Calculating the Value of Digital Signage

Although digital signage is primarily used in retail, there are applications and use cases in a wide range of industries. In fact, virtually any company can use digital signage to improve employee communication and engagement. Organizations just have to keep in mind that the return on investment (ROI) can be tricky to calculate.

Organizations commonly use the ROI formula to estimate how much money they can make for every dollar they invest. The simplest way to calculate it is by dividing the net profit that can be attributed to the investment by the total cost of the investment, with the result expressed as a percentage. It is one of the key metrics for measuring the value of technology expenditures.?

However, tracking ROI for digital signage is notoriously challenging because it is difficult to assign hard-dollar values to many of the technology’s less-tangible benefits. In addition, signage objectives frequently vary by department within the same organization. Different projects require different interpretations of benefits.?

Crunching Numbers

Return on objective (ROO) is usually a more meaningful way to calculate the value of digital signage solutions that are not directly related to sales. In this case, you are comparing the total cost of the technology to achieving the desired outcomes. To calculate it, you have to define what your objectives are and determine some way of attaching a dollar amount to them.?

For example, if digital signage is meant to improve wayfinding, a reduction in staff time spent on providing directions to guests would indicate that your objective is being met. You would need to know the amount of time spent on that task prior to implementing the digital signage (the baseline) to determine how much time is saved. You could then calculate the savings based on the compensation of the employees.

When preparing your ROO calculation, it’s important to consider the intangible costs of digital signage technology. For example, there are ongoing costs of managing and maintaining the signage infrastructure, including displays, content management systems, media players, and authoring consoles.?

Evaluating Intangibles

Here are just a few of the ways to evaluate ROO by use case:

• Employee communications. Has staff engagement increased since the digital signage was implemented? Do employees feel more connected to the company? Are employees more aware of specific opportunities and initiatives? Have you had greater success recruiting candidates who visit your offices?
• Collaboration. Has communication among employees and teams improved? Are projects staying on track? Are meeting spaces being used more efficiently? If you have a hybrid work environment, are employees making the most of their time in the office?
• Training. Has employee satisfaction with training programs improved? Has compliance with company policies improved? Have you been able to maximize participation by delivering training on demand?
• Events. Did post-event surveys reflect high levels of satisfaction? Did attendance increase over previous events? Was there an uptick in positive social media comments about the event??

Calculating ROI is an essential part of establishing the business case for any investment, but it can be a challenge for digital signage projects. There’s no easy way to measure the financial benefits of digital signage because these projects typically have unique goals and requirements that impact ROI calculations. How would you accurately assess the financial impact of improved employee engagement??

ROO provides a means for assessing signage’s more intangible benefits by focusing on how well you achieve specific objectives. If you’re considering digital signage, the experts at Rahi can help you evaluate a broad range of variables to establish the case for your investment.?