The document discusses how to effectively test business signage by applying a theory. It recommends identifying a specific problem to solve, like increasing theatre subscriptions rather than general sales. The solution should target this problem with a clear call to action, like urging subscriptions. Metrics like subscription rates before and after can measure the sign's effectiveness by comparing the increase. The example theatre sign promoting subscriptions and benefits increased subscriptions by 125 people. Testing different digital signs allows comparing multiple low-cost solutions.

1. How Effective is Your Sign?: Applying the
Theory
In our last blog post we gave you some information on the theory of testing the efficacy of your business
signage as a marketing tool to increase sales. Today, we are going to talk about how to apply that theory
to your business so that you can make the most out of your signage.
Identify the Problem
In the last blog post, we mentioned that to properly test your signage it is best to focus on a specific
problem that you are hoping to solve. For the purpose of this article, let’s say that the problem that you
are trying to solve is that your business is a theatre and you are seeing more individual ticket sales
rather than the more predictable subscriptions to the entire theatre season.

2. Notice that the problem identified is not general, but is instead very specific. Instead of trying to just
increase sales, it targets a specific kind of sale, or a specific product.
It can also help to try to understand why customers display a certain behavior, ensuring you can build a
solution that corrects that behavior. In our example, patrons might only be buying single tickets because
they are unaware of the benefits subscribing has. Alternatively, they might be unwilling to pay the
larger, upfront subscription fee, and would rather see performances as they come up, but for a larger
overall cost over a longer period of time.
Target a Solution
Having a specific problem to solve can help you measure the results of your marketing through your sign
by having the signage give a call to action that will result in a specific behavior that can be measured.
Having a targeted solution for your specific problem will make it easier to measure the effectiveness of
your sign on the problem you identified. For example, having a general sign advertising your theatre
might increase awareness and thus overall sales, but will likely not result in a specific increase in
subscription rate.
In this case, urging potential patrons to subscribe is a specific call to action, and the number of
subscriptions is a clearly measurable metric. Your solution to the subscription problem will include a sign
that urges customers to subscribe to your theatre season, and might even list some of the benefits of
subscription over single ticket sales (such as savings, better seat selection, etc).
Another targeted solution for our example that addresses one of the above problems would be a flexible
subscription package that allows patrons to pick a smaller number of plays. This will lower the upfront
cost of subscribing, while securing the monetary benefit of more a more predictable number of
customers.
Whichever solution you choose to target your problem, you will want to identify a period of time before
implementing your signage campaign, the original rate of subscription (R1).
Once you have accounted for any confounding variables, you can compare R1 with your rate of
subscription after implementing your signage (R2). To determine how effective your sign is, you will use
this equation to identify the increase in subscriptions (I)

3. R2-R1=I
For an example, let’s say R1=300, R2=425.
425-300=125.
Your increase in subscriptions was 125. It looks like your signage was effective in eliciting the desired
customer behavior of subscribing!
If you have decided to spring for digital signage, testing can be done even more effectively. Because
digital signage allows you to update your design and copy, you can test a few different signs without the
additional cost of purchasing a whole new sign.
If you test a number of different signs, you will still always compare the resulting number of
subscriptions to R1, the period before advertising any of your targeted solutions. Then you can compare
the different values for I collected from the different signs to determine which is most effective.
Up next on the blog is a case study so you can see these applications in practice!
See more at: http://signworld.org/how-effective-is-your-sign-applying-the-theory/