How to Increase Retail Signage ROI
Sign ROI (return on investment) is an oft-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 signage 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 Capture Higher ROI
Sometimes small changes in your onsite branding are enough to boost your sales. But the overwhelming trend in retail leans toward creating a delightful experience inside a store. Stores like TJMaxx will always pulling customers because of the great deals, but not every retailer can draw customers in-store with such incentives. This is where the retail experience comes in.
Using Signage to Create an Experience
There are lots of ways to achieve a unique customer experience for guests, including interactive stations, personalized product enhancements, and even surprising guests with freebies at your POS counter. But in the age of social media, making your location a visually compelling or go-to destination for photo-worthy backdrops is often paramount to success.
When I scroll through Instagram, my feed is often full of short-form videos featuring the latest trendy bar or cute new retail boutique. All are visually compelling! From the moment a customer encounters the exterior of your building, to their journey through the space, to the final destination at the POS counter, they should be met with visual branding assets that enhance your brands presence and value.
These could include unique architectural signage on the exterior, directional signage to help engineer how customers traverse the space, and inviting POS wraps and signage to remind customers of the quality experience they’ve had at the store. Signage should reflect brand aesthetics and values, but could also include ties to local geography.
For example, one of my favorite beauty brands, Glossier, has created a number of concept stores across the country. Each store is different and uses signage to connect with local culture and geography, while building customer loyalty through an experience that is uniquely Glossier. One of my personal favorite features is the brand’s application of the tagline “You look good” on the vinyl decals applied to mirrors throughout the spaces. So while you try the products, you’re met with a phrase you already associate with the brand to remind you that you look good, especially while wearing Glossier products. You can read more about the Glossier’s brick-and-mortar success here.
A Cost-Benefit Analysis
Even if leaning into speciality signage isn’t for your brand, any sort of improvement can grow customer loyalty and boost sales. Plus, the increase in profit will normally pay for the cost of any signage improvements several times over.
Overall, the trick is to analyze your particular location. Consider both the 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 or a specialized sign is needed to enable easy recognition or increase navigability of the space. You can also check out our other recommendations for boosting foot traffic at your location!
Unfortunately, it isn’t enough to just rework existing signage or install new signage and call it done. 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. Any investment in time and money can provide a dramatic return.