The Power of Retail Signage: Why First Impressions Matter More Than Ever

In today’s fast-paced, digital-first world, many businesses invest in online marketing—social media campaigns, Google Ads, and email marketing—sometimes overlooking one of the most powerful tools at their disposal: retail signage. Yet, a recent study by Custom Neon reveals that physical signage remains one of the most impactful ways to attract customers, shape consumer perceptions, and drive in-store purchases.

The research findings make one thing abundantly clear: signage plays a significant role in a consumer’s decision to enter a store, make a purchase, and form an opinion about a business. Whether it’s a glowing neon sign in a shop window or a carefully designed exterior storefront sign, businesses that invest in high-quality, well-placed signage are setting themselves up for long-term success.

How Signage Influences Customer Behavior

The study uncovered some eye-opening statistics about how consumers respond to retail signage:

• Over 76% of respondents had previously visited a store or business simply because the signage caught their eye.
• Just over 75% of people reported having purchased something in the past because a sign grabbed their attention.
• 70.5% of consumers said they would be less likely to enter a business without a sign.

These findings reinforce an important truth—signage isn’t just about branding; it’s a customer acquisition tool. In high-traffic areas, such as shopping centers and central business districts, signage acts as a silent salesperson, drawing potential customers into a store before they’ve even decided what they need.

Retailers looking to capitalize on foot traffic should prioritize their storefront signage, ensuring it is visible, well-lit, and designed to align with their target audience’s preferences.

The Connection Between Signage and Brand Perception

First impressions matter. Nearly 79% of consumers believe that a business’s signage reflects the quality of its products or services. This means that a poorly designed or low-quality sign can turn customers away before they even step inside.

It’s not just about aesthetics—66% of respondents admitted to forming a negative opinion of a business due to its signage. Whether it’s faded lettering, outdated graphics, or a cluttered design, inadequate signage sends the wrong message. It suggests a lack of attention to detail, poor management, or even low-quality products.

In contrast, investing in high-quality, professionally designed signage communicates trust, credibility, and attention to detail—three key factors that influence consumer purchasing decisions.

What Makes Effective Retail Signage?

While signage preferences may vary, the study uncovered some clear trends in what makes signage effective:

• Bright and colorful designs are the most effective, with almost 85% of respondents saying they are naturally drawn to vibrant signage.
• Clear and readable text is essential, with 83.2% of consumers emphasizing its importance. This means fonts should be legible, well-spaced, and adequately sized.
• Signage outperforms other marketing methods, with 72.2% of respondents stating that it is more important than social media or newspaper ads for promoting a business.

When respondents were asked to choose the signage design that caught their attention the most, their preferences were split:

• 43.7% were drawn to a bold, eye-catching design.
• 24.5% preferred a creative yet simple design.
• 19.4% opted for a minimalist, understated look.
• 12.4% favored signage packed with information.

These results show that there’s no one-size-fits-all approach to retail signage. The ideal design depends on factors like brand identity, target audience, available space, and overall advertising strategy.

For instance, a high-end luxury brand may benefit from sleek, minimalist signage with elegant typography. At the same time, a trendy fashion boutique might attract more foot traffic with a bright, neon-lit storefront display.

The Case for Neon and Other Eye-Catching Signage

Given the research findings, businesses should embrace visually striking signage if they want to stand out. Styling your business with customized logo signage or colourful displays is a great way to snag a customer’s attention. These signs can utilize LED neon tubing or other illuminated displays to be the most eye-catching. 

Neon signage has been making a comeback in recent years, and for good reason:

• It grabs attention immediately, even from a distance.
• It enhances brand identity—a well-designed neon sign becomes part of a store’s personality.
• It creates a photogenic backdrop, making it ideal for social media-friendly retail spaces.
• It helps retailers stand out at night—especially important for restaurants, bars, and entertainment venues.

Placing neon or illuminated signage in storefront windows is a highly effective way to attract passersby and encourage unplanned visits. This strategy is particularly beneficial for businesses in high-foot-traffic areas where standing out among competitors is crucial.

Signage as a Long-Term Investment

Retailers often consider signage a one-time expense rather than an ongoing investment. However, since nearly 79% of consumers associate a sign’s quality with the quality of the business, it’s essential to treat signage as an integral part of your brand’s identity.

Beyond attracting new customers, effective signage can also:

• Reinforce brand recognition, making your business more memorable.
• Encourage word-of-mouth marketing, as satisfied customers are more likely to recommend a business that looks professional and inviting.
• Create an immersive brand experience, especially when signage is incorporated into the store’s interior design.

For businesses that want to ensure long-term success, prioritizing signage is just as crucial as any digital marketing campaign. While social media trends change and advertising costs fluctuate, a well-placed, high-quality sign continues working for your brand 24/7.

Final Thoughts

In the battle for customer attention, retail signage remains one of the most influential and cost-effective marketing tools available. The results from the Custom Neon study highlight just how influential signage is in attracting customers, shaping brand perceptions, and driving sales.

Whether you opt for a bold neon sign, a sleek minimalist design, or something uniquely tailored to your brand, one thing is sure: investing in quality signage is an investment in your business’s long-term success.

With consumers actively forming opinions about businesses based on their signage, it’s time for retailers to rethink their approach and prioritize visual branding that speaks volumes before a single word is exchanged.