AV Technology - May 2008 - (Page 28)

business CALCULATING ROI ON YOUR DIGITAL SIGNAGE INVESTMENT With digital signage, return on investment doesn’t necessarily arrive in dollars and cents. UPS uses digital signage to increase sales in its stores. By James Careless Return on investment (ROI) remains a moving target for the digital signage industry. But for companies such as The UPS Store (Canada) and RE/MAX of Thomasville (GA), it is possible to quantify how installing digital signs within their retail stores has boosted business. For others, such as Carnival Cruise Lines, digital signage ROI translates into less tangible yet powerful results like more effective customer service, happier clients, and improved chances of repeat business. ADDING DIGITAL SIGNAGE BOOSTS IN-STORE SALES There are over 325 “The UPS Store” franchises in Canada, re-branded from their former name of “Mail Boxes Etc.” in 2005. Although the UPS brand is well-known in many countries for courier services, it is not one that springs to Canadians’ minds for copying, digital printing, business cards, moving supplies, and mailing services. To change this brand perception, MBEC Communications, the master licensee of The UPS Store in Canada, decided to offer digital signage to its franchisees. The franchisees paid for the equipment, with MBEC Communications offering each a $600 rebate. Located at The UPS Store service counters/cash registers, these digital monitors would alert customers to the many services available in-store. The main goal was to up-sell and cross-sell these services at the pointof-sale. Other goals included promoting new products, supporting the company’s corporate charity, and promoting UPS’ courier services. Motivated by the rebate, 72 UPS Stores signed up. Using Real Digital Media’s NEOCAST-based digital signage equipment and software, plus content produced by EyeQ Digital, these stores went live with digital signage in 2006. Today, almost half of the company’s 338 franchisees have had digital signage installed, or are in the process of doing so. Installation was done by CCi, an AV systems integrator based in Toronto, Ontario at an approximate cost of $3,500 per location. According to Malcolm Houser, executive vice president and COO of MBEC Communications, digital signage has generated measurable improvements in in-store sales. “Last year, same store sales for our franchisee network increased by 4.93 percent,” says Houser. “Our stores that installed digital signage increased sales an average of 7.45 percent.” Houser drives home his point by citing unsourced testimonials from The UPS Store franchisees. “A regular customer, after paying to ship a package and watching the screen said, ‘I didn’t know you did printing. I just came from having a big job done at your competitors; next time I’ll bring it to you for a quote,’” he says. “A second franchisee told us, ‘I have a mailbox customer that typically picks their mail up after hours, so I rarely www.avtechnologyonline.com 28 | AVTECHNOLOGY | may 2008 http://www.avtechnologyonline.com

Table of Contents Feed for the Digital Edition of AV Technology - May 2008

AV Technology - May 2008 Contents Precedent Corporate: How to Qualify an AV Supplier Education: Working Smarter AV Technology's Guide to Networked AV Government: IPv6 — Why You Should Care Calculating ROI on Your Digital Signage Investment Enhancing Audio in the Classroom Minimizing Equipment Theft Smart AV The Tribe Has Spoken AV Enables Interactive Research AV Image Enhancement Product Spotlight Tech Horizons Product Review New Products AV MO

AV Technology - May 2008

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