To the uninitiated, digital signage is nothing more than a fancy-looking screen that provides digital versions of corporate posters and advertisements. This mindset is rather shortsighted, and fails to take into account the impact that digital signage can have on the health of a retail business.
According to a report by Infiniti Research Limited, the global digital display market is forecasted to show a compound annual growth rate of nearly 15 percent by 2019. Lots of fancy words, sure, but what this means for retailers is that the growth of retail digital signage is showing no signs of slowing down and businesses who want to stay competitive need to keep up.
The Evolution of Retail Digital Signage
The digitisation of the consumer world is well underway, with technological advancements making it easier than ever to deliver personalised, effective customer outreach. The growth of digital signage from a simple advertising medium to an effective strategy for retail engagement highlights this trend rather well.
Starting with basic information delivery, digital signage quickly expanded into providing personalised information based on region, time of year and other demographics. This empowered retailers to segment their market for more customised service.
Digital signage didn’t stop there, though — with personalisation well established, the next logical step was direct customer interaction through kiosks and platforms that could proactively address consumer needs.
As the cost-effectiveness, personalisation and flexibility of retail digital signage progressed, it began to take shape as an effective way to drive customer sales, promote brand awareness and reconcile the customer journey through the transition from digital to physical channels of purchase.
Increasing reliance on technology has shaped the way consumers view the world. Online purchasing, mobile apps and social media have created countless new opportunities for consumers to connect to retailers. Millennials know this better than anyone, having been born into an age of developing tech and growing up alongside the evolving channels that now define our communication.
They have already begun to shape marketplace trends with purchasing power that rivals the baby boomer generation. Their preference for mobile options and innovative tech outreach has created unprecedented digitization of the marketplace: Data from the 2015 Internet Retailer Mobile 500 report showed that shopping applications alone provided 42 percent of all mobile commerce.
Brick-and-mortar businesses must account for this trend by joining the digital experience of their consumers with the experience they find in-person. Conveniently, brand apps that allow mobile shopping, discounts and personalised outreach are one of the best ways to create an environment that is both customised to the consumer experience and optimised for the digital age.
Understanding the needs of the tech-hungry millennial market is necessary to create in-store shopping experiences that reflect the changing priorities of a younger marketplace.