Digital Signage and Canadian Consumer Attitudes
By Lyle Bunn
Jan 27, 2015
In the wake of US retailer Target closing 133 stores just 2 years after their opening, Toronto Star
Fashion Columnist Karen von Hahn (kvh@karenvonhahn.com) offers some insights into the
buying attitudes of Canadians versus Americans. This commentary by Lyle Bunn looks at buying
habits through the lens of Digital Place-based Media. It is useful to read von Hahn’s her full article
What Target’s fail Says About Canadians at http://www.msn.com/en-ca/money/topstories/whattarget’s-fail-says-about-canadians/ar-AA8CSIb
Canadians are different shoppers than Americans notes Karen von Hahn.
1. Canadians do not shop for sport. Perhaps it's the self-denying, tight-fisted Scot
heritage or the wish to provide a better life for the next generation. Canadians do
not enjoy parting with money, perhaps because Canadians simply have less
disposable income than Americans since mortgage interest payments are not tax
deductible and the cost of living in Canada is higher including everything from a
accommodation to cars, to a bottle of wine or going out to dinner.
What this means to digital signage use and providers: The consumer purchase
journey must include regular, ongoing profile of the brand and its promise. And,
the point-of-purchase, or in the case of food services, the point-of-ordering must
motivate trial, buying, upsell and cross-sell if the revenue aspirations of the brand
or retailer are to be achieved. Digital media offers the opportunity to brand and
merchandise simultaneously while presenting brand attributes in its most
inspiring manner.
2. When Canadians do spend they are extremely discerning and are “touch and
feel” shoppers. The comparative success of premium high street brands here
such as Williams-Sonoma, Pottery Barn and JCrew, each of which took baby
steps here in their expansion, shows that we will pay more for brands that
deliver.
What this means to digital signage use and providers: American retailers are
aware of the value-consciousness of the Millennials demographic which is
evidenced across all consumer demographics in Canada. “Value” is an
expression of total benefits including such elements as suitable quality at suitable
price, the purchase experience and remedy when the brand promise is not met.
Digital signage can establish appropriate expectations including presenting the
benefits that consumers could anticipate receiving. Many US retailers and brands
(i.e. TJX in its Winners banner) test approaches in Canada before wider roll-out
in their US locations, or monitor Canadian approaches (i.e. Tim Horton’s, Holt
Renfrew, Air Canada Center, Oxford Properties, ScotiaBank, TD Bank, etc.)
precisely because Canadian shoppers are more discerning and the competitive
environment demands greater differentiation. It helps that many of the digital
signage primary providers were founded or have principle operations in Canada
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where “best practices” can be advanced, tested and profiled. Hundreds of end
users for example, attended the Digital Trends Showcase (DTS) in downtown
Toronto in October 2014, which demonstrated merchandising approaches using
Adidas as the sample brand. A major consumer package goods (CPG) will be
used in the fall 2015 DTS demonstration event.
3. Canada’s urban centers are well served by brick-and-mortar retail options.
Extensive, robust Internet access serves both rural and urban shoppers.
What this means to digital signage use and providers: Retailers must generate
traffic and then convert shoppers to buyers. By offering an environment that
merits being a destination, the retailer enjoys traffic, visit frequency, a deeper
shopper loop and increased numbers of people in the shopping party and dwell
time. These translate into conversion based on the 3 Ps, product, price and
promotion. On-location media that adds to the experience and engagement
results in increased conversion, basket size and share of wallet.
When online research is part of the path to purchase, message fidelity is fulfilled
and content costs reduced through “transmedia,” where communications are
adapted and repurposed while using the same graphics, font family, benefit
statements, tag lines and story line. Brands can tell their story and sell their story
through high quality video, animations and graphics that echo each other online
and in-store.
4. Canadians are distrustful of hype, and when all the hype is investigated, God
forbid the retailer or brand does not deliver, resulting in utter dismissal and
disdain for the hooey.
What this means to digital signage use and providers: Eyes are attracted to
messages that matter and the brain engages with communications that indicate
how a problem is solved or an aspiration fulfilled. The inherent ability for dynamic
signage to present features and benefits in the context of weather, economic or
social conditions means that the brand or retailer is continuously able to put their
best foot forward. The “bliss point” of a satisfied consumer and equally satisfied
retailer is achieved.
In conclusion, in its ability to simultaneously brand and promote while adding a positive,
modern ambiance and vitality that increase the attractiveness of a location, digital
signage offers high return on investment to retailers and brands.
Lyle Bunn is an independent analyst, advisor and educator in North America’s
Dynamic Place-based Media industry. He has assisted over 300 organizations to
benefit from the media, has helped train over 10,000 end user and professionals,
and published over 300 articles, whitepapers and Guides including the popular
“Dynamic Media in Retail” guidebook and NRF15 Summary available at
http://www.lylebunn.com/Pages/aboutus.aspx. Email Lyle@LyleBunn.com
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