6 Reasons Why Digital Signage in Retail Can Increase Sales

Digital Signage in Modern Retail

Among the five factors that influence purchasing decisions, digital signage falls within the psychological category.

According to a research paper titled “The effect of digital signage on shoppers' behavior: The role of the evoked experience,” digital signage is said to be an effective, controllable in-store experience provider that works by evoking specific experiences—aesthetically pleasing sensory-affective or decision-helping intellectual—that then positively affect shoppers' approach behaviors directly and indirectly.”

Or, to put it simply, we all like eye-catching things!

We are conditioned to enjoy a short, snappy video, and as we have known for years, our brains are predisposed to read any text placed in front of us. Our emotions are influenced by storytelling and compelling designs.

Digital signage has been proven to bring in customers, increase brand recognition, and ultimately boost sales. Here’s why:

1. Enhanced Customer Engagement

Though there is no doubt that online shopping is a steadily growing trend, as of 2022, in-store shopping is still more popular than online shopping, with 79% of sales being offline. Therefore, to engage your customers’ senses, you must make use of the most impactful, immersive tools in your kit.

Dynamic digital displays grab customer attention and create experiences that traditional static signs simply cannot compete with. Through enticing visuals and videos, digital signage captivates and entertains customers, making the in-store experience more engaging and enjoyable.

Interactive Digital Signage Content

Interactive digital signage takes customer engagement up a notch. Touchscreens, QR code scanning, and gesture recognition technology enable customers to actively participate in the content. Whether browsing product catalogs, accessing additional information, or even playing games, interactive digital signage transforms passive onlookers into active participants, making the information and the brand more memorable.

Real-Time Updates

“Retail has changed staggeringly in the last decade, especially with the pandemic disrupting normalcy and retailers having to adapt to a remote, digital-first approach to keep businesses afloat.”

Retailers have an enormous job on their hands, to keep pace with the demands of consumers, never mind the competition. A huge advantage of digital signage is its ability to deliver real-time updates. Businesses can instantly modify content to reflect constantly changing circumstances, such as new promotions, the latest collections, or even current weather and traffic conditions. This adaptability ensures that customers receive the most up-to-date, relevant information, enhancing their overall experience and increasing the effectiveness of the signage.

Personalized Shopping Experiences

By tailoring and personalizing the retail experience, businesses can leverage digital signage to engage customers on a deeper level. For example, automotive industry customers can personalize their in-showroom experience by configuring a virtual car display and customizing vehicle specifications, interior features, and color options.

By empowering customers to create bespoke solutions, retailers can give customers a taste of the experience they would get from a small boutique or specialist retailer. Suddenly, shopping in a large retail outlet doesn’t feel at all homogenous or impersonal!

Better Customer Experiences

Ultimately, digital signage contributes to better customer experiences across various industries. In hospitality, properties can streamline the check-in processes and provide guests with local recommendations. In healthcare, providers can offer wayfinding assistance and informative health tips. In transportation, airports can update travelers on schedules and delays. Digital signage enhances customer satisfaction by delivering relevant, real-time information and interactive engagement opportunities regardless of the sector. Its versatility makes it a no-brainer for modern businesses looking to provide the best experiences for their customers.

2. Increase Sales with Improved Brand Visibility

Brand visibility is defined as the proportion of exposure a brand enjoys in relation to its competitors and its industry. Remember—we most often choose what is familiar or recognizable to us.

Consistent Branding

Brand visibility is three and a half times higher for consistently presented brands than those without a consistent brand presentation. By displaying logos, color schemes, and messaging that aligns with your brand, customers can easily recognize you in a crowded marketplace. Consistency builds trust, and trust encourages repeat business. Digital signage creates more opportunities to be consistent with your brand.

Eye-Catching Retail Store Displays

We’ve already mentioned shopping with our senses. One of the most striking advantages of digital signage is its ability to catch the eye. Traditional static signs can't match the attention-grabbing potential of moving images, videos, and interactive content. By showcasing products, promotions, and stories through digital signage, retailers can draw customers in and keep them engaged longer, increasing the likelihood of making a sale.

Increased Foot Traffic

Digital signage can act as a beacon, drawing in potential customers from outside the store. Dynamic displays showcasing promotions, sales, or new arrivals (geo-targeted, of course!) can pique the curiosity of the passersby and entice them to step inside. It’s Retail 101—higher footfall equals higher sales.

Stronger Digital Presence

Digital signage bridges the gap between the physical and digital realms. Retailers can integrate digital signage with social media feeds, online reviews, and e-commerce platforms, particularly those with headless commerce capabilities. This seamless connection enables customers to interact with the brand online and offline, creating a holistic shopping experience.

3. Cost-Effective Advertising

While the initial installation cost of digital signage may seem high, it is a cost-saving investment over time as it reduces expenses related to printing, distributing, and administrative tasks.

Digital Signage Means Reduced Printing Costs

Bye-bye, endless ink and paper! The elimination of traditional print materials such as posters, flyers, and other promotional materials allows businesses to spend that budget on creating and updating content digitally. This reduces ongoing operational costs and minimizes the environmental footprint, aligning with sustainable business practices.

Dynamic Content Management

Spotted a pesky typo or want to change some wording at the last minute? No problem. Making edits to your signage is free and very easy to manage. Digital signage enables businesses to manage and update content in real time. This flexibility is a cost-effective way to keep advertising materials fresh and relevant. Whether promoting daily specials, seasonal offers, or timely announcements, dynamic content management ensures that the message is always up-to-date without incurring additional printing and distribution expenses.

Targeted Advertising

Digital signage can deliver targeted advertising based on location and demographics, interests, time of the day, temperature, and more specific conditions. This precision targeting ensures that the right message reaches the right audience, maximizing the effectiveness of advertising efforts. By tailoring content to specific customer segments, businesses can increase their return on investment (ROI) while minimizing wasted advertising spend.

4. Flexibility and Versatility

Digital signage has emerged as a flexible and versatile tool that revolutionizes how information is presented and communicated across various industries. It enlightens, it entertains, it engages.

“You walk into a retail store, whatever it is, and if there’s a sense of entertainment and excitement and electricity, you wanna be there.” 

– Howard Schultz, CEO, Starbucks

Adaptable Content

One of the hallmarks of digital signage is its capacity to deliver dynamic, adaptable digital signage content. We have noted how digital displays can be updated in real time, allowing businesses to tailor their messaging to specific audiences, events, or changing circumstances. All content can be managed remotely and easily customized, ensuring that messages remain relevant and engaging, regardless of evolving marketing strategies or shifting consumer needs.

Seasonal Promotions

Digital signage was made for seasonal campaigns and special events! Businesses can deftly switch between promotional themes and content to align with holidays, seasons, or marketing strategies. For example, a retail store can effortlessly transition from back-to-school to Halloween-themed displays, maximizing sales opportunities and keeping the shopping experience fresh and appealing to customers throughout the year.

Multifunctional Displays

Modern digital signage solutions offer multifunctional displays that can serve various purposes within a single screen. These displays can simultaneously incorporate live TV feeds, social media updates, weather forecasts, and promotional content. This versatility ensures that digital signage does more than deliver messages; it becomes an interactive and engaging part of the environment.

5. Eco-Friendly Stores

In the pursuit of more sustainable and environmentally responsible business practices, the retail industry is turning to alternative solutions, including digital signage.

Reduced Paper Waste

Traditional paper-based signage, such as posters, banners, and flyers often generate substantial waste. When you start to dig into the figures, the situation is really quite alarming. A whopping 50% of the waste of businesses is composed of paper. As we know, paper production requires enormous amounts of energy and water and is a prime cause of deforestation. By contrast, digital signage almost entirely eliminates the need for these paper materials. Retailers can now convey information, promotions, and advertisements through dynamic electronic displays.

This transition reduces paper consumption, lowers printing costs, and minimizes the environmental burden of paper production and disposal. In the same way that retailers communicate with staff via email, they can communicate with shoppers via modern, efficient digital signage.

Energy Efficiency

Digital signage technology has evolved to prioritize energy efficiency. And good news for retailers: a 20% cut in energy costs represents the same bottom-line benefit as a 5% increase in sales!

Modern LED screens are designed to consume significantly less energy compared to traditional lighting sources. Plus, these displays often incorporate smart features, including automatic brightness based on ambient lighting conditions and the ability to schedule on/off times. By consuming less power, carbon footprints can be reduced and energy costs cut. This energy-efficient approach aligns with sustainability goals and benefits the environment—and the bottom line.

Sustainability Benefits

Under the broader umbrella of sustainability strategy, digital signage can help to demonstrate the retailer’s commitment to environmentally responsible practices.

Here are some examples:

• Promoting Green Products: Retailers can educate customers and encourage them to make more sustainable purchases. For example, a grocery store could feature digital displays in the produce aisle, highlighting the benefits of organic farming or the environmental advantages of choosing local vegetables.
• Encouraging In-Store Recycling: We’ve all stood in front of a group of bins and wondered what to do. Displays near recycling bins can provide information on what items can be recycled and how to do so correctly.
• Promoting Corporate Social Responsibility: Retailers can communicate their commitment to CSR by sharing information about environmental initiatives, such as reducing carbon emissions, using renewable energy sources, or supporting local sustainability programs. This builds trust and loyalty among eco-conscious consumers.
• Sharing Sustainability Success Stories: Celebrating stories and milestones demonstrates transparency and accountability, reinforcing the retailer's dedication to eco-friendly practices.
• Real-Time Environmental Metrics: For large retailers with advanced sustainability initiatives, real-time environmental metrics could be displayed on digital screens. For example, energy consumption, water usage, or waste diversion rates. This holds the retailer accountable for its sustainability goals—and, again, demonstrates commitment and transparency on their part.

6. Competitive Advantage

Competitive advantage means setting yourself apart from the competitors. It can mean anything from product differentiation, better customer service, leveraging technology, or offering special promotions or discounts. Digital signage in retail stores can set you apart and help you reach your goals faster.

Retail Digital Signage: Conclusion

Consumers nowadays expect a seamless shopping experience, and why not, when the technology exists to support this experience?

Shopping (whether we enjoy it or not!) is certainly an immersive experience. As consumers, anything that makes that experience easier, more educational, and more interactive can only be a positive. From enhancing customer engagement through personalization to boosting green initiatives, and promoting brand consistency to lowering retailers’ costs, digital signage has proven its worth as a powerful tool in modern retail. Its ability to adapt content on the fly, facilitate real-time updates, and provide analytics for data-driven decision-making has redefined how retailers connect with their audiences.

Recap of the 8 Reasons for Store Signage

Encouragement to Implement Digital Signage in Retail

To retailers who have yet to embark on their digital signage journey, the time is ripe to take the plunge. As technology evolves, digital signage remains at the forefront of innovation in the retail industry. Embracing it keeps retailers ahead in the fight for brand loyalty and enhances the ability to respond to ever-changing consumer preferences and market trends.

“I was reading all these reports that were down on retail brick-and-mortar, saying it’s all about online…I think brick-and-mortar is an amazing opportunity to use our stores and our store staff as a vehicle to truly engage with the community in a way no other retailers are doing.”

– Jim Brett, President, West Elm

The potential to transform brick-and-mortar stores into dynamic, engaging spaces is a vision worth pursuing. To those contemplating its adoption, the future of retail awaits—bright, interactive, and ready to delight customers in innovative ways.