Player and coach Tony La Russa once said, “There are always distractions if you allow them.” Although he was referring to the game of baseball, the same principle applies to retail store interactions. But what if retailers could harness consumer distractions for good and turn them into profits. New technology is allowing them to do just that.
As the pace of life continues to accelerate, our mind’s ability to focus has been directly impacted. The introduction of never-ending information via our cell phones has shortened our attention span. According to research, constant news feeds and a steady stream of videos under 10 minutes have rewired our brains, and the use of technology has shortened our attention span from 12 minutes to 5 minutes.
As a result, companies and organizations across the globe have had to learn to adapt. Studies show that 90% of the information that is transmitted to our brains is visual and that people have a recall rate of 83% when it comes to digital signage – that is nearly double the retention rate of traditional advertising. Organizations are now learning to implement solutions based on this research and have started turning to interactive retail displays and digital signage to increase marketing and improve their bottom line.
Understanding the Impact of Digital Signage
The best way to understand the impact of digital signage on a company’s bottom line is by looking at recent statistics.
A 2020 analysis revealed the financial profits a company can gain by relying on these new technologies.
- Of brands that use digital signage, 80% have recorded a substantial increase in sales – up to 33%, with a greater appeal toward epicurean product purchases than planned purchases.
- Digital signage has resulted in a 46% increase in customer satisfaction and has raised the average purchase amount by 29.5%.
- Digital displays can create a 31.8% upswing in overall sales volumes and result in 32.8% growth in repeat buyers.
- Digital signage raises brand awareness and complements a company’s marketing strategies. More than 40% of buyers say that digital signage can influence their purchasing decisions.
- 68% of Americans have paid for a product or service because its signage caught their eye.
- Customers spend 30% more time browsing products in stores that have deployed digital signage.
- Implementing digital signage technology can increase footfall by up to 24% in retail stores.
Not surprisingly, given these statistics, the adoption of digital signage solutions is on the rise, and 60% of enterprises without digital signage expect to implement it into their platforms within the next 24 months. Those in the retail sector have learned to rely on visual aids to engage their customers, and the transition has paid off.
To take greater advantage of these trends, Queue management systems, such as Ombori, have created interactive retail displays to enhance customer experiences. Here’s how such platforms are transforming the retail industry.
- Interactive Retail Displays Promote Customer Engagement
To combat the loss of consumer interest due to ongoing distractions such as mobile devices, sellers have started leveraging retail displays. More than three-quarters of American consumers (76%) enter stores they have never visited simply because of the signage. This statistic supports Ombori’s concept of “stopping power” – the ability of a device to make a customer literally stop and engage with it.
Queue management systems have developed displays and researched how they can impact store sales. Different platforms provide different results. Ombori’s Wayfinder – an interactive display that can run on any size screen – has nearly doubled user engagement. Wayfinder can be either touch-sensitive or voice-operated and aids customers in identifying specific items within a store. These innovative platforms can improve business operations as well. Staff is likely to spend less time giving directions to customers, and fewer customers will be lost because they cannot find what they are looking for.
In addition to touch-screen and voice-operated features, queue management systems focus on the ability to engage customers through barcode scanning and e-commerce options. Each unique addition enhances a company’s ability to connect with customers on a more personalized level.
- Interactive Retail Displays Provide for In-Store Entertainment
As the attention span of consumers continues to decline, they need more and more stimulation to keep them attracted to in-store items. Otherwise, they become distracted by the technology in their hands – their cell phones. In-store interactive retail displays provide such stimulation. Similar to promoting customer engagement, these displays help people remain committed to purchasing while in the store, especially when they are queuing for checkout.
Queuing, or waiting in line, can hurt the customer experience. People may leave lines or avoid stores altogether if they perceive the wait to be lengthy. However, interactive retail displays can help reduce the perceived wait time in lines – they can provide an avenue of entertainment for consumers, improving their chances of returning to the store following a positive experience. Digital signage can improve queue management and reduce perceived wait times by more than 35%.
For consumers who enter a retail location with the intent of “window shopping,” interactive retail displays provide an opportunity to convert them into actual consumers. Digital signs placed in windows that feature QR shopping codes promote the idea of completing a purchase without the hassle of entering the store. Instead, these solutions direct customers to a store’s e-commerce platform and prompt them to complete the purchase online. In some cases, customers can opt to pick up the item in the store – resulting in immediate satisfaction and improving brand engagement.
- Interactive Retail Displays Improves Sales
By improving client engagement and customer experiences, companies are likely to benefit from increased sales. Queue management systems offer an array of features that can promote higher sales.
Ombori Endless Aisle is an attention-grabbing touch screen that allows customers to purchase items that are currently out of stock. This interactive display reduces lost sales by permitting companies to offer a broader selection of inventory than they can actually host. Such innovations may make the traditional “rain check” a thing of the past.
Furthermore, the technologies used at checkout have promoted heightened sales. More than 60% of customers make buying decisions at the point of sale, and queue management systems can analyze which advertising is most effective.
Changing the Dynamics of the Future
So, what does all of this mean for the retail industry and consumers? Increased profits and greater satisfaction, respectively. Technology is proving that customer distraction can actually be a positive thing for business. The global digital signage market is expected to hit $29.8 billion by 2024, growing at a compound annual growth rate (CAGR) of 8.6% since 2018.
Organizations that adopt new queue management solutions will remain competitive in the expanding marketplace, while those who resist may fall to the wayside. And consumers will enjoy a more personalized way of shopping that is tailored to their individual habits and needs.
Andreas is Founder and CEO of Ombori. He is a serial entrepreneur who has founded several companies, starting in his teens. He has a background in cybersecurity, and has worked for companies such as H&M and Nordnet Bank. Andreas is a passionate believer in digital transformation, and is constantly seeking ways in which technology can change the way we work, shop, and live our lives.