital signage, the signage must be as clear and inviting as possible, regardless of where it's located, to successfully engage customers. Customers should be able to easily interpret the images and read the text on digital screens without squinting or contending with the glare of harsh lighting. It's ideal to strike a balance, ensuring the signage is noticeable and attractive without being overwhelming or overly distracting. This way, customers will find it complementary instead of disruptive to their in-store experience.
Enhancing the in-store experience with dynamic digital signage
Organizations want to raise brand awareness and increase revenue at their physical locations, but they've found it challenging to accomplish these goals. Customers may dart in and out of stores, either showrooming or simply leaving after not finding anything interesting within a few minutes. Digital screens in retail stores offer organizations a way to capture their attention and give them what they seek, whether that's information on where to find a particular product or an emotional experience they crave. Brands can maximize the benefits of digital signage by integrating it with their customer experience strategy, ensuring the in-person experience is just as rewarding as its online counterpart.
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The author of this content is a paid contributor for Verizon.
1Post-Pandemic In-Store Shopping: Consumers Reconsider the Value of the Store, Anjali Lai, Forrester, July 2021.