Implications for Retail Adoption of Digital Signage Systems

Working Paper #1

Researchers

Steven Keith Platt, Platt Retail Institute; Dr. Kingshuk K. Sinha, University of Minnesota and Research Fellow, Platt Retail Institute; Dr. Barton A. Weitz, University of Florida; with Pat Hellberg, Nike, Inc.; G.V. Iyer, Bank of America; and Margot Myers, U.S. Postal Service.

Abstract

Digital signage systems are rapidly being adopted by some of the largest retailers in the world, including Tesco, Target, the United States Postal Service and the Bank of America. The rationale for implementing this emerging technology includes the impact upon the customer shopping experience and the related financial implications for a retailer. This Working Paper explores the decision matrix supporting retailer adoption of digital signage systems, reviews the considerations required for an implementation, and advances a framework for assessing a retail digital signage (“RDS”) system. This is significant for the following reasons:

  1. The cost associated with implementing an RDS system can be substantial,
  2. The failure to adopt an RDS system may place a retailer at a competitive disadvantage, and
  3. The benefits to be derived from RDS can be considerable.

Table of Contents

  1. Introduction
  2. Discussion
    1. Rationale Supporting the Adoption of Digital Signage by Retailers
      1. Key Benefits of Retail Digital Signage
      2. Objectives of Retail Digital Signage
      3. Market Conditions
      4. Experience
    2. Considerations Impacting a Digital Signage Implementation
      1. Marketing Implications
      2. IT and Operational Implications
    3. Retail Framework for Assessing Digital Signage
      1. Implementation Approach
      2. Measuring Effectiveness
      3. Future Research
    4. Appendix:
      1. Appendix A. Interview of Pat Hellberg, Nike, Inc.
      2. Appendix B. Interview of GV Iyer, Bank of America
      3. Appendix C. Interview of Margot Myers, U.S. Postal Service

Sponsors

NEC Display Solutions, POPAI, and Scala.

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