Digital Signage. By definition this term means something as variable as putting information on a screen. This is accomplished through means such as inserting a flash card into a modern computer, attaching a computer and running a slideshow, or a full blown system that is managed through third party software and may even integrate with live television.

Digital Signage is often called by other names such as Kiosk, Digital Video, Marketing Board, or Digital Thingy. But the basic principles and purposes are the same -- Communication.

The question most people ask is, does it work?

As a communication tool, when placed in the right location in your business, digital signage can relay information pertaining to specials, services and even broadcast important alerts in an emergency. And digital signage can help your business look modern and up to date without a large investment.

No matter what that all means, people still ask -- does it work? And what they are referring to is money. Does it help me make money. A tangible ROI as opposed to an intrinsic ROI.

The answer is YES.

Subway did a test in the Los Angeles area in 500 locations in 2010 and announce today that the test was successful in selling more products and had created a positive customer experience.

Bob Grewal, SUBWAY® Franchisee and Development Agent for the Los Angeles area, states, “We have experienced rapid integration into our 500 restaurants. We are confident that the addition of digital signage will enable us to better communicate with our diverse customers and drive future growth.”

Dennis Clabby, IPC’s Vice President of Purchasing, commenting on the network’s growth, adds, “Subway’s goal is to continually increase the value of the franchisees’ investment in the restaurant and to help them successfully compete in the QSR industry. With digital signage, we are building a viable, cost-effective program to help our franchisees reach their customers with timely product and promotional messages that influence customer behavior at the counter and increase sales. Designed to increase store profitability, the strong positive response of the franchisees and the rapid growth of this program is very encouraging.”

Subway would not invest the capital needed to not only install the system at thousands of restaurants across the country, but also maintain the system through licensing agreements for the foreseeable future if there wasn't a tangible and intangible ROI.

Digital Signage will help communicate with your existing customers in a non-pressure medium that has been proven to be effective.

Here are some more statistics about Digital Signage from the Digital Signage Expo 2012:

• 70% of US residents aged 12 or older have seen a digital video display in a public venue in the past month
• 52% recall seeing one in the past week (TV has a 32% recall rate, Magazines have a 21% recall rate)
• 47% of those who have seen digital signage in the past 30 days specifically recall seeing the ad
• 1 in 5 of those who have seen a digital ad say they made an unplanned purchase after seeing and item featured
• Digital Signage, unlike ads online, cannot be blocked by software
• 59% of people who came in contact with digital signage in multiple locations later wanted to learn more about the topic

Sources: webadvantage.net, solara360.com, gaebler.com, halloutdooradvertising.com, powerhomebiz.com, nationalbusiness.org

Whether you are running a slideshow or full blown system, the impact of digital signage will vary. Mixing a variety of sources such as news and weather draws people's attention to the system and creates value so it isn't ignored. In most situations, content that is always selling, lacks value and loses the customer focus. Balance in content is key to the success of your investment.

Todd Katcher
Digital Dealership System
c: 615.669.5244
skype: sdm.todd
twitter: @digitaldealers
web: www.digitaldealershipsystem.com
blog: www.fouronthefloorblog.com

Ladies' night at the local bar includes free drinks for the ladies.
What's the intention?
Where the women go, the men will follow – and the men will pay.

Ladies' Day at the car wash where all women receive $2 off their extreme wash.
The next day is Men's Day.

Does anyone see these efforts as "misguided"?

In a bar, the women are being used as bait. With the car wash, they get the same special that the men get, just on a different day.

How special do the women feel now?

There is a lot of talk about appealing to women throughout the industry. There are speakers, women's groups, articles written, guidelines for speaking to women, and consultants paid for such things.

These efforts aren't pushing the envelope far enough and in most situations aren't changing anything regarding the perception of women from the dealership.

Is it just a PR Move?

When it comes to marketing – any type of marketing – every part of your staff and every part of your marketing must carry out the message at every touch point across your dealership and brand.

Having a Ladies' special, such as Half-Off Oil Changes on Wednesday, says a lot about the dealership and marketing – and none of it is good.

When it comes to your marketing efforts, it's either ALL or NOTHING!

What does this promotion say about your company?

Half-Off Oil Changes for Ladies on Wednesday

• Sorry guys – you pay full price all the time
• Ladies – we need to incent you to use our services, but only “care” one day a week
• If you want anything other then an oil change or Wednesday's don't work for you, you are out of luck
• Wednesday's are our slow day, so we are going to try to boost it up Ladies – we love you part of the way, but not completely

To fully understand the all or nothing sense in marketing, let's take a real world example of a dealership that is truly embracing a target market by not only offering specials, but clinics and lifestyle services.

This dealership includes the marketing on Digital Screens inside the dealership, banners, on-hold announcements, radio and print. Every employee at the dealership completely embraces the marketing efforts and it is seen in the community as a leader. And guess what – it's not all about the cars. Free manicures, pedicures, nutrition clinics are added to the weekly marketing efforts to complete the marketing cycle.

Don Hattan Chevrolet in Wichita, KS is doing marketing all the way and is an industry leader, showing others how to progressively move away from past stigmas of a male dominated industry. Jill Hattan, General Manager, says:

The program brings in 200+ people per week into the dealership. We utilize this marketing tool ahead of everything else in order to create an identity in the community. The women that come to our events own Chevy's, but also own other types of cars too. We educate them on simple maintenance and upkeep, take care of them with manicures and pedicures and really dedicate a lot of efforts to making them feel comfortable, not only in our dealership, but with cars in general.

Read more about what Jill and her team are doing here:
http://www.donhattanchevrolet.com/Ladies-Day-Specials

And check out her home page to see how she includes "Ladies" in every part of the marketing efforts! It's even on her voicemail when you call.
http://www.donhattanchevrolet.com

Jill and her team are an example that other dealerships and other industries should follow. If the bar and car wash want to offer a promotion to the ladies, then do it all the way without degrading the people you are supposively marketing to.

Whatever your marketing efforts are that say you are different, make sure people know about it and see it everywhere they contact your dealership. Print, Digital, Signs, Online and your staff need to all be aligned to get the most impact and “good will” for your efforts.

Todd Katcher
Digital Dealership System
c: 615.669.5244
skype: sdm.todd
twitter: @digitaldealers
web: www.digitaldealershipsystem.com
blog: www.fouronthefloorblog.com

ROI is for Losers

Now that I have your attention, let's down play this a little. ROI isn't ALWAYS important!

Are you so focused on ROI that you fail to see the “good will” benefits of your actions?

Not everything in life and dealerships is based on the return. I believe faith will provide many examples of the greater returns that come when you aren't asking for them.

Is it practical to do things in your business and life without expecting a tangible return on your investment? Your investment may be time, money or just a smile. Are you expecting something back in your pocket for every single time you give?

There is a theory of good will that is sweeping the nation – maybe due to the Liberty Mutual Ad here. It's more impactful with the music, so turn up your speakers.

So how are you translating this to the finer points in your dealership?

Your coffee service? Is the coffee hot and fresh with all the fixins?
Your magazines, brochures, etc.? Are they in order and up to date?
Have you smiled and said hello without any ulterior motive?
Is your dealership clean and tidy?
Does the kids play area offer hand sanitizer?
Do signs in the dealership current?
When was the last time you thanked an employee? (after a sale not included)

When someone speaks to you, is your first thought, “What's my return?”

Such limiting thoughts can be MORE COSTLY to your business going forward then understanding the true mission and needs.

Not everything you do throughout the day needs to return an ROI. When it comes to people and communication, there is no tangible dollar amount that is returned. There may be a cost, even a financial one – but if you are so blinded by the ROI – you may just miss an opportunity that will pay true dividends in the long run.

Todd Katcher
Digital Dealership System
http://www.digitaldealershipsystem.com
615.669.5244
 

How many TV's are in your Dealership?

What is on those TV's?

I ventured into a Toyota dealership that was just completely renovated. The manager said they spent over $2M on everything including 40' ceilings in the showroom that were amazingly accented by Toyota red walls and the thinnest TV's that I have ever seen outside of Best Buy.

And what was on those TV's? – SPORTS

Back in the lounge they had two more TV's – SPORTS

In the second lounge off of the service bay, more TV's – SPORTS

So, I had to ask. Why do you show sports on all your TV's. At this point, I realized that a meeting of the minds was going to be difficult, so educating myself was the primary goal.

The General Manager, who was related to the owner, said that the sales people watch them and on weekends they get good traffic from people wanting to catch the games during big basketball games and home football games.

The confused look on my face prompted the question, “Why do you ask?”

I hate it when people answer a question with a question, so I said, “Does having people come in your dealership to watch TV help sales?” (I can be a bit of a wise A**)

He said no, they come for the games, not the cars.

We can go on and on, but these 60” LED (not LCD) TV's were not cheap. Not everything you do in the dealership needs to have a direct ROI, and aesthetics is one of them. But, dealerships spend millions every year updating their facilities to make it more accommodating and it's been proven that same store sales increase after renovating.

TV's on the wall that admittedly have no value are indeed – of no value.

So what should a dealership do with these great new TV's. TALK TO YOUR CUSTOMERS. Tell them about products, services, specials, financing options, current marketing, and why your dealership is better then the others out there.

You can do this in several ways from a powerpoint presentation, a dvd loop, usb slideshow, or full blown digital signage/media broadcast. Make the message count by making it more about the dealership then about specials. The signage rule of thumb calls for a 50/50 split between advertising and content. Create value to your signage by calling on general car and service facts.

And by all means, I would strongly recommend not showing your TV ads inside the dealership. Those ads were professionally designed to get people into a dealership. Once they are already inside, the commercial did it's job – now it's time to substantiate your message with branding and marketing.

ESPN is great. If you miss part of it, you can guarantee an update within 15 minutes. But does it sell cars inside your dealership. If you want to show TV, and you have a setup like this dealership does, then maybe splitting the TV's with marketing – at least showing something other then 100% TV – show your message; relate to your customers; and the ROI will come in time.

And don't even get me started about how 100 TV's with ESPN neglects your female customers. That will be another entry.

Todd Katcher
Digital Dealership System
http://www.digitaldealershipsystem.com
615.669.5244

What was your percentage of your marketing dollar spent on Newspaper advertising 10 years ago? How has that changed today?

Do you still print paper and vinyl signs in your dealership that never change?

While your marketing budget for bringing people inside the dealership had probably changed dramatically over the last 10 years, most dealerships are still using the same pop-up banners and standard paper taped to the wall to notify customers of pricing, your competitive advantage and marketing messages. In most situations, you visited a seminar or convention – got an idea and made a sign --- and haven't changed it since.

Digital Marketing utilizing the internet changes quickly, sometimes daily, allowing your content to be fresh and allowing your message to have value. If your message was the same day in and day out, why would someone click or visit your website or click on your marketing message.

Why don't you bring this technology into the dealership?

Does your service area price list still look the same as 10 years ago? Maybe it's a printout on a poster or those sliding pricing boards. Is this the only information that you have to communicate to your customers? Maybe not – so you add some more signage by printing off more paper. Maybe you even got creative and printed it on color paper!

Really? Is color paper the best reflection of your business.

Internal digital signage will not only enhance the dealership, but will also allow you to change the message as needed, provide additional information and incentives, and educate your customers. And if nothing else, it's more professional then printing on colored paper.

There are many forms of internal signage. Some examples range from a simple slide show to full blown digital signage solution that is installed throughout your dealership providing generic content such as news and weather – as well as pricing, new car information, service and finance specials, incentives and even integrating with your television broadcast.

The digital sign solution that is best for you will depend on your technology expertise, budget and the amount of time you want to spend updating the system. If the latter answer is “NONE”, then you need to look for a third party solution.

Whatever solution you choose, realize that while you have seen a value in digitizing your impression outside of your dealership, it is as important to spend some budget modernizing your marketing inside the dealership. Modernizing the inside of your dealership with digital signage is both cost effective and provides a closed-loop impact on your other marketing efforts.

Todd Katcher
Digital Dealership System
http://www.digitaldealershipsystem.com
615.669.5244

While visiting 250 dealerships in the last three months, I drank a lot of coffee. It's one of the perks of visiting dealerships these days, is that everyone has coffee.

But, while some dealerships just have coffee, others make coffee... and offer everything from fresh baked goods to sandwiches as well.

The average customer, like the average consultant, expects two things while waiting in the lounge -- TV and Coffee. How the dealership handles these aspects of customer expectation reflects highly on the dealership.

How great?

If someone is getting service done at the dealership and the experience in the lounge isn't just right, do you think they will be back?

Here are some points that impact the image:
Is the coffee hot?
Is the coffee fresh?
Are there plenty of cups, creamers, sugars?
Is the area clean?

Several of the dealerships that I walked into actual was charging for coffee. Plain coffee, from a machine for 25c. The expectation of a customer is that you have TV and Coffee in your lounge -- and that they both are free. Most customers feel that dealerships are making tons of money, at least more then the customer is.

I can imagine that a customer that is charged 25c for coffee is disgusted by this fact and won't return for service if given the option.

In a competitive service environment, the lounge experience needs to be exceptional. Self-serve coffee from individual PODS is an ideal system to start with and it only goes up from there. Some dealerships actually have mini coffee houses inside the dealerships, offering customized coffee experiences with scents that permeate the entire service area. Isn't the aroma of coffee better then oil and smoke?

The clean, well organized and stocked coffee area is a direct reflection of the dealership and translates to sales. The entire staff must be responsible for keeping the coffee area clean and cluttered free. It just makes sense, and provides another way to help your dealership leave a lasting impression on the customer.

A bad coffee experience can indeed stain your image.

What does your coffee say about how you feel about your customers?