In the sign industry, we know that each sign type has their own unique important function to play in the role of a business. Some signs help provide landmarks that people then use to identify where a business or facility is located at. Others help highlight the function of the business and what services and products the business offers. Some signs are more temporary and help illuminate any ongoing sales or changes in hours. Together all of these signs in tandem are meant to help promote a business, to help encourage customers to visit, to encourage sales, and to leave a familiar mark in the mind of the consumers the next time they see the business’s signage.

Anecdotal evidence as to their effectiveness is important of course, and we’ve spoken previously about how to measure such success; however, we also like to delve into research that explores the benefits of signage further. In a paper by assistant professors Ms. Vishakha Joseph and Mr. Atul Parak, they look across an array of existing literature on the subject of promotional signage to better understand the effects on promotional signage on customer behavior.

Visual Merchandising

According to the authors of the study, “Visual merchandising is a key aspect of retail marketing that focuses on the design and presentation of a store’s merchandise and environment to attract and engage customers. Signage plays an essential role in visual merchandising, as it communicates important information to customers, creates a cohesive brand image, and helps guide customers through the store.”

They go on to explain that promotional signage, “can be in the form of posters, banners, or displays” that are placed in front of customers at various positions in or around the store. These signs can also help share information that the business would like the customer to see.

Is Promotional Signage Effective?

The authors pooled the existing research to answer four questions, among them “assess the effectiveness of promotional signage in increasing sales, brand awareness, and consumer engagement.”

Study’s Conclusion

Their conclusion is that, “Promotional signage has a significant positive impact on consumer behavior, including increasing purchase intention and sales. The design and placement of promotional signage are crucial factors that determine its effectiveness.”

Though the authors suggest more research is needed to more fully determine the impact of such signage, and how variability may change its effectiveness, this is already a positive look at the use of promotionals signage in a business and its ability to affect consumers behavior.