Digital Signage ROI Calculator
Digital Signage ROI Calculator
 
This ROI calculator provides a simple way to approximate the cost and benefit of an in-store digital signage network. It is based on a hypothetical business case developed and described in the RSR Research report, “The Business Case for Retail Media Networks, October 2007.”

The calculator is intended as a tool to help retailers educate internal constituents about the possible benefits and opportunities—and the associated costs—of a digital signage implementation. It is not intended as a definitive business case, and users of this calculator should not use this as the basis for justifying an implementation.

To get started, fill in the appropriate values for your organization in the shaded “input” area for the calculator below to see the potential ROI of a Cisco Digital Signage solution for your business.

 
 
 
  Inputs
 
Number of stores
 
Total revenue for stores
US$
 
Cost of goods sold as % of total revenue
 %
Operating expenses as % of total revenue
 %
Number of digital signage screens per store
 
Number of store employees
 
       
   
  Assumptions    
Percentage of SKUs promoted per week on digital signage:
8%
 
Sales lift from SKUs promoted on digital signage:
15%
 
Sales lift from greater promotion compliance:
10%
 
Percentage of digital signage broadcast time through paid advertising:
40%
 
Reduction in employee training time:
10%
 
Annual employee attrition:
75%
 
Sales lift from better trained employees:
.5%
 
Digital signage network rollout duration:
1 year
 
Revenue growth without digital signage:
5%
 

       
  Financial Impact        
Year 1
 
Without
digital signage
With
digital signage
% change with
digital signage
 
Revenue
 
COGS
 
Gross Profit
 
 
Operating Expense
 
Net Capital Expenditures
 
Operating Income
 
   
 
Year 2
 
Without
digital signage
With
digital signage
% change with
digital signage
 
Revenue
 
COGS
 
Gross Profit
 
Operating Expense
 
Net Capital Expenditures
 
Operating Income
 

The Digital Media Signage ROI Tool (“Tool”) and its output provide general guidance only. Contents of this Tool are based on public information or third party research current as October 2008. You understand and agree that Cisco Systems, Inc., its affiliates and their respective directors, officers, employees and agents (“Cisco) are not engaged in rendering business, legal, accounting, tax, or other professional advice and services. The Tool must not be used as a substitute for consultation with professionals. While Cisco has attempted to provide reliable data and formulae in this Tool, Cisco is not responsible for any errors or omissions, or for the results obtained from the Tool. You shall indemnify and hold Cisco harmless from any and all losses, damages, liabilities, settlement, costs and expenses as incurred, arising out of or related to your use or misuse of the Tool. THE TOOL IS PROVIDED AS IS, WITH NO WARRANTIES OF ANY KIND, INCLUDING BUT NOT LIMITED TO, WARRANTIES OF MERCHANTABILITY, NON-INFRINGEMENT OR FITNESS FOR A PARTICULAR PURPOSE, COMPLETENESS, ACCURACY OR TIMELINESS. IN NO EVENT WILL CISCO BE LIABLE TO CUSTOMER OR ANYONE ELSE FOR ANY DECISION MADE OR ACTION TAKEN IN RELIANCE ON THE INFORMATION OR OUTPUT OF THIS TOOL OR BE LIABLE FOR ANY LOST REVENUE, PROFIT, OR DATA, OR FOR SPECIAL, INDIRECT, CONSEQUENTIAL, INCIDENTAL, OR PUNITIVE DAMAGES HOWEVER CAUSED AND REGARDLESS OF THE THEORY OF LIABILITY ARISING OUT OF THE USE OF OR INABILITY TO USE TOOL EVEN IF CISCO HAS BEEN ADVISED OF THE POSSIBILITY OF SUCH DAMAGES. Any use of the Tool is at user’s sole risk.