Retail: 4 performance indicators for in-store displays

Screens for retail performance 🚀

An IFOP study reveals that 70% of French people pay attention to digital screens. A statistic well known to retailers, who have not hesitated to use digital signage to communicate more effectively.

Positioned on streets, in shop windows or near checkouts, the benefits of screens identified by retailers are numerous:

• attract more traffic
• improve the customer experience
• promote products and offers
• increase average basket
• improve customer loyalty
• improve their brand image
• boost the performance of in-house sales teams

However, retailers still need to measure the ROI of their on-screen communication. KPIs specific to the retail sector can be used to better monitor digital signage campaigns and continuously improve store profitability.

What are these retail KPIs and what performance challenges do they address?

Retail KPI 1: point-of-sale traffic 👫

For brands with a network of points of sale, attracting more in-store traffic is a priority.

"80% of consumers go to the store because a display first caught their interest".

Accenture - 2019

A fact that reinforces retailers' decision to use digital signage outside stores or in store windows for "drive-to-store" purposes.

Key indicators to track: To measure the impact of screens on the generation of "physical" traffic, it is advisable to measure in-store footfall on a daily basis. In addition, the time spent by visitors in the store can also be a relevant indicator.

Another key indicator to track is the number of interactions between potential visitors and the screens in the shop window. This data can easily be measured by installing sensors that can be used to refine customer knowledge by collecting socio-demographic information such as the age or gender of future customers.

The final retail KPI to exploit: store attractiveness. To calculate this, all you need to do is establish the ratio between people who have actually visited the store and overall external traffic.

Retail KPI 2: sales trends 📈

Increasing sales is of course the ultimate goal for retailers, and the best indicator of store performance. To meet this objective, screens are used, for example, to draw attention to the launch of a new product or service. They can also be used to highlight special offers or promotions.

On-screen communication boosts sales by an average of 24% (POPAI).

Key indicators to track: To measure the retail performance of your digital signage system, it's enough to note the dynamic sales of a product as soon as it has benefited from on-screen communication. To go further, you'll also need to pay attention to the evolution of the average shopping basket.

The point-of-sale conversion rate is another performance indicator to monitor. To calculate it, simply study the number of sales receipts issued in relation to the number of people entering the store.

Retail KPI 3: brand image 🌟

The phygital strategy of digitalizing points of sale also responds to other challenges facing retailers: modernizing their image and making their brand more influential. Retailers will thus tend to relay their social network publications on "in-store" screens, or set up competitions and other interactive content.

Key indicators to monitor : The virality of content and the commitment of targets to the actions carried out will constitute the key performance indicators for determining the ROI of digital signage in a strategy of influence and brand image.

At the same time, qualitative studies (customer questionnaires) can be carried out to gain a more detailed understanding of the role played by screens in the perception of a brand by its targets.

Retail KPI 4: Customer experience and loyalty 🛍️

Cleverly positioned in a store, at the checkout, in the window or at the entrance, screens are excellent tools for improving the customer experience and store performance. Marion Montambaux (Boulanger) is delighted to report that "perceived waiting time seemed to be two to four minutes shorter when there was a screen". A good practice that "has an unconscious impact on customer satisfaction, and therefore also on ROI".

A POPAI study shows that 79% of those questioned found that digital signage reduces the feeling of waiting. An optimized customer experience that also makes it easier for customers to return to the store.

Performance indicators to track: To measure how screens fit into the phygital purchasing path(ROPO), and in addition to perceived waiting time, it will be useful to conduct satisfaction questionnaires.

Another indicator to monitor for a store is its retention capacity: a KPI used to measure customer loyalty. This can be studied by finely analyzing the history of visits in relation to the store's digital signage campaigns.

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Cenareo helps retailers boost their retail performance with ROI-strong dynamic display campaigns driven by retail KPIs that optimize the impact of in-store displays.