The retail landscape is changing. The baby boomers, which dominated retailer’s target audience for decades, are now handing over purchasing decisions to Gen Y and Millennials, prompting businesses to dramatically shift their strategies.
Unlike their parents, Gen Y and Millennials are more technologically savvy, value interconnectivity and place a high importance on individualism and self-fulfillment. This digital generation is reshaping the retail marketplace.
In order to keep up, retailers must offer more personalized products and services, stay competitive with their pricing models and utilize modern technology, such as digital signage, to effectively engage younger generations.
Improved customer experience
A study conducted by Oracle showed that 81% of customers are willing to pay extra for an improved customer experience. A lot of times, retail companies focus so much on price competitiveness, they forget that a shopper’s relationship with the brand is actually the main driver of profitability.
In-store digital signage provides myriad opportunities to create unique and effective engagement strategies. Switching to retail signage can help stores strengthen customer relationships by:
- Providing more customized welcome messages and targeted deals and promotions
- Empowering customers by giving them the capability to learn more about your products and services
- Increasing in-store engagement by allowing customers to engage via social media
Digital signage for retail, with its large format displays and touch screen capabilities, gives retailers more power to create dynamic and engaging messaging that can be tailored to a store’s location. This means products and services that are most popular in a particular location can be highlighted on the screens in that location. Related products can be further promoted using “endless aisle kiosks” – a clever retail signage concept where customers can look through more inventory than what can be displayed on the floor.
Derive customer insights
Using digital signage for retail doesn’t only improve the customer experience but can also provide valuable insights that can be used to make more personalized offers. Seventy-seven percent of marketers believe that offering customers products that are more fit to what they need is crucial to effective sales and marketing.
Data analysis can be done to find out which promoted products drive the most sales. A retail signage kiosk functioning like a self-service FAQ section can help retailers understand common customer pain-points and areas for improvement. As mentioned earlier, endless aisle kiosks can give stores insights as to which products can be better put on-shelf and which can take the back seat.
Utilize multi-channel marketing
In 2017, at least $1.8 trillion is projected to be produced by cross-channel sales. Multi-channel marketing is a strategy best executed with digital signage for retail; showcasing promotions on large-format displays can effectively move customers closer to the end of the sales funnel. When connected to social media, retail signage can show social media feeds, reviews, promotions, and real-time news that can further impact they customer journey.
Digital signage for retail can reduce overall costs not only for marketing and advertising but also for operations. Going “digital” means retail stores can overcome spatial limitations by displaying only the most popular and fast moving items in the showroom. Other less admired items can be shown in endless aisle kiosks, which are perfect for small retail spaces. Content management can be centralized to one location, streamlining efforts and preventing the duplication of work.
Finally, by going digital, recurring costs associated with printing and shipping posters and static signs will be prevented.
PriceWaterhouseCoopers (PwC), one of the top global quality assurance and audit firms, forecasted that in the next few years, in an effort to reduce waste and resource consumption, a downsizing of retail chain spaces can be expected. Yet the paradox is, as retail stores shrink in size, the diversity of product and service demands on the global market steadily increase. The flourish of so-called “niche concepts”—highly personalized products that suit the preferences of local segments—will permeate the retail landscape. Want to stay competitive? Make digital signage for retail part of your strategy.