Retail Systems Research: digital signage increases revenue 2.5 percent

The recent report also found soft benefits of retail media networks, including improved employee training and higher overall customer satisfaction.

In October, Digital Signage Update profiled a report from analyst firm Retail Systems Research titled “The Business Case for Retail Media Networks.” The report aimed to quantify the benefits of digital signage networks — or retail media networks (RMNs) — to a greater depth than what has been previously done.

The report used statistics, case studies and other secondary research to come up with a hypothetical case study replete with results that in theory match the benefits of a real-life implementation. Three panelists shaped the study and results — an unnamed media and entertainment company, an anonymous small format specialty retailer and UPS Canada.

According to the initial data and case studies, the most conservative estimates peg in-store media responsible for a 15 percent lift on products promoted via digital signage, while corresponding display compliance contributed a 10 percent incremental lift. The firm also assumed the percent of SKUs on promotion made up roughly the same percentage of a transaction — again, a very conservative hypothesis, according to the research.

Using these postulations, the report concluded that an RMN contributes $40 million, or 2 percent of sales, to the top line of a 500-store chain with $2 billion in revenue and an average transaction value of $11.57 and 8 percent of SKUs on promotion per week — a figure that is consistent with UPS Canada’s 2.5 percent revenue boost compared to its own stores that did not use in-store networks.

The report also cites several soft benefits including a better recall of brands and their selling points by employees trained in stores with RMNs and a higher overall customer satisfaction rate with careful crafting of the RMN’s context.

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