Evaluating the Impact of Digital Signage On Your Business

Digital signage is everywhere these days. From interactive screens in retail, wayfinding in crowded airports, menuboards in busy restaurants, and everywhere in between. We know it’s a key tool (if not essential) for communicating with customers, but how do you know if your digital signage is actually doing something? ?How do you know that your investment is paying off? How can you measure the impact on customer experience?

It’s one thing to put up a bunch of displays, stick in a media player, and call it a day. It’s another thing entirely to ensure that your digital signage is driving real results—whether that's boosting sales, engaging customers, or creating an experience (or all of these!). Today, I'll walk you through some key strategies and metrics that will help you measure the true impact of your digital signage and ensure you’re getting the most bang for your buck.

?

Understanding the Customer Experience with Digital Signage

Before we dive into the metrics, it’s essential to understand that the primary goal of digital signage, no matter the use-case, is to improve the customer experience. Whether it’s helping customers find their way in an airport, educating shoppers about product benefits, or enhancing the atmosphere of a hotel lobby, digital signage should serve a clear purpose.

But how do you quantify something as broad as “customer experience”? How do you measure if a digital menu board is improving the dining experience at your restaurant? Or if a dynamic screen is driving engagement in your retail store? While this might seem challenging, the good news is there are ways to assess the impact of your digital signage.

?

Metrics for Evaluating Digital Signage Success

Here are several key performance indicators (KPIs) that can help you measure the effectiveness of your digital signage and its impact on customer experience:

?

1.????? Dwell Time: Are people sticking around?

Dwell time refers to how long customers spend looking at your digital signage. The longer a customer engages with your content, the greater the likelihood that your message is resonating. In environments like retail stores or restaurants, longer dwell times can also lead to increased purchases, as customers have more time to absorb information or consider offers.

How to measure it: Use audience measurement tools or sensors that track how long customers remain in front of a screen. Many advanced digital signage solutions offer built-in analytics that provide this data in real-time. For those of you worried about security or privacy: this doesn’t have to be a camera, and the data can be measured without capturing information that can identify any specific person.

?

2.????? Engagement Rate: Are people interacting with the screen?

Engagement rate measures how customers interface with interactive digital signage displays (think touch screens, or displays that show a link to a mobile app via QR code). Your engagement rate will show how many customers are actively participating versus walking by.

How to measure: Look at the number of touch interactions, scans, or other forms of engagement with the display. This can be tracked via your content management system (CMS) or integrated sensors.

?

3.????? Content Playthrough Rate: How much of it are people watching?

Related to Dwell Time, this metric shows how often the content on your display is viewed in its entirety. For businesses that rely on video or animated content to deliver their message, it’s important to know if customers are sticking around to see the whole message, or if they’re losing interest partway through.

How to measure: Use analytics tools within your digital signage platform to monitor whether content is being played through completely. High playthrough rates can indicate that your content is engaging and relevant. On the other hand, if the playthrough rates are low, it could be a sign that the content needs tweaking—maybe it’s too long, or perhaps it's not relevant enough to your audience.

?

4.????? Conversion Rate: Are people taking action?

Conversion rate is perhaps the most tangible metric for measuring the success of digital signage in retail and QSR environments. It refers to the percentage of customers who take a desired action—whether that’s making a purchase, signing up for a loyalty program, or taking advantage of a promotion—after viewing your digital signage.

How to measure: By tying conversions directly to your signage through promo codes, sales data, or point-of-sale system integrations, you’ll get a clear picture of how effective your signage is in driving these actions.

?

5.????? Customer Feedback: What do people think?

Data and numbers are crucial, but there’s also value in hearing directly from your customers. Y’know, actually talking to them. Surveys and direct feedback can provide valuable qualitative insights into how your digital signage is being perceived and how it's impacting their overall experience.

How to measure: Consider using follow-up surveys, or even in-person feedback, to gather insights about how customers feel about your digital signage. Are they finding it helpful? Engaging? Or is it too overwhelming? Incorporating this feedback can help you adjust your content strategy.

?

Taking Data and Actioning It

Knowing what metrics to track is only part of the equation. The real magic happens when you use this data to make informed decisions that enhance your digital signage strategy. Here are a few ways to use data for better decision-making:

?

• Test and Optimize: Use A/B testing to experiment with different types of content, messaging, or display formats. By analyzing which version performs better across specific metrics, you can refine your content strategy to drive better results.
• Adjust Content Based on Real-Time Data: One of the greatest advantages of digital signage is that it allows for real-time updates. If a particular promotion isn’t resonating, you can quickly swap it out for something more relevant. Real-time adjustments help ensure you’re always showing the most engaging content at the right moment.
• Segment Your Audience: Your customers aren’t all the same, so your messaging shouldn’t be either. By analyzing engagement data, you can segment your audience and deliver more targeted content. Perhaps younger audiences engage more with interactive elements, while older customers prefer more static messaging. Tailoring your content accordingly will drive better results.
• Track Long-Term Trends: Don’t rely on short-term data alone. By monitoring how your signage performs over time, you’ll be able to see how customer preferences evolve and how your signage needs to adapt to meet those changing needs. This will help ensure that your digital signage remains effective – and relevant - well into the future.

?

When to Let the Pros Handle It

While data is powerful, interpreting it correctly and optimizing your digital signage for maximum impact isn’t always straightforward. Partnering with a professional AV integrator can help ensure that your digital signage is delivering the results you’re looking for, and that you’re leveraging the technology to its full potential.

?

The Key Takeaway?

Digital signage has the power to transform the customer experience, but only when it’s used effectively.

Success isn’t just about having the latest technology; it’s about leveraging data to continually optimize and improve your strategy. With the right tools and approach, digital signage can become a powerful asset in your business growth.

Start by measuring what matters, and let your data guide you toward smarter decisions.

Are you ready to maximize the ROI of your digital signage?