WHAT DOES YOUR SIGN SAY ABOUT YOU
University of San Diego Survey Part I
Part I of the study involved analysis of a group of variables, including signage, location, hours of operation, population demographics and geographic characteristics on sales at 162 southern California locations of a major fast-food chain.
These variables were tested at each location to predict the impact of on-premise signage. The results of the study indicated that the number of signs at a particular site has a significant and positive impact on both the annual sales revenues and number of annual customer transactions.
For example, from the results of the study, the researchers were able to predict:
1. On average, one additional on-premise sign resulted in an increase in annual sales revenues of 4.75%. This translates to a $23,750 increase in average sales revenues for a typical store in the study group with annual sales of $500,000.
2. On average, one additional on-premise sign increased the annual number of transactions by 3.93%. This translates into more than 3,900 additional transactions for a store with an annual average of 100,000 transactions.
3. On average, one additional 36-square-foot wall sign added $0.06 per transaction, while one additional 144-square-foot pole sign added $0.78 per transaction.
University of San Diego Survey Part II
Part II of the study involved analyzing seven years of weekly sales data for “Pier 1 Imports” to measure the effects of modifications, additions, or removal of on-premise signage on sales performance.
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