How To Increase Vape Shop Revenue With Digital Signage
The advent of technology has provided solutions for businesses to scale up and make more revenue. One such technological solution is the invention of digital signage technology.
The vape business is one of the many businesses that harness the power of digital signage to grab potential clients’ attention and increase brand awareness through digital marketing campaigns. However, brand awareness is not just what digital signage is for, as vape businesses worldwide are discovering the revenue-improving strengths of this powerful digital tool.
Are you looking for excellent ways to increase revenue in your vape business with digital signage? Here is all you need to know about how to implement this digital technology for increased sales and more profit!
Profit Limitations In The Vape Business
The vape business is highly lucrative and has gained significant momentum over the past few years. It now has a stronghold in the business sector as one of the fastest-growing industries.
Vaping has become a popular activity today in many places across the world. As more people enjoy the benefits of switching to vapes from cigarettes and tobacco or tobacco-based products, even more people are motivated to switch to this safer alternative.
The vape business's popularity is at an all-time high as the industry contributes to expanding and diversifying from CBD and tobacco businesses. Because of the potential of this industry, more vape shops have begun to pop up in many locations worldwide.
In 2015, there were already an estimated 9945 vape shops in the United States. And this number keeps growing. As the vape business grew in popularity, so did its market size and value. The global e-cigarette and vape market was valued at USD 18.13 billion in 2021 and is expected to expand at a compound annual growth rate (CAGR) of 30.0% from 2022 to 2030.
Anyone would think the astounding market value of the vape business means that vape shops take in tens of thousands or millions of revenue each year. However, this is not often the case.
The continuous growth in the vape business means significant competition in the industry. With so much competition, it can be difficult for vape shop owners to differentiate their brands to maximize profit.
Couple this with the constantly changing laws binding the vape business, and it becomes pretty glaring that for such a high-value business, the vape business is riddled with obstacles that make it challenging to create a steady and high stream of income from vape shops.
The effect of high competition in the vape business makes it understandably difficult to make a profit. However, what do laws have to do with vape business profits?
Throughout the years, the vape business has received varying reactions from health and governmental bodies. It doesn’t help that the significant users of vape devices are teens and young adults, many of whom started abusing these products at a tender age.
As a result, countries like Vietnam, Saudi Arabia, Indonesia, and Cambodia imposed a ban on vaping and the establishment of vape shops. Although vaping and vape shops are still legal in many places within and outside the U.S.A, the laws are constantly changing.
Countries like Australia, Colombia, and South Africa have chosen to place restrictions on vaping to control the use of vape devices. Vape regulation laws are constantly changing all over the world.
As a vape shop owner, it can be challenging to adapt to these changing laws while abiding by the rules to ensure you do not overstep legal lines. With restrictions on vape adverts and the opening of vape shops in specific locations, it becomes difficult to scale a vape business to create profits.
Although many vape shop owners are implementing various business strategies like creating a better online presence to appeal to customers, many others are using the power of technology- specifically digital signage- to rake in more revenue and scale their business above the competition.
How To Increase Vape Shop Revenue With Digital Signage
Digital signage is a segment of electronic signage that uses technologies such as LCD, LED, projection, and e-paper to display digital images, videos, texts, and even web pages.
Digital signage technology is an upgrade from traditional static signage. It offers businesses a medium to communicate with their audience using dynamic and eye-catching imagery that catches and retains attention.
Like other business establishments, vape shops worldwide are adopting digital signage to streamline operations for better business efficiency. However, not many vape shop owners understand that digital signage can be used to increase revenue in their business.
So, how does this work?
1. Overcome Marketing Challenges
The vape business, like any other business, depends on advertisement as a way to reach out to potential clients. However, unlike many other companies (perhaps excluding the tobacco and marijuana businesses), there are strict FDA regulations that limit the possibility of free advertisement.
As we previously mentioned, the vape business is a touchy subject that experiences roadblocks from health and governmental agencies. Although it is undeniable that some vape products are a healthier and safer alternative to cigarettes and some tobacco products, there is still friction and argument about if vapes should be freely legal or not.
In places where vapes are placed under restrictions, there are several limitations that legal vape businesses sometimes face. One of these limitations is the mode of advertisement for these businesses.
In August 2018, the FDA effectively declared e-cigarettes and other forms of electronic nicotine delivery systems (ENDS) subject to “tobacco products” regulation.
However, that is not all. All vape businesses were also required to submit a marketing application for their products and go through FDA approvals before being eligible for marketing campaigns.
Even with the ad restrictions, places like New Zealand and Canada moved to ban or severely restrict the modes of advertisement of vape products. Soon, social media platforms like Facebook and Twitter implemented policies to reduce the ad for vape products and their components.
But how exactly are vape shops going to make a profit if they can’t even reach out to their target audience? Digital signage is an alternative marketing solution just as effective as other means of advertisement forbidden by governmental policies.
According to a survey by FedEx, 76% of American consumers enter stores they have never visited simply because of the signage. This appealing power of digital signage goes a long way in ensuring that vape shops attract potential clients while abiding by the vape advert policies within their locality.
Digital signs placed outside your vape shop are an instant head-turner. In a world where screens provide dynamic, moving, and appealing content and get more attention than static content, it only makes sense to utilize dynamic content while advertising your vape shop.
Digital signage and attractive content grab attention and encourage people to visit your establishment. The higher the number of people who enter your vape shop because your digital sign caught their eyes, the more sales you can make. The more sales you make, the higher your revenue.
2. Up-sell
Digital signage increases the average purchase amount by 29.5%. More astoundingly, this powerful technology increases the number of unplanned purchases by at least 80%.
This is possible because many businesses use digital signage as a form of subtle internal marketing. Adopting this strategy in your vape shop will bump up your sales and help you take in more profit.
Before digital signage became a mainstream technological solution, many vape shops used static signage within their building to advertise their different products. These posters or fliers were expected to catch people’s attention and convince them to purchase the displayed product.
While that would have worked years ago, it isn’t a solid marketing strategy today. Digital signage, on the other hand, is the perfect way to up-sell products using eye-catching digital content such as pictures, videos, and customized tests.
By displaying video content or a picture catalogue of products in your store, you have your digital signage to do all the convincing it takes to prompt your customers to indulge in unplanned purchases.
Encourage unplanned purchases by using digital signage such as aisle screens and point-of-sell stations, announcing new vape products, advertising limited offers, and promoting loyalty programs.
3. Build Social Media Awareness
Although social media platforms have policies against directly advertising products like e-cigarettes, they are still a great way to get in touch with potential clients online.
Due to the covid-19 pandemic restrictions, many vape shops adopted an online approach and operated their business online. Although the restrictions have been relaxed, many vape business owners have chosen to continue operating online.
As a brick-and-mortar vape shop, it is important to know that the majority of your potential clients are on the internet waiting to discover your brand. If you want to make more revenue, it is vital to reel in these potential clients and encourage them to purchase from your store.
A great way to begin is by using your digital screen to encourage walk-in customers to spread the word about your business on the internet. Use your digital signage tool to display your social media profiles, current hashtags, comment sections, and even profile tags to encourage walk-in customers to discover you online.
You can take it one step ahead by incentivizing the process. Offer discounts, coupons, and combo offers in exchange of a customer following your social accounts and joining your online conversation. This is a great way to build brand awareness and boost online sales, thereby making more profit.
4. Advertise Upcoming Promotions
Organizing promotional deals or sales is one of the best ways to increase revenue and attract customers to vape shops. After all, many clients love nothing more than saving money while purchasing value.
However, organizing these promotional programs does not guarantee that you will make sales. To increase your chances of attracting your target audience and making sales, you need to ensure they are aware of the upcoming promotional offers.
Digital signage comes in handy for indoor marketing. With eye-catching indoor digital signs, you can advertise your upcoming events and promotions to constantly remind walk-in clients about these forthcoming sales.
Most importantly, the vibrant and dynamic digital contents are more appealing and easy to remember than the forgettable static signage graphic. According to a 2015 study by the Out of Home Advertising Association of America (OAAA), digital signage adverts have a recall rate of 82%.
This means your clients or prospects are more likely to remember your future promotions than they will through static signage.
5. Improve Consumer Experience
Digital signage makes life easier for vape shops. It helps them save time and money on activities that require advertising, communication, and engaging clients. However, vape shops are not the only ones enjoying digital signage's convenience.
When executed perfectly, digital signage increases customer satisfaction by improving the average customer experience. Because dynamic imagery is more immersive, inclusive, and interactive than static signage, consumers experience more visually appealing information in a more fun and engaging process.
By implementing digital signage in their vape shop, owners can guide shoppers down the purchase funnel and help them enjoy a more streamlined shopping experience. With digital signage, you can communicate information about products, brands, and other store information that will make shopping easier.
This improves the customer experience, making shoppers more satisfied. Since satisfied customers are happy customers who are more likely to come back for future purchases and refer friends or family to your vape shop, digital signage is undoubtedly an investment to increase revenue.
Digital Signage and Content With Loop TV
Few digital signage solutions offer the unique and sophisticated features that Loop TV offers. Loop TV is a business entertainment and digital signage TV that offers unlimited entertainment and digital signage opportunities.
With more than 200 channels- including music videos, funny fails, fashion, and lifestyle channels, awe-inspiring drone footage and more, along with digital signage solutions, you can entertain customers while creating digital menus, advertising upcoming promotions, and highlight your website.
Essentially, Loop TV offers a world of limitless opportunities to provide customers with the vape shop experience they crave. Loop TV offers a fully-licensed solution, so you do not have to worry about making payments for services.
To get access to the service and enjoy freedom of unlimited entertainment, sign up for a media player on the Loop TV website.