Whether we’re talking about eye-catching backlit displays or fancy trade show displays, the truth is that well-placed, engaging signage can drive sales and boost brand awareness.
But if you can’t gauge the effectiveness of your signage, you won’t know when an update is necessary. To help you get the most out of your signs, we put together this guide on sign ROI. Use the points discussed here to optimize all your signs!
What Is ROI And Why Does It Matter?
Return on investment (ROI) is, at its core, a simple calculation. Basically, you compare the price of something with the returns it’s generated. For example, if you spend $1,000 on signage, and you can prove that the signs helped you generate $2,000 in sales, the signs will have generated a 100% ROI.
Here’s why measuring ROI is important:
- You can gauge the effectiveness of your signage.
- You can adjust your marketing budget accordingly.
- You can optimize spending after comparing different options.
How To Calculate ROI For Signage
To calculate ROI, use the following formula:
ROI = (Benefits - Costs) × 100%
Benefits can be sales, leads, or any other measurable impacts generated by a sign. Costs refer to design and production costs, as well as the cost of installation and maintenance. And don’t forget to consider indirect benefits, like an increase in brand awareness, when considering a sign’s ROI.
Strategies To Track And Optimize Physical Signage
- Geofencing And Location Analytics
Geofencing is basically setting virtual boundaries around a certain area to see how much traffic and engagement occurs within it. At a trade show, for example, you can track visitor engagement by placing geofences around banners, booth entry points, and product display cases.
This data will help you determine which signs are most effective, and it’ll also suggest where signs should be placed.
- Social Media Integration
Putting hashtags and social media handles on your signage will allow you to measure social media engagement. Specifically, you can see how often your hashtags are engaged with. This data will help you tailor your messaging and design content that resonates with your audience.
- QR Codes And Custom URLs
Dynamic QR codes and custom URLs make tracking user interactions easy. And don’t forget to add UTM parameters so you can monitor customer actions post-scan. For instance, a retail store can put QR codes on window decals to assess promotion engagement.
- Call Tracking
With unique phone numbers, you can track incoming calls, analyze conversion rates, and adjust messaging. For example, a cleaning company can use a range of numbers to measure the effectiveness of different designs and calls-to-action (CTAs) on their vehicle wraps.
Transforming Your Signage Into Data-Driven Assets
Advanced tracking methods turn physical signage into dynamic tools for data collection and optimization. Whether we’re talking about geofencing, social media integration, QR codes, or call tracking, we’re talking about tools that can be used to improve your marketing materials so they generate healthy ROI.
Partner With Power Graphics For Smarter Signage
Power Graphics offers top-quality, custom signage that’s perfect if you want to utilize the latest tracking techniques. We have vehicle graphics, outdoor banner stands, and everything in between! Call now to learn how we can help you take your signage to the next level.