Investing in business signage is a proven strategy to boost sales and enhance customer engagement. Here, we delve into some notable findings from a comprehensive study by the New York Small Business Development Center (SBDC) and highlight the significant impact of on-premise signs on business performance. Contact Husky to get a quote on your next project.
Key Findings from the New York SBDC Study
1. Increase in Annual Sales Revenue:
- On average, one additional on-premise sign resulted in a 4.75% increase in annual sales revenues. This highlights how even a single sign can substantially contribute to a business's profitability.
2. Increase in Transactions:
- Adding an on-premise sign increased the annual number of transactions by 3.94%. This statistic underscores the role of signage in attracting more customers and encouraging more frequent purchases.
3. Impact of Different Sign Types:
- An additional 36-square-foot wall sign added $0.06 per transaction, whereas a 144-square-foot pole sign added $0.78 per transaction. Larger, more prominent signs evidently make a more significant impact on transaction values.
4. Effect on Unsigned Building Sides:
- Adding signage to previously unsigned sides of buildings increased sales from 2.5% to 7.1%. This demonstrates the importance of maximizing visibility from all angles to capture more customer attention.
5. Revenue Impact of Pole Signs:
- Installing a new pole sign with the business's name led to revenue increases ranging from 4.9% to 12.3%. These signs are particularly effective at reaching passing traffic and boosting visibility.
6. Benefits of Directional Signs:
- Small, reflective directional signs, which help shoppers find entrance and exit routes, increased weekly sales by 4.0% to 12.4%. These signs improve the overall shopping experience by making navigation easier.
The findings from the New York SBDC study are consistent with modern data suggesting that signage remains a crucial element of business marketing strategies of increasing visibility and brand recognition, gaining customer attraction and retention, and being cost-effective.
Investing in business signage is a strategy backed by substantial evidence, as highlighted by the New York SBDC study. Businesses that leverage well-designed, strategically placed signs can expect significant increases in sales, transactions, and customer engagement. Modern advancements in signage technology further amplify these benefits, making signage an indispensable part of a successful business strategy.
For more detailed insights, refer to the handbook “What’s Your Signage?: How On-Premise Signs Help Small Businesses Tap Into a Hidden Profit Center” developed by The New York State Small Business Development Center www.nyssbdc.org.
