Given that 75% of buying decisions are made once a shopper is in the store, it is understandable how interacting with the customer at the point of sale can dramatically increase sales.
In-store video allows retailers to stimulate brand recall, counteract advertising campaigns by competitors and make the shopper feel good about their brand purchase.
Here are seven reasons why savvy retailers are implementing in-store video displays at the point of sale:
- Shoppers actually appreciate in-store video displays. In the Arbitron Retail Media Study (2006), 78% of consumers believed that in-store video displays that feature product or sale information are helpful. In fact, 81% of consumers said that they were interested in seeing in-store video promotions that included sales and specials (81%), product information (72%) and special events (68%).
- Unplanned purchases increase by around 30%. Various research studies have uncovered that consumers who stop to watch the digital retail screens have decided to purchase the showcased product on the spot.
- Spend increases by an average of 10%. Research by Mintel has found that consumers in retail outlets with in-store video displays spend an average of 10% more money.
- Digital signage introduces a ‘wow’ factor that engages, supports branding, helps the customer at the point of sale and most importantly, brings fun into the equation. Of course, don’t expect this to be a long term factor when the rest of the market starts using in-store video displays.
- It’s highly flexible. In-store video displays allow products to be advertised in an instant. For example, if it’s raining outside, change the marketing message to a special on umbrellas. Different stores can also run different ads for the same product to evaluate which ad is more successful at lifting sales.
- It interacts with the customer. Companies are finding that transferring the 30 second standard television ad onto a retail television network can have lukewarm results. However, ads that are targeted to the retail environment, help the customer make a decision and engage have the power to heighten sales.
- It improves brand recall. A study by Nielsen found that the average recall of a brand advertised on Wal-Mart’s in-store television network is a staggeringly high 66% compared to around 15-25% for brands advertised in other media.
The Arbitron Study also found that if given a choice 42% of shoppers would prefer to shop at a store that has video displays.
In-store video has the power to engage with customers, alert them about new products, special offers and provide a relevant and helpful shopping experience. Any retailer who wants to cut through the clutter and create a more meaningful dialogue with their consumers needs to seriously consider in-store television advertising as part of their media spend.