Having actionable data is essential for any new technology; how you obtain that data is just as important.
By Beth Osborne
Digital signage is everywhere, from retail to healthcare and almost any environment in between. Yet, there are still many reluctant adopters. Why? Because hesitant prospective clients continue to ask the same question: How will it grow my brand? They want numbers before they can consider the investment. They have a high level of doubt, despite the fact that digital signage continues to grow with the market growth estimated to hit $27.34 billion by 2022.
What they really want to know is what they can expect to get out of their investment. The good news is ROI is not as elusive as it once was; there are many ways to interpret and measure it. The literal interpretation of ROI is dollars returned versus those invested, either by actual revenue increases or by reduced costs. Other ways to quantify ROI are through brand awareness and impact on the customer experience. Sometimes, signage can actually do all of these things. Wayfinding signage in a shopping center is a good example because it can promote certain products that are on sale, increase brand awareness by integrating social media, and improve the customer experience by answering easy questions, like where to find the restroom.
Let’s look at some specific examples at each stage of the ROI process: goal setting, what to measure, how to measure it, and analysis.
Step 1: Define a Goal
It’s impossible to measure success without a goal. Start with a SMART goal:
• Specific: Real numbers.
• Measurable: Can the goal be quantified?
• Attainable: Is it realistic? Make it challenging but not impossible.
• Relevant: Does it pertain to the larger set of goals?
• Timely: Set a deadline.
Let’s look at a specific dollar-related goal that your customer might set: increase sales of item X by 20 percent in the next three months. This can be defined as SMART as long as the client has data about current and past sales figures for the item.
A branding goal could be to increase mentions of the client’s brand on Twitter by 10 percent in the next 30 days. Again, the client would need to know their current monthly mentions, or number of times other Twitter accounts tag the client’s brand in their tweets for all of their followers to see, to measure this.