Why You Should be Measuring Your Digital Sign’s Return on Objective

Digital signage has always been a great tool for any organization looking to share information or improve communication. But in today’s experience economy, where the real currency is the experience itself and the feelings it evokes, digital signage can become so much more than a simple display tool.

This is why it’s important to measure your Return on Objective (ROO) alongside your ROI (Return on Investment).

What is ROI?

ROI measures the financial return of digital signage. It provides a comparison between sales before and after implementation, as well as the variation in products sold. It can also consider frequency of sales and return customers, cost savings via staff time, along with reduced costs for print advertising material.

To calculate ROI, many companies offer ROI calculators. Or, you can take your net profit (total revenue minus total costs) and divide that number by the investment cost and multiply by 100 to get a percentage.

What is ROO?

ROO is a way of measuring the reach and impact of digital signage—did it achieve the goals it was set up to accomplish? That could mean improving wayfinding, reducing perceived wait times, boosting staff engagement, increasing social media interaction, or strengthening a brand’s first impression.

How does the sign make the environment—and the people interacting with it—feel? It’s not a line item on a P&L, but it’s arguably even more valuable. This is the point where digital signage moves from a product pushing out information to something that shapes behavior and outcomes.

How to Measure ROO

ROO may not provide a financial metric, but there is still a formula that can be considered for measuring how well an objective has been achieved.

The key is to ensure that you regularly gauge the effectiveness of your organization’s implementation, looking for any positive trends or improvements in performance.

Digital Signage Objectives

Digital signage’s objective will vary based on industry, type of business, target demographic, location of the signage, etc. But here is a list of some example objectives to get you thinking:

• Improve customer navigation
• Reduce perceived wait times
• Increase brand or product awareness
• Elevate the customer experience
• Foster staff engagement and motivation
• Enhance awareness of health, safety, and security information