How to Measure the ROI of Your Digital Signage Systems
There are a lot of benefits to integrating modern digital signage systems into your daily business operations. Digital signage boosts your advertising efforts and helps you reach out to a much wider audience than traditional static advertisements. From extensive wayfinding solutions to interactive displays and memorable marketing outreach, digital signage provides a strong platform for you to reach your customers in innovative ways. But how do you measure the impact digital signage has on your business objectives? How do you know if it’s actually working in your favour and helping achieve the results you want?
Although there’s no universal indicator or one-size-fits-all metric to help you determine if digital signage is having a significantly positive impact on your business, there are certain steps you can take to maximize its benefits. Keep reading to learn more.
Define What Your Business Objectives Are
As with any new business concepts, the first thing you have to do is clearly define and outline your business objectives. Every business has unique goals that they hope to reach within a given timeframe—just make sure that your goals and timeframe are both reasonable. When used to its full potential, digital signage can help you achieve the vast array of business objectives including boosting productivity, efficiency, sales, and information delivery to the appropriate parties.
Whether you’re interested in communicating more effectively on a companywide or interdepartmental level or you want to establish more engaging and interactive communications with your customers, digital signage can help achieve all of these goals on a minimal or massive scale. In order for this technique to be successful, though, you have to know what you want to accomplish before purchasing and setting up the technology, so that you can ensure it’s used in a practical, meaningful, and impactful way that benefits your business.
Defining your goals ahead of time also give you the ability to aptly plan how and where you’re going to incorporate digital displays throughout your organization. Having a clearly outlined plan of action in place minimizes spending and reduces the margin of error significantly. Additionally, it helps to do in-depth market research to guarantee that this is the right step for your business.
Analyze and Understand ROI and ROO Data
ROI stands for “return on investment”, whereas ROO stands for “return on objective”. These are two vastly different concepts that are both closely intertwined and also closely tie into the abovementioned notion of defining your business goals.
Measuring ROI is fairly easy. Simply subtract the initial cost of the investment from the gains of said investment. This basic principle can be applied to pretty much any business expenditure. The resulting figure represents your quarterly or annual earnings or losses as a direct result of your investment.
When it comes to technology, the ROI should be measured over a long period of time to get an accurate reading. It can take weeks or even months before you start noticing favourable results or break even.
Overall, though, you’ll find that the cost of designing, printing, and manufacturing static paper advertisements far surpasses the cost of managing and maintaining a state-of-the-art digital signage system for your organization. The cost saving benefits and future proof design of modern digital displays are where the real ROI and ROO can be seen. This is clearly summed up as the Total Cost of Ownership (TCO)—the cost of owning and maintaining a product or system.
Other financial and time-saving benefits include freeing up your staff members from having to handle common situations or inquiries that can easily be addressed through digital displays that are prominently set up throughout your organization. Digital signage can be used to display important information like wayfinding directories, answers to frequently asked questions about your organization or industry, statistical data, and any other information your customers and employees might find useful.
Identify Which Metrics Are Worth Measuring
As mentioned in the previous section, most businesses tend to focus on financial returns, which makes a lot of sense. However, ROO is equally important and valuable in the sense that reaching your business objectives and maximizing processing productivity directly and indirectly helps to boost your finances. Digital displays enhance efficiency levels in more ways than you can imagine, most notably by delivering fast results in a vast array of areas.
Many retail employees find them useful because they can easily look up products, check inventory listings, and find the answers to customers’ questions in a matter of seconds by simply inputting information into the system. Customers usually love this fast return because they not only get the solution they’re looking for, but it’s delivered expediently with minimal inconvenience. You can measure customer satisfaction levels by asking them to submit feedback either by reviewing your business online or in whatever way you see fit.
Easily Set Up and Manage Digital Displays
Automation is no longer just the wave of the future. It’s already here and it’s only getting increasingly advanced by the day. Though many people have expressed their grievances with certain forms of automation in the retail industry such as self-checkout kiosks, the reality is that these machines are popping up pretty much everywhere and people are using them at high volumes. Interactive displays are everywhere and the great thing about them is that they allow business owners to easily update, edit, revise, or completely override their existing brand messaging at a moment’s notice without having to go through a middleperson.
The days of creating a design and waiting days or weeks for the printers to deliver and install the latest static advertisements are over.
Nauticomp Inc. is at the forefront of cutting edge technology that allows business owners to install and manage state-of-the-art digital display systems throughout their organizations. Through high-end crystal clear and responsive displays, you can boost your investment returns and encourage your customers to continue supporting your business. Contact us today to place your order or learn about our products and services.