There is really only one goal for digital signage: enabling initiative, getting the customer doing something with what he or she has just seen. Regardless of the engagement, a positive outcome is the only desired effect.

Here are three very general areas where digital signage can play a positive role in a customer’s experience within an environment, and the potential pitfall each encounters with poor planning and execution.

Environmental Navigation

Navigation is usually the first impression a customer gets of a store. “Where can I find…?” Good navigation will make the shopper’s experience positive and can reduce time and stress. Digital signage can play a key role in making sure that two goals are met: Showing the customer exactly where to go and showing the easiest way to get there. But you don’t get a second chance at a first impression. Poor navigation techniques, or making the customer work too hard to locate the destination, will disengage a customer before he is even at the destination.

Do we now need GPS in a store?

Education

Learning about a product or service through digital interactivity allows the customer to learn at her pace, not the pace of the employee or the store. The ability for digital engagement (most likely in a kiosk) to be flexible for the customer’s depth of knowledge and desire for education will generate interest, respect and loyalty from the customer.

In contrast, poor education or programming that makes too many assumptions about the customer’s knowledge and has ignored important messaging will sour the experience.

Perception of Time

The ability to cut down on a customer’s perception of time is taken very seriously by environments where waiting (hospitals) or poor attitudes (returning an item that gave you a bad experience) are part of the customer’s experience in the space. Engaging content can change behavior and ultimately reduce a customer’s perception of time.

However, poor execution on basic guidelines, such as the running time on a looping program being shorter than the average time a customer waits, can be a big disappointment. Customers don’t want to see the same thing twice. In addition, creating programming that does not effectively draw attention away from the customer’s purpose in the environment can backfire by making the customer even more aware of the time.

The detail that goes into each category is dependent upon the venue’s strategy with digital signage. Great care should be taken each time. Poor execution with one screen can wreck a customer’s experience in the entire environment. A bad digital signage experience can drive customers away just as fast as bad customer service.

To avoid that end, constant research and understanding will keep your digital experiences fresh and appealing for the customer and the venue.

The thing that I enjoy most about shows like DSE is connecting with industry contemporaries and those who I have established connections with via online communication platforms. Having the opportunity to meet face-to-face with industry friends I have made through this blog, Twitter, Linkedin, and other social media channels is something that I cherish. At DSE, it’s the people you meet and the conversations that you have which make the event unforgettable. I always welcome the opportunity to meet new folks and share interesting conversations with people who exude passion for digital signage, retail customer experience, emerging communication platforms, etc.

I shared conversations with a wealth of uber-smart individuals on topics such as location-based mobile services, real-time news, the future of digital out-of-home media, social media pollination across the enterprise, using digital technologies to enhance internal communications, digital signage as a brand/customer experience gateway, emerging mobile platforms, etc. It’s in these conversations that industry participants and I waxed analytical on digital signage’s role in our communications ecosystem and the technology’s advertising future. To those who I shared conversations with, thank you. To those who I didn’t get a chance to connect with, please feel free to reach out if you would like to talk (best way to reach me is via email: david.weinfeld@presetgroup.com). I am always happy to talk and help out in any way that I can.

Thoughts from the Show Floor

I don’t think that a single person who attended the show would argue that the technology on the event floor wasn’t impressive. As you entered the expo hall floor, it was like a treat for your eyes. Digital signs stretched as far as the eye could see. From thin screens to video walls and outdoor displays, the technical side of the industry was more than well represented. If you love digital signage (I assume that you have at least a passing interest in the technology if you’re reading this blog), your feelings about the environment would run parallel to my own.

The technology that powers the digital signage and digital out-of-home media industries was front and center on the show floor. While screens, media players, and interactive elements stretched across every square foot of the Las Vegas Convention Center, such a setup ran counter to the goal of educating newcomers and longtime attendees about digital signage and future industry developments. For anyone that was new to the digital signage industry, they likely left the show floor with more questions than answers.

An enormous focus was placed on digital signage technology at the detriment of featuring solutions that solve real business problems. The show floor lacked balance between the hardware/software side of the industry and the experiences that the technology powers. Too much emphasis was placed on the physical boundaries of the technology. Many missed the chance to feature digital signage as a gateway to expansive customer and brand experiences. The technology, and all of the bells and whistles, are great to look at it, but the sheen of these objects fade if they aren’t framed within the greater context of digital signage’s far reaching impact.

Many people I spoke with described the show floor as “cluttered” or “difficult to navigate.” For some, it felt like a summer camp reunion, drawing the conclusion based on a limited number of attendees outside of the digital signage and technology industries. If you got a nickel for every agency or brand rep. that was at the show, you would barely be able to afford a fast food combo meal.

One industry friend who is extremely knowledgeable on digital signage technology even admitted that he dreaded walking the show floor. This sentiment came from someone who loves digital out-of-home media. I can understand why he felt this way. For anyone who was new to digital signage, these end users were met with software companies all appearing to do the same thing (some claiming they could do more, others claiming best-in-class solutions, and none willing to admit that a potential customer would be better suited speaking to one of their competitors).

One of the few advertising agency reps. in attendance equated the expo to a “picks and shovels show.” He found the show lacking in relevance to his specific discipline. He commented that his agency colleagues don’t have anywhere near the same interest in technology as he does. They just want to know that it works.

A screen is a screen, but a true digital signage solution is an experience. This is an ethos that needs to be shared across the industry and, most importantly, carried throughout the Digital Signage Expo.

The overwhelming barrier to the wide acceptance of user-generated content across traditional and emerging media platforms is the sheer size of the market. What could be looked at as its greatest strength (a vast portfolio of user-created videos that cover a diverse range of topics) is undoubtedly its largest weakness. With thousands of new videos being uploaded to YouTube every hour, seperating great content and talent from everything else is a daunting task.

YouTube continues to update its platform to make finding worthwhile videos easier, but significant burden still rests on the viewer. When the site visitor is a media organization looking to identify best of class user-created content to include within its core programming, YouTube stands to greatly benefit in making that process as efficient and painless as possible.

Welcome YouTube Direct, “a new tool that allows media organizations to request, review and rebroadcast YouTube clips directly from YouTube users.” With YouTube Direct a news organization will be able to integrate a video upload tool directly into its site. YouTube Direct will allow these news groups to screen video uploads as they come in, and use the best clips for their broadcasts and on their websites. How valuable could this tool be to media companies looking to expand their coverage, and the breadth of their content?

Immensely Valuable.

Harry Callahan, the maverick cop played by the great Clint Eastwood, lets out a slight smile and caps “Magnum Force” with,

“A man’s got to know his limitations.”

What do Harry Callahan and Bill Gerba have in common (besides everything)?

Harry and Bill both come to mind as we touch upon a touchy digital signage subject: the do-it-yourselfer.

In his Wirespring digital signage blog, Bill recently released results from a survey, asking if digital signage network operators (or those contemplating DS networks) handle essential services in-house or outsource the execution of those services. For the record, the list of services (generally accepted as necessary, if not flat-out required, for successful DS network operation) included logistics management, strategy consulting, project planning, content strategy consulting, content management, network/operations management, initial project management, ongoing project management and installation services.

And the winner, in a landslide, is:

“We do it ourselves”

In only one of the ten categories (installation services) did the majority of operators say they outsource the work. Every other service, the respondents said, is handled in house.

Maintaining his objectivity, Bill did not pound the table on this subject. That doesn’t mean other digital signage pros can’t.

“In other parts of our lives, we make rational decisions” says Tom Percich, vice president in charge of business development for Diversified Media Group, a leading integration firm that has planned, installed and maintained dozens of networks. “But when it comes to digital signage, people go a little crazy and think they can do it on their own.”

Why? You know why. And you know who you are. You’re trying to cut corners and save money. How’s that working out, if you don’t mind us asking?

Tom notes the example of a client who bought cheaper off-the-shelf monitors at a department store (“Let’s see. I’ll take some toothpaste, kitty litter, and 50 plasma screens.”) rather than going with the more expensive pro-recommended industrial models. Sure enough, 7 months later, the consumer screens started dying. No warranty. The client had to replace the consumer clunkers with industrial models. Thus, the client was forced to buy twice as many screens, spending twice the dough. And oh by the way, installation fees were doubled also.

“You don’t know what you don’t know” Tom says. “Sure, there’s information everywhere. You can learn how to do open-heart surgery on-line. But if I needed open heart surgery, I would tend to go to a doctor.”

Another point: any reputable pro stands behind his or her work. “We have to eat our own dog food,” Percich says. “If we manage the network, we have to live with our recommendations. But that’s fine. Those recommendations are based on years of experience. Our expertise combined with that experience usually results in cost savings. We’ll live with that.”

Another result of the survey, which is borderline stunning, is the percentage of respondents who say that “they don’t bother” with the essential services. Really? No kidding? You don’t bother with network management? Project management? Content production?

“Content is the last thing discussed, which drives me mad” says Stephen Ghigliotty, who for the past two years handled content creative and strategy for Artisan.

Strategy. Now there’s a concept.

The dialogue at the meeting goes something like this: “The deliverable is a long-term plan, a strategy. The goal is good content on budget and on time. We’ve got a lot of sharp people on staff. They can knock out this strategy thing before lunch.”

Stephen tells the story about one sharp client, with no DS experience but ample experience paying broadcast-spot production rates, who commissioned a single (read “one”) broadcast-quality piece for their digital signage network. The piece looked great. But the client burned their entire content budget on that one piece. So they played it, over and over and over again, leading to burn out, tune out and flame out.

Brian Ardinger is the marketing director for one of the industry’s leading software providers, Nanonation. The folks at Nanonation focus on software and only software. Nonetheless, they are DS pros. And by keeping the big picture in mind, pros can help novice clients navigate the minefield.

“We have a good understanding of all the parts, the good, the bad and the ugly,” Brian says. “For example, we don’t hang the screens but because we’ve been involved in so many networks, we know who to call to hang the screens.”

Brian and the others share a common insight: there are many links to the digital signage chain. One link breaks, and there goes the chain.

But enough already. By now, you’ve figured us out. We’re just self-serving vendors who want to charge crazy rates for work you can handle yourself.

That’s true. We do like to get paid. But anyone charging crazy rates in this business does not last long.

The genuine DS pro wants your network to thrive. Every blue screen of death, lame content, display hung 12 feet off the floor where no one sees it network drags down the entire industry. We cringe, grind our teeth and lose sleep, whether we had anything to do with the offending network or not.

Our goal is not to gouge. Our goal is to lift digital signage to a new level.

We sum it up with another classic Clint Eastwood line.

This one goes out to all of the do-it-yourselfers who plan to handle DS services in house or, better yet, plan to not even bother.

In the words of Detective Callahan in “Dirty Harry”,

“You have to ask yourself one question. ‘Do I feel lucky?’ “

Well, do you?

Like the first two in the series, it is full of good insights into what’s happening in stores. It is also suggests digital signage is woefully ineffective, and anyone reading this report without thinking it through and getting some perspective would quickly toss out the concept of in-store digital as something even worth pursuing. It’s that bad.

As you might imagine, that’s a bit of a problem for companies trying to sell the dream into that sector.

Miller Zell and a research firm did a survey of 999 shoppers in March of this year “to determine which in-store marketing communications elements influence and inspire purchase behavior.”

The research revealed and confirmed 60 per cent of brand decisions are still made in the store, and that in-store advertising is more influential than out of store. It suggested mass merchandise stores are where people prefer to shop and convenience stores are the least favourite. And it suggests the in-store experience is incredibly important, with more than 2/3s of respondents saying the experience was a make or break factor for them in choosing where they shop.

Notice-ability sorted out what was actively noticed in stores by shoppers, and what was not. At the top, end-caps and merchandising displays, with percentage rankings in the 60s and 70s.

At the bottom, digital signage, at a woeful 10 per cent or so.

Floor graphics did better!

Digital signage did a little better when it came to purchase and brand choice influence, but not a whole bunch. It ranks 9^th of 11 choices, and just ahead of ceiling banners and overhead mobiles.

Now at this point you may have closed your laptop, had a last sip of your coffee and headed for the roof of your building. It really could seem awful and hopeless.

But let’s stop and think about this. I can pretty effectively argue that the reason the numbers are so bad is that the execution, to date, has been so bad in retail.

One of the reasons digital screens are rated right down there with ceiling banners and overhead mobiles is that they have been hanging from the ceiling or high up on a wall, just like ceiling banners and mobiles. Except they are a fraction of the size. No amount of zippy motion graphics in ads will get people looking if the screens are well above the normal field of vision and are, in relative terms, tiny in the context of the retail environment.

An HDTV that looks massive in your living room is just a speck on the horizon of a big box store, and even in smaller retailers. And it’s just a flat-panel TV, and they’re everywhere. That novelty factor is long, long gone.

Sprinkling a few screens around a big store, hoping they will get noticed and have an impact, really isn’t much more than wishful thinking, and this sort of data really drives that point home. To service the general environment of a large retail space, you need equally large displays that actually command attention and set the tone and experience that shoppers clearly want.

That technology is coming, but the other, easier route is to use what the research tells us, and get the screens in positions where they are noticed. Those are the ends of aisles, merchandise displays, department locators and at the shelf-edge in the aisles.

I have a client that has been working with a major brand on a merchandising fixture that includes a large LCD screen integrated into the fixture, with strategy and programming specifically tuned to working that fixture hard with rotating promotions and regularly changed SKUs. The fixtures where wheeled into place in stores and the results were immediate and phenomenal, with sales jumps against control stores well, well into the double figures across scores of sites. The program has been doubled in size.

Other retailers that have put screens in positions where they can’t help but be noticed, and where the content is well-executed and steadily refreshed, are seeing sustained sales increases that easily justify the effort and cost. The recently opened Microsoft store is a fabulous example of a retail design that really exploits the possibility, with full walls of tiled screens. Expensive, sure, but not all THAT expensive. Hugely impactful, though.

Miller Zell also told me (I asked) that another reason the numbers were low was critical mass. There aren’t all that many retailers yet with real screen networks.

This stuff DOES work, but getting it right takes a lot of careful consideration and use of the information available, LIKE these kinds of reports. The days of retailers and network operators “hanging and hoping” with their screens have to end, and people in the industry have to take a role by flat telling their clients, “That’s not going to work.”

Weinfeld is a Principal of the group, joining Preset’s founding partners Paul Flanigan, Pat Hellberg and Dave Haynes.

Based in Philadelphia, Weinfeld has developed a strong network and following through his respected blog, Digital Signage Insights (http://dsinsights.blogspot.com), which focuses on digital signage and emerging technology’s role in media, retail, and enterprise businesses. A communications strategist and technology specialist, Weinfeld has a particularly strong depth of experience and understanding in mobile, social media and emerging Web technologies. His strategic and creative skills have been leveraged in media projects for a diverse range of clients, including the NBA, the Arena Football League and cable TV network A&E.

“We’re pleased and, frankly, flattered, that David has agreed to join our group as a Principal,” said Preset Group managing partner Flanigan. “If you cast around the industry and ask knowledgeable people who they see as sharp, and who really understand where this thing is now and where it’s going, David’s name comes up over and over. We’ve whispered this around a little, and the response has always been, “Great pick.’”

“When an opportunity comes around to work with people like Pat, Paul, and Dave, you seize it,” said Weinfeld. “Working in the Preset Group offers the opportunity to have a major impact on the direction of the digital signage industry.”

“When we announced Preset last month, we had a lot of people approach us about getting involved, and a lot of companies wanting to develop partnerships and alliances,” said Hellberg. “We could have had a long list of affiliations to announce, but we decided to be really methodical and only make additions when it was going to be truly meaningful and result in real activity. With David, we see someone whose skill-sets and perspectives are different and complementary to what we can offer, and he makes us that much better at what we can offer.”

“There are some great people out there who seemed like obvious additions, but we wanted to really broaden the Preset offer, not just have more people with similar skills and backgrounds,” added Haynes. “That said, we’re pretty deep into discussions with at least a couple of people who will also be great Principal members of the team, and like David, really add something new.”

The Preset Group was founded recently to help established companies, media start-ups and investment groups plan and launch successful digital media networks. The three founding partners together offer decades of diverse, directly relevant experience and insight to clients who are trying to put together and execute plans, in what is a fast emerging, rapidly evolving industry. The insights of the partners, whose experiences include running the retail networks of Nike and Best Buy, are bolstered by a global roster of specialists in specific knowledge areas, such as retail strategy, retail anthropology, audience measurement, IT network  design and business best practices.

Here are three very general areas where digital signage can play a positive role in a customer’s experience within an environment, and the potential pitfall each encounters with poor planning and execution.

Environmental Navigation. Navigation is usually the first impression a customer gets of a store. “Where can I find…?” Good navigation will make the shopper’s experience positive and can reduce time and stress. Digital signage can play a key role in making sure that two goals are met: Showing the customer exactly where to go and showing the easiest way to get there. But you don’t get a second chance at a first impression. Poor navigation techniques, or making the customer work too hard to locate the destination, will disengage a customer before he is even at the destination.

Education. Learning about a product or service through digital interactivity allows the customer to learn at her pace, not the pace of the employee or the store. The ability for digital engagement (most likely in a kiosk) to be flexible for the customer’s depth of knowledge and desire for education will generate interest, respect and loyalty from the customer. In contrast, poor education or programming that makes too many assumptions about the customer’s knowledge and has ignored important messaging will sour the experience.

Perception of Time. The ability to cut down on a customer’s perception of time is taken very seriously by environments where waiting (hospitals) or poor attitudes (returning an item that gave you a bad experience) are part of the customer’s experience in the space. Engaging content can change behavior and ultimately reduce a customer’s perception of time. However, poor execution on basic guidelines, such as the running time on a looping program being shorter than the average time a customer waits, can be a big disappointment. Customers don’t want to see the same thing twice. In addition, creating programming that does not effectively draw attention away from the customer’s purpose in the environment can backfire by making the customer even more aware of the time.

The detail that goes into each category is dependent upon the venue’s strategy with digital signage. Great care should be taken each time. Poor execution with one screen can wreck a customer’s experience in the entire environment. A bad digital signage experience can drive customers away just as fast as bad customer service.

To avoid that end, constant research and understanding will keep your digital experiences fresh and appealing for the customer and the venue.

Paul Flanigan recently formed a new consultancy, The Preset Group, with digital signage industry veterans Dave Haynes and Pat Hellberg. The group’s goal is to help established companies, media start-ups and investment groups plan and launch successful digital media networks. A regular speaker at the Digital Signage Expo, Flanigan writes about the digital signage industry at experiate.net. You can reach him at paul@experiate.net.