Insights from the study include:

Digital Signage and Customer Experiences

With new digital technologies, retailers are discovering new layers of value in indirect communication. Digital signage is becoming a standard for in-store marketing, education, and engagement. But building a successful digital signage strategy calls for new types of content and interactive experiences for customers.

Digital signage not only plays an important role in training personnel. Nearly all in-store retailers (94%) use or have used digital signage to augment, change, or improve customers’ in-store experiences.

Among those retailers, 80% consider it either important (40%) or essential (40%) to customer experiences. This means the vast majority

of in-store retailers who have used digital signage to improve customer experiences also consider it critical to in-store experiences in at least one capacity.

Digital signage gives retailers the ability to manage content in real-time—as retailers graduate from passive displays to interactive experiences, they have more opportunities to optimize content for customers.

Retailers claim customers are already reacting and responding positively towards digital signage. Over half of retailers (52%) claim customers respond to their use of digital signage very well—it has generally helped their in-store experiences—and 22% claim customers have responded exceptionally well. But despite this majority, over one-quarter of respondents claim customers’ responses are negligible (22%), with no notable improvements to their in-store experiences; or that digital signage actually takes away from those experiences (4%).

More retailers claim their signage has a negligible or negative effect on customers than do those only modestly invested in digital signage, meaning some or even many retailers who consider their investment critical to customer experiences are failing to deliver on customers’ expectations. As we will and, digital 4% signage success hinges on more than just scope of adoption—function, content, placement, and competitive value all contribute to the success of retailers’ investment.

Do you use, or have you used, any type of digital signage to augment, change, or improve customers’ in-store experiences?

Since you said yes, how would you rate digital signage as a factor of your customers’ in-store experiences?

Since you said yes, how have your customers responded to your use of digital signage, regardless of its frequency?

Digital Signage Pain Points

When asked to identify their biggest pain points for customer-facing digital signage, some of the most widely select options were logistical— cost, frequency of use, and how to position the displays inside stores. But many other pain points are directly related to content, indicating both personalization and placement are equally strong contributing factors to customer experiences.

In-store retailers’ most cited pain point for customer-facing digital signage is the tendency of their customers to ignore it or fail to notice it (61%). Contrarily, 56% of retailers claim digital signage can be intrusive to the customer experience and actually frustrate customers. This indicates some retailers have struggled with both issues, each of which may be grounded in their choice of content or the positioning of their signage. Another 11% of retailers feel digital signage simply doesn’t look good in their stores.

The third major issue, for over one-third of retailers (37%), is that they run out of uses for their in-store digital signage. This makes it more diffcult for retailers to justify their digital signage investment. Similarly, programming remains a problem for 25% of retailers who claim they have not perfected their content strategy. Only 1% claim they have no pain points associated with customer-facing digital signage in their stores.

The overarching issue retailers have with their signage is diffculty improving the customer experience—whether signage is poorly positioned, doesn’t provide the right content, or isn’t in operation altogether.

In fact, when asked to select one major pain point in terms of selecting the right content, about one-third of retailers (33%)—a plurality— claim adapting content to consumer behavior is their biggest. Similarly, 14% struggle to choose the right types of content, meaning almost half of retailers’ top struggles are related to content specialization. The second-most cited pain point, content automation, also highlights issues with engaging customers on their terms. Some retailers simply lack the content (10%), or they lack the talent they need to develop the right content altogether (3%)

In-store placement, size, and sound levels, as well as the appeal of signage itself, is a problem for 11% of retailers. The lack of content to make proper use of signage may contribute to the over one-third of retailers that simply run out of uses for their digital signage.

Managing the cost of digital signage

One potential contributor to logistical issues is the affordability of digital signage, and whether or not retailers are getting the value they need from their existing investments. But among only the 30% of retailers who consider digital signage too expensive, most place a reasonably high threshold on how much they are willing to pay.

Within this group of respondents, 37% consider their price limit—the point at which the cost outweighs the bene t—in the range of $25,000 per store or more. Fifty percent of this segment rates as low as $5,000 as their price limit, while 10% rate as low as $1,000. No respondents in this segment rate any amount under $1,000 as an amount at which the price outweighs the bene t.

To reiterate, 19% of respondents have only 300 – 500 stores. They may struggle to and digital signage solutions within their budgets that nonetheless deliver on their customer experience objectives. But as signage solutions evolve to rely less on hardware and more on digital flexibility, adaptability, and personalization, next-gene digital signage solutions are becoming more accessible to all retailers.

Digital Signage Adoption and Success

Digital signage can provide a lot of value for retailers. But winning strategies require a variety of considerations, including curated content; in-store placement; technology investments; and striking a balance between marketing, support, and entertainment. The data shows that larger retail players have already started a digital revolution in their stores, raising the stakes for would-be competitors. “SME retailers like us will also have to pick up pace and achieve the same level of competence to stay competitive,” says one respondent.

Aside from helpful, enjoyable, and desirable customer experiences (45%), retailers believe differentiation from competitors (20%) is the top reason they should adopt digital signage.

Other retailers consider streamlining immediate in-store sales (18%) the top reason for adopting in-store digital signage, while 17% consider experimentation—with new content, technologies, product categories, or other initiatives—the top reason, both of which are more direct line-of- business drivers for in-store sales.

Generally, retailers are highly optimistic about the potential success of several applications

of digital signage as they contribute to these objectives. This includes sales content like offers, promotions, and advertising, but also value-added features like personalized content, entertainment, and trivia.

What are your biggest pain points for customer-facing digital signage adoption in your stores?

What are your biggest pain points in terms of selecting the right content for customer-facing digital signage?

Since you said it’s expensive, at what price range do you think the cost outweighs the bene t?

Which of the following do you think is the top reason a retailer should adopt in- store digital signage, despite whether or not you use it?

Which of the following features do you think are most likely to succeed as part a digital signage strategy, and which features are most likely to fail?

Scaling out digital signage: falling short with personalized content and interactivity

In most cases, retailers have already successfully scaled out content types they deem most likely to succeed. But while the vast majority of retailers deem interactivity and personalized content most likely to succeed, approximately half are yet to scale these out effectively.

Just as the vast majority of retailers are optimistic about the success of product advertising with digital signage, 71% have already scaled this out in a cost- effective way. Similarly, 57% have scaled out offers and promotions, and 56% have scaled out value adds, each of which the majority of retailers consider the most likely to succeed.

Just over half of retailers (51%) have scaled out personalized content in a cost-effective way—29% fewer retailers than those who deem personalized content most likely to succeed. As we will and, 33% claim they also have a hard time adapting content to consumer behavior—their biggest pain point in terms of selecting the right content.

Similarly, only 47% of retailers have scaled out interactivity for digital signage—touchscreens, motion sensors, and beacons integrations, for example—in a cost-effective way. Most retailers believe interactivity is the most likely content type to succeed, indicating retailers have high ambitions for future investments in this area. As one retailer acknowledges, interactive digital tools have become a ‘lifestyle norm’ for customers; adopting digital interfaces that come with interactive gesture recognition and arti cial intelligence is a priority, in their case.

Nearly half of retailers (47%) have successfully scaled out store information (e.g. guides to anding products or associates). Fewer retailers have scaled out tips about complementary products (37%), filmed demonstrations (36%), and product information (28%), all of which fewer retailers consider likely to succeed versus most other content types.

For most retailers, meeting their 2021 goals means creating a more individualized experience for customers through digital signage. Their content must become more responsive, processing data at the source to provide better future orientation. But unlike most digital interfaces, technology and content are not the only factors retailers must consider when scaling out digital signage.

Conclusion

Digital signage can complement the in-store customer journey, making it more seamless and adding value to customer experiences beyond the original intent to purchase. Now, even growing retailers can access next-gen technologies to entice customers, entertain them, and add value to how they search for and select products. But as with all new investments, retailers of all sizes need a robust content and delivery strategy to create more engaging, loyalty-generating, and pro t-driving experiences in their physical stores.

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