Blog Assignment # 5

Dynamic Digital Signage - Influencing POS Behavior

Hospitality Upgrade Magazine

By: Michael Kasavana, Ph.D
10/1/2007
http://www.hospitalityupgrade.com/_magazine/magazine_Detail.asp?ID=244

Summary:

Dynamic Digital Signage (DDS) which surfaced a couple of years ago focuses on advances in “video processing and display technology." This technology is particularly good for QSR properties because it allows a restaurant to promote certain products and increase interaction with their customers – without being pushy or overwhelming to the guest. Because customers in a restaurant already made the decision to be there, DDS simply focuses influencing what that customer buys. Up-selling, branding and product bundling are the main efforts of DDS. Customers know when they are being marketed to, thus QSRs want to entertain them while informing them of menu items, preparation methods, new item introduction, modifiers, and discounts/promotions. While menu boards are non-engaging and usually are part of the background, DDS is active using audio, video, music, animations, graphics, stylized fonts and creative presentations. DDS technology compiles media files into playlists which can run until they are interrupted, change depending on the time of the day, or play randomly based on the stores demographics.

The most efficient way to implement DDS broadcasting is to by using brief broadcasts that deliver information efficiently and influence the buying decision. DDS broadcasting is designed to grab the customer’s attention and keep it implemented in their mind. Today’s customer, especially young adults, have grown up with ipods, cell phones and HDTV and subsequently, appreciate good audio/video quality outside the home. However, to effectively use DDS in a QSR, the content should be up-to-date and engaging while making sure the message delivered is in line with the audience, the companies marketing objectives and the brand.

To see how DDS affects purchasing behaviors, QSRs can use three techniques. One being POS correlation, which is displaying different messages in separate parts of the restaurant to see if they an impact on certain sales and what demographics are affected. The second technique is event-based couponing, which is to display promotional messages such as "Take a $1 off with purchase of a combo," which will encourage the buyer to look in the same area during future visits. The final technique is net impression tracking which is evaluating how much content the customer recalls after seeing the message.

DDS can be a very persuasive tool that restaurateurs can use to increase their sales. Because customers are in restaurants by choice, they can be influenced easier than those in retail settings. Restaurants can target certain markets during certain parts of the day just by simply flashing the correct banners and promotions and media content. Their products will get sold, customers will continue to be loyal and money can be earned.

Reflection:

I this DDS is such an interesting and creative technology that QSRs can utilize. It is very useful to blend DDS with the standard menu boards so that guests are almost forced to see the messages and videos. Engaging presentations will “wow” the guest and leave a lasting impression that they will hopefully remember in the future. Audio, video and stylish designs will allow the business to connect with the customer. It’s also very beneficial to display specific messages during certain times of the day to reach the different target markets. DDS can deliver these entertaining messages without being invasive on the buyer, but somehow having an impact or their purchasing decisions. This is favorable to restaurants looking to increase sales through up-selling and bundling. One McDonald’s in Chicago applied DDS to their restaurants by 1.) putting flat-screen televisions above the front counter which displayed interactive promotions, 2.) putting TVs thru-out the restaurant, encouraging customers to text messages to the system to change what they watched, which in turn saved the number to send promotional materials in the future and 3.) putting a camera and TV in PlayPlace so children could see themselves playing . I believe any QSR that utilized this technology would get positive results considering how personalized it could be. DDS is really expensive to implement into a business, however I’m sure the investment would pay off after a few years.