W H I T E PA P E R

1© 2011 NetWorld Alliance LLC | Sponsored by NEC Display Solutions

Sponsored by:

Four Benefits of Using Interactive Digital

Signage in RetailAs retailers compete for customers, innovation

in digital signage steps in to help.

By Sara Thompson Contributing editor,DigitalSignageToday.com

Retail customers are nearly bom-barded daily with advertisements and messaging, from online pop-

ups to old-fashioned billboards along the highway. It is becoming more difficult for retailers to stand out enough to get their products and brands noticed. Digital signage is an attractive method of draw-ing customers to the brand and building loyalty with them.

The changing needs of retailers are prompt-ing them to move away from traditional advertising and seek alternative means, including retail digital signage, whose ship-ments will more than triple by 2013, accord-ing to iSuppli Corp. Also, seventy percent of retailers are empowering their employees with technology-enabled touchpoints, such as digital signage and self-service kiosks, to help their businesses to differentiate and evolve, according to a recent RSR Research report cosponsored by HP.

There is a definite art to interactive signage and retailers must evaluate solutions for engagement, education, insights and over-all ease of deployment.

In this white paper, sponsored by NEC

Display Solutions, learn the four benefits of using interactive digital signage in retail markets.

EngagementIn today’s digitally connected world, most consumers interact with technology on a daily basis.

Engagement builds customer confidence, as well as brand loyalty.

Four Benefits of Using Interactive Digital Signage in Retail

2© 2011 NetWorld Alliance LLC | Sponsored by NEC Display Solutions

“In-store digital media is needed today be-cause most consumers in North America now live with digital media via the Inter-net and hand-held devices at home and at work,” said Bill Collins, principal with tech-nology consultancy at Cincinnati-based DecisionPoint Media Insights, a designer and producer of custom consumer re-search on digital media networks.

“They like it. They interact with it, they search for information on it, and they play games with it,” said Collins. “It is such a fundamental part of consumers’ lives that they would think it odd if digital media dis-appeared from their day-to-day experience at the precise moment that they walk into a retail store.”

Engagement builds customer confidence, as well as brand loyalty. As customers engage with interactive digital screens, they are able to truly peek inside the retailer. Interaction with digital signage creates an opportunity to have interaction with the brand and the store, which keeps that retailer top-of-mind for the customer.

Retailers realize that the industry is unique-ly positioned to deliver greater information and tools that strengthen relationships with consumers. Content developers and man-agers are creating mobile cou poning, SMS messaging and QR codes for direct interac-tion. The seamless integration of informa-tion tailored to the mobile device feels both natural and logical to consumers.

“The touchscreen is a window into the brand,” said Richard Ventura, director of sales for vertical solutions at NEC Display Solutions. “A kiosk or screen is an interac-tive selling tool, not just atmosphere.” By

providing a specific experience to custom-ers who interact with the brand via the digi-tal portals, retailers can increase sales while building a relationship with the customer.

Ventura sums up the feeling of many consumers that when they go shopping they “don’t want to be bothered.” Bothered, meaning intrusion by sales associates or the inability to locate items. People may like sales and shopping, but they do not like a sales pitch. It is important for retailers to provide information in a way that does not feel intrusive or overwhelming but also feels approachable. Interactive digital signage is an easy way to achieve this.

Education and advertisingVentura suggests that using interactive digital signage is the easiest part of this equation. Interactive signage educates cus-tomers while it advertises for vendors.

“Consumers like to make informed buying decisions,” said Jeff Hemingway, co-owner of Milford, Mich.-based Storming Images,

Digital signage can point to a roving demonstration, a sale, or a point of interest, but it also can be changed with a moment’s notice when the

environment changes.

Four Benefits of Using Interactive Digital Signage in Retail

3© 2011 NetWorld Alliance LLC | Sponsored by NEC Display Solutions

a digital signage software company. “Digital signage creates a wonderful opportunity for a retailer to inform the customer of product features and benefits. Using this technol-ogy in the retail setting allows the consumer the opportunity to become educated on the available products without feeling the perceived pressure from a sales person.”

As long as the consumer does not see the message as an intrusion or distracting in some way, this can be a powerful tool. “You have to make the interactivity part of the environment,” Ventura says, “by placing it where it will be the most useful.”

Targeted, flexible messaging is also a top benefit of digital signage. Typical methods include end-caps and in-store static sig-nage to display sales or new products that tend to be overlooked by busy customers. In-store digital signage gives the retailer total control of campaigns, which can be limited to a specific region in the store or targeted based on time-of-day and day-of-week, and allows the customer to become his or her own subject matter expert.

More stores are turning to digital signage to help customers navigate sometime large expanses of space. Digital signage can point to a roving demonstration, a sale, or a point of interest, but it also can be changed with a moment’s notice when the environment changes. No matter what, almost every brand that engages interac-tive digital signage sees appreciable ROI on the brand. “Sales increase,” Ventura says, “returns decrease.”

Consumer insights As data is collected on interaction, insights are gathered about consumer behaviors: these insights can shape business deci-sions. Retailers can use this information in order to modify, change and target cus-tomers. Additionally, Ventura says, “Brands can build complete campaigns around the data gathered from the signage.”

Retailers must leverage these useful insights to provide a better experience for the consumer. Stores that gather and observe diligently have a keen understand-ing of buying and spending habits, brand awareness and loyalty, and other consumer behaviors. Ventura warns, however, that a store must not only have a plan in place to gather this data but to use it as well.

Digital signage systems are flexible and can be customized to the retailer’s needs via a single media player.

Four Benefits of Using Interactive Digital Signage in Retail

4© 2011 NetWorld Alliance LLC | Sponsored by NEC Display Solutions

Ease of deploymentThe deployment of an interactive digital signage program cannot go unnoticed when considering a technology invest-ment. One of the top benefits of a digital signage solution is the ease of deployment and use. Stores are already in possession of brand information and messaging. Store-level systems feature fast installation times, where a static signage program can take multiple times longer to develop, create and post the signage.

Digital signage systems are flexible and customizable to the retailer’s needs via a single media player. Content can be changed quickly and easily without the inclusion of a third-party technician or similar individual who must make time in a busy schedule to tend the needs of the retail establishment.

About the sponsor: NEC Display Solutions, a pioneer in developing and delivering advanced display technology, has taken a leadership role in providing total digital signage display solutions. By bringing together strategic project manage-ment and solid display solutions experience, it can provide solutions for a wide range of markets, en-vironments and applications. NEC offers a broad selection of LCD displays and projectors, coupled with expertise in hardware/software consult-ing, content creation and management services, financing, system configuration, deployment services, maintenance and service/support. The result is a customized, technology-rich deploy-ment optimized specifically to meet a company’s unique needs.