On the front end, digital signage offers many cost-cutting benefits (i.e. reducing spend on traditional advertising methods). You can see the impact on your bottom line right away. But beyond your initial savings, how do truly measure the ROI for digital signage?
The exact methods through which you measure ROI may differ based on your industry or goals. So, before you start compiling data, be clear about what you want to achieve.
- Choose a measurable and time-specific goal
- Decide how you’ll measure that goal
- Calculate total cost of ownership (i.e. training to use new signage, maintenance, upgrades, etc.) to ensure your goals account for this expenditure
Then, you’ll likely measure your ROI in one of three ways:
- Impressions: Similar to social media, impressions are a measure of how many times people saw your message. You can set a number (say, 20,000) and monitor how your signage performs. If you’re falling below that number, maybe you need to revisit your design or information. If impressions drop off after a certain period, perhaps you need to work in new elements to keep it fresh.
- Retention: Retention measures how well people retain the information from your message. You can measure this through a survey. Strong retention indicates you’re using the right combination of design and info.
- Action: This is the most tangible measurement. Whether you’ve instructed customers to text a number, download an app, or access a website, you need to determine if they’re following your directions. Of course, this action is what ultimately converts your target audience into loyal customers. If your conversion is low, something has to change.
It’s easy to focus on the significant savings provided by using digital signage. But to truly measure ROI, impressions, retention, and action should get the bulk of your attention.