Retail Signage Strategies: Boost Sales and Engagement

68% of consumers said they had purchased a product or service because a sign caught their eye (FedEx report). In the competitive world of retail, effective signage can make all the difference in attracting customers and driving sales. Signage is a powerful tool to engage customers and increase their desire to buy.

This retail blog will explore the different types of retail signage and the power of effective, high-quality retail signage. It will provide you with valuable insights on how to drive foot traffic, increase sales and customer loyalty. With the right retail sign, you can effectively communicate your brand message and highlight your products or services. Meanwhile, you will create a memorable shopping experience that keeps customers coming back for more. 

Join us as we explore the power of effective retail signage. Discover the strategies and techniques that can take your brand to new heights. 

Check out the latest innovations in retail with our retail trend report. From using motion and interaction to grab attention, harnessing the transformative potential of AI, AR, VR, and IoT, embracing sustainable practices and personalization to integrating omnichannel strategies.

Retail Signage: Impact on Sales and Engagement 

The impact of retail signage on sales and customer loyalty is undeniable. Studies have shown that well-designed signage can significantly influence consumer behavior, resulting in increased foot traffic, higher sales, and greater customer satisfaction.* Before we dive into the different types of retail signs, let's take a look at the benefits of signage in retail spaces. 

Signage can help grab customer attention. Signs are like silent salespeople, grabbing shoppers' attention and directing them to products or promotions. Effective retail signage helps customers navigate the store efficiently, reducing frustration and improving their overall experience. This improves the retail shopping experience for customers.

Signage helps customers make purchasing decisions by providing essential information about products, prices, promotions, and store policies. In addition, a well-designed retail sign can reinforce brand identity and leave a lasting impression on the customer.

9 Types of Retail Signage that Every Retailer Should Consider

There are nine essential types of retail signage that every retailer should consider for their brick-and-mortar stores. These fall into 3 main categories: outdoor retail signage, indoor retail signage and electronic retail signage. 

Types of Outdoor Retail Signage

Around 76% of consumers say they've entered a store or business they've never visited based solely on its signage*.

Outdoor retail signage is designed to attract attention and draw passersby from your storefront to your business. This retail sign should clearly and concisely advertise what your business does and what it offers. The different types of outdoor retail signs are as follows:

• Storefront signage: Retail signage, mounted on or near the storefront of a retail business. This type of signage is the first thing potential customers notice. When done right, it helps you make a great first impression.
  
  However, one of the biggest challenges retailers face with storefront retail signage is getting the design right. The signage needs to resonate with your brand, be easily recognizable, and also convey what your business does to new customers. To achieve this, it is important to survey and gather feedback on the appeal of your logo and name and incorporate the insights into your design idea.
  
  
• Exterior signage: This is signage that is placed outside the retail location to attract attention and drive foot traffic to your business. Display boards, murals and directional retail signage fall under this category. A retail display board is a cost-efficient way to advertise deals, events and product promotions. Directional signs and murals help drive foot traffic and brand awareness for your business. 
  
  
• Billboards: These large outdoor advertising structures commonly seen along highways and busy streets, boost brand visibility, raise awareness, and effectively promote products/services outdoors. They offer constant exposure and cost-effective marketing
  for businesses.
  
  The below infographic shows the various benefits of outdoor retail signage. 

Five Benefits of Outdoor Signage in Retail

Types of Indoor Retail Signage

These are signs strategically placed inside retail stores to provide information, promote products, guide customers and enhance the overall shopping experience. The different types of indoor retail signage include:

• Wayfinder and informational signage: Wayfinding and informational signage: Signs and displays that provide relevant product, service, or directional information to potential consumers within a retail environment. These retail signs are placed throughout the store as well as in front of specific locations such as food courts, restrooms, childcare stations, etc. While they may not directly contribute to sales, these signs help enhance the customer's shopping experience.
  
  
• Promotional signage: Signage or displays that promote special offers, discounts, sales events, or clearance items. This type of retail signage serves as a visual communication tool to draw customers' attention to various store offers and promotions.
  
  
• Point of Sale (POS) signage: Signs and displays placed near the checkout counter or cash register. They help promote products, upsell and encourage last-minute impulse purchases.

The below infographic shows the various benefits of indoor retail signage. 

Seven Benefits of Indoor Signage in Retail

Types of Electronic Signage

Electronic signage and displays have a retention rate of 83% (DigitalSignageToday). From AI personalization to augmented reality and digital displays, the retail signage landscape is undergoing a digital evolution. By transforming establishments into digital ecosystems, these new forms of signage are changing the way businesses engage with their customers.

To read more about the power of digital retail signage in enhancing customer engagement, click here. 

The different types of electronic signage in retail are as follows: 

• Digital displays and interactive screens: Studies have shown that digital signage in retail can increase sales by up to 29.5% (SmallBusinessonFire). Digital retail signage is all about showcasing your products, grabbing customers' attention with movement and motion, providing information and simplifying the sales process. Additionally, digital signage collects consumer data through AI sensors, cameras and location tracking, providing insight into demographics, engagement and content performance for strategic decision making.
  
  
• Smart mirrors: The global smart mirror market is expected to reach $5.58 billion by 2027, (Reportlinker). Smart mirrors not only showcase ads and promotions but also offer a virtual try-on feature, allowing shoppers to visualize themselves in new products without having to try them on. 
  
  
• Augmented Reality (AR): According to a study by Retail Perceptions, 61% of consumers said they prefer to shop at retail stores that offer AR experiences, and 40% said they would be willing to pay more for a product if they could experience it through AR.
  AR technology expands the possibilities of retail signage with new advertising opportunities. With AR, retailers can explore new advertising formats such as digital media displays, interactive games and personalized brand promotions. This opens up exciting new ways to engage shoppers with retail signage. 

Retail Signage Guidelines 

68% of consumers believe that a store’s signage reflects the quality of its products and services*. This statistic underscores the importance of not settling for just any signage or display in your establishment, but rather prioritizing high-quality retail signage and displays. 

Main Impacts of Signage Quality on Market Efficiency

The above figure illustrates the impact of signage quality on market efficiency, as explored in a study by the University of Cincinnati. It shows the benefits of good signage in facilitating transactions and reducing search costs, compared to the drawbacks of impaired signage, which leads to higher search costs for consumers and the possibility of brick-and-mortar stores losing out on potential customers. 

High-quality and effective retail signage attracts customer attention, drives foot traffic and ultimately increases sales. Harnessing the power of high-quality signage can make a remarkable difference for brands looking to stand out in today's competitive marketplace. By using the right mix of retail signage strategies and techniques, retailers can create immersive shopping experiences to engage customers and build lasting brand relationships.

To read more about how having high-quality signage translates into a high-quality brand experience for your customers, click here. 

Let's talk about some basic retail guidelines,

Design in retail signage:

• Keep it simple: The message your signs and displays are trying to convey must be clear. Signs and displays with too much information are often ignored. Use the 5-second rule: If you can get the message across in less than 5 seconds, it is up to par. If it takes longer, consider shortening your message or using a series of retail signs and displays.
  
  
• Readability is paramount: Signage clarity is the single most important factor in persuading consumers to try a store's product or service. (University of Cincinnati). Using unique aesthetics is a valid approach to stand out, but if consumers can't read your retail sign, your signage can't do its job. The University of Cincinnati study ranked the reasons why retail signs and displays are difficult to read according to shoppers. The top 5 reasons are:
  
  
  
  The Reasons Signage May Be Difficult to Read
  
  
  By keeping each of these stats in mind as retail signage guidelines, your signs and displays will always be able to serve their primary purpose of effectively communicating your business.
  
  
• Be specific: Tailoring a signage or display to deliver a specific message in a specific location is called narrowcasting. When designing your retail sign, be sure to include location-specific instructions and relevant product details to communicate effectively with your audience.
  
  
• Use color research to your advantage: Nearly 85% of consumers say they’re attracted to bright and colorful signage (Custom Neon). Colors influence emotions and behaviors, shaping the atmosphere in retail spaces. The right color increases visibility and attracts attention, improving the effectiveness of retail signage. Understanding the psychology of color helps retailers connect with audiences and communicate messages more effectively.

• Show your unique value: Your retail signage must effectively communicate the unique value proposition of your business, whether through a compelling storefront design or an in-store display. By emphasizing your distinctive offerings, you can attract and engage customers effectively, ultimately driving foot traffic and boosting sales. 

Placement and rotation:

• Position Signage from Eye-To-Thigh: Retailers can capitalize on shoppers' natural tendency to focus on things in their immediate field of vision by placing Eye-To-Thigh retail signage. This increases visibility, engagement, and interaction with the retail signage. 
• Refresh your retail signage: Approximately 60% of businesses found that updating their signage design had a positive impact on sales, transactions and profits, resulting in an average increase of around 10%. (signresearch.org). Revamping your retail signage will always be a balancing act between maintaining your business identity and introducing a new look.

Digitization of retail signage:

• Consider illumination: Illumination allows businesses to make signs pop with light. This helps grab customer attention. The third generation LED neon is the latest trend in illuminated retail signage and displays. With the latest LED neon technology, you can drive brand visibility while being sustainable. 
  
  To learn more about the third-generation LED neon, click here.
  
  
• Augmented reality: Augmented reality offers a unique opportunity for retail sign design, providing a unique platform that combines elements of both traditional retail and online retail. It also opens up a wide range of creative possibilities in signage design.

Looking for inspiration on Illuminated and digital retail signage? Download our retail portfolio with a selection of signage for global brands. 

Conclusion

As numerous studies and statistics show, high-quality retail signage acts as a silent yet powerful sales tool, influencing consumer behavior, driving foot traffic and increasing overall customer satisfaction.

The blog discusses the different types of retail signage. From exterior signage to digital displays and augmented reality experiences. Each type of retail signage serves a unique purpose, whether it's attracting the attention of pedestrians, providing navigation assistance, or promoting offers and products.

However the true power of retail signage lies in its quality and strategic placement. Readability is the most important characteristic of retail signage. In addition, the use of color psychology and the incorporation of branding elements can enhance the impact of retail signage. 

By embracing the power of effective signage, retailers can unlock new opportunities for growth, customer loyalty and long-term success in the ever-evolving world of retail.

FAQs

Retail signage includes all signs your retail store will need, from shop signs to promotional boards and any other type of signage you use to promote your business.

Retail signage can be categorized into 3 main groups: outdoor retail signage, indoor retail signage and digital retail signage. One example includes storefront retail signage that is used to drive foot traffic to your store. Another example includes billboards, pylons and wayfinders that promote the store and provide navigational support to customers. 

Digital signage in the retail sector refers to the use of electronic displays, such as LCD or LED screens. They are used to convey promotional messages, advertisements or other information within a retail environment.

Disclaimer: If you're interested in using any of the infographics featured in our blogs, please feel free to email us at marketing@dekkersinternational.com, and we'll be happy to provide you with the infographic. However, we kindly request that you properly cite the source and include a link back to this blog/website when using our infographics.

Reference 

1. FedEx Office, n.d., STATISTICS ON WHY SIGNAGE IS IMPORTANT FOR YOUR BUSINESS, Accessed at: https://www.linkedin.com/pulse/statistics-why-signage-important-your-business-paul-ingle/