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How to sell digital signage using analytics

May 06, 2019

In today’s data-driven world, most businesses don’t make technology investments unless there’s a clear ROI. This holds true when it comes to digital signage. Thankfully, it’s never been easier to measure the effectiveness of a signage solution.

Measuring ROI and ROO
The traditional, and most obvious, way to measure the success of a digital signage campaign is to simply look at sales of items before and after the signage is implemented. One best practice is to gather at least six months of historical sales figures to be used as your measuring stick for improvement.

Another method of tracking success is monitoring return on objective (ROO). These campaigns aren’t usually tied to increased sales (although that might indeed be a side-effect), but rather results such as increased foot traffic or dwell time in the store.

You can’t measure without tools
Using analytics in your digital signage isn’t just a nice feature to offer. In many cases, it’s a must-have. Many brands are willing to pay retailers for in-store marketing, but they’re no longer willing to only take the retailer’s word at the amount of traffic and types of customers. With the right analytics solution installed, there’s no doubt who’s seeing the message.

Thanks to many CMS manufacturers realizing the importance of analytics, you’ll find all solutions contain at least basic tools. Minimally, you’ll have access to reports that include things such as what content played at what times. Of course, this is only so valuable. With some add-ons and integrations, it’s possible to gain a lot more insight into the effectiveness of signage campaigns.

Here are just a few examples of how analytics are being used today:
  • Close-range cameras: Digital signage content is worthless if it’s not reaching its intended audience. With a camera near the signage display (or built into the enclosure), the CMS can be triggered to play demographic-specific content based on the age and gender of customers nearby.
  • Mid-range cameras: To drive traffic to specific areas or departments within a retail store, it’s possible to tie IP video cameras to CMS analytics and view heatmaps of where customers are spending the most and least time. If digital signage is prompting customers to check out the sale on shoes, it’s effortless to see if more people are, in fact, heading to the shoe department.
  • Far-range cameras: A mall with a digital signage billboard by its parking lot entrances can use video cameras to count cars, read whether license plates are in or out of state, and catalog the makes and models of vehicles. This data can be used to ensure that future and existing signage is appropriate for the clientele’s financial bracket. Again, the goal is to get the right marketing message to the right people.
Some of this might sound like science fiction, but it’s all within reach today. If you’d like more information on incorporating analytics into your digital signage solutions, contact Tom Jones, Ingram Micro’s pro AV/digital signage expert.