Through special arrangement, what follows is an excerpt of a current article from Chain Store Age magazine, presented here for discussion.
Looking to engage the consumer during each shopping trip, Roots Canada hopes to leverage its existing digital-signage network to create a more interactive, customized and unique store-level experience.
In 2000, the apparel chain, which operates 120 locations across North America and 20 in Asia, positioned digital plasma screens in the cash-wrap area of three flagship locations. Wired to DVD players located in each store's back office, the screens displayed content burned on pre-recorded DVDs.
But this initial installation had limitations. It was difficult to update data or keep content current. "Simultaneously, the cost of the plasma screens was starting to drop. This prompted us to evaluate other options," said James Connell, director of e-commerce, digital marketing and new media, Roots Canada, Toronto.
Roots explored satellite communications, but the technology was not cost-
effective. In 2002, it chose a digital internet-based solution from ADFLOW Networks, Ontario, which promised the immediacy and reliability of satellite at an affordable price, according to Mr. Connell.
ADFLOW's Dynamic Messaging System enables Roots to internally create content and centrally manage and deliver media. Using Flash multimedia technology, the chain's web team creates clips of new products, animated logos and media campaigns, as well as messages about Roots' environmental commitments and its affiliation to sporting events, such as the Olympics.
These tailored messages are stored in a centralized web server provided and managed by ADFLOW. Files are downloaded to digital players that reside in the back office of each store location. "The players poll the central server every 20 minutes for new content," he noted.
Stores using these displays have yielded between 12 percent and 15 percent higher sales than locations without the technology.
"Most stores have screens at the front end, but a couple of locations position the plasmas near their entrances to lure in shoppers," Mr. Connell added. "The maximum number of screens any store has is eight."
Besides making the shopper's perceived wait time at the checkout seem shorter, the solution impacts sales.
"We have a custom bag program that enables shoppers to customize the color, stitching or their initials on leather bags," Mr. Connell said. "During past holiday seasons, we added small LCD screens in our leather departments to educate shoppers about the process and different options."
Currently, Roots is exploring how to take its network to the next level.
"We want to further integrate it into our store experience," Mr. Connell said. "For example, we are evaluating how to integrate a digital touch screen application into a mirror."
This would enable Roots to customize messages as a shopper passes by and could also enable shoppers to take a photo of themselves wearing Roots merchandise and send it to their cell phone, a friend or post it on a socializing Web site, such as MySpace.com.
"Digital signage has evolved beyond an entertainment tool into an engagement tool," Mr. Connell said. "We know the network can do more than just present content, so we want to learn how it can further engage our customers."
Discussion Questions: What do you think of the potential of digital signage as a customer engagement tool? Which retailers are best suited to take advantage of the greater accessibility of such technologies and which ones aren't?