Showroom Design and Trends


Friday, September 9th, 2011

Out is In

Opportunities worth checking out abound for retailers looking to capture a piece of the over five billion dollar industry focused on furnishings for outdoor spaces.

Outdoor rooms continue to grow in popularity as the line between interior and exterior living blurs. Sofas, loveseats, lounge chairs and storage unit tables all are constructed of cast and extruded aluminum to last in the out of doors.

Creating outdoor rooms and decorating outdoor spaces with furnishings built for the out-of-doors actually has been around for decades. However, today this popular consumer trend has reached a level of sophistication beyond anything consumers or retailers could have imagined. Estimated at over 5 billion dollars in retail sales, the casual marketplace offers a prime opportunity for traditional furnishings retailers. “Traditional furniture stores are benefitting through the introduction of casual furnishings not only with individual sales; but also as they are able to provide a complete living experience,” said Tami Newton, sales and marketing manager for wicker / rattan designer and manufacturer, Palm Springs Rattan and Garden Classics, Largo, Fla. As the line between interior and exterior living continues to blur; those retailers that embrace this concept could find themselves emerging as the destination for the total home.

Trends for taking advantage of the opportunities the outdoor category holds span from construction to presentation. While known for taking a cue from the indoor category; casual furnishings also include a selection of trends that are uniquely “Out” there.

Pride Family Brands Palermo Deep Seating

The Palermo from Pride Family Brands presents the latest “curvy-couch” option that is now available for outdoor conversation and relaxation. Durability reigns as the set is constructed of weather resistant wrought aluminum and solution dyed Sunbrella fabric cushions.

Construction Trends. From cast aluminum to wicker to wood, the prevailing trend in all outdoor construction relates to greater durability and maintaining lasting looks. Ranking just behind comfort, durability and ease of maintenance scored high in a 2010 outdoor living survey co-sponsored by HGTV that asked consumers what would entice them to spend more on outdoor furnishings. For the traditional furnishings retailer selecting the highest construction quality is key to success. High end options are available with durability and low maintenance features throughout.
All-weather wicker construction is well known for delivering durability and ease of care in traditional pieces as well as the growing number of contemporary styles. A recent trend includes frosted colorations. Although natural and bright white pieces exist, oyster or frosted sea glass colored wicker currently are capturing attention.

In metals, cast aluminum continues to provide superior outdoor life. However, with the rise in raw material costs, this category is being challenged. Options to attract today’s homeowners are being offered through the crafting of slender wrought aluminum designs as well as combining extruded aluminum and wood components resulting in attractive price points.

In wood, teak continues to be a luxury choice; but today’s excitement is found in looks that mirror fine interior furnishings. With elegantly carved details and all-weather wicker seat insets, pieces are being crafted for decor inside or out.

As a trend in outdoor, ironically, sustainability has a ways to go. Ranked 11th in the consumer survey, just below the ability for furnishings to rock or glide, sustainability has not quite reached the point at which consumers are willing to pay more for it. That is not to say that eco-friendly materials and manufacturing processes are not available in casual products. Across the industry, green products and practices can be found. Examples include unique resin designs from recycled materials and reuse furnishings from wood components.

Terrene from The Rug Market America’s Disney Resort line

Accessorizing displays of outdoor furnishings can include artwork to floor coverings – all built for long exterior life. Pictured – Terrene from The Rug Market America’s Disney Resort line.

Design Trends. Trends in outdoor design styles that are garnering attention encompass old world to ultra contemporary. Yet, as with interior offerings, the ability to mix things up also is growing in popularity. Collections are being introduced featuring a depth of dining and conversation seating options prime for creating eclectic groupings.

Among dining seating, formal styling with single seat cushioning and decorative backs is continuing as a trend. In deep seating selections, curves rule. Crescent shaped sofas and love seats providing more convenient conversation are definitely hot.

Although color gurus may see a pink as the color for 2011; nothing sells better in outdoor than neutral and natural colorations in finishes and fabrics. Whether for conversational deep seating or dining, research shows that brown encompasses 57 percent of all finishes sold. Black comes in second at 33 percent. In cushion fabrics, green ranks highest with brown taking second place for those who replaced fabric in 2010. Adding splashes of color to outdoor decor is done in the same way as within interior rooms; through pillows and floor coverings. Both of which are available in unending design options for outdoor living with the use of fade resistant and stain resistant solution dyed fabrics and yarns.

Sales Trends. Today’s marketplace for casual furnishings does exhibit a wide pricing divide with the median dining set falling around $400. The good news for specialty casual furnishings retailers is that the affluent buyers whose purchases far exceed the median continue to be a receptive audience. In 2010, 29 percent of dining set buyers were from households with incomes of $100,000 or more. As this segment comprises 50 percent of all dining set sales, it equates to a viable and growing market.

All weather wicker offers durability as well as contemporary styling. Colorful cushions and decorative pillows add splashes of color to natural finishes and opportunity for seasonal updating.

Additional research by industry trade publication, Casual Living, and New York based Easty Analytic Software, Inc. published earlier in 2011 noted positive sales growth forecasted nationwide with regard to the number of households looking to buy casual furnishings in 2011.

Per the survey, the South is forecasted to see 2.5 percent growth, with 2.3 percent for the Northeast, and the Midwest, although at the lowest percentage, can look forward to a 2.2 percent increase. Casual furnishings are realizing positive growth across the nation as 2.7 million households planned to purchase a dining set this year.

In response to this forecasted growth, casual furnishing manufacturers are not only putting on their “A” game with regard to products and performance; but many also are incorporating practices that answer the challenges of seasonality inherent in the segment. Increasing numbers of manufacturers, especially those with domestic or semi domestic manufacturing, are offering Express Shipping programs with delivery in as little as 15-20 working days.

One such program is offered by casual furniture manufacturer, Pride Family Brands, Hollywood, Fla. “In a seasonal business, reacting quickly to consumer requests may mean the difference between making a sale or not for many of our retailers,” said Rory Rehmert, vice president of sales and marketing for Pride Family Brands and chairman of the board of the International Casual Furnishings Association. “Express shipment programs are recognized by retailers as an opportunity to bring in products with proven sales history quickly in anticipation of sales promotions or to fulfill direct customer requests.”

Presentation Trends. Keeping things fresh is not news to furnishings retailers; but with decor for outdoor spaces and the limited sales timeframe, the importance cannot be underestimated. Retailers investing in the casual furnishings segment are finding greater success in not only making these items the focus during the prime selling season; but remerchandising often.

Casual retailers have found that on average customers shop a single store three to four times before making a casual furniture purchase. Enticing these shoppers by keeping displays fresh is a tip they share. “By re-merchandising each of our casual furniture selling floors a minimum of four times in-season, it gives the customer the feeling they are seeing something new and fresh, and can regenerate their enthusiasm for shopping Laacke & Joys ,” said Mary Mann, vice president, purchasing for the Wisconsin retailer.

With accessories built for the outdoors, personalizing living spaces is no longer only the option of interior rooms. These durable additions can add function and excitement to showroom floors. Traditional furniture stores also can incorporate exterior accessories into interior displays to illustrate the versatility and multi-use possibilities available.

Out is in. Capturing the potential of the growing outdoor room marketplace is an opportunity perfectly suited for the traditional furniture retailer. From casual manufacturing partners offering education and sales assistance to products creating consumer excitement and demand, the retail world of outdoor, as never before, is truly in.

By Laurie Rudd, casual industry veteran and owner of Laurie Rudd Public Relations and Marketing, Winterville, NC. www.laurieruddpr.com

Thursday, July 21st, 2011

Cool Down with Hot New Summer Colors

Summer is here with an array of new hues. Frivolous is out. Upbeat and realistic is in. Inspirations come from nature, moving away from bling toward a hopeful future.

Sparkling turquoise and sky inspired blues lead the delicious minty greens and honey influenced browns to soft grey and cream. To top off the palette are eggplant, plum and a subtle fuchsia for pop and flavor.

The Color Marketing Group [CMG] named this honey amber as color of the year. It is rich and comforting combining beautifully with fantasy brights, whites, and subdued grays.

Revealing the meaning of the Summer Palette

Color authorities know there are secret meanings in color and palette preference reflects the buying mood of the consumer. So what does this palette say?

Honey amber is comforting, grounded and yet luxurious. It’s an honest color that reflects the longing for stability.

 

Turquoise sky blue is cool yet lively and fun. Blue has many hidden meanings but in this palette it represents optimism, playfulness and desire for security.

 

Greens are a cooling natural neutral. Since our hunter gatherer days this color has meant abundance of resources. It’s the color of refuge.

 

Purple is long known to be impulsive and spiritual. It reflects a desire to disconnect from the hectic everyday world to retreat to solace.

 

Creams and whites are always cleansing and the reference by which all color is perceived. The consumer sincerely wants to shake off the gloom of a negative economy and start anew.
 

Grays form complex foundation neutrals now combined in new ways. Grey says understated elegance and return to thoughtfulness.

 

This palette clearly states that consumers are longing for comfort, luxury, stability and a safe refuge. They want to be treated more thoughtfully, and still somehow in the midst of all that is happening in the world, want to have fun and be light hearted.

Some tips to using color in your showroom.

  • Blue is the complement to orange which is the underlying color of most wood tones making it a wonderful accent color for spaces that are wood heavy with furniture and hardwood floors.
  • A warm taupe or beige teamed with blue will induce a feeling of trust and serenity into the environment.
  • Creams and whites added to sky blue create a sense of fresh openness,
  • Grey paired with eggplant, plum, amber, blue or cream creates understated elegance.
  • Greens go anywhere.

Updating color need not be a huge undertaking. It can be as simple as painting accent walls or adding decorative accents. Wall art, rugs and centerpieces are also good options. Adding the right color can soothe and relax your customer into a buying decision that will enhance their life and your bottom line.

Zara Stender,IDS, CMG, CID is a color expert, award winning designer and the author of several books on design and color. She is a Chairholder with the Color Marketing Group and serves on the Editorial Advisory Board of STIR Magazine, the Sherwin Williams publication for architects and designers. She often lectures on trends in color and interior design. Zaracolordesign.blogspot.com

About CMG

The Color Marketing Group is an international, not-for-profit Association of more than 1,000 Color Designers worldwide. CMG members forecast color directions one to three years in advance for all industries, manufactured products and services. www.colormarketing.org.

Wednesday, June 22nd, 2011

Incorporating Technology into Your Showroom Design

You walk into a showroom and a digital sign welcomes you with an interactive map of the store and information about the current promotion. You click on the map and are directed to the dining room displays. As you move into the formal dining room an electric fireplace lights up and images of candlelight appear on the walls, giving the room the soft glow of an elegant dinner party. In the home office area, financial news streams across a ticker, interspersed with the latest product and sale information. In the casual dining area, images of freshly-baked pastries and fresh fruit appear on the walls, evoking a feeling of that perfect family brunch. Touch-screen panels invite you to click for more information and send a signal to the sales desk that a sales associate is needed for assistance.

This interactive, visually dynamic and creative showroom is a little bit of theater, a little bit of merchandising and a lot of technology combined into a customer experience that engages, entertains, educates and sells.

Customers want a great shopping experience, and new research from the Retail Council of Canada shows that several key elements — engagement, product knowledge and brand experience (exciting displays and atmosphere) — are at the heart of how customers define their ultimate shopping experience. Without adding a lot of staff, however, can a furniture showroom provide these elements? Yes, by designing technology into the showroom.

When designing a showroom, most of us think of the physical layout, wall placement, lighting and where to place the customer service desk. If technology is considered, it’s usually no more than a list of how many computers we need and where they belong. When planning a customer-centric showroom, however, it’s critical to keep technology in the forefront. With a little creativity and planning, technology can be used to increase visual impact, establish ambiance and keep your showroom fresh and exciting while building brand and store loyalty.

Set the Stage and the Mood

Customers buy furniture when they feel an emotional attachment to an item, or when they can imagine that sofa, wall unit or chair being part of special times in their homes. Use technology to help create these feelings by setting the mood and creating ambiance. Keep using your wide-screen televisions for display, but consider changing what you show. Instead of the latest action film, match the movie to the style of the furniture. A black and white silent movie is a great way to add old-fashioned ambiance to a traditional leather room setting. (Silent movies also eliminate the loud volumes that can be distracting for some customers and for your sales team.)

If a wide-screen TV doesn’t fit the décor, use flat-panel screens, which can be hung on virtually any wall in the store. Loop the latest cooking show in your casual dining area. Have an old-fashioned love story from the 20s or 30s (think Casablanca) playing in the bedroom area with the sound turned down. Show muted images of stars and clouds in a sleep center.

Warm up your dining area by projecting images of lit candles onto a simple screen made from wax paper. The wax paper softens and diffuses the light, creating background interest and ambiance. The dance of the candles’ fire will catch the customer’s eye, yet it won’t distract from the furniture. In the bar area, use flat-panel screens to show wine being poured, glasses raised in a toast or other animated images to help set the tone of “good friends, good times”. All of these techniques help create an emotional attachment to your products and emotions sell.

Help set the mood and you’re a lot closer to making the sale.

Uptick the Level of Interest in Your Home Office Area

Create interest in the home office area by streaming Wall Street news or stock prices on a ticker. There are companies that specialize in customizing the news stream (see TickerTech.com for their line of customizable tickers) so you can also include promotions, company news and other information. (Use the same technology to stream sports scores in your home entertainment area.)

When it comes to engaging customers in a home-office environment, prop electronics just don’t cut it. Replace the fakes with real computers and wide-screen monitors. Invite the customer to log on to learn more about the configurations available in that setting. By encouraging your customer to sit at the desk and “play” on the computer, they’re actively engaged in the product experience and engagement helps make the sale.

Pique their interest. Engage them. Let them play. Use technology to draw them in then use it to educate — and sell.

Use Digital Signage to Inform and Educate

The old days of paper POP, product signs and the weekly ad pinned to a poster frame are gone, replaced by digital signs and interactive media used to inform and educate customers. This fast-growing segment of retail media allows you to relay product, store and brand messages specifically targeted at different customers in different areas of the store — at different times of the day. You may choose to have a digital ad promoting the latest bedroom line or product features, while simultaneously airing a recliner promotion in another part of the store.

But don’t stop with promotions — use digital signage to educate your customer on product features and benefits. Better yet, incorporate touch-screen technology that allows the customer to choose from a menu of information, from special-order options to the latest payment plan.

Kiosks — Silent Salespeople

Kiosks are great “silent salespeople” and should be prominently and conveniently placed throughout your showroom. Have a good web designer build you some interactive Flash-based modules to give your customers access to product information, room-planning tools or interior design tips. Interactive is the key here!

Conveniently placed kiosks can help make special order transactions easier by allowing the customer to search for more product information or search for trim and finish options. In fact, kiosks can be used for almost any form of communication from advertising messages to requests for assistance or information on a delivery date and time.

Take the Pain out of Accessorizing

Walking a customer all over the store to pick out accessories is likely to result in tired feet (yours and theirs) and lost sales. Once a customer has chosen their primary furniture pieces, lead them to a conveniently-located kiosk to surf your accessories offering via a website or intranet. Make sure you include images of the accessories used in numerous settings so your customer can visualize the final effect. Build your accessories site with a “wish list” feature so customers can tag the items they like while they surf through their options. (This is also a good way to build future business. Your sales team can use the wish list to let customers know when their favorites are on sale, or when you receive a shipment of new accessories that fits the customer’s style and budget.) You may even want to create an “Accessories Register” so friends and family can pick out a piece for a housewarming or anniversary gift.

Use Automatic Sensors to Spotlight Products

Automatic lighting sensors, easily installed in walls, can turn on spotlights or lamps when a customer walks into a vignette. Strategically-placed spots can help you focus the customer’s attention on a given product setting, and the sensors allow you to keep your energy costs in line because the lights can be turned off once the customer leaves the room setting. Sensors can also be used to turn music on or off when a customer leaves an area.

Putting it All Together

Today’s customers are tech-savvy and easily bored. The creative use of technology in your showroom can turn your store into an experience that entertains and engages the customer. Whether you use computer-generated images to create ambiance in a room or the latest in digital signage and touch-screen technology to educate your customer about products or promotions, technology should be one of the first things you consider when planning your showroom or store layout. Make sure you have a comprehensive plan that encompasses visual imaging, digital signage, Internet-based music and an interactive website. Bring the IT team into the very beginning of the design stages so they can understand your vision and help you plan for the technology that will take your store, and your sales, profitably into the future.

Create visual impact. Engage your customers. Let them play and educate them at the same time. Set the mood. Sell more product. It’s all possible through the creative use of technology.

Pat Ferrell is a consultant specializing in merchandising and marketing for Profitability Consulting Group. Combining an extensive background in furniture merchandising with experience as a corporate trainer and college instructor, she is extremely effective at helping her clients address today’s merchandising and marketing challenges and in coaching others to maximize performance.

Pat’s career in retailing includes over 15 years of merchandising as a senior buyer in case goods, bedding and upholstery for several major retailers, including 11 years with federated department stores. Visit Profitability Consulting Group’s website at www.profitabilityconsulting.com or call (801) 763-7663.

Wednesday, June 22nd, 2011

Technology — The Future of Design Centers

In an uncertain retail climate, today’s design center can be a major source of profitability. This is a major opportunity to attract tech savvy consumers with disposable income who want to be sure, before they invest, that their decisions will be right the first time.

The tech savvy consumer wants and expects the bells and whistles they know exist online from an industry that professes to sell “fashion and design.” If you give consumers the necessary means to visualize their home environment as it could be in an environment that is stimulating and creative — you will win their loyalty.

The Buying Experience

Experience is best described as something that you “go or live through.” Most can be described as either good or bad. If the experience is fun and exciting, chances are you will want to do it again and will rave about it to your friends. But if it was a bad one — well, think about your first roller-coaster ride, it either thrilled or petrified you. Now equate this to the furniture buying experience — do your customers return weekend after weekend to have fun and see what’s new? Do they recommend your store to their friends?

Leslie Carothers, from the retail consulting group Kaleidoscope Partnership, said, “Having a beautiful home creates a sense of inner harmony — something that is sorely needed in our world today. Being able to take the stress out of the furniture buying experience by being able to visualize options in an environment that is friendly, creative and comfortable is very important for today’s consumers. They will purchase when they know that they’ve reviewed all of their choices and have made the best decision possible for themselves and their families. This peace of mind is key to their purchasing decision. Anything that technology offers that can enhance their sense that they’re making the right decision is critical for retailers to offer to today’s consumer.”

By creating a useful design center, you can create a great buying experience for your customers — one that they will want to share with their friends.

A Successful Design Center
The design center concept is certainly not new. Ethan Allen refers to theirs as “Design Centers” and Thomasville bills theirs as “Idea Centers.” There are many unique variations but whatever the name is, a well-appointed design center is your opportunity to entice customers to shop in your store and not your competitor’s.

Your design center should be your signature or fingerprint of uniqueness. Staff it with your best employees and make it a place that they aspire to work in. It should reflect your design mission and special abilities. It should be inviting but private, comfortable and efficient. Most of all, it should be inspiring. A haven where guests can view samples and catalogs, work with your designers while using visual tools to make confident design decisions and place orders. They can see it, visualize it and buy it — all while having an enjoyable and personalized experience tailored just for them.

Design centers can, and should be, a very important aspect of your retail business.

In addition to promoting your design center in your advertising, you should promote it on your website. Make sure your website entices your customers to come into your design center. Get your customers excited about the sensory experience an in-store visit will bring to them. By creating a professional, personalized design destination for your customers, you can help them unlock their dreams and drive sales.

It’s All About Their Experience
It’s not about us — it’s about them. We hear it repeatedly but we often don’t listen.

That elusive customer is out there waiting to visit your place of business and give you a chance to earn their business.

But why should they visit your store? What makes your store different? After visiting three to four traditional furniture stores, many customers feel confused and tired as they all tend to look similar. It seems everyone is selling furniture these days; customers can shop for veggies and furniture at their local grocer or big-box store, or shop from the comfort of their own home, ordering from catalogs and websites. It’s no wonder the industry is worried.

With a multitude of design decisions to be made, having a beautiful, comfortable and inspiring design center with professional guidance available is one way that your store can become a preferred destination once more. Your customers will return again and again because they enjoy the experience, and the once daunting task of shopping for furniture becomes easy and fun.

Inspiration
Design centers are a source for styles, colors and trends. The physical design and materials used in your design center should be state-of-the-art and reflect the image that your store wishes to portray.

To inspire your customers, your design center must have:

  • A technology hub containing a wall-mounted LCD Screen (bigger is better) and a computer connected to the Internet.
  • Proper lighting to view fabrics, paints and finishes.
  • A comfortable “idea-generating” seating area.
  • Shelter magazines, catalogs and books.
  • Spare magazines or books for clipping and copying.
  • Visual, hands-on magnetic planners and sketch pads to create accurate room plans.
  • Design assistance available to help organize or copy ideas, folders to save projects, notepads, etc.
  • Design seminars and educational events to encourage conversation, sharing and a sense of community.

Knowledge is Key
For anyone contemplating large purchases, Internet research has quickly become the first step. Although they cannot touch items via the Internet, consumers have immediate access to mountains of relevant product information and resources. Your staff must be educated and more knowledgeable than your customers regarding what’s available on your website — otherwise customers will not see the added value of your “personalized” service. Product information in the way of specifications, manufacturing processes, warranties and safety information should be right at the tip of your consultant’s tongue.

Design Technology
Your technology hub should be the focal point of your modern design center. The wall-mounted LCD screen connected to the computer can be used to display product images and information, room planning software, fabric draping technology and the latest technology — software that lets your customers create virtual three dimensional views of their room. With these technologies your customer can no longer say to your design consultant, “But, I don’t know what it’s going to look like in my room.”

By visually guiding your customer’s selection process, answering questions, helping them through the process and creating a strong relationship, your customer will realize the value of working with a trained and knowledgeable design person.

“When you are selling as a retail sales consultant, it’s very tough for consumers to visualize what their whole room will look like. The sales consultant’s special gift is the ability to visualize in three dimensions. Most consumers don’t have that ability… by utilizing the new technology that is available you’re actually putting the consumer on an equal playing field. The consumer will feel more in control of the sales process and be able to make a more informed, educated decision,” said Carothers. “In addition, your customers will be willing to spend more money at one time and with less negotiating because they can actually visualize the final product and realize the enhanced value that the creativity of the design consultant brings to the process.”

The main benefits of showcasing your design abilities within a technologically enhanced design center format are:

  • An increase in average sale.
  • Increased productivity per employee.
  • Lower return rates and increased margins.
  • The ability to differentiate your store from your competitors.
  • When your potential customers become aware of your store’s ability to offer them these services in this type of environment, watch your consultants get excited and your sales explode.

The Final Presentation and Closing the Sale
Now that the space planning is completed and the furniture has been selected, it’s time to put it all together in a clear, concise manner. Today’s consumer wants to spend money but they want to do it right the first time. If the customer has any uncertainty, the deal may fall through or get delayed.

The presentation is really just a step-by-step explanation of the many design decisions the customer has made up to this point. Previously “storyboards” were used to finalize the design phase, and its explanation would begin something like, “this fabric, on this sofa, with this trim,” which would often lead to your customer being confused or overwhelmed.

Today, by using technology for space planning, fabric application and 3D virtual walk-throughs, the possible confusion can be eliminated.

To finalize the experience, consumers should be presented a personalized design report listing every possible detail in their project. If further changes are required, it’s easier to complete it at this point than after the delivery. Your next question will be, “When do you want it delivered?”

The benefits of having a technologically up-to-date design center are many. The tools are all available — it’s now up to you to use them and position your store for your customer’s excitement and your sustainable success!

Donna and Ross Barlett, co-founders of ViewIT Technologies Inc. and creators of “The Board” magnetic room planners, have used their combined 45 years of experience in the furniture industry to design and develop a series of interactive sales tools to enhance the consumer experience. In touch with the evolution of technology,  they developed and recently introduced www.3dream.net, an “online” virtual design tool.

Interview excerpts from Leslie Carothers, Principal, The Kaleidoscope Partnership — specializing in creative design sales training, coaching and strategic consulting for retailers and manufacturers.

Wednesday, June 22nd, 2011

Digital Signage In The Retail Environment . . .

Have you ever noticed the plasma screens and TV monitors greeting you when you are shopping in your local Bloomingdale’s or Eddie Bauer? Have you heard the dance-club like sound systems in the Junior’s department at Macy’s or in Old Navy? All of these uses of audio and video technology are to make the shopping experience more tailored to you personally, and are part of the explosion of digital signage.

In the times of the westbound wagon trains, general stores in each town carried all of the supplies needed to homestead and run a business, from foodstuffs to broom handles to guns and ammunition. If you lived in that town, the shopkeeper knew your name and that you liked licorice whips and had a horse with a penchant for limp carrots.

Fast forward… Specialty stores became the shopping mainstay, not replacing the general store, but taking a bite out of the general’s business. Each proprietor, be it butcher, baker or candlestick maker, knew your name and the name of your kids. Personal attention was the way of doing good business.

Zap ahead further and those specialty stores came under one roof in the form of shopping malls. One-stop shopping for all your needs, whims, and desires! The downside being that with all of the additional foot traffic, the personal touch with the shopper was lost. No one knew your name or even cared.

Today, the general store has risen from the ashes in the form of hip, high-tech stores and mega-retailers. But the question remains: How to mend the rift between seller and buyer? How can a large company develop a more personal relationship with their customers?

Many retailers use audio and video technologies, including digital signage, to enhance the shopping experience. Customized content based on location and demographics is being delivered to customers using displays and devices once thought only available to NASA Mission Control: video walls and plasma displays. Demand for high-quality audio, propagated by the widespread use of home theater sound systems, has encouraged the use of better quality distributed background music systems and, in many stores, high-end foreground music systems. The Internet and technology revolution of the past two decades has also placed MTV, DVD, MP3, and DSS into many homes in the United States.

We have become an acronym-happy, media-savvy society and are becoming immune to static displays and poor-quality audio and video.

Breaking through that immunity barrier is what digital signage is about. It not only makes contact with people, it delivers finely targeted advertising. For the retailer, it attracts the right type of customer and extends the time spent in a store, which leads to increased sales. By selling advertising slots to vendors, the digital signage system can also generate revenue and increase brand awareness.

I’m Sold! So, Where Do I Go From Here?
There are two major points to consider when approaching digital signage: content and delivery.

The first question to ask when considering any form of digital signage is, “What message are we trying to convey?” Clients often want to have the whizbang look of a plasma display, but have no idea what kind of content they want onscreen. The phrase “content is king” is fully applicable here; so careful consideration of what the display is going to show is paramount.

To begin, look at the demographics of your store and ask: What is the target audience? Who are you selling to? What does the customer need to know about your store/product? What will extend browsing time and increase sales?

Things to consider for content source material are your company’s television and printed advertisements, vendor ads and other custom-produced content. The ability to integrate streaming content, like local weather, sports scores, and store specials and is another possibility. Keep in mind that there are licensing considerations when showing things like professional sports, films, and videos.

It is most likely that an advertising firm, a media management company, or the retailer’s merchandising department itself will create the digital signage content, but how does the content get organized for use in-store and distributed across the entire enterprise?

The content for digital signage is generally MPEG video (the same digital video found on DVDs) and computer graphics. MPEG can be played back using a computer, video server, or DVD player. Composite and S-Video signals, like the connections between your television and VCR or DVD player, are also common. When using DVD or video servers, the source material needs to be digitized and converted to some sort of delivery media, most likely DVD/CD-ROM, the Internet, or satellite transmission. There are specialized companies, usually DVD creation services, that can provide the digitizing and conversion needed. Most A/V systems integrators do not deal with content creation, however, some do provide digitizing and conversion services.

With the content being dealt with on one end, the delivery system can now come into focus. How is the message best displayed? Who should be called to design and install the system? While some content companies, like AdSpace Networks and i-Open, provide an all-in-one stop for content, equipment, and installation, the most common relationship will be with a consultant and audiovisual installer, or an audiovisual design/build firm.

The store style and the signage content can help dictate the types of displays to use. Video walls, plasma displays and LCD monitors give a hip, high-tech look, but also have a higher unit cost than television sets.

Things To Consider When Selecting A Display:

  • Style – What kind of look is needed for maximum impact?
  • Unit Cost – How much capital expense is required to achieve the desired effect?
  • Power Consumption – TVs consume more power than LCD monitors, plasma displays more than TVs.
  • Image burn-in – Static images will burn into any display. Plasma panels use specialized circuitry to help eliminate burn-in.
  • Heat Load – All of these devices create heat: LCDs the least, TVs and plasmas the most.
  • Display Life – The life expectancy of a video display is determined by when the display measures 50 percent brightness. Manufacturers report that the expected life of a plasma display is about 30,000 hours. That translates about 7 years, based on 12-hours-a-day use. TVs tend to have a similar life expectancy.
  • Aspect Ratio – Widescreen (16:9) versus standard (4:3) TV shape. This is dictated by the content being displayed. Plasmas, TVs and LCDs are all available in both ratios.
  • Viewer Distance – The expected distance of a viewer affects the size of a display. If the viewer is expected to be able to read text on a display from across the building, the display will need to be fairly large.
  • Cleaning – The housekeeping staff needs to be able to clean the displays with standard equipment. This is especially important with plasma displays, which can fail within a year if the air vents are not kept clear.

A consultant versed in video and digital signage technology can answer any questions about displays.

The Future
The future predicted in Steven Spielberg’s techno-thriller film Minority Report is one where technology pervades all aspects of life, including shopping. When Detective John Anderton (Tom Cruise) walks through a shopping mall, retinal scanners identify him and projected advertisements greet him by name, and then display custom content geared to his shopping patterns.

While video displays in the local Gap store greeting shoppers by name and suggesting pants in the appropriate size is not going to happen in the next six months, other innovative uses of technology are definitely leading in that direction.

Tracking and tracing technologies, ranging from radio transmitters to facial recognition software developed for the FAA give retailers the ability to deliver demographic-specific content. Products like Prophet Systems Innovations’ “The Shadow” can track individuals, compile demographic information and have a video server play niche-specific advertising that is based on that customer’s data in the area where the customer is shopping. Barcode readers enable Wal-Mart customers to scan a DVD or video game and see a commercial for that product. Eddie Bauer and the Gap use video servers to deliver time-of-day sensitive ads to plasma displays in their stores.

The end result of this technology? We may not be to the point where technology pervades all aspects of life, but we are a long way toward the implementation of easily customizable marketing tools that have unsurpassed flexibility to target specific demographic groups and increase sales — all at the point of purchase.

Eric D. Cronwall is a senior consultant with Thorburn Associates, an acoustical consulting and audiovisual systems design firm. He has eight years of design experience and prior to joining Thorburn Associates he taught audio system design at the University of Cincinnati. Eric’s projects include Federated Department Stores (Bloomingdale’s, Macy’s, Burdine’s). He is an adjunct faculty of ICIA and had presented seminars at InfoComm. Visit www.ta-inc.com for more information.