10 Ways Digital Signage Shapes Customer Behaviour in Retail

I believe we can all agree that getting noticed in the busy retail market is a challenge for every business, no matter how big or small.

I also believe there are ways to stand out. One of these ways is trehrough the strategic use of digital signage. The big question is ‘how’. How does it influence and impact customer behaviour?

In this article, we will explore its effects in retail, and I will share insights and handy tips on using it to make shopping experience better and boost sales. Let’s start with the basics first.

What is The Role of Digital Signage in Retail?

To say that digital signs have evolved significantly over time is an understatement. Initially, this smart way of sharing information could only show text or very basic images.

However, as technology advanced and became more affordable, these signs transformed into the dynamic, full-colour displays we know and see today. They have become an integral part of how shops engage with customers, making their shopping experience more interactive and enjoyable.

Nowadays, digital signage as we know it, is essentially a high-tech screen or billboard that displays high-resolution images and videos. However, that is not the major highlight.

A key to this evolution is the content management system, which allows for instant updates to what is displayed, making digital signage not just visually appealing but also incredibly versatile.

In the retail world, you can already see large screens popping up everywhere from shop windows to aisles, showcasing products, deals or information in an eye-catching manner. 

Let's dive a bit deeper into the frequently encountered types of digital signage in a retail setting:

Interactive Kiosks

These are touch-screen displays that invite customers to interact with them. You might use one to look up product information, check if an item is in stock or place an order. They are great for giving control over the information one is looking for.

You will often find these kiosks in electronics stores. Here, you can compare specs and prices of various gadgets. They are also commonly found in clothing stores, allowing you to check the availability of sizes and colours without needing to search the racks.

Perhaps the best example would be the most popular fast food chain in the world (you know which one) which has also installed self-ordering kiosks to make ordering faster, reduce wait times and let customers customise their orders.

Video Walls

Imagine turning a wall in your shop into a giant screen showing high-definition videos or images. These can create immersive experiences and make your customers feel like they are part of the action. Retailers typically use video walls to showcase products in use or to create an atmosphere that aligns with their brand.

For example, high-end fashion stores might use video walls to display runway shows or behind-the-scenes footage from photoshoots, enveloping customers in the world of fashion.

Digital Menu Boards

Common in cafes, restaurants and fast-food chains within retail spaces, these displays show menu items in an appealing way. They can change throughout the day to highlight breakfast, lunch or dinner options, making it easier for clients to decide what they want to eat.

Window Displays

If you have not already, you can transform your shop's front windows into vibrant showcases with digital window displays. These screens can light up your storefront, spotlighting your latest deals, new arrivals or seasonal offerings to passersby, enticing them to step inside.

Digital Wayfinding Signs

If you want to make it easy for your customers to find their way around your shop, you can install digital wayfinding signs. They act like maps, pointing shoppers to different sections, special deals or services inside your store.

They are really useful in large spaces like shopping centres or big shops, helping customers quickly find what they are looking for. Therefore they have a better time shopping and can find things without any hassle.

Psychological Impact of Digital Signage on Shoppers

Exploring the psychological impact of digital signage reveals its power not just to catch our eye, but to shape our shopping habits and preferences. Let's delve into how it influences our behaviour in the bustling retail environment.

Capturing Attention in a Crowded Marketplace

Digital signage stands out in crowded stores with its vivid colours and animated content that capture shoppers' attention quickly.

Research indicates that human brains are naturally drawn to movement and colour, which makes these displays highly effective. This immediate engagement with digital signs makes customers more open to the store's promotions, influencing their purchasing decisions as they shop.

Enhancing the Shopping Experience

Digital signage enriches the shopping experience by making it interactive and educational.

It guides customers, showcases new products and simplifies complex information, all while making shopping more enjoyable and informative. This empowers shoppers to make confident, and informed decisions, enhancing their overall satisfaction.

Emotional Connections and Brand Loyalty

Perhaps the most profound impact of digital signage lies in its ability to connect emotionally with shoppers. Through tailored content that resonates with individual preferences and desires, it can evoke feelings of joy, excitement or even nostalgia.

For instance, displaying sunny beach scenes in a travel agency can stir up feelings of wanderlust, encouraging customers to book a vacation. These emotional connections are pivotal in building brand loyalty, as customers are more likely to return to businesses that make them feel understood and valued.

Influencing Purchasing Decisions

Digital signage also plays a significant role in influencing purchasing decisions. Retailers can effectively guide customer behaviour and encourage impulse buys by strategically placing digital signs near certain products or using them to promote limited-time offers.

This is especially powerful when combined with psychological triggers such as scarcity (highlighting limited stock) or urgency (counting down to the end of a sale), which can prompt customers to act quickly to take advantage of deals.

For instance, consider a screen positioned near the vacuum cleaner aisle, displaying an eye-catching promotion for a state-of-the-art hoover. The sign dynamically shows it in action, highlighting its advanced features such as pet hair removal and allergy filtration.

Beside these captivating visuals, a message flashes: "Limited Offer: 20% off, Today Only!" This message taps into the shopper's desire for a good deal and the urgency of the limited-time discount, prompting them to consider purchasing the vacuum cleaner immediately.

Let’s now dive deeper into how digital signage can influence purchasing decisions.

How Does Digital Signage Impact Customer Behaviour?

Digital signage not only dictates what shoppers buy but also shapes their decision-making processes in several ways:

1. Attracting Attention

The vibrant and dynamic nature of digital displays captures shoppers' attention and draws them in. This initial engagement is critical, as it encourages customers to explore the products or offers being showcased, setting the stage for further interaction with the brand or product.

2. Promoting Products

Digital signage excels at showcasing products in an attractive manner. High-quality visuals and engaging content highlight the key features and benefits, which increase the appeal of items. For example, a digital sign can animate the natural ingredients of a new skincare line and show its application, thus boosting its attractiveness.

3. Offering Discounts

One of the most effective roles of digital signage is in promoting time-limited offers. These create a sense of urgency, nudging customers towards making quicker purchase decisions. This strategy is especially potent for encouraging impulse purchases, as the immediate visual stimulus can convert contemplation into action.

4. Creating Immersive Experiences

Beyond mere product promotion, digital signage can immerse customers in brand experiences that resonate on a deeper level. A digital video wall depicting a beach scene, for example, can make summer clothing lines or travel accessories far more enticing.

5. Informing Decisions

By providing detailed product information and comparisons, digital signage aids customers in making informed decisions. This clarity can sway customers towards purchases they might have been unsure about, ensuring they feel confident in their choices.

6. Highlighting Deals

Prominently displayed special deals and discounts can prompt customers to take advantage of savings, influencing their buying decisions on the spot and adding value to their shopping experience.

7. Encouraging Impulse Purchases

Strategically placed digital signage near the checkout can tempt customers with last-minute deals and increase the likelihood of impulse buys by presenting compelling offers just as they are about to pay.

8. Enhancing Shopping Experience

Interactive digital signage, such as touchscreens, offers a fun and engaging way to shop, positively influencing customers' mood and their openness to making purchases.

9. Building Brand Loyalty

Engaging and useful content on digital signs can enhance brand perception, encouraging customers to prefer the brand's products over competitors

10. Personalising Shopping

Digital signage that adapts content based on time of day, customer demographics, or even weather conditions ensures that promotions are highly relevant, significantly impacting purchasing decisions.

Conclusion

In summary, digital signs in stores are very powerful because they grab shoppers' attention, make shopping fun and help people feel connected to brands. These signs have the ability to display products, exclusive deals and create an immediate urge for people to make a purchase.

As technology gets better, using digital signs is a smart move for stores wanting to stand out and give customers a great shopping experience. It is not just about new tech; it is about making an exceptional shopping experience and more exciting for everyone.