Enhancing Customer Retention with Targeted In-Store Digital Signage

  Time to read 6 min
Disclaimer
No AI was used to create this original content. This article was researched and written without the help of any AI tools.

Competition is typically strict in the retail sector; hence, any business that wants to stay competitive must strive to capture the loyalty of its customers. 

This means that when the customer thinks of a  product you sell, you are the first to come to their mind (and in a good way).

Retaining customers makes common sense and reflects excellent business sense; as you may be aware, it requires more effort to pull in new customers than it does to maintain existing ones.

Retail businesses can capture their targeted customer’s attention and enhance retention in multiple ways. Among the many methods, one approach that is both cost-effective and exciting is the utilisation of digital signage. 

In this post, we’ll discuss some practical customer retention strategies using digital signage and how they can benefit your retail business.

Let’s begin!

Overview of customer behaviour in retail stores

Consumer behaviour is a field of study that analyses people’s buying and spending habits. Understanding customer behaviour in retail stores can help businesses understand their target customers and buying and spending habits. 

To get insight into customer behaviour, you need to examine patterns and trends gathered from data and other research, answering questions such as:

  • Demographics: Who is included in the target audience? What are their ages and genders? What are their likes and dislikes? What is their average income? 

  • Competitors: How do they feel about the competition? What do they like or dislike about them? What brands are the most prevailing? Which products are the most in demand?

  • Brand: Do the consumers feel a sense of brand loyalty with your business? Does the company have a solid reputation – and does this impact how customers engage with it?

  • Products and services: Why do they choose one product or service over another? 

  • Location: Where are people shopping? Is it at home, online, or in a retail shop? If in a retail shop, how far away are they from the nearest store?

  • Process: How are people making their purchases? How are they using their products?

  • Habits: How much research do customers conduct before making their purchase? How often do they purchase a specific product? 

  • Influences: What environmental and social factors influence their behaviour?

With the above knowledge, retail businesses can develop a more informed digital signage and marketing strategy that enhances the customer journey and experience.

Effective customer retention strategies with digital signage

Attracting and gaining customers requires excellent marketing skills, but keeping them loyal to your retail store requires a strategy that can be achieved cost-effectively with digital signage. 

Here, we will discuss some of these strategies.

Compose a useful loyalty program

About 3 in 5 consumers spend more on a brand after subscribing to a paid loyalty program. You may wonder why 60% spend more on a brand after signing up.

The simple answer is that loyalty programs make customers feel special. Not only do they feel optimistic about their purchases, but they also receive rewards for doing so. 

When developing a loyalty program, ensuring it fits the target customer profile and tastes is important. Also, ensure that the loyalty programs add actual value to customers and that members of the program are duly recognised.  

Giving due recognition to customers will cause program members to take it more seriously while encouraging others to become loyal to the business. 

Psychologically, it’s a very powerful tool that encourages the feeling of belonging. That’s why when you promote the loyalty program or recognise the existing members, it’s always seen and engaged with.

Digital screens are a perfect communication tool to communicate your loyalty program effectively. 

Strategically use digital signage to foster referral programs

Referral programs are usually at the heart of developing effective word-of-mouth marketing for any business. With digital signage, you can get a more systematic deployment of the referrals. 

Introduce a unique program of rewards for referrals. Incentivise customers to share. And finally, promote it using the power of digital displays.

Run QR codes as an extension to referral-related content on the screens to maximise exposure. If done correctly, such programs can help you gain new customers while retaining existing ones.

Position display screens strategically for visibility 

Before determining screen placement, a thorough evaluation of your store’s layout is crucial. Screens should be strategically positioned for visibility to every entering customer. 

An excellent tactic is to place them in spots with elevated foot traffic, such as doorways, walls, or checkout lines.

Locations with high foot traffic may require more than one screen to help you maximise visibility.

Maximising visibility will help capture customers’ attention and enhance the likelihood of retaining customers, making the placement of digital signage a pivotal aspect of a successful in-store strategy. 

Lastly, ensure customers visiting your store can view the displayed advertisements from any angle to maximise the impact of your digital signage.

Personalise the customer’s experience

It can be challenging for a customer to feel connected to your brand if you don’t try to engage with them. Companies miss out on a great opportunity for personalisation when they overlook the amount of data voluntarily submitted by their customers.

Imagine entering a retail store and coming face-to-face with a screen displaying products that match your style. Such a feature in a retail store will make your customers’ shopping experience more convenient.

You can leverage consumer information and provide the following:

  • Recommendations based on customers’ previous purchases.

  • Browsing history.

  • Even the time of year.

Here is how Adidas once did it, using a concept called Speedfactory, which integrates the customer into its manufacturing process. The process works by letting customers customise the shoes they want, and Adidas will manufacture this shoe that is exclusive to the customer.

Adidas achieved this by partnering with flagship retail stores and creating an interactive retail experience in which digital signage uses biometric scanning technology to assess body movement and collect hundreds of data points. 

This data is then used to direct users to the brand’s new AM4 shoe, encouraging them to buy.

Although Adidas shut down the speed factory in 2020, this method is one retail personalisation approach that will keep your customers excited and loyal.

Install digital signage near check-out areas

You can also install digital signage near the check-out areas to promote your high-margin products, increase customer engagement, and reduce their perceived wait time while waiting in line.

Moreover, digital signage adds entertainment to the overall shopping experience.

Install current point-of-purchase digital display

Recognise that most customers have a "get it now" mentality and will become frustrated if they have to wait in huge lines. They may even leave your store without buying anything. 

To avoid this, consider installing current point-of-purchase digital displays (rather than hiring more personnel). These are simple to use and will help you service your customers faster. 

Benefits of in-store digital signage

Adapting to digital marketing initiatives with scalable solutions can be challenging for many business owners. Thankfully, they can easily create a consistent, effective marketing strategy with digital signage. 

The following are some of the benefits of in-store digital signage:

Increases brand awareness

Digital signage displays can function as promotional media to push traffic and strengthen brand awareness. The following are things you can consider displaying on your digital signage to build brand awareness and credibility:

  • Brand message, values, beliefs, and aspirations

  • Promotional content with your brand colours

  • Educate customers about your brand history

  • Recent meaningful involvements

  • Achievements and success stories

Consider having digital signage running at the store entrance. Other locations include the window displays, the waiting rooms, or throughout your store. 

This way, your existing and potential customers can connect with your brand in multiple spots, raising their awareness of it.

Maximises ROI with the right timing

With digital signage, a retail store can deliver dynamic content at the right place in real time. 

As you may know, time is money, and opportunities are scarce, but with the right digital signage solutions, retailers can update their digital signs at any time and from anywhere. The exciting thing is that the change is instant.

A good recommendation here is Luna Screens. With Luna Screens, creating beautiful and engaging promotional content is easy. 

Our cloud-based software lets you update special offers in real time and from anywhere, keeping your promotion fresh. 

This approach helps you reduce the cost and time required if it were a static printing sign. 

Furthermore, you can create new marketing campaigns based on real-time data and have the campaigns up and running, maximising your ROI. Check out Luna Screens today!

Boosts sales with upselling and cross-selling

Digital signage displays strategically positioned at the point of sale in a retail store offer an incredible touch-point for upselling and cross-selling products. 

For example, you can display content that promotes your best-selling item or seasonal products to entice shoppers to make an extra purchase. This impulse purchasing behaviour will help you raise overall sales. 

Read also: 9 Digital Display Tactics for Effective Product Cross-Selling.

Creates vendor advertisement spaces

A retail store can use its digital signage systems to improve its retail revenue by converting the flat-screen advertising display into a commercial platform.

For example, it can rent out space to other retailers and car dealerships on its video wall or smart TV display screen

This move encourages more vendors to collaborate with you in order to gain exposure to new clients, enhance sales, and consequently bring in more revenue for your retail business.

Enhances customer experience

The most visible benefit of implementing digital signage is enhanced customer engagement. Digital signage, which showcases entertaining, interactive displays targeted to the customer, can be an effective strategy to improve customer satisfaction and engagement.

Related reading: Top 15 Tips for Engaging Customers Through Interactive Signage.

Helps you provide customers with relevant information

Another advantage of digital signage is its capacity to present customers with relevant information. This could include directions to the shop, product availability and prices, store events or promotions, and even the weather. 

This type of information helps customers and gives them a better overall experience when they visit your store.

Helps you measure engagement

Digital signage is also an efficient technique to track customer interaction. By gathering analytics on customers’ interactions with digital signage, retailers can gain valuable insights into their customers’ behaviour and taste.

Offers a cost-effective advertising approach

In-store digital signage is more cost-effective than advertising through traditional platforms like billboards, magazines, newspapers, and TV. 

With digital signage, retail businesses can easily broadcast and promote various content throughout the day. You can choose anything from videos to images and update your signs effortlessly with new templates.

You may also like: Why digital signage will save you time & money.

Takeaway: Amplify your customer retention  with dynamic digital signage

The competition for customer attention in retail is very high; hence, the key to thriving in this sector relies on retaining customers. As we mentioned in the introduction, it takes more effort to pull in new customers than to maintain existing ones.

This makes taking care of your current customers paramount to retail business growth.

In this piece, we taught you effective in-store digital signage strategies to help you attract and retain customers, plus the rewards that come with customer loyalty.

If you own a retail store, it is imperative you partner with a top digital signage provider like Luna Screens. 

Luna Screens is a cloud-based digital signage tool made to meet the demands of the fast-paced retail industry. Our software allows retail businesses to turn any screen into a digital sign. 

Furthermore, our intuitive content management system ensures that even if you are a team with zero technical skills, you can easily use it to implement the strategies discussed above.

Ready to boost your retail business with digital signage technology? Get Started with Luna Screens today!

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Hobart, TAS, Australia
ABN: 12 643 738 890
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Copyright © 2025 Luna Screens.
All Rights Reserved. Privacy policy