Tuesday, September 7, 2010

Implications For Retail Adoption Of Digital Signage Systems

Digital signage systems help retailers sell their wares more effectively.


Retailers face a lot of competition and need to differentiate themselves to consumers. One way to do this is with the use of digital signage systems. Digital signage systems involve digital displays and digital content that a retailer can manage over an electronic network. They allow retailers to broadcast to their retail outlets, using kiosks for instance. Media players help connect these displays to the network. The adoption of such digital signage systems has some implications for the retail industry.


Sales Opportunity


By adopting digital signage systems, a retailer can engage customers better. Such signage draws customers' attention to the store promotions and help sell the merchandise. This is a good way to especially sell items that have a higher profit margin and provide more revenue for the retailer. Video, for instance, helps make it easier to market lifestyle-oriented items, since the video can be used to good effect to attract and hold consumer interest.


Customization


Another aspect relating to the adoption of digital signage systems is that they allow retailers to customize the content of the systems to make them more relevant to the consumer. For instance, the retailers can use content to sell umbrellas when it rains, and to sell air conditioners when temperatures rise. And grocers could customize their digital signage displays to be relevant to afterwork shoppers, for instance, who might be more interested in buying alcohol.


Potential for Interconnections


Then there is the potential to interconnect digital signage systems with other information technology systems. By linking the digital signage with a store's video surveillance system, for instance, it will be possible to study the behavior of consumers. And the digital signage could also be linked with sensors that connect to a radio frequency identification (RFID) system. RFID systems are used to electronically tag store items. In one such use, if the digital signage sensor picks up that a customer is holding a certain item, it could change its display to show accessories for the item.


Employee Training


Employee turnover and seasonal spikes in hiring are issues for the retail industry, which create a need for training. Another way retailers have used digital signage systems to their advantage is to employ them to train employees during off-hours. They could use these systems to update employees about new merchandise and promotions, for instance. And some managers use these systems to provide a daily update, for corporate communications purposes and also sales purposes, to their salespeople in the morning before the store officially opens.







Tags: digital signage, signage systems, digital signage systems, signage systems, allow retailers, digital signage, retail industry