Before you even start thinking about dedicating funds to the design, implementation and maintenance of digital signage for your business, it’s crucial to understand how to calculate ROI.
Although LED signs regularly deliver massive ROI to businesses, you won’t know just how much they’re affecting your bottom line unless you pay attention to a few key metrics.
ROO Versus ROI
Before you start thinking about ROI (return on investment), first consider your ROO (return on objectives). It’s nice to think that your sign generated you X more dollars in a given quarter, but perhaps more useful to think about how your digital signage is helping you achieve your advertising goals.
First of all, define your objectives. What are you struggling with, what would you like to improve, and how does an LED sign fit into that plan? LED signs are much, much more valuable to businesses that have carefully considered signage’s role in terms of placement, purpose and content.
Once you’ve defined your goals and objectives, it’s time to determine specific milestones that will give you insights into whether you’ve achieved those goals or not.
There are several metrics available to you, such as:
- Number of impressions (how many people are seeing your screen)
- Conversions (people who respond to your call to action)
- Click-through rates (specifically for touch screen displays)
Capturing information on these metrics is another matter altogether, which you can accomplish using:
- Radio frequency identification (RFID) tags/readers
- Facial detection systems
- Point of sale beacons and cross-referencing
And so on and so forth. For bigger businesses, analytics and cloud computing can lead to a wider and deeper trove of information, providing a more complete view of your signage network and its impact on your captive audience.
However, smaller businesses are more interested in simple measurements. For example, the owner of a sub shop may be running a promotion to increase his sales of meatball subs. Just looking at the number of meatball subs sold before and after the promotion began on your LED sign will give you a rough but insightful look at how your sign is performing.
Analyzing Your Results
The final step, of course, is analyzing your hard-won data and seeing how your new sign is performing.
Depending on the size and needs of your business, this analysis will determine whether or not you should expand your digital signage network, how to improve or rethink your content strategy, or whether you should reconsider the placement of your original LED sign.
There are dozens of factors contributing to the success or failure of your first campaign—a win out of the gate doesn’t mean your strategy is perfect, nor does an immediate loss mean you should unplug your LED sign for good.
This process (like all things in business) requires iteration to get right. Put your best foot forward by beginning with a top-of-the-line product from a reputable manufacturer to see the best results. We happen to know a great company called MEGA, if you’re interested…