February 15, 20238 Ways Digital Signage Helps Build Loyalty in Retail
8 Ways Digital Signage Helps Build Loyalty in Retail
Retailers know digital signage allows them to display engaging, creative content that effectively communicates promotional messaging, provides product information, and even entertains customers while they wait for assistance. However, some business decision makers can overlook digital signage's potential to increase customer loyalty in retail.
Digital signage is one of the most effective technologies for establishing customer relationships, keeping them engaged, and personalizing in-store services. Consider how you can put digital signage to work to build loyalty and the advantages that will give your business.
Experience management solution provider Qualtrics defines customer loyalty as "the ongoing positive relationship between a customer and a business." That relationship is why consumers choose your business over your competitors, and their repeat purchases support your business's top-line growth.
Loyalty in retail is closely tied to customer experience (CX). Experience that delights consumers fosters a positive relationship with your business. However, poor experiences, even one negative encounter, can end a customer's loyalty. For example, PwC research found that if consumers find in-store shopping less enjoyable than e-commerce, 51% will be less loyal to that retailer. Moreover, that statistic increases to 69% for Gen Z consumers.
In addition to bringing the "online experience" in-store, creating other customer experiences that build loyalty in retail can have significant returns for a business. Studies show that among loyal customers:
Additionally, HBR reports that companies with loyal customers see 2.5 times higher revenue growth than their peers and deliver between two and five times the returns to their shareholders over 10 years.
Successfully achieving loyalty in retail has become dependent on technology and data, and these three solutions are essential for a loyalty strategy that gets positive results.
Digital signage and loyalty kiosks are excellent ways to communicate with customers in-store. The vibrant, dynamic content you present can inform your customers about your loyalty rewards program, display a QR code shoppers can scan to download your store's app, and make them aware of current or upcoming sales and promotions.
Digital signage can also display a live social media stream of posts using your business' handle and hashtags, encouraging your customers to engage with you there. Interacting with customers in a social media community can become a strong factor in loyalty in retail.
Data from the point of sale (POS) integrated with loyalty program software will provide valuable insights about your customers. You can analyze shopper behaviors; understand the buying journeys they prefer to take and identify the rewards and promotions that are most effective at increasing traffic. Your system can also collect data on individual clients who have opted into your loyalty program to provide them with the personalized offers they crave. Adobe reports that 89% of companies see positive ROI when they personalize marketing campaigns.
Sales associates with mobile computers can access the same POS and loyalty system data to personalize and enhance customer experiences. Handheld mobile computers also give sales associates an easy way to sign up new loyalty program members as they assist them with purchases.
When you make digital signage the centerpiece of your in-store loyalty program strategy, you'll give your business these advantages.
A 2022 Statista report states that 82% of millennials and 74% of Gen Z use digital and paper coupons. Touchscreen digital signage that attracts shoppers to claim these offers can allow them to register for your loyalty rewards program with just a few touches or a scan. Allowing them to scan a QR code will enable them to use data stored in their smartphones to register – and perhaps claim an additional reward for signing up. Creating a positive engagement can lay the foundation for a long-term, valuable relationship with shoppers.
Loyalty kiosks and interactive digital signage in specific departments can communicate tailored content and invite shoppers to sign up to receive newsletters or special offers that focus on those products, such as particular types of sporting goods, fashion labels, or craft or hobby materials.
This will help you build and segment your SMS marketing lists and nurture loyal customer relationships more effectively. With open rates as high as 98%, SMS campaigns are effective at engaging customers and keeping your brand front of mind, encouraging loyalty.
Advanced technologies combined with digital signage will create enticing, immersive retail experiences that contribute to an increase in loyalty in retail. Combining digital signage with facial recognition allows shoppers who register to log in with a facial scan. Then, similarly to e-commerce platforms, your in-store system can use artificial intelligence (AI) sales software to analyze each customer's shopping history, the products they view, and the offers they respond to. This technology can automatically personalize offers and upselling and introduce shoppers to new products they may be interested in to increase revenues. E-commerce proves this model works – AI-powered search increases conversion rate by about 216%.
Foster True-Blue Customer Relationships
In an era when consumers have so many options for where to shop, customer loyalty may seem difficult to attain. However, with the right retail technologies, including digital signage, a feature-rich POS system, and mobile POS, you can collect the information you need to know your customers and personalize experiences that will keep them returning to your store.
Elo manufactures digital signage that's ideal for building loyalty in retail businesses. Contact us to see what's possible.