One common question that solution providers are asked by customers is “How can I tell if I’m getting a good return on my investment?” Conceptually, return on investment (ROI) is a fairly straightforward concept. You take the gains from your investment and subtract the initial cost of the investment. Positive gains indicate positive ROI and so forth. Seems simple right? Well, maybe and maybe not.
Related: How to Create a Digital Signage ROI Model
While large corporate organizations like financial institutions often have sophisticated systems in place to crunch huge amounts of data to extract and measure ROI, smaller customers may not.
Still, there are simple yet effective ways for your customers to measure interactive digital signage ROI. Here’s how:
1. Reducing expenses over time
Traditional signage uses large amounts of printed materials like signs, directories and posters that take weeks and can cost hundreds or thousands of dollars to produce.
Digital signage requires a certain investment up front but saves time and money within months, and it’s much more versatile than traditional signage. Content can be updated locally or remotely, and the entire monthly cost of running the system can usually be accurately calculated.
By running a simple cost-benefit analysis of printed signage versus digital signage, you’ll be able to analyze just how much time and money going digital will save you in the long run.
2. Put social media in your corner
Social media has the capability of generating highly useful information about user interaction with interactive digital signage and can be a huge boon for future business when culled data is used to make decisions regarding future digital signage investments.
A simple way to test your ROI is to do before-and-after measurements of your social engagement and mentions. For example, customers at five retail locations were given the opportunity to interact with digital signage, after which they received a red widget. At five other locations, the reward was a blue widget.
The vast amount of social media impressions (positive or negative) were generated regarding the red widget. This type of case study requires hands-on crunching of numbers, but you get the idea.
3. Increased sales and workplace productivity
If you’re using digital signage as a way to better connect your employees, you may notice that it creates a more social, tech-savvy and informed work environment.
Because you can easily share social posts, company news and exciting achievements, everyone can take ownership in creating content and sharing updates with their coworkers—even across multiple locations. Highly engaged employees are 38 percent more likely to have above-average productivity, and strong internal communications are key to that success.
4. Positive feedback from your guests and visitors
Effective digital signage should capture people’s attention, keep them engaged and provide value. If it’s doing its job, you’ll hear it from your intended audience itself.
You can get a lot of information simply by observing how customers interact with the signage. For example, how long do they linger in front of it? Did they comment about it to a friend? Do they attempt to interact with it at all, or do they immediately follow up on some call to action, like an on-screen promotion?
This type of informal data collection can tell you a lot about customer reactions to your digital signage strategy. You can also gather information from sales associates who are interacting face to face with your customers or visitors, too.
Whether you use simple, self-measured observations or sophisticated software, the final measure of ROI should clearly be based on action it generates from your audience. Whether it is a sale or a simple action, tying that result to your digital signage message will provide your best ROI analysis.