DS efficiency

Inventing a bicycle: explain how to calculate the effectiveness of Digital Signage

The Digital Signage system in Russia was in a strange situation. A professional marketer does not need to confirm its effectiveness (dozens of foreign studies with lots of numbers and graphs speak about this), but the client wants clear evidence, and there are almost none. Although DS in our country did not appear yesterday, and it would seem. The problem is that Russian market participants are in no hurry to share their growth indicators. Therefore, domestic statistics in this area do not exist. However, methods for evaluating the effectiveness of Digital Signage are universal. Let's try to reveal them in more detail:

But still, let's start with foreign numbers. According to these studies:

  1. - 63% of visitors to shopping centers, cultural institutions and medical facilities that use such technologies say that they attract attention; about 30% of visitors consider digital menus and menuboards to directly affect their decision to purchase a particular product;
  2. - 42% of customers prefer to shop in stores equipped with displays with Digital Signage;
  3. - DS reduces the time that the buyer realizes as "queuing time" (at the checkout, in the fitting room, to the doctor, etc.) by 35%, including due to the entertainment content that is broadcast on video displays;
  4. - Digital Signage increases sales by 31.8% because the correct distribution of content affects the speed of decisions made by the buyer;

There are quite obvious performance indicators: an increase in the average check for a certain time, an increase in sales of specific goods or product groups, an increase in sales of goods that were not previously popular, an increase in the popularity of promotional offers, an increase in traffic, etc. Calculating these KPIs is quite simple, again, using DS: for example, by installing monitors at the entrance so that they can track traffic, introducing a video analytics system with age and gender criteria for people watching ads.

But Digital Signage is used not only in retail, and how to calculate the level of customer loyalty in this case? Here come to the rescue ... good old polls. Is the content clear? Did he help with the selection of products? Did the client learn anything new about the product through the DS panels? Answers will help adjust the content used for demonstration on video panels. The main condition is that polls should be regular, and questions should be concise and clearly worded.

You can resort to another method of questioning. This is the method of Frederick Reicheld - calculation of NPS (Net Promoter Score, net support index). The customer is asked one question, and the answer should show the degree of his loyalty to the product / brand. For example: “Are you ready to recommend it to your family (friends, colleagues)?”, The answer is proposed to be selected on a 10-point scale from 0 to 10. 0 in this scale is “not ready at all”, 10 - “I will recommend it” . The answers are grouped into three parts: 0-6 points - critical customers, 7-8 points - neutral consumers, 9-10 points - loyal consumers. The net support index is calculated as follows: NPS = percentage of loyal — percentage of critics. If you go to zero or minus, then something is not right in the “Danish kingdom”. This method can be used both in order to calculate the level of loyalty in general, and in order to understand how much Digital Signage affects this loyalty. In the latter case, you need to compare the results in outlets that are not equipped with video panels and equipped with them.

Also, the easiest and most digitized way of analyzing the effectiveness of advertising campaigns is the introduction of markers: codes (QR, code word, code sets of letters, etc.) that will give a discount, and at the same time you can get the most reliable number of orders with advertising company thereby calculating the ROI from the implementation of the Digital Signage system.

But in general, you need to understand that, in addition to a short-term result, Digital Signage always has a delayed effect. Namely, the impact on the image. That is, the presence of modern digital systems in the retailer’s arsenal forms the image of the company that meets the most urgent consumer needs. In the end, this also has a rather powerful effect on capitalization - it just does not immediately become noticeable.