December 20, 2018
Digital signage is a powerful communications tool, that when used effectively, engages your customers and increases sales. Messaging via digital screen enables you to promote or feature particular products, educate your customers and enhance the in-store experience.
According to InfoTrend research in December 2013, the digital signage market is growing at a rate of 40 percent per year as digital screens are being used by many businesses to give them an edge over their competitors, particularly at retail. The compound annual growth rate (CAGR) is expected to continue at 8.94% through 2020. (Source: TMC News article 2014).
Currently, and for these reasons and others, retail is the leading industry for digital signage, making up 25% of sales as 68% of customers note that digital signage would make them more likely to buy advertised products. Forty-four percent even stated that it would influence them to buy the advertised product instead of a product they already planned to purchase. (Source: Nielsen in-store networks survey, 2006)
When Nielsen tracked 120 grocers who use digital signage in their stores, they found that 80% of them saw as much as a 33% boost in sales, when compared to the use of print signs.
These numbers are compelling, another reason why digital signage also complements current marketing and merchandising strategies to further enhance the shopping experience, build loyalty and increase sales. By using digital signage to provide relevant information to customers at the point of purchase, retailers have generated higher brand awareness and sales lift.
Compared to the use of static signs, which are costly and time-consuming to print and install – and wasteful upon disposal, digital screen images are visually compelling. Moving images on the screen attract and hold customer attention helping to ensure that you engage customers effectively.
Importantly, the messaging is instantaneous because messaging can be changed on your own computer to feature different products or information – if necessary, at different times of the day. Which means that you are in control of what is being displayed and can change messaging as required to benefit your business.
Digital signage is not just a great way to share news, product, and updates regularly while a customer is in-store, but it also enhances the customer experience.
Digital signage can transform the in-store customer experience elevating the perception of your dispensary, while at the same time putting customers at ease with information that is relevant to their visit. Having digital signage at the point of sale helps to educate and guide customers in their purchase journey demystifying product and making it easier to buy.
Because customers aren’t separating their online and offline retail experiences, they expect to have a connected experience wherever they shop. Adding digital signage in-store and supporting messaging via social media is one way of providing unified messaging.
Digital screens can be used in a variety of ways, from infotainment to capturing point-of-purchase activity, to creating an alternate stream of revenue via advertising:
However, to realize the benefits of digital signage, your screen must show effective content. Don’t assume information alone will suffice. To motivate customers to purchase there should always be a call to action that encourages purchase.
Creating customer engagement is what makes content and your digital screen effective. But, to be engaging, the message must first resonate with the audience. Content must address customer concerns and questions, which means that content must be developed with the customer in mind. Knowing who the customer is and on what he or she will base their purchase decision is essential to ensuring that they will be interested in what information is being displayed.
Before crafting any message it is essential to develop a content strategy to ensure that your communications are planned out, resonate with your target audience and serve your business goals. The great thing about creating a strategy is that it forces you to think through the communication process based on several points key to your success.
When selling any product it is essential to craft and communicate a customer-focused message, which means defining what you want to accomplish and who your target audience is before you begin designing any messaging. That means you may wish to conduct a customer survey, which could be a simple in-store questionnaire tied to inviting customers to sign up to receive opt-in email information about new or featured products.
Digital signage works at retail to engage customers, increase sales and enhance the in-store experience. Importantly, there are place-based digital signage networks, which are advertiser supported and programmed by a third-party network operator. The benefits of having a digital network operator install a digital screen in your dispensary are several-fold:
About the Author
Philip M. Cohen is CEO of CMN Holdings, Inc. and their subsidiaries, Cannabis Medical Network, a digital media network airing in cannabis doctors waiting rooms and Cannabis Lifestyle Network, airing in dispensary waiting rooms. Phil has operated a dozen ad-supported digital signage networks in doctor offices and at retail since 1985 and is a past Chairman of the Digital Signage Federation.