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In today’s highly competitive environment, retail operators aremore focused than ever on increasing their conversion rates,enhancing their cross-sell capability and ultimately growing theaverage size of customer transactions. At the same time, theyare looking for tools that will support their branding efforts, willimprove store traffic flow, will help reduce staff training cost,and better control advertising and marketing budgets.Digital signage is a tool that retailers can use to achieve theseobjectives. Many are already using it and seeing the benefits,while others are planning to implement it in the very near future.The focus of this paper is to show how to best deploy digitalsignage. The paper presents a conceptual framework that servesas a guide for choosing the right digital signage implementation,and to help retailers generate the results they expect.Our “Seven Applications in Retail” approach is based on ourmore than seven years experience deploying digital signage inthousands of retail settings, including malls, chains and multi-storeenterprises. While we define the end-product as digitalsignage, it has been marketed under different terminology, suchas digital visual messaging, narrowcasting or captive-audiencenetworks. Regardless of the name applied, the implicationsof the technology are significant and warrant summarizing.
Digital Signage Defined
Simply defined, digital signage is a network of digital displaysthat are placed in a retail setting with the purpose of presentingcustomers with dynamic, up-to-the-minute content. Such anetwork is proven to have more impact than static media. Itenables precise targeting to virtually any audience, allows forchanges in messaging almost instantaneously, and reduceslogistics and labor costs. An enterprise class digital signage system has certain importantattributes. Among these are that it allows for the developmentof retail promotions using standard tools. Also, in such a system,content files can readily be distributed across an enterprise’sexisting network. Messaging can be displayed in any numberof locations at any time and on the display devices that bestsuit the particular location or in-store environment. All of thisis done in a secure, robust, and monitored fashion.The key components of a signage system are standard PCs usedfor development and control, displays – of all shapes and sizes,software for scheduling and managing content, and the datanetwork – which can vary in type so long as it is IP based.Content will be tuned as appropriate to deliver the right messageto each target audience.
 Application Opportunities
Many retailers have become familiar with digital signage andthe approaches to implementing it (such as outlined in Planar’sDefine, Design, Deploy model). What is not well understood,however, is the full range of opportunities within the retailenvironment that can benefit most from this technology.Following are seven “applications” or ways in which digitalsignage can be employed. We present these with suggestionsfor content thatis likely to be most relevant to each area. Wealso recommend the types of success measurements thatshould be established in order to ensure that the effectivenessof project can be trackedfrom start to finish.
Seven Applications of Digital Signagein the Retail Environment
DIGITAL SIGNAGE IN
RETAIL
Enterprise digital signage network linked across multiple venues.
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Centralized ControlSiteSiteSitePoint of SaleIntegrationNetwork/ Internet
 
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DIGITAL SIGNAGE
 Attract
In this role, signage is best placed adjacent to store entrances,facing outward to the public. The goal is to gain the attention ofshoppers or passers-by and motivate them to come into the store.Content should be brief and to the point, as shoppers will typicallyview such messages for a few seconds, and decide in thatshort period of time whether to go into the store or not.Effectiveness can be gauged by measuring traffic counts priorto and after installation of the digital signage. Understandingthe most successful content type will require experimenting withtext, still images, and videos. You can schedule a loop thatincludes all content types, and that runs continuously through-out the day. Or you canschedule different contenttypes to play by day or thehour, and then determinewhich combination has themost positive impact on dailyor hourly traffic counts; whichworks best for certain customer demographics, or which ismost effective against competitors’ continuous and periodicmarketing programs.
Direct
 A common challenge in large-footprint stores is to help customersfind what they are looking for. In many cases these are itemsthey’ve been educated about via traditional advertising means.Signage placed in the high traffic and entrance areas can be usedto “direct” customers to where certain items are located, callingout a floor number, or perhaps an arrow in the direction of whereit can be found. This application provides a strong link betweenyour advertising and the actual in-store shopping experience.Content that directs should show not only products beingpromoted in one department, but also should draw customersto special offers available elsewhere in the store. Comparingsales figures of digital signage-featured products versus othersimilar products –before and after the signage implementation –is a good method of measuring the effectiveness. In addition,exit surveys of customers who purchased the featured productwould add qualitative data to your measurement.
Environment
Retailers are using different display formats (e.g., direct-viewLCD, free-standing integrated signs and stylized rear-projectionbanner or wall configurations) to create an atmosphere thatreinforces their brand while offering a comfortable and relaxed
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shopping environment. In addition, displays are being positionedto define different environments in a store, such as the cosmeticsline, sports apparel or household products sections or zones.Content for this type of application speaks to shoppers’senses, rather than directly urging an immediate purchasedecision or action. Thus, it uses minimal amount of text andutilizes images that appeal to the eyes, creating a generallyfavorable predisposition. Some simple examples include usingmusic video content to make younger customers morecomfortable, or projecting images on a wall, that highlightthe colors and “feel” of seasonal merchandise.To gauge how well these signs perform, some retailers are askingcustomers how they feel about the store atmosphere and theirshopping experience in the store or a particular department. Thesame customer surveys are being used to determine if the signsare making any contribution to the store’s branding efforts.
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Example of a typical retail store digital signage placement.
Understanding the most successful contenttype will require experimenting with text,still images, and videos.
 
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Merchandise
Digital display technology now ranges in size from large unitscovering parts of walls, to much smaller displays that can beplaced right next to almost any type of merchandise beingsold – from kitchen cutlery, to clothing and athletic footwear.In this usage model, content displayed near the merchandiseshould assist the shopper’s purchasing decision-makingbyproviding product feature and comparison information. Forclothing, footwear and accessories, photo or video contentcould be used to enable shoppers to visualize how they wouldlook wearing a particular item.In the merchandise application, product sales figures will bethe most telling measure of signage effectiveness. If you area large retailer with multiple departments, you might find somemerchandise is better supported with digital signage than others,such as in situations where a sales associate’s help is needed.Comparing the sales lift figures from different departmentswould help you fine tune your display placement in your storeto get the most out of digital signage system.
Point-of-Sale
Displays hung above, placed beside or behind cashier or registerareas present opportunities to increase POS performance. Forexample, a digital sign could automatically convey messagingthat sales associates currently deliver to customers at the register.This heightens the potential of increasing the compliancelevel and ultimately the transaction size, while enabling the salesassociate to fully concentrate on completing the sale quicklyand accurately.POS signage is also beneficial in that it can reduce shoppers’perceived wait times. As a result, they tend to leave with amore positive feeling about the store experience. Techniques suchas wait time surveys or responses to POS promotion offers arebeing used to gauge how well signage works in this application.
Train
Before opening and after closing, a store’s signage systemcan be used as part of the company’s training regimen. Justas customers are more likely to react favorably to dynamicsignage content, staff is just as likely to retain training information
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that is similarly dynamic. Effectiveness can be determined inproduct knowledge testing and in customer comment andcomplaint levels.Retailers often experience high turn-over rates, so providingadequate training on merchandise, new promotions, and companypolicies can become challenging. A networked digital signageinfrastructure enables training to be delivered from a centrallocation as often as it is necessary. Further, the same signagenetwork can be used for internal corporate communicationsas retail employees often do not have routine email access.
 Advertise
Every display unit in a store can also serve as a platform foradvertising. Spots can range from high level branding, to thepromotion of store or vendor-branded products, to the offeringsof sister properties or affinity items such as current movies, booksor local area events. Product sales figures and ad recall surveysare among the tools to use as success metrics.Some retailers sell the advertising space and time to outsidebrands they carry. This can be used to reduce the cost ofdigital signage operation.
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DIGITAL SIGNAGE
Digital signage at the point of sale.
POS signage is also beneficial in that it canreduce shoppers’ perceived wait times.
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