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Digital Signage has become a very popular way for businesses to advertise and promote themselves. However, due to the nature of the medium, it is often quite difficult to quantify the return of investment (ROI) of digital signage. In some cases, such as digital menu boards and digital signage within grocery stores, it is easier to see the direct impact of installing digital signage. On the other hand, other uses of digital signage may not have such obvious indications.
ROI vs ROO
Digital signage ROI can mostly be measured through either sales or savings measurement indicators. As discussed above, you can track the sales trends and compare the variation in the quantity of products sold over time with digital signage. Similarly, you can compare the average transaction value before and after the digital signage adoption.
Another way you can track your digital signage ROI is through potential savings measurement indicators. These indicators could be, for example, the savings in advertising between digital signage and other advertising method over a prolonged amount of time. Digital signage is not only more versatile than traditional signage, it can also save you a lot of money that you would have spent on printing, for example. It is clear that ROI thus refers to the hard gains and loses experienced by your business.
On the other hand, return on objective (ROO), has proven to be a useful measurement for any digital marketing campaign. To calculate ROO for your digital signage network, clearly define your key objectives and expected outcomes. These objectives should be specific and measurable. You can then compare your overall performance or the outcome of the implementation of the digital signage to your key objectives.
ROO is best used when the primary objective of your digital signage is to improve internal communications or to improve the customer experience.
Ask your customers
Customer satisfaction is also a very important aspect of running a business. A more qualitative way to measure the value of your digital signage is to measure the positive feedback you receive from customers before and after the installation. The easiest way to do so is by simply observing customers in your business. How long do customers spend looking at your digital signs? How many of them were prompted to buy something you advertised?
Another, more involved type of ROI measurement involves conducting surveys or interviews and recording people’s responses. For example, did they notice the digital signs? Did they find them helpful? This way you can have a deeper understanding of customer behaviour and make better business decisions going forward.
The best thing to do when calculating digital signage ROI is to keep things simple. You first need to understand what your objectives are and what metrics you actually would like to measure. From there you need to look at outcomes and compare. Ultimately there are dozens of types of indicators—both qualitative and quantitative—that you can use that can be very effective measurements of the success of your digital signage solutions.