When it comes to digital signage, the big question is, “How will I make money with it?” or “What’s my ROI going to be?” New users of digital signage are concerned about whether investments will pay off, and for good reason.
Yet some digital signage vendors emphasize end users should not focus just on ROI but also on return-on-objective.
In other words, what is the overall objective with digital signage, and how does an end user want to measure it? Do they simply want to increase sales, or do they want to boost customer satisfaction/experience?
Q: How would you answer a company that asked, “How will I know I’ll make money on this digital signage?”
A: Understanding the customer demographic and what messaging and experiences resonate with them is critical to driving conversion and customer satisfaction. Through the use of business intelligence platforms, companies can access insights that validate message conversion rates for greater visibility on content performance.
The right solution can offer analytics based on non-identifying data such as age, gender, traffic, dwell time, and message impressions to better understand digital signage success. An intelligence platform that can utilize this information to suggest relevant, targeted content to trigger messaging/ads to drive sales and conversion is the best way to see the returns on signage investments. They can evaluate message effectiveness as it relates to different promotional periods, which provides business intelligence to improve the performance and ROI of future promotions and messaging.
It is also important to A/B test messaging, both digital and print, to determine the most effective content and format to drive conversion. Business intelligence platforms take the guesswork out of understanding the customer base, where and how are they spending their time in the company’s space and what message is the most effective in driving conversion and better customer experience.
Q: Should companies focus more on ROI or ROO (return on objective)?
A: These are two important things to focus on for business. They can go hand in hand. The goals of the project or initiative would help determine what is more important, ROI or ROO. Digital signage is a big investment and utilizing it to drive sales and conversion is a critical business consideration. ROI investment can be best measured through an intelligence platform through tying in messaging impression with conversion rates, which can drive revenue streams for advertising and measure returns on promotional activities, proving tangle ROI.
ROO is important in delivering on different metrics, including brand building and other business objectives, which may not relate directly to revenue, but have tremendous value in creating a positive effect on the business.
Q. What are some metrics to keep an eye on?
A: Companies should keep an eye on conversion rates and message impressions. These two metrics are key to understanding ROI, ROO and ROE.
Q. What are some pitfalls to avoid when examining ROI/ROO?
A: It is important to understand what you are trying to achieve before you set out to measure success based on ROI or ROO. ROI is a very tangible, measurable metric that can demonstrate a monetary gain or justification for spending.
ROO is not as easy to measure from a monetary or revenue perspective but can have a significant impact on building a business or product offering. In both cases, business intelligence providing actionable intelligence into customer behavior, buying patterns and demographics is key. Both ROI and ROO can be measured through impressions and the successful deployment of a program through a strong business intelligence platform.