How strategy can lead to success

Photos courtesy Scala Canada

Photos courtesy Scala Canada

By Oscar Elizaga
While digital signage has become a well-established medium for communications today, there still seem to be major stumbling blocks as it is adopted by new users. “I know we need to use digital signage,” says the typical executive at a company looking into the technology for the first time, “but I don’t know why!”

The key to addressing why organizations need to use digital signage lies in first understanding their target audience—in particular, what that audience wants to know precisely when it interacts with digital displays. Achieving that understanding, however, is much more difficult than it seems.

When it comes to developing a communications plan, for example, there seems to be a misconception that an organization needs to establish a stand-alone digital signage strategy. On the contrary, it is important to understand digital signage as simply one element or tool within an overall communication strategy, which may also include printed materials, online resources, broadcasting via TV and/or radio and public relations (PR).

Starting with an overall strategy is important in keeping communications consistent across all of these channels. The degree and nature of emphasis on digital signage within this mix of media will depend on the organization’s specific situation and vertical market.

Strategic steps
The typical retailer, for example, needs to begin its brand strategy by reaching consumers through TV, print or other advertising to inform them of its products or services. This first step raises public awareness.

At Mohawk College in Hamilton, the student association has worked with Gorrie Marketing Services on a digital signage network to improve communications throughout the campus, using 12 independent channels of content and 26 displays installed in high-traffic areas.

At Mohawk College in Hamilton, the student association has worked with Gorrie Marketing Services on a digital signage network to improve communications throughout the campus, using 12 independent channels of content and 26 displays installed in high-traffic areas.

Next is ‘direct-to-feed’ messaging, which may use radio ads or billboards to reach an audience on the go. This is the time for a call to action, though it may not only lead consumers directly to that retailer’s store; it could also lead them to a website.

The third step is when digital signage comes into play. At this point, the communications strategy moves forward to deliver on its earlier promise. If potential customers saw an ad in print or on a billboard, they will expect to see corresponding information on signs within the store to guide them to the advertised products or services. It is critically important for the brand’s promise to be delivered at the customer’s point of decision.

In addition to being developed as part of an integrated communications strategy, another essential element for the success of digital signage is its content. Organizations need to address digital signage as an ‘intelligent’ media platform that can remain current and interact with its audience, moving away from the traditional approach of displaying a static sign on a wall. Digital signage is also not TV, of course, and using it to recycle commercials seldom works well, if ever. The content should be compelling and attractive and include a call to action, but it needs to be created with the medium in mind.

Creating appropriate digital signage content depends on the dialogue the organization is trying to conduct with its audience. A retailer needs to understand its in-store customers and address why it is communicating with them in the first place. If it can do so, it can then use the medium to achieve its goals.

Once the strategy and content approach are established, an organization is ready to find the right software, media players and screens to deliver digital signage.

10net Managed Solutions has rolled out the ‘Subaru.TV’ network to more than 80 automotive dealerships across Canada. The system uses passive and interactive content to explain a range of Subaru Canada products and services.

10net Managed Solutions has rolled out the ‘Subaru.TV’ network to more than 80 automotive dealerships across Canada. The system uses passive and interactive content to explain a range of Subaru Canada products and services.

Integrating complementary technologies
Just as it is imperative to integrate digital signage into an overall communications strategy, it is also important to connect it with complementary technologies, so as to better target messages for individuals and to enable two-way communications. There are several ways to accomplish this with today’s highly connected—but also distracted—audiences.

Predictive analytics
Predictive analytics technology, as its name suggests, analyzes past patterns and transactional data to help companies anticipate future consumer behaviour.

In a retail environment, for instance, predictive analytics have been deployed to track customer spending and other behaviour patterns, both to improve customer retention strategies and to help cross-sell products to boost profitability per customer. By identifying staffing trends and needs, the retailer can consider which days of the week are the busiest and assign employees accordingly.

In terms of digital signage, predictive analytics can help organizations focus their content strategies based on a set of studied variables. The retailer might use digital signs to display weather conditions, for example, and if it is raining, the content could nudge customers to buy umbrellas.