Signage is simply the best, most effective form of advertising for your marketing dollar. Here are a few more statistics about the benefits of signs.
Signage is so ingrained in our collective minds that most of the time we go about our daily activities without even knowing they are there. They direct us, remind us and sometimes even inspire us to make decisions each day. For local small businesses, they are a priceless way to establish an identity and gain new customers.
Signs attract new customers and alert them that you exist. Recent surveys found that many customers would have never found a business unless they had seen its sign.
Signs help your business be more profitable. Installing a new sign such as a vinyl banner or yard sign, can increase business as much as nearly 16 percent. You might consider other types of banners as well as decals and vinyl in your signage mix as well. It’s a fast, easy way to plump up your bottom line without spending a bunch of money.
Small business signs are a vital part of the community. Many new people move into your neighborhood every year—your sign encourages them to drop by your business. Over 85 percent of your customers are neighbors—they live or work within 5 miles of your business. Your customers drive past your business daily; your signage keeps you top-of-mind. Studies show that consumers are more likely to remember your business from your signage than they are from television or radio ads.
Your signage draws people in on impulse. One survey showed that up to 45 percent of people reported stopping at a business on impulse last year. You’re already making money from customers who have planned to shop at your store—why not entice a few in on impulse? You’ll gain a new customer and they’ll gain a great new place to shop.
The Benefits of Signs
Signs bring in new customers – The question was asked: How did you learn about us? The responses were: 50% On-Premise Sign, 33% Word of Mouth, 9% Newspaper, 6% Yellow Pages, 1% TV, and 1% Radio. Signs attract half of a start-up business’ new customers, 35% of passersby wouldn’t know your business was there without a sign.
Signs Increase Profits
Studies show that adding or changing a sign directly improves sales revenue. Here are the average increases in sales revenue for the Fast Food Industry: If you add one monument sign 9.3% increase and if you add a large pole sign (144 sq. ft.) 15.6% increase. And for the Retail Industry: If you add a large pole sign (144 sq. ft.) 8.6% increase, if you add a chain identity to the plaza identity sign 7.7% increase, if you add two new directional signs 8.9% increase, if you replace storefront wall sign with larger sign 7.7%.
What can signage do for you?
Research indicates that 85% of your customers live or work within a five-mile radius of your business. 17% of Best Buy’s walk in customers did so because of a sign.
Percent of Customers That Stop on Impulse:
– Larger than 400,000 sq. ft. 20% on impulse
– 100,000 – 400,000 sq. ft. 25% on impulse
– Smaller than 100,000 sq. ft. 35% on impulse
Convenience Market 40% on impulse
Discount Club/Warehouse Store 20% on impulse
Fast Food Restaurant 40% on impulse
Sit Down Restaurant 15% on impulse
Service Station 45% on impulse
Supermarket 20% on impulse
Relocation = New Customers
13% to 20% of the population moves each year, which means you have 13% to 20% new customers to attract each year through signage.
How customers know about local businesses: 35% saw it while passing, 29% always knew, 14% word of mouth, 10% advertising, 6% all other, and 7% don’t know.
Signs Compared to TV & Newspapers
Billboard – A single on-site sign costs $.02 per one-thousand views
Newspaper – A 300 line newspaper ad costs $2.81 per one-thousand views and might only reach 53% of the market
TV – A single TV ad costs $9.82 per one-thousand views and might only reach 14% of the market
One Billboard – The value of on-site signage is equal to 24 full-page newspaper ads every year.