Digital signs offer a range of benefits, including improved branding, cost efficiency, and enhanced user engagement. But, perhaps the most beneficial aspect of this medium is the analytical data.
This article explores six ways digital signage analytics can elevate your approach. After reading, you’ll know how to use data insights to strengthen your marketing efforts.
What is Digital Signage Analytics?
Most digital signage systems can collect information about your audience, such as viewing time, demographics, and interaction rates. This generated data is used for digital signage analytics. Like all forms of digital media, digital signage needs an Internet connection and a backend database to store the insights. Typically, cloud-based signage platforms provide more comprehensive analytics. You can then analyze the data to adjust campaigns, improve creativity, and measure consumer engagement.
Cloud Software
A fundamental digital signage component is the software used to collect, store, and manage the data. Usually, the backend has a dashboard to view, filter, and compare the consumer metrics. With this dashboard, you can make data-driven decisions to optimize the display.
Top cloud signage tools offer intuitive interfaces and remote access via desktop or mobile. So, regardless of your marketing experience and technical expertise, you can benefit from the information and enhance your campaigns.
Key Metrics
Before getting into the benefits of digital signage analytics, it’s important to understand what information can be collected if you use camera sensors with your displays.
- Impressions: The number of people that encounter your signage. This may include repeat views or passing glances, depending on the setup.
- Customer Engagement: Time a person spends viewing your screen.
- Consumer Characteristics: Estimated age, gender, and physical behavior (ex. pointing, pausing).
- Buyer Behavior: Comparing signage interaction with real-world outcomes like sales or store visits.
Top 6 Benefits
Harnessing the power of advanced data management software can transform your marketing efforts. Whether using digital signage for advertising or informing, analytics offers numerous benefits.
1. Foot Traffic
Measuring the number of people who engage with your signage or enter a retail space is key to the effectiveness of your display. In peak hours, you can adjust your signage content to deliver your value propositions. For instance, showcase promotional offers during the lunch rush hours to boost conversions. During slower periods, use digital signage to highlight your social channels or offer incentives for customer feedback.
Plus, interactive features like quizzes, QR codes, or games can increase dwell time. Studies found that interactive digital signs also encourage customers to linger longer by increasing dwell time by 30% versus static display. This gives brands more opportunities to convey their message and influence decisions.
2. Refined Conversion Rates
Once you have the number of potential customers entering, you can measure conversions more precisely. Digital signage bridges the gap between the physical location and digital advertising.
Brick-and-mortar sales often lack visibility into customer behavior, but signage analytics changes that. With digital signage analytics, you can assess your conversion rate by comparing foot traffic to sales. This helps you identify the weaknesses in your layout, campaigns, and promotions. For example, low conversion in one area may signal poor placement or unclear messaging. So, using the traffic and sales data, you can fine-tune content timing and screen placement.
3. Employee Management
Digital signage systems not only evaluate customers on an advanced level, but they can also improve employee behavior. Managers can use insights to adjust staffing or reinforce service behavior during busy times. For example, if customers use your interactive digital displays to find a specific product or changing rooms you can alert staff about missed service opportunities.
When the staff better understand customer trends, they can respond accordingly. This way, you improve traffic flow and product positioning to grow your business. A prime example of this is McDonald’s. It leveraged analytics-driven digital menu boards and saw a 3% to 3.5% increase in sales at its Canadian restaurants, showing how smarter digital signage translates into real revenue growth.
4. Real-Time Feedback on Campaigns
Digital marketing has transformed content creation because you have access to instantaneous feedback. By tracking metrics like dwell time, gestures, or facial cues, you gain a deeper understanding of customer behavior. Once you review the digital signage’s data, your decision-making becomes more informed. This is also where A/B testing becomes especially useful, as trying different campaign variations shows you what resonates with your audience.
You can test small changes in format, messaging, or visual style to see what leads to more views or clicks. With that information, you can refine your content more intentionally.
5. Advanced Marketing Analytics
Digital signage cloud software will give you a deeper insight into customer demographics and behavior. It reveals trends like when certain demographics visit, how long they engage, and which content converts. In most retail setups, insights are often limited to POS and social media. Signage analytics bridges that gap by delivering behavioral data directly from the store environment.
With digital display analytics, you can generate anonymized behavioral data from those who interact or linger near your displays. With these insights, you can tailor content to better reach underrepresented audience segments. For example, if engagement from a certain age group is low, you can test content tailored to their preferences.
6. Increase your ROI with Analytics
Finally, one of the most valuable benefits of digital signage analytics is smarter marketing spend. A well-designed analytics dashboard helps you organize your data clearly, reducing noise and unnecessary information.
By consolidating key metrics in one place, it’s easier for teams to spot what’s working and what isn’t. If a promo underperforms, you can switch it out right away instead of letting it run and waste budget. If something consistently performs well, you can put more support behind it. This kind of clarity helps teams move faster and make decisions that actually influence ROI.
Embrace the Future of Display Technology
Digital signage analytics offer a clearer view of what truly engages your audience. With the right tools, you can fine-tune your content, support your team, and make smarter decisions. If you want to explore what analytics can do for your business, speak with a digital signage provider about your options.
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!
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