Digital signage is changing how businesses communicate. From retail stores to corporate offices, these digital displays are everywhere. 

But one question remains: “Is it worth the investment?”

In this guide, we’ll help you understand how to measure the success of your digital signage. We’ll share practical tips and real methods to calculate your returns.

Let’s dive in!

What is ROI in Digital Signage?

ROI, or Return on Investment, shows how much benefit you get compared to what you spend. It’s not just about profits; it’s about the value digital signage brings to your business. 

For example:

• Does it attract more customers?
• Does it reduce your communication costs?
• Does it improve your brand visibility?

In other words, if the benefits are higher than the cost then it means that your ROI is positive. Once you understand this simple calculation then it will help you make informed decisions. 

With digital signage, the ROI is not just monetary but also includes the advantages of enhanced customer engagement, better brand visibility, improved operational efficiency, and cost savings. The measurement of ROI helps determine whether the strategy for digital signage is effective or not.

How to Measure Digital Signage ROI

Measuring the ROI (Return on Investment) of digital signage involves tracking the impact it creates on your business. To accurately measure the ROI, you need to understand the cost of digital signage first. Because it’s not just about profits; it’s also about how digital signage contributes to your goals, like customer engagement, cost savings, or operational efficiency. Here’s a breakdown of key metrics to help you measure ROI effectively:

1. Increased Customer Engagement

Digital signage is designed to attract attention and encourage interaction. Measuring engagement helps you understand if your content is impactful and reaches the audience effectively.

• Metrics to Track:
  • Foot Traffic: How many people come near your digital signage? For example, a retail store might notice increased visits to sections highlighted on their digital screens.
  • Time Spent Viewing: Are customers stopping to watch your content? Longer viewing times suggest better engagement.
  • Interactions: In the case of interactive displays, you can track the number of clicks, touchpoints, or QR code scans.
• Example: A café installs a digital menu board that features limited-time offers. By tracking the number of people who ask for those offers, they can measure engagement.

2. Boost in Sales and Revenue

Digital signage can directly or indirectly influence sales. It’s especially effective for promoting specific products or services and encouraging impulse purchases.

• Metrics to Track:
  • Sales Growth: Compare sales figures before and after using digital signage for promotions.
  • Conversion Rate: How many customers take action after seeing your content?
  • Average Transaction Value: Do customers spend more when exposed to upsell or cross-sell messages on your signage?
• Example: A clothing store uses digital signage to highlight a “Buy One, Get One Free” sale. After the campaign, they observe a 20% increase in sales for the promoted category.

3. Cost Savings

Digital signage often replaces traditional print materials like posters, flyers, or banners. Measuring cost savings from reduced print expenses and faster content updates is another way to calculate ROI.

• Metrics to Track:
  • Printing Costs: Track how much you save by not printing posters or banners.
  • Advertising Costs: Compare the costs of running digital campaigns versus traditional campaigns.
  • Labor Costs: Calculate savings from automating content updates, reducing manual effort.
• Example: A corporate office switches from printed employee notices to digital boards. They save on printing costs and cut the time needed to distribute notices by 50%.

4. Brand Awareness

Digital signage helps strengthen your brand presence. High-quality visuals and consistent messaging create a positive impression on viewers. Measuring how well your audience recognizes or recalls your brand is a key indicator of ROI.

• Metrics to Track:
  • Customer Surveys: Conduct short surveys asking viewers if they remember your brand or campaign.
  • Social Media Mentions: Monitor any increase in mentions or discussions about your brand after running digital campaigns.
  • Website Traffic: Check for spikes in traffic to your website linked to QR codes or promotional content on your digital signage.
• Example: A food brand launches a new product and uses digital signage to display videos about it. They conducted a survey and found that 60% of respondents recall the ad and the product.

5. Improved Operational Efficiency

Digital signage is not just for external customers; it’s also useful for internal communication. Companies and organizations can use it to improve processes, save time, and enhance employee satisfaction.

• Metrics to Track:
  • Time Saved: How quickly can updates or messages be shared compared to older methods?
  • Employee Feedback: Collect feedback to gauge if employees find the signage helpful and easy to use.
  • Error Reduction: Track how digital signage reduces miscommunication or errors.
• Example: A hospital uses digital signage to show real-time updates on doctor availability. This reduces patient inquiries at the reception desk and improves efficiency.

Understanding Digital Signage ROI Basics

ROI (Return on Investment) tells us if our money is working well for us. For digital signage, ROI isn’t just about money coming in. It’s about total business value.

Calculating Your Digital Signage ROI

Basic ROI Formula: ROI = (Gain from Investment – Cost of Investment) / Cost of Investment x 100

Example: Investment in digital signage: ₹5,00,000 Yearly returns: ₹8,00,000 ROI = (8,00,000 – 5,00,000) / 5,00,000 x 100 = 60% ROI

Best Practices to Maximize Digital Signage ROI

1. Choose Reliable Hardware and Software

Investing in quality hardware and software forms the foundation of an effective digital signage strategy. Durable displays and energy-efficient hardware reduce maintenance costs and ensure long-term reliability. A robust CMS like Acumen CMS allows for real-time content updates, advanced analytics, and centralized control across multiple displays, improving efficiency.

2. Create Engaging Content

Content is what captures your audience’s attention. Use high-quality visuals, short messages, and dynamic videos to keep the content interesting. Regular updates prevent the content from becoming stale, and tailoring messages to specific audiences ensures relevance. For example, a retail store can use digital signage to highlight ongoing sales or promote new arrivals.

3. Monitor Performance

Tracking performance metrics helps you measure success and make improvements. Use analytics tools to monitor engagement rates, impressions, and conversions. Set clear goals, such as increasing foot traffic or boosting sales, and evaluate your digital signage’s performance against these objectives. Adjust strategies based on what works best.

4. Leverage Smart Technologies

Incorporate AI and IoT to enhance personalization and deliver real-time updates. AI can help analyze viewer behavior to display tailored content, while IoT sensors can enable interactive displays or show live updates like stock availability or weather conditions. These features make your signage more impactful and responsive.

5. Focus on Cost Efficiency

Cost efficiency plays a crucial role in improving ROI. Use energy-efficient displays to lower electricity bills and automate content management to save on labor. For example, scheduling screens to power down after business hours can significantly reduce operational costs.

6. Gather Feedback

Feedback from your audience and employees provides valuable insights. Use QR codes or surveys to collect opinions on your signage’s effectiveness. For internal use, ask employees how signage could better serve their needs. Use this data to refine your content and placement strategies.

Why Acumen CMS is Your Best Partner for ROI

Acumen CMS makes managing digital signage easy and effective. Here’s how it helps improve ROI:

• Advanced Analytics: Get insights on audience engagement and campaign performance.
• Real-Time Updates: Change your content anytime, from anywhere.
• Scalability: Suitable for businesses of all sizes, from small shops to large enterprises.

With Acumen CMS, you can save time, reduce costs, and increase your returns.

Conclusion

Measuring digital signage ROI doesn’t have to be complex. Start with basic metrics and build your measurement system over time. Focus on both financial returns and business improvements.

Want to learn more about maximizing your digital signage ROI? 

Acumen CMS is here to help. Book your free demo right now!

Acumen CMS offers all the tools you need to maximize your digital signage ROI. Ready to transform your business with smart solutions? Contact Acumen CMS today to learn more. We understand the Indian market and can guide you to the best solutions for your needs.