Digital signage is a core component for marketing across almost every industry segment.
Research shows investing in interactive digital signs can boost brand awareness by almost 48% and contribute to a 29.5% average increase in purchase value.
While digital displays can streamline service delivery and increase your footfall, you need to put the right key performance indicators (KPIs) in place to monitor the performance of your digital signage cloud software and signs.
What are KPIs?
A KPI is a ‘key performance indicator’, which is a metric used to measure the performance of a specific activity. Companies choose KPIs for a performance overview with quantifiable data. This way they can compare their strategy and performance and make necessary changes to their decision-making.
So, to maximize the benefits of data-driven insights, you can use KPIs for digital signage as well. Choosing the right indicators allows you to track the success of your digital displays, identify any marketing and advertising issues, and monitor changes in consumer behavior.
The KPIs you choose for your digital signage should be S.M.A.R.T. This approach makes KPIs: Specific, Measurable, Achievable, Realistic, and Time-bound.
Evaluate your indicators using this method to ensure they are relevant to your digital signage software and provide clarity on your company’s progress.
4 Types of KPIs for Digital Signage Displays
Whether you are using digital signs for marketing, or for internal information, you want to tailor the KPIs to your company’s goals and operations.
Here are the 4 types of KPIs that you should consider for digital signs:
1. Revenue-Oriented Measurement
Investing in digital displays for your business, whether it be a restaurant or a store, is a way to increase revenue. To see if the advertising on your digital screens is achieving its monetary goal, track:
- Sales of specific products or categories
- Average sales within a certain advertisement period
Monitoring if more or less customers are choosing a certain deal that has been promoted on your digital displays. This way you can see if the average transaction value has increased since the advertisement’s start date.
2. Customer-Focused Monitoring
Your digital signage can be designed to raise brand awareness or highlight specific services within your business.
For you to see if the brand is receiving more traction and targeting the right audience, review how digital displays with your marketing campaigns affected:
- Customer foot traffic
- Loyalty program sign-ups
- Social media engagement
Example: Showing member-only discounts, special deals, or a QR code to sign up on the digital screen beside the check-out counter.
Then, you can track how many customers scanned or asked about the loyalty program at the counter. This helps evaluate marketing campaigns’ effectiveness and merchandising.
3. A/B Testing Analysis
Putting KPIs in place allows you to test different approaches and strategies for your marketing campaigns. You can experiment with the following on digital displays to choose the best marketing variants:
- Messages
- Designs
- Placement of the digital signs
- Time of day or day of the week when showing certain discounts
Example: Showing a discounted offer with an encouraging message like “Treat yourself” at the end of the day on your digital display above the ordering counter. This way you can see which messaging drives sales by appealing to customers’ emotions.
4. Internal-Facing Metrics
Digital signage isn’t just for customers. Investing in digital signage software can help boost employee satisfaction and productivity. Choose internal-facing KPIs relevant to your team and boost morale like:
- Customer effect scores (CES)
- Employee of the month
- Company socials
- Upsell rates
Example: In the lunch break room, have a digital display that shows an upcoming company social event to increase morale. Track how many employees attended or asked about the event after it has been promoted.
Grow Your Business with Digital Signage
Digital signage transforms how customers interact with the brand and you should be able to see its effects. So, using different KPIs in place empowers your business to make SMART decisions and optimize your marketing strategy.
You can learn more about NexSigns’ Digital Signage solution and connect with us on Facebook, LinkedIn, Twitter, and YouTube to get the latest info on digital signage!
