Personalizing the Store – How Digital Signage and Big Data can Work Together

January 19, 2017 | Post by Tom Alvey | 1 Comments
Digital Signage

Digital signage is appearing everywhere customers go to shop. These digital displays show information about new products, promote sales or discounts, or dynamically change menus depending on the time of day. Some are even there just to give customers something to look at while waiting in the checkout. With 63 percent of people reporting they have noticed a digital sign, it’s not hard to see why retailers are so excited to install them.

But that’s not the only reason the market for digital signage is expected to grow from just under U.S. $17 billion in 2015 to more than $27 billion in 2022. By integrating these displays with other IT systems, and having the right retail IT support strategy in place, digital signage can become a critical part of a retailer’s big data strategy. 

Be Noticed with Digital Displays

People notice digital displays, and as a result they are highly effective at driving sales. One study found that products advertised on digital signs experienced a 49 percent increase in sales, compared to only a 15 percent increase when the products were advertised on a static display. Another showed the 19 percent of customers admitted to making an impulse buy after seeing a product on a digital display. This is why it's also important for marketers to understand what it means for them. With success like this, retailers who work digital signage into their big data strategies can start to live the retail dream.

Live the Retail Dream with In-Store Personalized Offers

Online retailing has always had an advantage over in-store because it’s possible to track every action the customer takes while shopping. This data can then be used to provide personalized recommendations and suggestions that increase the customer’s spend. Until recently, it’s been nearly impossible to provide the same capabilities in the store, and even harder to track the customer when they switch from using one channel to another – something customers do frequently.

When paired with new technology, like beacons, digital signage can start to bring these capabilities to the store itself. By identifying a customer through an app on their mobile phone, the software gets a true 360-degree view of the customer’s history, both online and offline. Using this information and predictive analytics, the digital display can show a personalized welcome message and offer them a tailored discount, or make an offer right when they are most receptive to seeing it. This takes loyalty programs and other customer retention strategies to the next level by truly providing an individual, personalized experience that cannot be found anywhere else.

Most exciting is that these personalization strategies work. Accenture has found that 73 percent of customers prefer to do business with brands that make the shopping experience more relevant to them. McKinsey has also shown that personalization can deliver five to eight times the ROI on marketing spend while lifting sales 10 percent! When delivered in store by digital signage, these offers can significantly influence the customer’s purchasing decisions.

Test and Adjust Promotions on the Fly

Beyond personalizing offers, retailers also gain flexibility and agility that simply isn’t possible with static signage. By taking a holistic approach to digital signage and integrating it with their larger retail IT systems, retailers can track, monitor and adjust campaigns across hundreds or thousands of stores in real-time from one centralized location. 

By using real-time analytics and data captured from the displays and POS systems, marketers can see if the ad is successfully driving the behavior they want. If it isn’t, they can make changes to the entire network of signs with only a few clicks. This not only makes it faster to optimize ads, but it can also dramatically reduce the labor costs of putting up or removing signs at the store level and lower the costs of printing and shipping new signage to each individual store.

Keep Security Top of Mind through Retail IT Support Strategies

As with anything that collects and stores data, retailers need to be aware of security and privacy implications. Recent high-profile breaches have shown the damaging effects a successful attack can have, both in the direct cost of the breach and the negative impact it has on consumer trust in the brand. 

This is why it becomes critical to have the right retail IT support strategy in place to ensure the entire network is secure. The hardware and software of the displays must also be able to integrate seamlessly with the existing IT infrastructure in order to properly capitalize on the opportunities of big data.

Turn Digital Signage into a Big (Data) Opportunity

On its own, digital signage can be an effective way to drive sales and increase customer attentiveness. But to fully realize the opportunity of digital signage, retailers should be looking to integrate them into their big data strategy. Through personalized offers, real-time analytics, and an effective retail IT support strategy, retailers can turn digital displays into a critical in-store component of their big data initiatives. 

How is your organization harnessing digital signage into its retail IT strategy? Leave a comment below.

The content and opinions posted on this blog and any corresponding comments are the personal opinions of the original authors, not those of CompuCom.

  • Tom Alvey's picture

    Tom Alvey

    Tom Alvey is the Senior Vice President of the Retail Vertical for CompuCom. He has responsibility for Sales, Strategy and Account Management for all of CompuCom’s retail clients. He has over 25 years of successful executive-level leadership experience in the IT industry. Prior to CompuCom he held several executive-level positions at a major OEM specializing in the retail industry and a global telecommunications giant. He has expertise in sales, business development, and operations.


Such a nice article, we liked it very much.

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