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Australian 
UK How to Get the Best Business Signage ROI
Signage is a powerful tool that can reinforce your marketing and advertising strategies by delivering superb brand visibility. To leverage the benefits of signage, business owners need to ensure their investment is profitable so it allows their company to keep growing.
In this article, we’ll look at how high-quality, customizable signage solutions can have a positive impact on ROI. We’ll also discuss the main advantages of modern neon signage over other marketing strategies.
Why Signage is Important for a Business
In business settings, signage isn’t only used for display or identification purposes. It also serves as a visual representation of the brand, catching the attention of potential customers and creating an immediate connection with them. Here are some key reasons why signage, and particularly LED neon signs, is crucial for businesses:
- Visibility and recognition - LED neon signs are easily noticed even in busy environments, which means they can go a long way to enhancing brand visibility and recognition in the most crowded markets.
- Brand recall - A custom sign is memorable and leaves a lasting impression on those who see it, so your brand stays top of mind with potential customers.
- Foot traffic - Signage is an effective way to encourage people to visit a store. An appealing sign can draw more foot traffic into a shop, which is vital considering the competition brick-and-mortar stores get from online shops.
How to Measure the ROI of Signage
Signage can help achieve better visibility and brand recall and improve foot traffic levels, but to ensure you make the right choices, measuring its ROI is essential. Here are some guidelines to do this:
- Identify all potential ROI sources - Sales data are a basic ROI indicator. It’s estimated that digital signage can result in an 80% increase in sales, especially when it comes to spontaneous purchases vs. planned ones.
However, other factors can indirectly contribute to ROI. For example, ROI increases may come from higher footfall or more walk-ins, but you may also want to look at changes in website traffic or in, online sales, leads, inquiries, or the annual performance of seasonal campaigns.
To measure ROI, identify any source that boosts brand awareness and/or promotes products and services. Keep in mind that digital signage can increase brand awareness by more than 47%, so it’s correlated to ROI. - Social media metrics - Social media metrics can offer a wider view of signage profitability. Signs can be featured in your social media marketing strategy, for example, by creating indoor displays with your company’s top hashtags and posting them on your company’s social media profiles.
To determine the impact this has on ROI, track relevant metrics, including gains in shares or comments, impressions, user mentions, engagement rates, etc. - Customer feedback - Studies found that 80% of customers make the choice of entering a shop based on signage, and 40% say signage influences their purchasing decisions.
This is why it’s important to get insights directly from your customers to assess your signage’s ROI. This could include surveys asking how they heard about you or feedback on new signage vs. old. You can also look at brand image comparisons before and after signage installation. These factors are important for ROI since they’re linked to loyalty and customer sentiment, which are vital to earning repeat business.
How to Calculate the ROI of Business Signage
To calculate ROI, a standard formula would be:
(Benefit of investment in signage – Cost of investment) / Cost
Then multiply the result by 100 to obtain ROI as a percentage.
In this formula, benefit means the quantitative factors mentioned above, whereas cost includes the actual cost of signage and installation plus the costs of running it, any consultant fees, and maintenance, updates, and repairs if needed.
Signage Costs vs. Other Marketing Strategies
Traditional 2D printed signage requires a lower initial investment, but it may not be as effective as digital signage in getting customers' attention. When compared to conventional static alternatives, digital displays can get up to 400% more views and a recall rate of over 80%.
It’s also worth noting that printed signs tend to get cluttered easily, getting average attention rates of 12% vs. 43% of bright designs like those in LED neon signs.
When compared to TV, radio, or press advertising, the cost of digital signage per 1,000 exposures can be 400% lower than traditional media. Moreover, costs can quickly add up if you want to promote different products or services or run promotional campaigns since traditional methods require a new print job or a new ad every time, whereas digital signs are easily updated due to their dynamic nature.
In addition, the installation and maintenance costs for digital signage have decreased as the technology became more common, dropping by 50% between 2004 and 2010 alone.
As these figures suggest, the benefits of digital signage offset the initial cost over time.
Cost comparisons go beyond the price of the signage itself and involve factors like:
- Durability - With an average lifespan of 8-15 years, LED neon signs are durable and require minimal maintenance compared to other marketing options. Moreover, traditional advertising methods like posters and banners may need frequent replacement, incurring additional costs.
- 24/7 Visibility - Unlike time-limited advertisements, LED neon signs are visible 24/7. Round-the-clock visibility maximizes the potential for brand exposure without any of the ongoing costs associated with traditional ad placements.
- Energy Efficiency - The LED technology used in modern faux neon signs is energy-efficient, with running costs up to 10% lower than gas-filled sign alternatives, without losing any of the visual impact. And when compared to fluorescent signage, LED neon has significantly lower costs up to 80%.
Conclusion
Signage is a powerful tool for marketing and brand visibility, especially when modern technologies like LED neon lighting are used in business signage. This option can be very cost-effective for brands looking to grow their customer base and increase their ROI through repeat business and high in-store and online engagement levels.
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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