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Signage is a crucial component of one’s business plan and marketing and brand strategy, and thus its important to give it the full consideration it deserves. After all it’s an essential component of your overall marketing strategy, as it helps passersby and customers recognize your brand, find your business, and ideally encourages them to shop at your business. If you’re working with an expert sign business such as Ortwein Sign, we’ll put all of our skills into designing, fabricating, and installing your sign to ensure its the most effective it can be for your business.

Even so you may still want to look at the ROI of your signage, to truly assess how your signage helps your business goals, whether that means more foot traffic, higher sales, or increased brand visibility. In this guide, we’ve broken down ways that you can measure the ROI of your signage.

Set Objectives

First of all before calculating your ROI, you must define your aims and goals with your signage. By understanding your goal you’ll know what metrics you need to calculate and assess to identify success.

Calculate Foot Traffic to Your Business

Perhaps you want to drive traffic to your business in certain hours, or at an increased rate overall. If for instance you want to increase foot traffic by 20%, then you’ll need to have the means to measure your clientele. You might need counters by the door, surveillance that assists, or perhaps you’ll need to manually count the number of visitors coming into your store.

Track Sales Before and After Signage Is Installed/Refreshed

If you’re looking at measuring the rate of sales, and hoping for an increase after the addition of signage, or signage refresh, then you’ll want to look at your sales before your signage is installed and after your signage.

Customer Surveys Provide Qualitative Data

Customer surveys can also assist you determine the effectiveness of your signage. You can query your customers on whether your signage drew them into your store, whether it impacted their purchasing decisions, and if you’re using signage to promote a sale or promotion whether they noticed and/or remembered that promotion from your signage.

Promotions, Sales, and Coupon Codes and Signs

If you are using signage to promote a specific sale, promotion, or item, you can track the mentions of said promotions or in the case of a coupon code track the uses of said coupon.

Tracking Signage Engagement with Website Analytics

Even if you have a brick and mortar business that you work out of, you may want to drive traffic to your website. By using signage you can implement this strategy, and with the advent of QR codes in particular you are able to track the engagements with these codes. Therefore you can implement these in your business, and look at your web traffic to confirm the number of times a QR code was scanned and thus drove traffic to the site or page you directed people to.

Social Media and Signage

Similarly you can either use QR codes to direct customers in your store to your social media, or you can use hashtags on signs, or use statement signs that customers will want to take pictures of, and you can track the posts and engagement online across a myriad of existing social media platforms.

Brand Awareness

You may be hoping to increase your brand awareness with your signage, in which case through surveys, and social media and website traffic analysis, you can get a better picture if your brand profile and familiarity increased and improved after the addition of signage.

Comparative Analysis of Signage

To do a comparative analysis of your signage, you will want to compare the cost of signage installation and maintenance against the revenue generated as a direct result of the signage. Calculate the ROI by dividing the net profit (revenue generated from signage minus signage costs) by the signage costs.

Consider the Timing and Time Frame

Remember that though your signage may seem dramatically different from one day to the next, if you’re installing entirely new branding, or refreshing signage, that its impact may take time. So consider the length of time too that you should calculate the effects of signage, as it may impact the results of your analysis.

A/B Testing of Business Signage

Though it’s not practical for all businesses, especially with permanent signage, if you have the opportunity you may want to consider A/B testing your signage to determine its comparative effectiveness. If this isn’t practical but you do implement temporary signage as part of your brand strategy and marketing, then perhaps implement A/B testing with this signage instead.

Call the Experts at Ortwein Sign

If perhaps this is too complex, or you simply do not have the time to fully assess your signage ROI, let us help. We use our expertise day in and day out to provide the best signage for our clients to fully capitalize on your branding and marketing to boost the objectives you want to help your business succeed.

During the pandemic businesses across the globe were hit with supply chain issues and increased inflation. Though our supply chain issues have been largely mitigated, thanks to the reopening of states and countries post-pandemic, we are still dealing with inflation even as the Fed tries to combat it with increased rates. This can impact different businesses and industries across the world, but we wanted to highlight in particular how it has affected manufacturing in America.

Supply Chain Issues and Lingering Inflation

Again these supply chain challenges have somewhat been diminished in 2023 thankfully; however, the lingering impacts can still be felt as supply and demand forces continue to push and pull. At first there was a drastic drop in demand for manufacturing products, as projects were canceled or delayed and businesses prepared for losses of income due to this drop. Once states and countries started to return to some semblance of normalcy, and pandemic rescue funds began flowing to companies and individuals alike, demand began to spike for products such as wood, metal, and other manufacturing goods.

What happened at this point though is that many companies had not been producing these materials to the same extent due to the lack of demand. Likewise companies like China, who had a much longer, more severe lockdown than most countries, were primary providers to companies across the world, and thus there were incredibly long delays for their goods. Thus prices began to spike, and since companies needed the materials and had more cash, they were willing to pay those higher prices. This is in effect what drives inflation, and so the costs of materials continued to increase. This is parallel with what was happening with consumer goods as well.

Supply chains have balanced out once again, though some have shifted for better, and for worse, but no longer do we see such incredible delays for products, goods, and materials anymore.

Inflation alas has continued to linger on, even as the sources of inflation have started to dissipate. Though Fed Chair Jerome Powell, and his cohorts, are continuing to fight inflation, while hoping to avoid tipping the country into recession, people, businesses, and yes manufacturers, are having to navigate this new world.

As such we wanted to highlight some of the areas that are most concerning to manufacturers now, and what continues to impact the industry and its pricing for all variety of manufactured products.

Hiring and Retaining Workers in a Hot Labor Market

At the start of the pandemic many of the most-at-risk workers were the doctors and nurses of course, but also included among them were the service industry workers, and essential industry employees, who day in and day out would continue working throughout much of the lockdowns.

As the risk lingered on, and companies struggled for employees, higher wages became standard for some businesses. On a micro level this is incredible for people looking for wages to support their families. On a macro level this can still be a positive; however, it also can further increase inflation as employers earn more money to spend on products, while also leading employees to move out of low-wage industries or low-wage jobs for higher wages. The shift in workers impacted some industries in particular, such as service and retail, and these shortages helped slow down the delivery of some goods. Even industries not as directly impacted though still had to raise wages to compete, and for manufacturing companies some of those raises could impact costs of services.

More recently the work of the Fed to increase interest rates appears to have cooled down the labor market somewhat; however, it’s still a gradual process and one that must be planned delicately so as to not tilt the country into a recession. What will result from these interest rate hikes ultimately is yet to be seen as of this writing.

Cost of Vehicles: New and Used

One cost increase that has been felt across the board, for consumers and businesses, is the high price of new and used vehicles. Story after story of consumers trying to take their car for every mile they can have become commonplace, and this is true for business as well.

However even an existing fleet of vehicles can impact a business, as the cost of repairs is not light either. Especially when running a business, such as a manufacturing company, where materials may need to be moved or installed with an existing fleet, those costs can add up.

Cost of Materials: Mixed

One positive we have seen, though it can and has fluctuated, in manufacturing in particular is that we have witnessed the cost of certain products such as wood and steel largely returning to lower, pre-pandemic prices.

Cost of Fuel: Still High

According to the U.S. Energy Information Administration the average cost of retail gasoline prices bottomed out at the start of the Great Recession and at the start of the pandemic only to then climb dramatically in the months since. Thus the price reached its peak height of 5.05 per gallon in June 2022, and though it’s gone down since it’s still higher than it has been since 2015. Fuel costs can have an impact not just on workers, who have to commute to their jobs, but also on the businesses truck costs. Even if they’re using a third party company to handle shipping these added fuel costs will often be passed on to the business.

What’s Next for Manufacturing

Currently as of this writing the debt ceiling debate lingers large on the economy. Whether America defaults may have a substantial impact on our economy.

In addition to that though we also have high interest rates, set by the Federal Reserve to lower borrowing, and we have continued international uncertainty with the war in Ukraine, the strained relationship with China, and always the potential for uncertainty around the world.

On the more positive side, for manufacturing in particular, there’s been a boost over the last two administrations to make products in America in a way that’s not been the case in generations. With recent bipartisan bills such as the CHIPS act, the revised NAFTA agreement, and the Infrastructure Investment and Jobs Act, the focus has been on prioritizing American industry and workers. This hopefully will have a positive impact on manufacturing and on the country as a whole.

Though each franchise business is unique and has its own guidelines and procedures determined by their parent company, what is common between them all is a sense of uniformity with branding across the branches owned by the franchisees. That way no matter whether you’re in a franchise in Miami, Florida, or Juneau, Alaska, you recognize what establishment you are in and you get a similar sense of place. If you are a first-time franchise owner you’ll be given a lot of information from your corporate headquarters to let you know what you can and cannot do with your business. Today we wanted to break down what those guidelines could look like as it relates to branding, exterior signage, and interior signage.

Exterior Signs

Though the physical location of a business can vary drastically, especially in rural places compared to metro cities, the exterior signage will usually be incredibly consistent. One example of this can be found with Starbucks. Starbucks may have stand alone properties in suburban areas, and sometimes they’ll take up a tenant space in a larger commercial property. While the larger, suburban business space may have more signs and a drive-thru (not typical for all Starbucks), there will usually be one or more signs on the building itself that you can find at every Starbucks in the world.

Starbucks as well is a great example as they over the last few decades have increasingly franchised into other businesses, such as Target, Food City, hospitals, and colleges and universities. This means they are not the dominant business in the property; however, they still need to brand their space and traditionally do so with exterior signage to let visitors know they are present.

Interior Signs

The world of interior signs is often far more vast than people realize, and it can include everything from ADA signs, to menu boards, vinyl graphics, electronic message centers, electronic kiosks, environmental graphics (i.e. wall art or mural art), and interior neon and LED signs.

While the interior of a business allows opportunities for franchises to customize their space to match their community, it’s also a space to use familiar branding and signs to create a familiar sense of place.

Panda Express is one such business that due to the layout and interior colors and graphics presents very quickly to customers a sense of who Panda Express is and a familiarity with all other Panda Express locations. Even in universities with Panda Express, where there is often less physical space and perhaps competing restaurants in a food court environment, once you approach the cashier you’ll see familiar colors, designs, vinyl/graphics, and menu colors.

This isn’t just true with fast food establishments though, as franchises include everything from hotels to escape rooms to travel and gas centers and more. Hotels especially are often licensing the branding from a major company, be it Marriott or Hilton, but the hotel itself is run by a franchisee and not the corporation itself.

No matter how small the business or how large the property is, the use of interior signs and branding can help visitors immediately feel at home in these businesses.

Exceptions to the Rule

Again each franchise has their own rules, but there have been a few notable exceptions to the rule that “all must match”, as some corporations have now started to allow for increased personalization to promote community ties.

In 2021 for instance, 7-Eleven reached out to local artists to commission murals for their stores exteriors and interiors.

“We kicked off our mural program with a local artist at a new 7-Eleven Evolution Store, an experiential testing ground where we test new concepts, products and services before we scale them across the 7-Eleven system,” said 7-Eleven Senior Vice President and Chief Marketing Officer Marissa Jarratt. “It’s been a hit so far and I’ve seen my fair share of excited customers stop what they’re doing to take Instagram-worthy photos in front of the larger-than-life mural. This positive customer behavior and feedback has encouraged us to expand the concept to more stores in 2021.””

(Source: https://corp.7-eleven.com/corp-press-releases/mural-mania-7-eleven-adds-local-color-to-stores-across-america)

Covid’s Impact on Franchisee’s Signs

Covid also meant individual franchisees had to adapt especially to any local restrictions imposed by their municipalities. Though this hasn’t changed permanent signs as much as it has temporary, it still means that you can walk into one Taco Bell and see an touchscreen menu board off to one side, while the next may simply have antimicrobial screens at the counter.

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For a fun example showing specific exceptions to the rule with McDonald’s check out BoredPanda.com’s “Non-Standard McDonald’s Architectural Design” list.

Signs are a key part of a business owner’s plan and assets, and like the rest of your property, business owners will often want to make sure their signage is insured.

In this blog, we breakdown what you need to know for your signage insurance.

What type of insurance covers my signage?

Signage is covered under the umbrella of “Commercial Property Insurance”.

According to Nationwide.com,

“Commercial Property Insurance covers your business against everything from a minor hiccup to a major loss.

For example: 

• A fire could destroy your building and the contents inside
• A burst water pipe could damage valuable documents
• A storm could damage your outdoor sign”

Weather in particular is a common reason for signs to be damaged. Wind, hail, snow, earthquakes, and tornadoes are all reasons why a sign may incur damage.

Is Commercial Property Insurance different from General Liability Insurance?

TheHartford.com defines General Liability Insurance as insurance that “helps protect you from claims that your business caused bodily injury or property damage. It can also protect you if someone sues you for advertising injury.”

This is different from Commercial Property Insurance, which “covers your business’ physical location and equipment, whether you own or lease it.”

These insurances may often be paired together in a package by your insurance company; however, you should double check with them to be sure.

Who provides Commercial Property Insurance?

Commercial property insurance is covered by many large and small insurance companies alike.

Does insurance differ for on-premise signs and off-premise signs?

Depending on your lease agreement, you may need to acquire insurance that covers your on-premise signage.

If you have a roadside sign like an Electronic Message Center then you should consider insurance for your sign. These signs are often more costly than on-premise signs, and their positioning can sometimes make them easier targets for weather, accidents, and vandalism.

I’m leasing a tenant space in a commercial property development. Do I cover my sign’s insurance or does my landlord?

While lease agreements may vary, you as a tenant are generally required to purchase the signs for your business. Therefore you are also the ones required to secure commercial property development insurance to cover said signage.

Does my sign company need to engage with my insurance company when my sign is damaged?

In the case of a damaged sign, if it needs to be fully replaced then your insurance company may reach out to the fabricators of the sign to determine the original cost. If it needs to be repaired then they may reach out to a local sign company to get a quote for the potential repair costs.

How much will my sign coverage cost?

According to Obierisk.com, costs will be determined largely by “the size and location of the sign.” Also under consideration will be if the sign is “in an area prone to extreme weather, such as wind, which could damage the sign.”