Screens harnessed to drive retail performance 🚀
An IFOP survey reveals that 70% of French people pay attention to digital screens. A statistic well-known by retailers who have had no hesitation in using digital signage to communicate more effectively.
Placed in streets, in store windows or near check-outs, the benefits of screens identified by retailers are many:
- attract more traffic
- improve the customer experience
- highlight products and offers
- increase the average basket
- increase customer loyalty
- improve their brand image
- boost the performance of the internal sales teams
However, retailers still need to measure the ROI of their screen communication. KPIs specific to the retail sector enable digital signage campaigns to be monitored closely and to continuously improve store profitability.
What are these retail KPIs and what performance challenges do they address?
Retail KPI #1: Traffic at the point of sale 👫
For retailers that have a network of outlets, attracting more traffic into the store is a priority.
“80% of consumers go to the store because a display first caught their attention”
Accenture - 2019
Information that backs the decision of retailers to use digital signage outside stores or in store windows for a “drive-to-store” purpose.
The key indicators to monitor: In order to measure the impact of screens in generating “physical” traffic, it will thus be advisable to measure in-store traffic daily. In addition, the time spent by the visitor on the spot will also give relevant and insightful information.
Another key indicator to monitor is the number of interactions between potential visitors and screens placed in the window. This information can easily be measured through the installation of sensors which will allow the retailer to refine its customer knowledge with the collection of socio-demographic information such as the age or gender of future customers.
The last retail KPI to exploit: a store’s attractiveness. To calculate this, the relationship between the people who have actually visited the store and the overall outside traffic needs to be established.
Retail KPI #2: sales evolution 📈
Of course, increasing sales is the ultimate goal of retailers, and the best indicator of a store’s performance. To meet this objective, screens are used, for example, to draw attention to the launch of a new product or service. They will also be useful to highlight special or promotional offers.
Screen communication is reported to result in an average increase of 24% in sales (POPAI).
The key indicators to monitor: To measure the retail performance of its digital signage, the dynamism of sales for a product once it has received on-screen communication simply needs to be noted. To go further, you will also need to pay attention to changes in the average basket.
The point-of-sale conversion rate will also be a performance indicator to monitor. To calculate this, you simply need to look at the number of check-out receipts issued compared to the number of people entering the store.
Retail KPI #3: brand image 🌟
The phygital strategy which involves digitising retailers also meets other retailer challenges: modernising their image and making their brand more influential. Retailers will thus tend to communicate their social media publications on “in-store” screens, or organise prize competition games and other interactive content.
The key indicators to monitor: The virality of the contents and the involvement of the targets in relation to the actions carried out will constitute the key performance indicators for determining the digital signage ROI as part of a strategy of influence and brand image.
At the same time, it will also be relevant to conduct qualitative surveys (customer questionnaires) to understand more precisely the role played by screens in the perception of a brand by its targets.
Retail KPI #4: Customer experience and loyalty ️ 🛍️
Astutely positioned in a store, at the check-out, in the window or at the entrance, screens are excellent tools for improving the customer experience and the performance of a store. Marion Montambaux (Boulanger) is pleased to note for her customers that “the perceived waiting time seemed shorter by two to four minutes when there was a screen”. A best practice that “unconsciously impacts customer satisfaction and therefore also influences the ROI”.
A POPAI survey shows that 79% of respondents think that digital signage reduces the feeling of waiting. An improved customer experience that will also mean that customers will to return to the store more easily.
Performance indicators to monitor: To measure how the screens fit into the phygital buying journey (ROPO), and as well as the perceived waiting time, it will be useful to carry out satisfaction questionnaires.
Another indicator a store should monitor is its retention capacity: a KPI that will be used to measure customer loyalty. It will be possible to study it by analysing closely the history of the visits by comparing it against its digital signage campaigns.
Cenareo helps retailers boost their retail performance with ROI-focused digital signage campaigns driven by retail KPIs that maximise the impact of POS screens.