It’s no secret that brick-and-mortar retailers are struggling to compete with the prices (and ease) of online retail stores. With so much competition online, it’s imperative for physical stores to put their best foot forward, and ensure their local communities are aware of their presence and value. For hundreds of years, signs have been a trusted advertising method used by clothing retailers, restaurants, wholesale supply houses, and many other business models. But how effective is signage, and does it really drive sales? Thanks to a study conducted by the International Sign Association, we now have the answers to important questions like these. Today, let’s take a moment to review the findings of this survey.
Signs Promote Businesses
In today’s world of marketing, many businesses are turning to online advertising strategies to draw customers to their physical location. According to the International Sign Association’s study, however, 50% of customers who visited a physical store walked in as the result of an on premise sign, which was almost 20% more volume than that caused by word-of-mouth advertising.
Signs Increase Profits
When the Association looked into a sign’s ability to increase sales revenue, they found that stores who added any type of signage, or enlarged the signs existing on their premises, were able to increase their sales anywhere from 7% to just under 16%. They also learned that small retail clothing stores were able to increase their annual sales an average of $1,757,468 by adding a new sign with an improved design to their storefront.
Up Front vs. Long Term Costs
The study in question also found that spending more on signage up-front could actually lower the average long-term cost of advertising. For example, Aztec Motors in Los Angeles, California opened their car lot after three other dealerships had failed at the same location. After renovating the building, the owner invested a little over $7,000 in replacement signage. After putting up the sign, the business learned that the new signage was responsible for bringing in almost six sales per week. After only one month, the signage had paid for itself, and the owner was able to reduce the monthly advertising budget from $16,000 to $4,000, for an annual savings of $144,000. This example shows that investing in quality signage up front has the potential not only to increase sales, but help reduce the amount of funds spent annually on signage.
The study conducted by the International Sign Association shows businesses of all sizes that signage is an effective way to improve sales revenue, promote brand presence, and decrease the amount of capital spent on advertising campaigns. For these reasons and more, many businesses continue to place a strong emphasis on the types of signs they invest in, how they are designed, and where they will be placed once manufactured. Now that you have the statistics to justify an investment in quality signage, take some time to determine what kind of signs would best represent your business, and what kind of design you’ll use to capture the attention of potential customers. When you’re ready to order, don’t hesitate to contact us with any questions or concerns you may have.