Digital signage is a powerful tool for businesses to communicate with customers and promote their brand. However, investing in digital signage requires careful consideration and planning to ensure a return on investment (ROI) and a return on objectives (ROO). In this blog post, we will discuss how to define ROI and ROO when investing in digital signage.

ROI in Digital Signage

ROI in digital signage refers to the financial return a business expects to receive from its investment in digital signage. To calculate ROI, a company needs to determine the cost of the investment and the expected revenue generated as a result of the investment.

Here are the steps to define ROI when investing in digital signage:

Determine the cost of the investment: This includes the cost of the digital signage hardware, software, installation, and ongoing maintenance.

Set measurable objectives: To determine the expected revenue generated from the investment, a business needs to set measurable objectives. For example, if a business wants to increase sales, it must determine by how much and over what period they want to increase sales.

Track and measure results: Once the digital signage is installed, a business must track and measure the results. This can be done using analytics tools that track how many people view the signage, how long they view it, and how they engage with it.

Calculate ROI: Once the results are tracked, a business can calculate the ROI by subtracting the investment cost from the revenue generated and dividing it by the investment cost. The formula for ROI is: (Revenue – Investment Cost) / Investment Cost x 100.

ROO in Digital Signage

ROO in digital signage refers to the non-financial objectives a business expects to achieve from its investment in digital signage. These objectives may include improving customer engagement, brand awareness, or customer satisfaction.

Here are the steps to define ROO when investing in digital signage:

Determine objectives: To determine the ROO, a business needs to identify its objectives. These objectives may be related to improving customer engagement, brand awareness, or customer satisfaction.

Set measurable objectives: To measure the success of the investment, a business needs to set measurable objectives. For example, if a business wants to improve customer engagement, they need to determine how it will measure engagement, such as the number of clicks, likes, or shares.

Track and measure results: Once the digital signage is installed, a business must track and measure the results. This can be done using analytics tools that track how many people view the signage, how long they view it, and how they engage with it.

Evaluate the results: Once the results are tracked, a business can evaluate the success of the investment by comparing the actual results with the expected results. The investment can be considered successful if the actual results meet or exceed the desired results.

Conclusion

Measuring ROI and ROO in digital signage is critical to understanding the impact of your investment and optimizing your outcomes. By defining your goals and objectives, tracking the right metrics, and analyzing your data, you can make informed decisions about your digital signage strategy and improve your ROI and ROO.

For more information on Norvision Digital Signage Solutions, contact us at sales@norvision.com