Digital Signage – Evolution of retail communication
This interactive, multifunctional form of communication, in addition to being an extended arm of sales efforts and thus contributing to generation of additional sales, can also meet different customer needs.
Regardless of whether we are talking about small retail shops, hypermarkets or shopping malls, one thing is certain – strategically placed displays can be an irreplaceable channel of communication between the seller and the buyer.
This interactive, multifunctional form of communication, in addition to being an extended arm of sales efforts and thus contributing to generation of additional sales, can also meet different customer needs.
For smaller retail shops, digital displays are primarily a way to make income by renting out advertising space. Since they can be placed on exclusive and visible locations, it makes them an attractive choice for a large number of companies. The store itself can utilize them to promote different sales or provide other useful information to passers-by about events in the city, road constructions and traffic jams. Such usage of adverting space helps creating a stimulating sale environment by attracting attention.
In large department stores, displays have additional functions. Besides being intended for suppliers who want to promote in order to stand out from the rich supply, they are placed at specific departments such as deli or technology to provide updates about particular products or current promotions. Additionally, they can serve for placing information whose value consumers can easily recognize and follow them in buying exactly what fits stores’ current sales plan.
Some studies conducted in the Netherlands say that over 90% of customers have no idea what they want to buy before they go shopping. The recipes on the displays serve to offer groceries and facilitate decisions for making a family lunch. All based on the available offer in a specific segment.
In addition to apparent sales capacity, digital displays are placed next to the cash registers to entertain customers while waiting in line. Although not aimed to increase sales, they have another important function here. Some studies have shown that this way perception of waiting time is reduces by as much as 35%. Therefore, customers leave shops feeling more satisfied, looking forward to their next visit.
The most interesting use of digital signage is digital dressing rooms. Visually they look the same, one seemingly ordinary mirror but with an extra twist. At the same time mirrors are digital displays with ability to present certain content. For example, when you are in the pursuit of a perfect pair of jeans, you are bound to try out a couple of them you believe are suitable. The cabin may not be just the place to see how it fits you. Display can recognize the bar code or tag on a label using Bluetooth or RFID technology and recommend compatible products, e.g. the appropriate shirt.Before you try something out, it can give an idea of how an item of clothes will look on you thus helping you make a decision even before you start sometimes tedious wardrobe picking process. The shop gets the opportunity to promote more products to every particular customer while using that time to amuse them. On the other hand, customers get the opportunity to see more of the available products, save time in search and finish shopping the item of desire faster.
Above all, this is an excellent marketing trick, as the new technology always attracts people. Because of it, person will spend more time inside the retail store, potentially make more purchases, be satisfied with the whole experience and will gladly return.
This functionality can be upgraded so that the screen becomes fully interactive. The customer can try different combinations or even communicate with the seller by it. After choosing a model and a size on the screen, the information is sent to the seller’s tablet or similar devise so that shop assistant can then bring the items into the cabin. This opens the possibility for the buyer to try and buy more items, while the whole process is accelerated and simplified. In addition, it may provide information on the availability of the model and the requested size at another location with possibility to make a reservation, if it is not available at the current location.
One-on-one communication is not all these digital displays can facilitate. When cabins are open, they are used as a classic advertising channel.
This is also one of the most fascinating uses of digital signage in retail.
The main goal of the screen is to promote, achieve additional sales and instigate customers to spend as much time in the store as possible.
One good example for usage of digital signage is the largest toy department store in Moscow, “Children’s World” on Lubjanka Square. With several million Euros invested, over 600 screens and 30 video walls entertain visitors, first of all children, and raise the mood by placing certain colors and content. Better mood means more shopping. Some screens show cartoon characters or interactive games, other information about products and promotions. This way, the chances are parents with children will spend more time and buy some or more products.
It is expected that this significant investment will pay off itself through sales increase in a year and a half.
Technology allows us to implement everything we imagine. For example, interactive touch screens with applications that provide specific information in shopping malls are one of these functionalities. The map of shops with right path to them can serve at the same time as an advertising space for the promotions the user is looking for, discounts of the same or similar products or may give other useful information: weather forecasts and events nearby.
Also, digital signage can have its application in crisis situations. The screens can be quickly prepared to show essential information, evacuation routes, alarms and other messages to channel people and their behaviors.
Activities that take too long, such as buying tickets, can significantly increase the waiting time in lines. This entire process can be completely transferred to an interactive screen, through which the user will be able to choose an event, make contactless payments and get an electronic ticket right to his mobile phone. This way, crowding is reduced thus freeing space for easier and faster purchases. This can be especially important for smaller retail stores.
The technology behind digital signage is nothing new or unreliable.
It has a wide range of options and offers multiple benefits to all participants: companies that provide the technology, sellers and end customers. Regardless of possibilities, Serbia is still the country with the lowest digital signage coverage in Europe and the surrounding countries.
This should not discourage us, but rather point to a large space for application and improvement. Benefits for buyers in terms of speeding up purchasing process, making information more available and increasing general satisfaction should be sufficient reasons to consider investing in digital signage.
Opportunities to improve business and achieve better sales results are more than obvious.
Zayn Malik[/kswr_iconboxinfo]