What’s the most common mistake we see when companies attempt to build brand awareness, you ask? It’s under-investing in signage. Spending a little money up front can lead to big returns later. Unfortunately, most people have no clue about the increased economic value a commercial sign can bring to your site. We know what you’re thinking… “Easy for you to say, you’re a sign company!” But as sign experts, we know that great signage can add tangible value to your location, positively impacting customers and increasing business performance. And don’t worry, we have the research to back it up. We’re covering data from the Sign Research Foundation, how your sign adds value for your business over time, and how you can capitalize on all the value brought by a great sign.
Data on the Economic Value of Signs
Recall the last time you were in a shopping mall. It may have been a while, but you can probably picture the bustling shoppers and illuminated storefronts. And whether you realized it, the exterior signage on some of those stores compelled you to go inside. Potential customers glean information on what type of product or service you offer based on your sign, but they’re also evaluating curb appeal. People always say not to judge a book by its cover, but great signage will make someone want to come inside precisely because of the cover.
Still not buying it? We’ll let the data talk:
- A well-designed sign increases foot traffic. One study from the Sign Research Foundation found that 20% of consumers have entered a store based on the quality of its signage.
- Repairing signage can also increase sales. Another study from the Sign Research Foundation revealed a 10% increase in sales for 60% of the businesses that repaired their signage.
- Great signage means your business will increase in value over time at a much faster rate than your counterparts.
Quality signage means you’re going to attract more customers and have a higher likelihood of increasing sales. Who wouldn’t want that?
Signage Adds Value for the Consumer
Have you ever been on a road trip, looking for somewhere to grab dinner? The GPS said there’s a McDonald’s up ahead, but you can’t quite see it yet. Suddenly, you see those golden arches flying high in the sky. A delicious Big Mac and fries are in your future!
You were able to recognize the McDonald’s location because you saw their sign. McDonald’s has built some incredible worldwide brand recognition that it perpetuates through its trademark signs. Even though you’re probably not McDonald’s, it’s easy to see why your sign is so important for brand recognition. In fact, one case study of 8 San Diego auto dealers found that 68% of those surveyed said that sign was an important factor in locating the dealer.
So your sign can increase sales, but it’s also just helpful to customers because, without it, they can’t find your business. This can lead to frustrated customers and even dangerous driving behavior.
Commercial Signage Value Over Time
Unlike many investments made by a company, a sign doesn’t necessarily depreciate once installed. This is largely because you’re increasing brand equity or a person’s perceived value of a particular brand. The more recognizable your brand is, the more trustworthy it is perceived to be. Of course, you’ll have to perform some maintenance on your sign, but its value is reinforced and multiplied each time someone engages with your business on-site, increasing your ROI.
It may help to think about your sign as a star player on your advertising team. Signage plays a crucial role in successful advertising: “it is an advertising investment that you make once, and yet it continues to work for you…24 hours a day, 7 days a week.” Other research reports that 29% of North American shoppers base where they shop on the information communicated by store signs.
Commercial signage should be a top consideration when designing your physical location. It’s a large one-time purchase, but it’s a gift you can give your business that truly keeps on giving.