The Importance of Signs for Small Businesses

Storefront and window signs at a small business are often thought of as physical markers announcing its location to customers. Yet, the marketing science behind signage goes much deeper. Signs are one of the most effective forms of advertising and can fit any business’s budget. They are a 24/7 symbol, advertising a business and reinforcing its logo in the minds of potential customers. In an article for the U.S. Small Business Administration James and Susan Claus state, “To succeed, a business must be able to communicate with customers quickly and effectively regarding the products or services it offers…Signage is a business’s basic link to customers.” There are several factors that illustrate the importance of signs for small businesses.

Bringing in New Business

On-premise signage announces to customers that the business is open, conveys an image, and indicates the products or services offered. It’s in essence a welcome mat. Unique, relevant, and visible signs, whether they be programmable LED signs or custom neon signs, grab the attention of motorists and pedestrians. In addition, they promote traffic safety by providing a point of reference for drivers. Signs differentiate your businesses from the other businesses in the vicinity. In this way they serve as a low-cost sales person.

A study cited by the New York State Small Business Development Center found that “anywhere between 13-percent to 20-percent of the population moves during a given year.” It’s essential to continually replace these customers. Chances are some of the regulars are among those relocating. While the majority of customers tend to live or work in the area of a business, a substantial amount of profits can come from motorists who are shopping outside of their community. A bold, visible sign, coupled with window signs, is a powerful marketing tool for attracting this clientele.

Creating an Unforgettable Identity

By creating an identity and brand through signage, the business becomes the first one to pop into a customer’s mind when looking for specific products or services. Branding tells customers who the business is, what its core values are, how it differs from the competition, what the business is and what it does, why customers should choose this business, and establishes an image. Brands instill consumers with confidence, create loyalty, can often allow businesses to drive prices up, and negates customers’ risk perception.

With brand consistency, signs can be used to reinforce messages in other forms of advertising. Signage should include a logo, possibly a tagline, company colors, and the company’s name. Signs, especially those in the windows, should touch on brand purpose, differences and advantages offered by the business, the brand promise, and also reflect the brand’s personality. Creating a recognizable, respected, and trusted brand is one of the most effective ways to increase business.

Prompt Purchases

Signs can encourage consumers to make a purchase, particularly impulse purchases. People under a time constraint will often purchase a product at the first store they see or at a business they are familiar with. A prominent sign attracts motorists and shoppers. It should be the focal point of a storefront. Custom LED signs and custom neon signs are especially effective in drawing attention. If a customer is looking for a particular item and sees the sign as they are driving by, they’re likely to stop and enter the business. According to the New York State Small Business Development Center, “Today’s consumer tends to purchase goods and services both by habit and by impulse. However, studies have shown that the majority of sales come from impulse buying.” This is where signage plays a significant role in attracting attention.

In addition to impulse buyers, regular customers familiar with the brand can be enticed with window signs advertising specials or new services. Window signs can be swapped out easily and cheaply. This can prompt another type of impulse buy. A customer may visit the business for a specific product or service, but upon seeing a special prominently displayed, they can be swayed into making an additional purchase. Businesses that rely on impulse buyers should feature large, distinctive, simple signs. Programmable LED signs are perfect for businesses that sell a product or service that is generally purchased infrequently. By changing the message from time to time it will capture potential customers’ attention and make them remember the business.

The importance of signs for small businesses should not be underrated. A case study conducted by the International Sign Association found that when a car wash installed a large, new sign “in its first year, the new sign produced a 15% increase in overall business, which translated into an additional $135,000.00 – nearly nine times the cost of the sign.” Signage is one of the most cost-effective ways to bring in new customers, encourage impulse buys, and brand a small business.