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How Display Signage Impacts Retailer's Profitability
http://www.articlesofadvice.com/articles/862/1/How-Display-Signage-Impacts-Retailer039s-Profitability/Page1.html
Christine OKelly
 
By Christine OKelly
Published on 07/15/2009
 

Businesses shouldn't underestimate the power of well-designed display signage. Studies have shown signs have a strong effect on the profitability of a company.

 

Bring In New Customers

 

An integral part of successful business promotion is bringing your establishment to the attention of new customers. While ads placed in venues from billboards to television are often viewed as a major source of customers, display signage is often more effective.

 

For example a study of restaurant advertising by the Small Business Administration showed that among fast food restaurants display signage was the leading source of customers, accounting for over one third of new arrivals. While sit down restaurants saw word of mouth as the leading source of new customers, their signs accounted for as much as one quarter of their traffic.

 

Visual displays must be easy to see so customers can pick them out of competing sights in the area. They must give an immediate, positive image of the establishment so passers-by feel the desire to come inside.

 

Influence Shopper Decisions

 

Retail stores commonly want to push customers toward certain products. These might be overstocked or discontinued items, or merchandise with a larger profit margin. Display signage draws attention to these items and brings customers over to look at them. Swaying shoppers' buying habits is an important strategy to retail success.

 

There is a reason that checkout lines are stocked with small, inexpensive items. These impulse buys are a significant source of store revenue and many a shopper has thrown one or two of these items into the basket while waiting to be rung up. However customers are so used to seeing these displays that they stop noticing them after a while. Display signage can highlight these displays, causing shoppers to give them a second look.

 

Create a Brand Identity

 

Humans are naturally visual creatures and we respond well to imagery. Display signage gives a business a strong visual identity, which creates stronger associations in a customer's mind than the store itself does. If the sign is attractive, those associations are immediately positive.

 

Architectural signage is one of the most important factors in this branding. Since these can be seen much farther than other visual displays, they reach a larger audience. Entire storefronts have been designed around the shop sign. Studies show that establishments with signs as focal points show better profitability than stores which add signs as an afterthought.

 

Display signage seems like a simple concept and as a result may be overlooked by business owners. The power of signs to attract new customers, direct shopping traffic, and to create positive associations in people's minds should not be taken lightly. A signage strategy should be a leading component in a comprehensive promotional plan designed to reach the maximum number of potential customers.