Barriers to the adoption of digital signageJuly 2015

Being a digitally advanced retailer in 2015 requires change and innovation throughout the business. The convergence of new devices and technological advancements has guided the growth of online and in store retailing. This is an inventive time for brands, and the way they invest their time and money will determine their position in the future marketplace.

Technological investments allow companies to develop new, diverse activities. A recent Digital Investment webinar with Drapers also suggested “the pace of investment is only going to increase.”

Whilst transforming a business into a digital era is a growing pressure for the global retail industry, retailers can execute cost-effective marketing strategies by looking at new ways of interacting and engaging with customers.

Executive summary

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Where does digital signage fit in?

Although “the digital offering has had a really large amount of investment and amount of growth” (Mike Wilks, Head of ICT, Joules), the uptake of digital signage technology is still fairly low down the priority list for some retailers.

Whilst there are many barriers to the adoption of digital signage, one of the biggest barriers is the level of investment needed to actually build a digital signage network, including screens, installation, content management and support. In this white paper we investigate the concerns affecting the barriers to entry and how SignStix helps to combat these.

“If you’re not investing you’re not going forward, you’re going backwards” Mike Wilks (Head of ICT, Joules).

Retail Focus

Chapter one Are you investing in the right technologies?

Investing in technologies:

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Investing in the right technologies, in the right way

Businesses have rapidly become extremely customer centric, which has shifted the focus of marketing efforts firmly onto improving the customer experience through technology.

Whilst the industry has seen many success stories as a result of new technology implementations, there are fears that retailers are either rushing to implement the wrong technologies in the wrong way, or are adopting a “wait and see” mentality and therefore falling behind.

For technology to make a real difference to a retailer, technologies need to be used to support a customer’s purchasing journey. This is extremely crucial when it comes to the implementation of digital signage.

“We’d strongly advise against retailers using technologies just for the sake of it - they need to make sure they have a real purpose from the shopper’s perspective,” Danielle Pinnington, managing director at shopper research firm Shoppercentric.

“Recently we’ve seen some fantastic signage in high street windows, where it has created and transformed eye-catching displays through movement and even interactivity. Used the right way and in the right context, digital signage can drive footfall into the store, or even sell products when the store is closed. It can also support a strong service offer - sharing complex product information in a tailored format via touchscreen technology.”

Chapter two Digital Signage Myths and Misconceptions

Digital signage can be used to bring many benefits to businesses of any size. The fundamental features needed to deliver a reliable and coherent digital signage estate can be shaped efficiently and quickly to create a difference.

There are however many myths and misconceptions concerning digital signage, therefore affecting the adoption of this technology.

MYTH #1: Digital signage is just a screen

Digital signage is more than an electronic screen - it is a digital canvas for customer engagement.

Digital signage gives organisations the opportunity to create and manage promotional materials on specific dates, times and months, based on data delivered by customers.

* Reach more people* Showcase dynamic content* Save on print costs* Influence sales and ROI

Myths & misconceptions:

6Retail Focus

MYTH #2: Digital signage installation is complicated

Many retailers believe that implementing digital signage of a large scale will be disruptive to the store and complex to set up. Cloud based technologies like SignStix combat these problems by offering an easy configuration process, which can be executed by anyone in any business. SignStix Players are small and compact, and deliver 4K graphics out of the box. The Players can be configured using a smartphone via Wi-Fi connection which means users can be up and running in seconds.

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MYTH #3: Managing Content

One of the biggest concerns of implementing a digital signage system is the strain it can have on resource. However, retailers can manage, edit and create content with ease by investing in a low-maintenance web-based platform that easily allows for simple signage creation and zone-based deployment.

What’s more, managing printed content like printed newsletters, posters and promotional material can put lots of strain on time and resource compared to digital signage. Digital signage offers a greener, more environmentally-friendly approach to marketing communications, as well as reducing reduce print costs significantly and maximising workflow. With digital signage, retailers can also update content in real-time so that marketing communications are dynamic source: digitalsignage.net.

MYTH #4: Digital Signage is expensive

Dependent on the solution, digital signage can be fairly inexpensive in order to communicate messages and promotional material effectively. The return on investment can be easily justified, especially if retailers edit the correct message with the consumer in mind. Multiple screens can be used to create different environments and manage a budget to acquire the relevant effect. Low-cost video walls are also becoming an affordable, obtainable solution.

MYTH: #5 Digital signage isn’t effective.

By using digital signage, organisations can effectively promote their products and services to customers and therefore influence in-store purchasing decisions, increase brand awareness and encourage repeat sales.

Increasingly, digital signage is becoming an integral part of the marketing mix.

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Chapter three The Common Barriers to The Adoption of Digital Signage

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Barriers to digital signagewww.avinteractive.com/

Capex Constraits

Lack of ROI

Supply Chain Confusion

Business Model Confusion

Lack of Ad Research

Lack of Research

0 1 2 3 4 5

2.01.7

29 36

87

60

33

20

5.33.1

4.23.5

3.32.7

4.84.0

4.3

0.5

Running Costs

4.3

2.64.3

2013 2015

Rating scale 0 (lowest) to 7 (highest)

Constraints

1. Lack of research: Despite the numerous advantages offered by digital signage, the lack of awareness and research regarding the benefits of digital signage and the lack of standards for interoperability between devices are some of the important factors restraining the growth of the digital signage market.

SignStix strives to constantly educate the market through strategic leadership and speaker sessions to provide the industry with sufficient research and knowledge, in addition to helping marketers drive sales and increase brand awareness.Source: Research and Markets

2. Supply chain confusion: Hard-to-fathom supply chains are enough to turn any marketing department away from implementing digital signage, and it’s something that is constantly affecting the uptake of this technology.

Through a large expert partner network, SignStix has the ability to offer retailers an entirely end-to-end solution, covering screens, installation, hardware, software and even custom signage enclosures.

3. Lack of ROI: Lack of ROI is the second largest barrier to the adoption of digital signage technology. Whilst ROI can be easily justified, retailers are concerned about whether their investment will actually return sufficient results.

SignStix has already proven to increase brand awareness, repeat customers and average purchase amounts significantly. As a general guide, digital signage has the potential to add an upswing in overall sales volume by up to 31.8% and raise instore traffic by up to 32.8%Source: InfoTrends

4. Capex Constraints: Survey respondents highlighted capital expenditure constraints as a growing problem (particularly in the retail sector).

SignStix helps combat this by offering a low-cost subscription model, providing retailers with a fully-scalable, cost-effective solution.

5. Running CostsRunning costs are an ongoing concern for retailers, as it’s something that will constantly eat into the marketing budget.

Retailers use the SignStix platform because there are virtually no running costs. There’s no software to install and no servers to setup and once the device has been configured, SignStix can simply run itself with absolutely no maintenance required.

The solution is also 96% more energy efficient than PC-based digital signage solutions.

Chapter four Forming a Business Case for Digital Signage

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4.2 Digital Signage is MemorableDigital signage can enhance brandmemorability and recognition through engaging, visual communications. With a proven recall rate of 52%, compared with television (32%), billboards (30%) and magazine (21%) (TTV Marketing Report), consumers are immediately drawn to digital.

4.3 Display personal, data-driven

communications in store:* Display department-specific screens around the store to inform and guide customers* Promote sale items in store to help increase the average purchase amount* Communicate social media activity to encourage multichannel interaction* Increase product awareness to drive sales* Influence customers’ buying habits by promoting items dependent on the store’s demographic

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4.4 It increases sales and profitability

Digital signage increases sales and profitability by influencing purchasing decisions, increasing the average purchase amount and maximising workflow.

Providing digital experiences that create an atmosphere and entertainment in-store have helped to add value by:

1. Increasing the average purchase amount by up to 29.5% 2. Adding an upswing in overall sales volume by up to 31.8% 3. A growth in repeat buyers by up to 32.8% 4. Raising in-store traffic by up to 32.8% 5. Improved brand awareness by up to 47.7%

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(Source: InfoTrends).

www.signstix.cominfo@signstix.com0845 863 0520

SignStix is an award-winning cloud-based digital signage platform, which allows you to create, edit, manage and deploy digital content with ease. The solution is fully scalable and is used by commercial and corporate enterprises to drive customer engagement and enhance in-store experiences.