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10 Stats that Highlight the Importance of Signage for your Business
You would be forgiven for thinking that some businesses have completely abandoned their physical branding efforts, instead shifting their focus entirely towards their online image - one that might feature trendy and minimalistic branding. The reality of the situation is that, despite the unquestioned growth of e-commerce, brick and mortar storefronts are still as obsessed as ever about their signage. From the eye-catching neon signs of the 1950s to the digital signboards that grace modern high streets, businesses have always looked to grab customers' attention by displaying signage that serves as both a traditional marketing tool and extension of the company's brand.
In October 2021, we surveyed 1000 Americans and Australians* to better understand the current influence of business signage on general consumers' purchasing habits and attitudes.
* aged 18 years and older, 50% male and 50% female
To briefly summarize, this survey found that:
- 77% of respondents - almost 4 out of 5 - have previously had trouble finding a business due to poor signage or no signage.
- Just over 76% of respondents had previously visited a store or business due to attractive signage.
- 66% of respondents have had a poor opinion of a business because of its signage.
- Nearly 79% of the consumers polled believe that signage reflects the quality of a business and the product or service offered.
- Just over 75% reported having purchased something in the past because a sign caught their eye.
- 70.5% of respondents would be less likely to enter a business that didn't have a sign.
- Almost 85% of consumers indicated that they found themselves drawn to bright and colorful signage.
- 83.2% stated that text is an essential element of good signage.
- And, surprisingly, 72.20% of respondents believe that good signage is more important for a business than social media or newspaper advertisements.
What type of signs attract the most attention?
Having established the continued importance of signage for businesses looking to attract potential customers, we then shifted our attention towards identifying which types of signs were considered the most appealing. To gauge this, we presented respondents with a choice between four different examples of signage, each of which adopted an alternate visual marketing strategy.
Based on these images, we asked respondents to identify which of the above signs would attract their attention the most. Unlike the previous questions, responses were somewhat split:
- 43.7% opted for a bright and eye-catching design
- 19.4% chose the simple design.
- 24.5% preferred a creative yet simple design.
- 12.4% were drawn to the sign containing a lot of information.
Unsurprisingly, these results illustrate the importance of ensuring that your business signage features a bright and eye-catching design. In addition, these respondents identified that simple designs, instead of text-heavy ones, were a more effective visual marketing strategy to attract customers.
These results seem to accurately track with the designs of some of the world's most recognizable business signs, such as the simple golden arches of McDonald's and bright, eye-catching 7-Eleven logo. However, these simple, iconic designs don't suit all businesses. Brands looking to establish a foothold in their niche would be wise to ensure that their signage features text that clearly outlines their name and provides customers with a general indication of their offerings. Whilst large companies like McDonald's and Nike might be instantly recognizable by a simple symbol, this type of brand recognition requires years of work.
Contrary to many common beliefs, physical branding efforts are still vital to the overall success of businesses across the globe. As previously noted, more than 75% of our survey respondents reported purchasing something because a sign caught their eye.
Additionally, and frankly more surprisingly, the 72.2% of respondents that believe signage is more important than social media or newspaper advertisements clearly reflects that signage is essential in the modern business climate.
What are the functions of business signage?
Signage can do a lot more than help new customers find your premises, boost impulse sales or improve brand awareness. As the production of custom signage becomes more cost-effective, big companies and small business owners alike have begun acquiring multiple signs to create a sense of ambience and supplement decor within retail shops, restaurants, bars, nightclubs, and more.
Physical appearance and general atmosphere are becoming an increasingly essential component of business success, particularly as savvy shoppers drift towards the convenience and instant gratification provided by online storefronts. Businesses with physical locations need to capitalize on their unique properties to bolster new customer acquisition and drive sales. Signage can serve as one such unique property, with some businesses even commissioning branded artistic pieces with the express purpose of being captured and shared via social media.
Business signage can also be utilized to distinguish between multiple locations, providing a unique identity for each store and catering towards local proclivities. For example, a global company like Starbucks might find that American consumers respond effectively to simple signage illustrating the brand's logo. However, Australian consumers might not yet possess the level of brand recognition required for a sign such as this, meaning that the company could potentially opt for text-based signage that clearly outlines the company's name. Luckily, it seems as if regular consumers don't seem to mind the inclusion of text. As previously noted, 83.2% of survey respondents stated that text is an essential element of good business signage.
Which colors attract the most attention?
As outlined in our survey, almost 85% of respondents are drawn to bright and colorful signage. But what colors attract the most attention? In our recently published piece covering the importance of effective logo design, we analyzed the logos of the top 250 companies on the Forbes 2000 list. Based on this analysis, we found that blue was the most commonly used primary color, having featured in 77 of the 250 companies, followed by red (68 companies) and black (22 companies). Additionally, we found that 204 of the 250 companies used two or fewer colors in their logo designs, emphasizing the importance of simplicity.
These findings can be directly applied to business signage, illustrating the importance of using trustworthy and dependable colors, such as blue, and exciting and energetic colors, such as red, depending on the situation. However, any savvy business owner knows that it takes more than an effective color palette to engage potential customers. Crafting a truly memorable design that makes your company stand out can be a tough balancing act. It requires knowledge of local competitors, awareness of your business brand, and the ability to craft a compelling message - all whilst remaining cost-effective.
Which type of sign should I use for my business?
The type of signage that best suits each business is dependent on many factors, including brand identity, target audience, budget limitations, available space, and overall visual advertising strategy. Retailers looking to draw in customers and create an unplanned purchase would be wise to explore neon signs and other bright, eye-catching forms of advertising. Placing these types of signs in a shop's window display is a great way to capture the attention of passers-by and boost sales, particularly in areas with high foot traffic - such as central business districts and shopping malls.
No matter what type of sign you choose for your business, the overall quality is essential. As previously noted, close to eight out of 10 (79%) survey respondents believe that a sign's quality directly correlates to the quality of the goods or services provided. Additionally, 66% of respondents reported having a poor opinion of a business due to its signage. These two statistics highlight the importance of investing in effective signage that paints your business in a good light and increases brand awareness through word-of-mouth.
Illuminated outdoor signage can be a particularly effective beacon for businesses that typically operate at night, such as nightclubs and restaurants. These businesses also often use interior signs to funnel consumers through spaces and direct them to open bars, bathrooms, exits, and other points of interest. Some companies have even turned to digital signage to allow for messages to be quickly changed to suit required purposes. However, these signs are most typically used for advertising multiple businesses in rotation and are often found in public places such as shopping malls and bus stops.
Summary: Signage statistics roundup
Our polls found that high-quality signage greatly benefits businesses by attracting clientele, cultivating brand identity, and improving public perception. Investing in signs that feature bright, eye-catching designs and colors will enhance the general ambiance and make your business more memorable in the long run.
Whilst there might not be one single 'perfect' type of sign for all forms of businesses, this research illustrates the importance of making an impression and maximizing your physical branding efforts. If you're looking for a great way to make your custom-designed LED neon sign, visit our LED neon generator or upload your business logo for a free quote!
To find out more about our research or request an interview:
Get in touch with our Media & Outreach team now by contacting
Clare Jones
Global Outreach Manager
Email: clare@customneon.com
LinkedIn: Clare Jones
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