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3 Benefits of Business Signs

When it comes to effective marketing, nobody teaches business owners about the 3 benefits of business signs. Signs play a key role in most businesses. The three benefits signs have on businesses are branding, increased sales, and information to consumers.


Business signs are one of the most effective means of marketing your brand. Brand Identity consists of brand name, logo, symbols, packaging, product or service, and image-based characteristics. All of which can be enhanced by signs. In a survey conducted for a retail business out of 2475 customers interviewed, 1234 of them said they entered the store because of the sign. That is nearly 50% of all their customers. The storefront is important to accommodate for a number of psychological factors.For example, McDonald’s uses bright colors on their signs to grab the attention of children. Children are most attracted to bright colors. In most cases when families go on vacation, they let the children choose where they want to eat. McDonald’s takes advantage of that by displaying a family friendly restaurant with their signs. That is the first of the benefits signs have on companies; another is sales.


A study shows that a small directional sign showing motorists how to enter a parking lot can expect a 4% to 12% increase in sales.

Benefits of Business signs

The table above shows how different signage affects different businesses. Fast Food chains look to grab the attention of impulse buyers, therefore monument signs on the premise would increase the likelihood of a customer stopping by. Sales could go up by at least 9.3% depending on location and brand. A large pole sign (typically close to highways) increases the distance at which people can see them. One of these signs will increase Fast Food revenue by 15.6% while it increases Pier 1 Imports sales by 8.6%. Pier 1 Imports signs work to encourage customers to come back when the need arises. An example of a sign working for a business is Frenchy’s. Frenchy’s owner installed a V-shaped, internally illuminated sign with colorful graphics. The cost of the sign was $10,045. During the next 12 months after installation, the restaurant had an increase of 16% in sales, resulting in annual gross revenue of $323,640. The year after that, revenues increased another 32% making the gross income $427,204 for that year.

Take a look at how a sign benefits different industries:

Business Signs Benefits

This chart explains how a 7% increase in sales can increase the profit margin by over 200% in some industries. Profit margin is measured by taking all of your costs (fixed and variable) and subtracting those from the total Income (revenue). As you make more sales, the fixed cost stays the same while the variable costs of purchasing the material go slightly up. The gap between the total costs and the total revenues made from the extra 7% increase in sales is what makes you a larger profit margin.


Modern Americans are busy people who feel tremendous time pressure. They are often forced to make quick decisions as to where to purchase the goods and services they need. Marketing Communications helps consumers differentiate one company’s products from another. This is done by promoting the existence of the products, providing directions on how to get to the place to get the products, and by putting an image in the consumers mind about the product. Signs are good for this, because you can use signs to put a creative image in the mind of consumers telling them that your product is better than the competitors and available close by. Directional signs are there to tell the consumers where to get the product and how to get there. Signs also benefit the impulse buyer who does not necessarily need to buy the product but is interested after seeing the sign. Out of 1000 adult Americans surveyed, 75% of them said they made an impulse purchase at some point in time.

The benefits business signs have are exponential to their cost. Branding, Sales, and Consumers are three benefits signs can have on your business. Signs play a big role in our society today. Use them to your advantage!


  • Posted November 22, 2017 at 8:29 pm | Permalink

    I like how you mentioned in the “more consumer information” part of your article that by having signages, I can put creative images in the mind of consumers that my products are better than my competitors. That was actually a good argument, considering that I myself is also a consumer. Thanks for sharing this. I’m planning on starting my own bar next year, and I’ll make sure that signages are the first things that I keep in mind.

  • Posted November 1, 2017 at 7:56 pm | Permalink

    I never knew that a good business sign increases sales from 4-12 percent. It would seem that this would be a really good way to increase business visibility service as well. It would make sense to find someone who is properly qualified to help out as well.

  • Posted May 30, 2017 at 8:22 am | Permalink

    Business branding is the most important factor to improve the sales and market the products. Really an epic post with awesome stats. Thanks!!!

  • Posted May 24, 2017 at 5:17 pm | Permalink

    The example you gave about how signs increased the number of motorcyclists entering a lot by 4-12% was really interesting! It’s great that that type of thing works the same way for businesses and stores. I think lighted signs would drive that percentage up even more because people would be able to see the signs at night and know where to go in the future. Thanks for sharing this concept — it’s really interesting!

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