From Cost Centre to Profit Centre: How to Save $100K+ and Reduce Operating Costs in the COVID Recession
Like many other countries, COVID has dealt a major financial blow to Australia. In the April-to-June quarter of 2020 alone, GDP dropped 7% compared to the previous quarter, as the country entered its first recession in nearly 30 years.
Unsurprisingly, many companies are struggling, and they’re looking for ways to reduce overhead and recurring costs. Here’s how to save up to AUD$100K+ on your in-store audio, while still offering a great guest experience.
Use Royalty Free Radio
One area where organisations can save is with the background music they play in their stores. As it stands, many companies currently pay a streaming service or media content company to access music, as well as a separate charge for the license needed to play it in a commercial setting. This can be a major expense for organisations – and one that can take a chunk out of profit margins.
As an example, take Michael Hill, a leading jewelry retailer in Australia, which used to spend up to AUD$100K per year for public performance licensing; and they’ve got small store formats. Take massive retailers like department stores, supermarkets, and car dealerships with much larger audio formats, and it’s easy to see how costs can grow exponentially.
One solution to this problem is to work with a partner like Engagis that offers royalty free music. Because we’re able to offer high-quality, enjoyable music that doesn’t require public performance licensing, businesses can reduce what they spend on in-store music without compromising the customer experience.
Leverage Media Funding to offset Operating Costs
Another way to stay afloat in the COVID recession involves using media funding to offset the operating costs of signage platforms (or, in some cases, turn it into a profit centre).
Media funding is a mutually beneficial arrangement through which you grant access to your display screens to a media company for advertising purposes. Imagine you’re a large convenience store retailer with thousands of digital screens across hundreds of stores. By placing their advertising across your screens, media companies gain access to your audience, as well as the ability to collect data that can be used to refine future campaigns.
In some cases, the revenue generated through such partnerships may be sufficient to offset the licensing and support costs associated with your screens. In others, if your brand is large enough and has strong enough traffic numbers, it may even convert your operating costs to profit.
Use a Wayfinding Solution to optimise Staff Effectiveness
One final way to improve operational efficiency, while at the same time improving the customer experience, is with a wayfinding solution. Commonly used by organisations with large or complex spaces – like department stores, shopping malls, and hospitals – wayfinding solutions consist of simple, intuitive touchscreen kiosks that assist in customer navigation. Kiosks can be either free-standing desk stands or wall-mounted to quickly and efficiently get customers where they need to go.
The Compass WayFinding application from Engagis, for example, enables visitors to search by floor, department, service, or staff. Or, they can simply enter a keyword into the wayfinding system. Both options help keep foot traffic flowing and ensures new visitors can quickly get their bearings.
Because wayfinding solutions are completely digital, staff who formerly handled wayfinding duties can be reassigned to higher-priority activities. Besides making it easier for customers to explore an area, wayfinding systems and complementary digital signage displays can be used to inform viewers of current sales, events, and promotions that may further increase revenue and maximise your ROI.
Want to see how these types of improvements could benefit both your visitors’ experience and your bottom line? Learn more about the full range of solutions Engagis offers that can help you reduce your operating costs. Get in touch with an expert today.