How to Increase Retail Signage ROI
Sign ROI (return on investment) is an often-overlooked way to improve modern retailing. Online channels are always growing, but there is still a place for brick-and-mortar retail. Businesses that can capture quality site branding will reap the benefits of higher sales and more brand awareness. Sign programs designed to attain maximum exposure are proven to increase sales, anywhere from a few percentage points to up to 25% or more!
Proof of Sign ROI
A whole body of research is dedicated to examining the impact isgnage has on brand awareness, ease of location for a site, and sales volume. You can check out a good amount of this research at the Sign Research Foundation. They provide solid proof that rethinking signage can balloon your sign ROI. Basically, your sign is your best salesperson.
Whether increasing sign size, adding or raising a sign, or replacing an aged sign, the improvement in sales can easily justify the investment. The calculation depends on the characteristics of each site and the store economics. To analyze a location, look at sales, gross profit on sales, and how increasing a few percentage points’ improves your profit.
For example, let’s say a small boutique has an average monthly revenue of $30,000 and an average annual revenue of $360,000. With a new sign put in place that increases sales by 15%, that store will have an average monthly revenue of $34,500 and an annual revenue of $414,000!
How to Get Sign ROI
The increase in profit will normally pay for the cost of signage improvements several times over. So the trick is to analyze the particular location. Consider both your physical site and the needs of your target market. Determine what improvements to sign visibility are possible and make sense. Depending on these site dynamics, moving the sign to a more visible area might be all that is needed and other times a larger sign is needed to enable easy recognition. You can also check out our recommendations for boosting foot traffic at your location!
Unfortunately, it isn’t enough to just rework existing signage or install new signage. Once you’ve done that, your sign will require regular maintenance. Over time, signs fade and need cleaning. A simple refresh with bright colors or even cleaning the sign can improve your sign ROI. Practicing our 5 ways to maintain your sign will help make your sign your best-dressed sales person!
What opportunities do you have to improve your sign ROI? Take a few minutes to look. The return on any investment in time and money can provide a dramatic return.