Understanding Digital Signage in Retail Banking

STRATACACHE ^[1] has released the results of its survey, ‘Understanding the Role of Digital Signage in Retail Banking‘, administered by brand valuation and market research firms, Brand Finance ^[2], London, and Luth Research ^[3], San Diego.

The research, which examined the impact of digital signage on retail banking customers in North America, focused on three distinct areas: attitudes towards digital engagement, brand impact and brand effectiveness. The study found that digital signage, when used in a retail banking setting, has a measurable impact on brand perception. The research strongly suggests that in-branch media merchandising drives meaningful and quantifiable brand value.

Among the findings from Luth’s research and Brand Finance’s analysis are:

• The presence of unique customer profiles: There are four distinct customer profiles with similar attitudes toward technology and banking activity.
  These profiles have been categorized by Brand Finance as ‘Aspiring Alvins’, ‘Digital Daves’, ‘Simplicity Sues’, and ‘Retired Rays, each with varying opinions on the impact of digital signage in retail baking.‘Digital Daves’ and ‘Simplicy Sues’ provide the greatest opportunity for retail banks in their digital marketing efforts, especially as it relates to digital signage.
• Attitudes: Digital signage is perceived as an effective form of communicating with customers.
  – Retail banking customers have a more positive view of digital signage than online;
  – Digital Signage is seen as less intrusive and more innovative than other media;
  – In US banks, Citibank yields highest digital signage scores, whereas in Canada, RBC is in the lead.
• Brand Impact: 77% of US respondents agreed that banks employing digital signage are more innovative than those that don’t. When banks are seen as innovative, they also score more highly for customer satisfaction.
• Brand Effectiveness: Consumers recall digital signage just as much as they do other traditional and digital advertising outlets.
  – When compared to the high cost of TV advertising, digital signage yields a slightly higher recall rate than TV, at a much lower cost;
  – Amongst people who have been exposed to digital signage, the ratings for digital signage verses TV become more favorable, indicating greater exposure will lead to even greater favorability over time for the digital signage medium.
• Advertising Effectiveness: Digital signage is effective as an advertising medium as exposure increases Satisfaction and NPS scores.
  – Digital signage is efficient as an advertising medium as consumers recall digital signage just as much as they do for other traditional and digital advertising outlets;
  – Digital signage is effective as it’s able to easily capture the user’s attention and generate a positive change in banking behavior;
  – Banks that do not utilize digital signage lose out on easy advertising and upselling opportunities with their own customers.

“Our North American retail banking clients care deeply about brand impact when designing their digital marketing programs,” says Chris Riegel, CEO of STRATACACHE. “Brand Finance’s analysis and Luth Research’s data uncovered that in-branch digital signage has a measurable effect on customer brand perception of retail banks and the potential to drive significant value for these organizations.

“The analysis strongly supports the fact that in-branch digital merchandising drives meaningful and quantifiable brand value. As STRATACACHE continues to help marketing teams in retail banks drive wallet share, customer engagement and sales lift using in-branch digital media, this insight empowers us to help our customers create meaningful digital marketing programs that most effectively communicate with retail banking customers.”

“Advertising media for retail banking have evolved drastically in recent years, moving from traditional print ads to the ever-changing digital space,” says Mark Radhakrishnan, strategy director, North America, at Brand Finance. “The move toward digital signage reflects the increasing need for advertising messages to be targeted, dynamic and in real time while still being cost effective. Our analysis found that digital signage is effective and efficient as an advertising medium for banking, and greater familiarity with the medium will continue to lead to greater effectiveness.”

In the study administered by Luth Research, 3,963 respondents were surveyed via an online panel across 17 North American banks in January and February, 2014. Respondents were asked 50 questions pertaining to their attitudes toward their bank, bank usage, demographic information and perceptions of technology. Based on the results, Brand Finance combined brand strength indices, business details, and survey data to measure the brand value of retail digital merchandising investments. Their findings detail the brand impact, in dollars, of investing (or of not investing) in in-branch digital merchandising initiatives.

For those interested in more information on the study and to receive a copy of the report which includes more detailed ratings of six of top American banks and the six major Canadian banks, send an email to retailfinance@stratacache.com.