Sixteen:Nine - All Digital Signage, Some Snark
AVIXA Digital Signage Power Hour – October 2020 Roundtable On QSR & Drive-Thru

AVIXA Digital Signage Power Hour – October 2020 Roundtable On QSR & Drive-Thru

October 28, 2020

The 16:9 PODCAST IS SPONSORED BY SCREENFEED - DIGITAL SIGNAGE CONTENT

The QSR industry has been dramatically impacted by COVID-19, and some operators have fared much better than others for the simple reason that they had drive-thru lanes.

If the business relied on walk-in and dine-in traffic, they were in trouble. But if they had drive-thru lanes with pre-sell and menu displays, they tended to make out OK. What might have been 70% of their business went up past 90%.

Last week I moderated a roundtable panel on digital signage and the QSR business, chatting for  almost an hour with top people from companies active in the space - both vendors and end-users.

The Digital Signage Power Hour was hosted by AVIXA and sponsored by STRATACACHE. I led a discussion with Dan Williams from Stratacache, who worked with McDonald's on its massive digital deployment, Sara Grofscik of Samsung, who runs the QSR business there, Dave Petricig of PingHD, and Todd Hoffman, the digital lead for Krispy Kreme, and the subject of a recent 16:9 podcast.

The session starts with me rattling through some observations, and then we dive in.

AVIXA's Marcella Walsh can be heard at the back-end, answering some listener questions.

You can also watch the webinar online here ...

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No transcript on this one. Too many competing voices!

Joe King, Philips

Joe King, Philips

October 21, 2020

The 16:9 PODCAST IS SPONSORED BY SCREENFEED - DIGITAL SIGNAGE CONTENT

Philips has really come on in recent years in the digital signage ecosystem, taking on more and more presence at trade shows and releasing smart display products that my industry contacts have consistently said great things about.

You probably have a consumer product like a shaver or electric toothbrush made by Philips, and assume that the commercial display products come out of that Dutch company. They do … and don’t, and I get into that in a chat with Joe King, a Senior Director with the company, who drives North American sales.

Joe and I talk about where its smart display lineup is at, and its use of Android. We also talk about its own CMS software, which he stresses is NOT intended to compete with commercial software products. It’s meant to service the very basic needs of small businesses.

We talk about market conditions, and how the professional display company has kind of skated through all of this COVID mess … because the desktop monitor side of the business has exploded with Work From Home demands.

We explore the company’s camera-driven access control offer for retail, and who’s buying direct view LED these days.

And finally, we get into what to look for from Philips in the next 12-18 months.

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TRANSCRIPT

Joe King, thanks for joining me. We've met in the past. I know Phillips well, and I think generally a lot of people know Phillips. One of the things that sometimes when I'm introduced to Phillips people, they kind of explained to me the background of the display side of the company. They may have Phillips toothbrushes on all kinds of things at home, but Phillips’s professional display is, as I understand it, the trading name for some other large companies. 

Joe: Yeah. Dave, thank you. Good to be with you by the way, and thank you for having me. Yeah, so we operate as Phillips. We operate under a license from Phillips. We're actually a global company called TPV. It's based out of Taiwan and we operate with a commercial license globally for digital signage, as well as a professional TV. So signage TV, hotel TV, we operate that pretty much around the world.

There are a couple of little pockets that are exceptions, but for the most part, we operate that around the world. So we have the power of TPV behind it and the manufacturing power of TPV behind it, which we're quite happy about. I think most of the industry probably doesn't know the name, but we're the world's largest manufacturer of desktop monitors. We're the world's third-largest manufacturer of televisions. And we like having THEM behind us because it gives us a lot of product development power, and also a lot of manufacturing power when we need it. So, happy you bring that up and thank you for the question. really 

There are some big companies in Taiwan. I've been there two or three times. I was there about a year ago. And, man, I was off to see AUO, but we went right by the TSMC, they're the biggest semiconductor maker in the world and this place was the size of a Ford plant. 

Joe: Yeah. It's nice having that manufacturing power behind us.

Where do you guys sit in terms of market share in North America and in Europe as well? I think in terms of Samsung and LG being top of the pile in North America, but you guys have really come on in the last two or three years. 

Joe: We have and even with COVID, Dave, we've been able to increase our share a little bit. So I think it depends on the day of the week, we are #4-#5. We tend to swap back and forth with another brand there at that level. But certainly, we don't have the market power of a Samsung or even an LG, but, as you say, we're growing certainly in North America and North America is a focus for us now.

We're the number three digital signage player in Europe. Again, behind the two large brands that you mentioned, but there's a real focus with us on North America because we feel like we're now getting our act together, so to speak. We've improved the product line. We've put world-class service in place, something that I think we can differentiate ourselves with, but yeah, we see North America as a real focal point for us. 

You joined or the company joined, what many of the display manufacturers have done in terms of adding systems-on-chip displays to their lineup? And one of the things that I've I've known about Philips is that a lot of the software companies that kind of try the different smart display platforms out there have tended to say that the Phillips’ one is really good, it's very modern Android, powerful, runs like a top and everything else. 

How much of your product line is built around a system-on-chip now? Like the commercial display product line. 

Joe: A lot. In terms of just sheer models, if we were just looking at a percentage of the models, we're probably getting close to 75%. We'll try to offer a model that doesn't have it if we're just trying to hit a price point. But for the most part, especially as you get into the higher ends of the line, almost everything has an Android operating system in it, and we see the business going that way.

I'm a firm believer and I've been in the hardware business, a long long time. I'll age myself if I say how long, but I really do think that software is going to be the driver of this business going forward, and I think that our Android platform, as you say, it performs very well. We see it in large deployments, where it's accessible. It is an open platform, which we like, and we certainly see our business heading that way. 

Something that you hear from the software companies, as well as integrators and end-users that they like that it's open. And, you know, some of the other guys have their own proprietary operating system working with it, whereas I've heard others say we really like that we can work on just Android and do what we need to do without learning or tweaking something. 

Joe: Right. Well, there's a level of consistency, I guess, would probably be the best way to say that. But yes, we get that feedback a lot and I think one of the things that we've done that might be a little different is we tend to try to stabilize On an Android version. So if we see something that we like, that's very stable, you know, we had Android 4.4.4 in the market for quite a long time. And even though there were a lot of updated versions, we kept saying to the marketplace, “This is stable, why do you want to even think about upgrading firmware and trying to mess things up?”

So we tend to draw a line in the sand, if you will, that a particular Android version and we've been very consistent in that. And I think our software partners like that approach actually. 

And where are you now? I think you're at 7. 

Joe: We actually have some displays with 8. We have two different, I think it's 7.1 in the marketplace as well as an 8 today.

Are there any objections still from end users saying, well, you know, it's a system-on-chip? What if something happens with the panel? I gotta replace the whole panel or it's not as powerful enough or anything like that. 

Joe: Certainly I think we tend to get those questions. I think we've proven with some of the demonstrations and stuff that we've done that certainly, the platform is powerful enough.

I think honestly, Dave, the way to answer that is that we've put a service organization in place that we think is second to none in the industry. So if somebody does need a fast replacement, we have the ability to do that. We offer people a 24-hour turnaround. We certainly understand that if it's a menu board in a quick-serve restaurant and it goes out, it can't be their black for a very long time at all.

So we certainly offer the marketplace, those opportunities for quick replacement and that's one of the reasons we do it. We have a very reliable product. I would put it up against anybody else in the industry, which is why we talk about that quick turnaround service, because we know we're not going to need it very much. 

Have you ever run into a smart display where the smarts have died and the panel had to be pulled down? Cause I ask this question a lot and I've never heard anybody say that's actually happened. 

Joe: No, I haven't. And it's a good question. I think again, we try to separate those two. So, the Android operating system is separate, literally a separate board, if you will, from the display itself so those aren't tied together. Now certainly, if a display goes black, it's going to go black regardless, but I haven't seen them tied together that way and it may be just because of the design of our product. 

Right, but I mean that the fear, uncertainty, and doubt that gets someone out there around system-on-chip displays is if there is a problem with the CPU, which you know, is a separate component from the display components and so on, you can't just open a trap door and snap on out and pop a new one. You got to take the whole thing down. But I've never actually heard anybody say this has happened. 

Joe: I haven't either. I haven't seen it. You could always make the argument, you know, indifference to my friends at BrightSign that you could see the same thing with a player and I think we just like this approach. We think the improved service or the improved performance of the Android operating system is worth the investment. And we don't see a risk. We really don't, and as I said, I think some of the installations we have would certainly support that.

What happens on the install side itself? I have heard some solutions providers say that field servicing drops like a boulder because we don't have all these connectors. 

Joe: Yeah. I think you're right. I think, you know, even from our standpoint, we offer our software partners the opportunity for us to preload the software, you know, we have a high touch warehouse facility where we can do that and make the installation process even easier.

So I think that's one of the things that we offer that may be unique to a system-on-chip product. I will oversimplify, it's not as easy as just hanging it and going, but it certainly can make the installation much easier to do with some of the pre-loading capability that we have.

And from what I've heard is because there aren't any HDMI cables and other cables associated with them, there's nothing to wiggle loose and, cause a truck roll. 

Joe: Yeah, well, I'll share it with you. We review service metrics every month and we know that on average, about 65% of the calls we get into our call center are exactly that, it's what I would call operator error. So, things like the cable has come loose, a power cord has come loose and typically we see, it'll be a little higher, some months, a little lower some months, but typically about 65% of the calls we get, we resolve over the phone and it is cable related. And so I think that's just another argument for having a totally contained system.

Yeah. Remove the points of failure. 

Joe: You got it. Exactly. 

So what is CMND, I assume it’s an acronym for Command? 

Joe: Exactly. So it is our “create and maintain” product, so it is a product that we let people create their own content. And I will say to everybody, we do it at a very elementary level. We don't pretend to be able to do some of the things that some of the other software companies out there can do. This is a way for, if you're an individual restaurant owner, and you own a deli and you want to put something up on a screen, this is a way to make PowerPoint and get it onto a screen fairly easily. It's a way for a school, as an example, if they need to broadcast an emergency message, this is an easy way to have that happen, and then it also gives you controls. 

So it can, again, I'll use those schools as an example if there's an emergency message that needed to be broadcast, it can be done from a central location and get to every product. We also utilize it, just like some of the other manufacturers, in very large installations. You can turn them all on with a button click, you can turn them all off with a button click. So just creating software and being able to control the systems as well. And, that's why we call it Command. 

So you're not trying to sell against your software partners or anything?

Joe: No way, as I said, we don't pretend to be that good. We're not in the software business. We're a hardware company, but as I said earlier, I think the software is the key going forward. So we want to make our product as seamless as it possibly can be for our software partners.

We're not trying to take their place. 

What I've seen with some of the display guys is a move to create a kind of foundational software that's a device management and control as you describe it that you could then port a web application onto, and maybe if you've got a special purpose thing where you really don't need all of the bells and whistles and capabilities of the CMS, you can just use command or CMND as the kind of the baseline platform.

Is that accurate? 

Joe: Yeah, I think that's a fair portrayal. As I said, it’s meant to be kind of elementary. And, look, there are people out there that do the software side really really well. And even the control functionality they do, better than we do. So, this is meant to be a very basic product.

You know, the great thing about it is, it's free. We don't charge for it. That's a little bit different than some of our competitors. But again, we're not charging for it because it is a very basic system. 

And these are end-users, buyers who are otherwise just not gonna get a CMS anyways unless they get something free or one of the freemium ones out there? 

Joe: Exactly. 

So, I think two or three years ago, I went to a lot of trade shows. That's more accurately say I used to go to a lot of trade shows and I can recall, let's say about three years ago, going to ISE and seeing a direct-view LED in the Phillips booth for the first time. 

So you guys have gotten into that. How do you differentiate your product in a very crowded field? 

Joe: Yeah, great question. The last time you and I actually spoke to each other and recorded anything was Infocom a year ago about LED and so, of course, COVID has impacted it. We have sold some units, I'm happy to say, and some of them are going on now, but I think that the big differentiator for us, as I talked a year ago, is kits. So we tend to put LED together and a pre-configured kit, you know, we've been very successful with video walls doing the same thing, so it comes together with the display, it comes together with a mouse and it comes together with all the processing equipment you need, the cables. And so we tend to believe in these kits and that's where our success has been in North America. A similar thing in Europe, we've seen, people are going to want custom screens and we'll certainly give them the opportunity to do that. But for us, the success really is those kits. I think the first three installations where you've done or in the process of doing in the US have all been kits versus custom.

I've heard that a lot and the prevailing opinion seems to be that you have specialty LED companies who understand everything about very large installations, big canvases, weird shapes, and everything else, but you've got this whole big second tier of integrators and solutions writers who don't work with LED very often and they don't necessarily understand it or get it, and don't have the cycles to just become experts on this, so a kit is something they can wrap their heads around. 

Joe: Yeah, I think so. And I think that where we're looking at selling this and where we've been successful is mostly in the corporate market. and also some of the consumer markets. We have a couple of partners that are really quite strong in the consumer market and some of these LED kits that we have worked really well are home theaters and that's where we've had some of our success. 

And on the corporate side, is it primarily conference rooms and control rooms, that kind of thing? 

Joe: Not conference rooms, more lobbies. In fact, the first installation we did was a corporate lobby, even in COVID, it's still something that proceeded and was installed. So, yeah, we are seeing more lobbies than conference rooms. 

Yeah. More broadly with digital signage in general, what are those vertical markets that seem to be working right now, even amidst all of this nuttiness? 

Joe: I think we've all been really surprised. I think we all expected that retail would get impacted and retail has been impacted, but I think we've all certainly been surprised at how well, certainly quick-serve restaurants, pizza, you know, the brick and mortar, home improvement, you know, large chain stores have done.

We're seeing a lot of activity in drug stores as an example. So it's really surprised me how well that retail itself has maintained. Certainly, we've seen a huge increase in education. I think a lot of those early dollars went to Chromebooks and laptops and everything else for students, but we're really seeing now an increase in some of the displays that are used for education, as kids do end up back in the classroom. 

Well, you know, all those places have a lot of change going on and, it's not, “This is what we're doing for the next three months, It can change in an hour.” 

Joe: Yeah, exactly, and I think we've seen some of that and certainly if you look at corporate as an example, I think in the US there's really a tendency to step back, about going back to work if you will, where I think in some other parts of the world, we've seen people go back to work a little more quickly.

Certainly, we've seen that in Europe. We've seen people go back into offices a little more quickly, you know, just a personal observation, I think we need to do that here. I think people need to get back into some kind of a normal routine and I think the office can be part of that. And I certainly hope that we're doing that as we get into 2021.

Yeah, I do wonder about this whole shift to work from home, how that will play out. I think it works very well for some people. I've been doing it forever, so I'm used to it, but I think there's a whole bunch of people who do their best work when they're in a collaborative environment and they can share.

Joe: Yeah. I'll share just a quick side note, I mean, I'm like you. I've worked from home for forever, I have a great setup. I can do it, but there are people in my group who, once we made the announcement that we would open the office back up, they couldn't wait to get back there, you know, social distancing and everything else that we planned for.

They still just felt that they were more productive in the office. And we have some that aren't and that's perfectly fine. We've given them that opportunity, but to your point, some of those people, whether they be supply chain-related or product development related, who just feel like they're a whole lot more productive in the office where they have the tools they need and I think a lot of companies are going to see that same thing. 

I certainly think that technology is going to have to help there and hopefully, digital signage can be part of that, whether it's collaborative displays, being able to Zoom effectively if you will but I think technology can help there. And I think that's part of why we're seeing corporate, maybe not as respond as quickly, is because they're still trying to figure that out. 

Going back to retail, Philips introduced something called “People Count” like two-three months ago or maybe more. Can you explain what that is? 

Joe: Sure. So it's a product that we in collaboration with a camera manufacturer, and then there's some software that we actually developed that works with our Android product. But it's basically a way to count people as they come into a retail establishment and then it's up to that retail establishment to tell the system how many people it can allow. So it counts them going in and it counts them going out so that if you can only have a hundred people in your store at one time, it will literally put the red light up, and tell people to wait and that it's not safe to enter yet. And then when somebody does exit, it'll give them a green light, and depending on how large that display is, it gives them a chance to tell people, a mask is required. You can't come in without a mask. It gives them a chance to tell them some of the things they're doing to keep their area clean.

And so it was very well received. I think it's been more well-received in Europe. I think in the US it's been almost on a state by state basis, as to how locked down those States still are. Certainly in California, it's been a very effective product. You know, in some other parts of the country, it's been really effective.

And then frankly, and honestly we've seen some areas of the country that just say, well, we're not going to worry about monitoring people coming. To be honest, it's been kind of hit and miss depending on where you are in the country. 

Yeah, I think I have heard it more broadly that in Europe, the idea of retail access controls as more demand and more take-up because there are pretty stiff fines associated with having too many people in the store. And I guess city bylaw enforcement officers in different jurisdictions who are pretty happy to write tickets on that. Cause they're incentive based on what they do, whereas as you say, it's state by state in the US. 

I live in a part of Canada where we've seen very few cases, but I've seen none of this stuff and it's still, teenagers acting as bouncers, you know, to get into a home Depot or something like that. So I think it kind of depends on where you are. 

Joe: Exactly. Where I live locally and I live in Tennessee, when it first started, there were people standing in front of the grocery store chain.

I go to counting people as they went in and counting people as they went out and they're all using walkie talkies, and now there's none of that going on, you know? And so I think they've just made a corporate decision that we don't need to spend that money, to try to monitor who's coming in and out whether they have a mask on or not.

And where again, I think there are some areas of the country where they're really still trying to do that and that's where we've seen success with that product. 

Have you had to work with some of these resellers and buyers who say, “guys, this isn't a product just for the moment. You can sweat this asset post-COVID”, presumably there is a post-COVID, have you had to do that? 

Joe: It's been one of the selling points we've had to make to everybody that's purchased it. I think that's been the capital outlay. We had one large retailer that bought it for right at a hundred locations and one of their biggest questions was what do I do with it when I no longer have to count people? And so I think that was where we came back and said to them, well, here's what you can do with it. We put them in touch with another software partner. Thankfully, this particular client is a digital signage user anyway, but I think that we've had that question from almost everybody: what do I do after, and is this investment that I'm making now going to be something I can recoup even down the line? And so, yeah, we've linked them up with software companies to try to maximize that.

I think there's a little bit of gateway drug stuff going on there where this is something that can get a retailer or another kind of a business that takes a lot of public foot traffic in, and get them understanding what you can do with digital signage and kind of migrate out from there.

You could imagine once you start using cameras and sensors and things like that, you can start to understand how the store works and where people go and how that changes by time of day, all that stuff. 

Joe: Right. Exactly. 

So there's a lot of talk in the cheap seats where I spent a lot of my time, that LCD is a product that's going to go away and we're all going to shift to direct-view LED and to micro-LED. Is that something that Phillips largely sees is happening or is there always a role for LCD because I kind of think there is when I really think about it. 

Joe: I think we've been talking about the demise of LCD for years, right? And I just don't see it. I think there are two totally different products, and I think that there's always going to be an application for LCDs. 

Do I think that eventually some of the video wall applications that we do today with LCD will end up being direct-view LED? I think, yeah, that's a possibility, but I still think even as fast as the cost is coming down, I still think there's going to be an opportunity. There are just things that we can do with LCD that you struggle to do with direct-view LED and a lot of that is just based on the economics and how much money people have to spend. 

You know, Dave, I don't see a school system putting in direct-view LEDs, at least before I end up retiring. I think that's a number of years away before that becomes a cost-effective solution for them and that's where some of the large screen stuff that we have and our competitors have, you know, really works in some of those verticals. You know, will you see it in transportation more quickly? Probably. When you're looking at what belt is my luggage on, does that turn into direct-view? Yeah, I think that probably is some of the first things that will happen to replace a traditional video wall. But yeah, I don't see it being that quick. 

Yeah. I mean, the minute you get into utilizing what's possible with a 4K display, uou just can't do that even on a micro-LED display, you know, to have fine characters and fine detail and all that. It's just not the same thing.

Joe: Well, and you also just look at the content. I think a lot of it is content dependable, you know?

So if you look at moving video, I think it lends itself to either format. But if you're looking at static content, think about a menu board in a quick-serve restaurant, I don't think that that is really going to be a direct-view LED Canada for the foreseeable future, just because I think it works just fine on LCD and it's much more affordable. 

So the last question: in this weird world that we live in, I wonder how this has had an impact on things like roadmaps and product releases and all that. What should we be expecting to see from Phillips over the next 12 to 18 months? 

Joe: Yeah. I guess we're fortunate because Dave, we are part of a large global company that is kind of diversified if you will. Our desktop monitor business has been off the charts as you can imagine. And I think in a lot of ways that's enabled it to support some of the development and some of the things we're doing in digital signage where some of the other companies may have had to look at scaling back a little bit.

So we're proceeding. We're going to produce in the fourth quarter of this year. Sometimes people look at us and say, what the heck are you doing? But we're going to introduce collaborative displays for corporate offices. We're going to introduce touch displays for education that are upgraded with some great systems behind them. We're going to introduce professional signage TV. We see that as an expanding market for us and others. It's basically a very cost-effective digital signage product that also has a TV tuner in it. So it's really made for use in a corporate environment. You know, we talked about conference rooms earlier. This is a really perfect product for that conference room, because it is a TV which also has Chromecast built into it. It gives you that seamless connectivity. And then it also gives you that CMND software, and the ability to control. If you've got multiple screens in a facility, it gives you a chance to control that as well, but it really is a cost-effective product. And we liked the fact, I think the big differentiator there is Chromecast and the ability to connect things, similarly, our education product will give you the ability to connect up 64 devices to it. So if you're a teacher and you have students with Chromebooks, Think about the ability to have, one of your students throw something up on the display instead of the teacher always having to control that and being the one doing that. So we like the flexibility that it gives us. 

That would terrify me if I taught a bunch of 17-year-old boys. (Laughter)

Joe: Yeah, it probably would, but, to get back to the premise of your question to your question. I was on a call this morning and we were talking about 2022 and we're in full planning mode. We were firm believers going in and my Marketing Manager would back me up on this, that we haven't really slowed down because we feel like if you start cutting and slashing, it's going to be a little more difficult to respond and maintain. Thank goodness, we haven't had to furlough anybody.

We haven't laid anybody off. We've maintained everybody, even in a market that we all know is down. And I think part of that will give us success, whether it's Q1 or Q2, whenever we see ourselves coming out of this. I think that puts us in a position and our company's a firm believer in this, that it puts us in a position where we can have more success coming out of this.

All right. That was terrific. I enjoyed our chat. 

Joe: Yeah, David's good to talk to you again. 

Todd Hoffman, Krispy Kreme

Todd Hoffman, Krispy Kreme

September 30, 2020

The 16:9 PODCAST IS SPONSORED BY SCREENFEED - DIGITAL SIGNAGE CONTENT

The iconic doughnut chain Krispy Kreme has something of a cult status, with people flocking to their stores to get a fresh, warm, melt-in-your-mouth yeast doughnut.

There are Krispy Kreme stands and small shops, but a real Krispy Kreme store - the kind that gets people lining up - has the whole production line in view of customers, and shows the glazed doughnuts coming out of the fryer. It is experiential in its own way.

But the chain, based in North Carolina, wanted to really amplify the brand and experience for its new flagship store in New York, in Times Square. It opened recently, and it may be the most ambitious, experience-driven QSR operation on the planet.

There are giant LED visuals outside, 'cuz its Time Square. But inside, there are stacked video walls for branding and promotion, digital menu displays, interactive tables, and a scheduled projection-mapping show called Doughnut Theater.

I spoke with Todd Hoffman, the digital lead on the 4,500 square foot flagship store.

TRANSCRIPT

Todd. Thanks for joining me. Your company, Krispy Kreme recently launched something in New York City in Times Square. Can you tell me what that experience is all about and why it happened? 

Todd Hoffman: Sure. It's an opportunity for an iconic brand to make a big statement out there, Times Square is kind of a crossroads of the world, with a great place to plant a flag, I guess we're in 32 countries with about 1400 shops and and it was time to put a big stick in the ground and say something major for the brand.

We do plan a big rollout starting in 2021, and also we're coming to New York in a big way. So times square just made sense. 

New York is the home of the, not the home, but there's a lot of Dunkin donuts there and a few Tim Hortons. Krispy Kreme wasn't really present in the market? 

Todd Hoffman: We had a shop in Penn station and years ago we had more shops, but we decided strategically that this was where we wanted to expand. And, this year we rolled out four shops, even before Time Square. We've got a couple more coming at the end of the year and then entering into Dwayne Reed, the world to expand our reach even further.

This one in Times Square, it's the whole nine yards where you're doing all the production right there and people can walk in and see what's going on in the whole theater piece of it? 

Todd Hoffman: Absolutely. It’s 4,500 square feet. So it's a big shop for us. We make donuts 24/7. So that's why you have a hot light that's always on top of the roof. 

And these are not regular donuts. These are the “melt in your mouth” ones? 

Todd Hoffman: Yeah, we call them OGs (Original Glazed) but they're yeast doughnuts that take an hour to make from beginning to end, and we have a machine that can do 270 dozens an hour.

So this location is filled with technology, inside and out. You see this big LED screen as you're approaching it. Of course, it's one of the gazillion LED screens in Times Square, but it walked through everything that was done and the thinking behind it? 

Todd Hoffman: Sure. Sight lines were huge. We're at 48th & Broadway, and the goal is to be seen from 40th street all the way up to 55th. That's where we have the world's largest hotline on the roof, 15 feet, about 8,000 pounds that will be lit and truly you can see it from an even longer distance. We're using lights that are typically used on airport runways so that's one of the big pieces. We have a wraparound billboard, that's 110x35 feet. And then under that we have a ribbon of LED screens where basically you can see donuts just like they're on their conveyor, scrolling, and we could also put any kind of other messaging.

Trying to hit it hard from a distance. Everything we did, we wanted to stand out of the crowd, everybody wants to stand up the crowd, But, I think, I think we did, especially with something as simple as our big red hotline, just rotating slowly. With the pandemic that became somewhat of a beacon of hope and optimism. I mean, who doesn't like donuts? 

And even the opening of shops throughout the year, while other people might've been closing shops, and contracting, we've gone full speed ahead. 

And I believe this store was originally going to open earlier in the year, but then, New York kind of went into lockdown and that delayed it a little bit?

Todd Hoffman: It did, but, mid-July, you know, we're right in Times Square with 10% of its normal traffic, the decision was made that it was important for us internally, and we felt in New York externally to stay on track and so we opened in September. And, by the time we opened, let's say Times Square was back 30 to 40% of its average traffic, but we still hit our records anyway. Word got out. 

So when you say records, do you mean that in terms of record sales, foot traffic? 

Todd Hoffman: Both. For the opening day, we hit records and then for the opening week, also records. We opened on Tuesday always and then by Saturday, the word had gotten out to the suburbs into New Jersey and we had a big day on Tuesday, but even bigger days on Saturday and then Sunday.

And you kinda need sales records there because the cost of rent in a Times Square area is a couple of bucks? 

Todd Hoffman: Yeah. 

Not like being out in the suburbs. 

Todd Hoffman: No, and you know, profit is always an incentive, but making a big statement in Times Square that becomes our marker, that we've returned to New York.

We are in Harlem, where in the Bronx. We're down in the Financial district and we're going to open up shops in Brooklyn and the upper West side. 

If you're in Brooklyn, Williamsburg, you’ll have to be artisanal. (Laughter)

Todd Hoffman: Well, we stick to our roots. We did introduce our first, let's say $10 donut, but a big Apple donut, which is our nod to New York, comes in a beautiful box with candy Apple coating. And, it's a donut that we were taking a big risk on, but we've sold hundreds and hundreds on days. You know big risk, beautiful products but it seems to have resonated with locals. We thought tourists would buy it, but there are no tourists.

So locals seem to gravitate. 

Yeah, they take it with them. And while, I guess they're not traveling either and nobody is? 

At some point that'll all change I'm sure. So outside, the big LED displays it's as much a branding statement as it is something that's going to generate foot traffic.

Obviously people are being attracted and when they walk inside, what do they see? 

Todd Hoffman: That's where all of our, I want to say razzle dazzle is, but that's where we've really turned up the heat with digital experiences and in the pandemic where you're not so able to have a full house, or give out samples, or really have the energy that a room full of people have, digital served an even greater purpose.

When you walk in, we've got two video columns facing opposite directions. So you start to see one that's a 53-55 inch screen stacked on each other. So you can see from the door, the pathway leads right to our donut theater, where we make the donuts march down the line. So the pathway was right to the donuts and that's where we took the concept of donut theater and Bravo media, the team, to them, it was obvious that we were on Broadway, we should put out a Broadway show. Initially we were just gonna do some corporate information on the back wall and simple projection, but David really challenged us and we've got four projectors plus a camera that helps us track individual donuts as they march down the line, and that's all, spectacular visuals for people to get their appetite. But, every 12 minutes, we have a show that's about 35 seconds long from the five shows that Bravo created.

And this is on the white tile, subway tile wall beyond the Conveyor that the donuts are moving along, right? And the workers are on the other side of that? 

Todd Hoffman: Yeah, we didn't want it to take people's mind away from the donuts, which is why we only show it every 12 minutes and have these very short, spectacular shows, no words. It's really just spectacular entertainment and it has brought lots of energy to the room, to the point where there's a button in the back where you can advance these shows and when we feel a low energy in the room, boom, they kinda fire up one of the “Takeover” and it's projection on the back wall. They mapped to each individual tile, things that I didn't think somebody could do and then based on mapping to the tiles, all the different shows, you feel like, the tiles are coming off, the wall or sprinkles are coming down out of this ceiling, and then, there's another projector that projects onto our Donut glazed waterfall. And normally in our shops, it's about three inches tall here, it's three feet and, just to bring the focus on the original glaze, and then there's one that happens serendipitously where we've got sprinkles on the back wall and it looks beautiful and then one day the team members just started to poke at the sprinkles as they were exploding on the back wall and it looks like they're playing a video game with their hands, and when that takeover comes on, the donut maker stop what they're doing, they turn around and they start popping up a wall.

That has become a really spectacular show that says a lot about, I think the brand, cause we were loose enough to let it go, crazy enough to put all this stuff into our donut theater and then, let our team members, start to really interact with it. 

Is that part of the team member job description that you're required to do this when this particular show comes on or did that just organically happen? 

Todd Hoffman: It organically happened, but now we do require you do it. If you fear the first tone, then, somebody might come off the floor and one of the donut makers in uniform, and they love it and it's as if they're competing, how many sprinkles you're gonna explode in the course of 35 seconds? 

It’s a break in what they're normally doing. 

Todd Hoffman: Yeah. So that's our lead in, and when we first designed the shop, and being Times Square and being Krispy Kreme, we expected hour long lines, but the pandemic has changed that where we're only at our 25% capacity.

So we have this donut theater that people can see what their appetite, and then at the end of it, they're facing that digital column that kinda shows images of donuts, dozens of donuts, coffee, lattes, trying to help them think about what they're about to order before they hit any one of our five display cases and that's what they're there for. That's where the fun starts, figuring out how to fill the box with your favorite donuts. 

You run all the digital for Krispy Kreme, right? 

Todd Hoffman: I'm the digital lead. My day job is menu boards. That's what I signed up for. And then, what made it the best job in America was being able to do Times Square in the past nine months. Yep. 

When the ideation process was happening for this Times Square store and started floating concepts like the donut theater, I assume you had to sell that up to your managers and the executive team.

Did they go, “Hell yeah!” or did they look at your cross eyed, “You want to do what?” 

Todd Hoffman: I thought when we decided not to put messaging on the back wall, executive leadership would see it as a missed opportunity. But our COO, who really is the one who let Bravo do their stuff, which was a pretty amazing match. When he showed it to the executive team, our Head of operations, our president, they just loved it. 

Krispy Kreme as a whole, it's a very low key brand. We let our product say everything that it needs to say. We don't have an ad budget, we change up the donuts a lot, but it's really word of mouth. So we don't brag and this was a way for us to be on brand, and just entertain and make it a happy place. Where I thought it was crazy, cause I'm new to the brand, I grew up in the Northeast and really was only introduced to it when I started with Krispy Kreme. 

They were true to form, and it went over, I'd say very well across the executive team and they let go and we got to execute it.

Are digital menu boards standard to a Krispy Kreme store? 

Todd Hoffman: They are being introduced in every new store and we're testing in remodels. So eventually all the remodels will have them. The delicate balance is, we don't want people to see technology. The name of the game is, they see what they need to see, they get the information they want. We've met their appetite with some animation, but we really don't want them to feel like they're looking at TV screens, so we've stepped delicately. 

I'd say we have 15 shops that now have digital menu boards and next year we'll do a big expansion, but Times Square was a deviation. It was a project and an aspiration, all its own. 

You talked about rollout. Is this a concept that's going to go elsewhere, like the Times Square donut theatre thing? 

Todd Hoffman: It may, but there may be one other location in the US where we go all in the way we did in New York. You might guess where that is. There are other places where we have a strong presence, England, Australia, Mexico, that may merit this kind of flagship shop. 

Yeah, you could do Lester square if you ever went to Dubai, Tokyo, places like that. I would imagine, you're not saying it, but referencing Las Vegas would be the one that would make the most sense.

Todd Hoffman: Further South, maybe it's Disney territory or such. We’ll see. (Laughter)

The only one I've seen in Las Vegas was in, the one which looks like a castle and all that. 

Todd Hoffman: I think we have a presence out there, but now it's where tourists from around the world congregate, and I was there to have fun family oriented. 

So with your standard, digital menu boards, have you had any sense of what they do? Do they make a difference operationally or in terms of sales or is it just a more efficient way of doing things? 

Todd Hoffman: I'd say the pandemic screwed this up because we can't really comp stores.

We've been opening new shops so that we can comp from the year before. And then the few remodels we did, we only had a couple of months to look at, but we are definitely thinking that it's driving drinks, grabbing beverage attachment, and the goal is maybe a higher average check or more dozens.

But we believe in the concept that it is having impact, and the drive through as well. So definitely, our belief that it's worth the investment is growing, but maybe we need more months and we need more comping to confirm that.

You sent me a list of all the various components involved and there's a lot of moving parts and a lot of people involved. How did all this get pulled together? Cause I'm looking at it like a dozen vendors or something like that? 

Todd Hoffman: Yeah. You know, it started with our design team working with an architect, who are the best of the best. They set the stage and put a lot of this activity in there, not knowing how to do it. I don't think they have much experience doing it, but they could envision what could be done with the digital columns or projecting and the donut theater.

They helped us take our icons and then the icons within an iconic brand, the hotline, the donut box, the waterfall, the donut line and build on them to the point where the whole place seemed to be a theater. So they set the stage. Then we had a major creative shop come in, partnered with a technology lead, which was Electro Sonic and they took the first stab at how we fill it in, with kind of interactive tables and projection during the theater and where the menu boards might go and digital columns, but then we took it and we just dished it out to specialists in each area. 

We used Stata Cash for menu boards. I don't think any other company could have done what we did with these menu boards or any other platform. We've got three layers of imagery that's on there. We've got an animation scrolling animation in the middle board. There's three boards together. We've got your basic, DOS connected menu board items. And then every 30 seconds we have these takeovers that wash across the three screens and it took hours and days for us to, I think we pushed their platform, we pushed the media players that we were using. We pushed their creativity, but, in time we were able to kinda get what we wanted because visually it seems simple, but executionally, it was a really big challenge.

So, kudos to those guys for sticking in there and giving us the vision that we wanted with the menu boards. 

And Strata Cash at least would drive through with some of their clients, they're doing things like AI driven, suggestive selling and menu optimization. Are you guys looking at that or doing it? 

Todd Hoffman: We will be. They are our shop of record, so that's the platform we're going forward with. You know, a lot based on how they presented, we looked at nine different options for menu boards this year, Strata Cash came out on top, partly due to our aspirations with drive-thru. We think we can make more money through drive-thru or have a greater impact digitally through drive-thru.

Then we can go inside the shop. So their expertise in that area and ability to personalize. Everybody had some angle on personalized when they're pitching us, reading license plates, geo-fencing, what have you, but, I'd say Strata Cash their work from McDonald's and others, gives the comfort level that they were the ones to go with for the long haul.

So we've probably done a few shops with them, including Times Square. 

I suspect there's a few vendors who come in and say, “yeah, we can do all that”, but when you push them on it, that has to do with whether they've actually ever done it, it's a different story. 

Todd Hoffman: Yeah, there are some great outfits out there. The surprise to me, I don't know if you stay on a screen on a radio call, it's one of the few times where I thought the best of class was going to be out of our budget. And then when we looked at it, they were right there. So they were affordable and impressive, and continue to impress, but this isn't an ad for Strata Cash.

Yeah, they've done well. The idea of this store, obviously I haven't been there in six or seven months. I wonder about the sensory overload element of it. You've got audio, you've got the theater, you've got the LED displays. You've got all this stuff going on. Is there a balance you have to achieve so that it doesn't become overpowering to people when they walk in there?

Or do you just see and know, “That’s okay, I'm going into an attraction.” 

Todd Hoffman: It sounds like you were listening in on our meetings because of some of our great concerns leading up to opening. We had to get the sound levelled for background music and then, with the donut theater, the light, there's a light show and sound had to rise, but it couldn't rise so far that people couldn't talk so there's a lot of nuances, a lot of, I'd say over the next month, we're going to be doing some fine tuning, but I'm happy to say when we opened, we were pretty close to, in our mind perfect on the balance, bu, getting team member input, getting guests input is critical.

So when we're fine tuned in 30 days, we'll be able to do our best to make it work, but I don't think there's a feeling that we're over the top, yeah. 

Well, you are in Times Square, where everything else is. (Laughter)

Todd Hoffman: Yeah, there's a lot of leeway and so the only place we shouted was outside, that's where it's fair game.

And if you do shout, you know, you don't get heard. So we've tried to whisper with things like the hotline, going back in time, it looks like it's been there since the 1950s, even though we just fired it up last Tuesday, 

What's been the response of people coming in? 

Todd Hoffman: I have been there for the last 10 days and I would stop people in Times Square when I saw them sitting at a table, enjoying the donuts and they say they've been waiting for Krispy Kreme to arrive. We got a thousand pieces of media before we even opened, billions of impressions, so there was a lot of buildup, and a lot of anticipation and everybody I talked to, which are several dozens, seemed to be happy with what they saw.

Well, if they've ever had a Krispy Kreme donut, of course they're happy.

Todd Hoffman: Yeah. And it all comes down to this silly little, original glazed donut that's still warm in your hands. Once you've had one, you can't forget it. 

So before we returned to New York, you could get them in Penn station, but they weren't as fresh as they are when we're making them in a shop. 

They'd been shipped in from somewhere else. It's just different when it comes off that line. 

Todd Hoffman: Yeah, and they're always made fresh daily, but when it's in the fryer and then through the glaze only seconds ago, it's quite a treat.  

Technology is being applied in some retail environments to manage access control and capacity control.

I'm guessing you didn't have to really do that because you were already in a situation where you needed to have bouncers or some mechanism to limit how many people are in the store at a given time? 

Todd Hoffman: There are adjustments we did make for the pandemic. We have virtual queuing so you can make reservations in advance, and again, we didn't know how chaotic the lines would be going up Broadway and down 40th street. And that has helped a lot with the flow.

Mobile order pickup, that's been huge. We have a window on the street, a take-out window or and that's where you pick up your mobile order, and more than double of what we do in an average shop in terms of percentages are done through mobile order. And I'd say that's how we were able to hit our records. We can only have a certain amount of traffic inside the shop. Then when we have this walk up window, we're selling OGs and coffee, but also, picking those delivering mobile loaders, so that was a great add to what we've done. And line queuing inside, there's a lot of subtle technologies that we have used to do line management and we'll continue to optimize. 

Is there dispatch and recognition on that? Like Order #1-5 or Customer #1-5, you can come in now. 

Is that just done by text messaging or are you doing anything on screens?

Todd Hoffman: Yeah, it is. There's push messaging that'll tell you where you are in line and then tell you're third in line and then tell you how long until you need to be at the front door. 

The virtual queuing is definitely a work in progress. The company we went with hadn't done anything quite so complex or customized. I'd say the team that worked on that, which wasn't me, has done a great job of making it work to our needs. That has helped people in line who have been waiting for minutes, if not hours, there doesn't seem to be this issue of somebody walking up right to the door who had a reservation.

And we opened on a Tuesday but our reservations were booked till Saturday. That gives a hint that we were in for a pretty busy week. 

Wow. So last question. Engagement and experience are terms that get tossed around a lot and kind of lose their value in certain respects. How do you define “experience” when it comes to this place?

Todd Hoffman: So much of what our marketing team does - they almost police us - to make sure we're on brand. So we had to be on brand, color wise and with messaging, and yet we wanted to really push the envelope and make a huge statement and have people feel like they were coming to a flagship shop, especially anticipating international travelers who are our lifelong fans when they know there's a Krispy Kreme in Times Square, just like there's an M&M store or what have you, they're going to want to go and our experience, not just buying donuts, like getting to the donut cake and being in the room has to feel like you've arrived somewhere. 

And, I think we have. Our general contractor had a great line in that he doesn't think there'll be another shop like this for a few years, that has put so much into it, that has tried so hard to please its fans, its customers as we have and we've got pretty three racks worth of technology. Technologically wise, he had not handled anything that was this complex, but also, in the front of house with customers, he just felt like there was so much to see and do while you're in the shop, and he's done a lot of stores in Times Square, but he said we had hit it out of the park. So anecdotally, with just from word of mouth or reactions, we think we've done it. 

All right, Todd, thank you so much for spending some time with me. I appreciate it. 

 

ACE Roundtable: Making Connected Experiences Work Now, And Post-COVID

ACE Roundtable: Making Connected Experiences Work Now, And Post-COVID

September 23, 2020

The 16:9 PODCAST IS SPONSORED BY SCREENFEED - DIGITAL SIGNAGE CONTENT

Advocates for Connected Experiences is an umbrella organization created several months ago, that pulls together the people and shared interests of a variety of organizations that deliver experiences to guests.

That can be in places like retail, in museums, commercial properties or theme parks.

The short form for the group is ACE, and it was pulled together and somewhat driven by the Digital Signage Federation - notably past and present board members like Kim Sarubbi, Beth Warren and Laura Davis-Taylor.

One of the early efforts from ACE has been a monthly series of online discussions about important topics, that pull together top people from member organizations. The most recent one was about connected experiences now and post-COVID, as we all all hope there is soon a post-COVID.

I was the moderator for the discussion, and this is the audio track, which is roughly one hour.

The panelists included folks from Shop!, SEGD, Geopath, the DSF, the Location-Based Marketing Association, Blue Telescope, The Experiential Designers and Producers Association, Retail Touchpoints and AVIXA.

There's a lot of voices and you won't always know who is saying what, but the content is worth any confusion you might experience.

TRANSCRIPT - skipping this episode ... too many voices to sort out who said what. Anything particularly brilliant was not me.

Nancy Radermecher, JohnRyan

Nancy Radermecher, JohnRyan

August 26, 2020

The 16:9 PODCAST IS SPONSORED BY SCREENFEED - DIGITAL SIGNAGE CONTENT

Ask a digital signage provider about its target markets, and a hell of a lot of them will list banks among them. But only a small handful of companies are solely focused on the financial services sector, and the best known and most enduring of those is JohnRyan.

The Minneapolis-based company has been providing branch merchandising and messaging services to the banking sector, globally, for decades. It's also one of a few companies who can credibly says it was doing digital signage before the technology had a name that stuck.

I chatted recently with JohnRyan's President, Nancy Radermecher, who has been at the company for more than 20 years.

We spoke about JohnRyan's roots, but also about what's going on today. Bankers have long been in the midst of what they call digital transformation, but the pandemic has turned five-year plans into five month executions.

We talk about the evolution of retail banking, and how digital signage and interactive digital apply. We also speak about what kind of content really does work in banks, and why.

Nancy has a passion for data-driven content, and nerdy stuff like integrating systems. We dig into where she thinks platforms for business, like digital signage, are going.

Subscribe to this podcast: iTunes * Google Play * RSS

 

TRANSCRIPT

Hi, Nancy. I know JohnRyan pretty well. I'm thinking about a number of people maybe don't. So if they don't, can you give the elevator pitch about what JohnRyan is all about? And, we can also get into maybe how things have changed through the years. 

Nancy: Sure. We are historically a retail marketing agency, meaning that our clients are end-users, operating financial retail establishments, and we take a sort of strategic and all-encompassing approach to retail marketing. And within that portfolio, is digital signage. So over the years, digital has become a far more important and central product for us because people have moved a lot of their offline retail experiences into the digital world. And it's from that perspective that we entered the digital signage market. 

Yeah, it seems to me, I can remember that the first thing I knew about JohnRyan is that you had a legacy business where you were doing things like handling the compliance of all those brochures that would be in sleeves and bank branches and so on because somebody had to manage that otherwise the same stuff would be sitting in there for years. 

Nancy: Sometimes that even happens to digital signage, but yeah, you're absolutely right. And when we started in digital signage, it was because we were in the United Kingdom and passed a window of a building society and there they had a stand. On the bottom of that stand was a giant video desk, and then above it, there was a screen and they were making use of a firmware technology where you could actually superimpose changing text on top of a video background supplied by this video desk, which in its day was absolutely remarkable.

And so we thought, goodness, is there something to this multimedia approach to what we do today? And we began the exploration based on that. And in fact, one of the people involved in that project is still with the company today, the original building society project. So it was, oh my god, the early mid-nineties, I can tell you that the word digital signage didn't exist.

So we kept trying to find ways to explain what we thought this could be to one another before there was the terminology that you can apply to it.

I think we're all still struggling to explain what digital signage is to people. 

Nancy: Yeah. Fair enough. 

It's improved, but is the focus entirely on retail banking, or do you service any other sectors?

Nancy: Opportunistically we've stepped outside of retail banking. The company initially was focused on chain retail, conventional retail. We moved into retail banking quite early on and pretty much stayed there to this day. 

And is it just the big whale account banks in North America, or are you working globally and working with banks of all sizes?

Nancy: Yeah, we do tend to work with larger banks. The mega global ones are particularly attractive to us, of course, but we work with banks, say super regionals versus community banks. And we've worked in many different countries and still do today. 

Yeah. You used to have an office in, is it Spain?

Nancy: Yeah, we have a presence in Spain, but the, European offices are in London. 

And when you focus just on retail banking or primarily focused on retail banking, is that advantageous? I strongly believe that's the case that if you're going to be talking to very large companies, you sure as hell better know their business, but I see all kinds of companies who will go in and talk to anybody who is willing to take a meeting with them. And, I've been in some of these meetings and thought you guys don't know crap about this industry. 

Nancy: Yeah. I think there are probably two reasons why domain expertise is important in Banking. One is, I guess the obvious reason and the one you just referred to that, it's a good thing to understand something about the client's business situation, business challenges, business opportunities so that you can help them in relevant ways, but banking, I think imposes a second criterion, which is a very particular approach to security, as you can imagine in it and we would all hope to be the case. 

Why? (Laughter)

Nancy: Yeah, exactly. What on earth do they have that requires security? (Laughter)

So it has implications as to how the system is engineered and it has implications about how data moves and there's a high demand also for flexibility in engineering, which maybe you wouldn't expect, but banks may differ in how they approach their security regime. 

We've over the years had to be careful not to be too prescriptive, in how data is transferred, what kind of media player hardware is used because they have very specific ideas about that. So I think financial services is one where you actually really do need to understand the industry to thrive in it.

When you're in these kinds of meetings, is it more the case may be with a retailer, pure retailer, you're talking about what the system will do for you and with the banks you are talking about, what you can stop the system from doing or preventing it from happening? 

Nancy: Yeah, that's right. That's a very good point 

The other thing that's interesting, and what you just said is, I think, as an industry, I'm always surprised a little bit about how much of the literature that's published by digital signage companies, possibly even us, focus on the benefits of digital signage and the sort of basic understanding. And I feel like banking, probably like a lot of other verticals, really understands that, they know why somebody would do digital signage and the conversation is no longer at that level, “why would this benefit you?” No. 

Yeah, my eyes roll up into the back of my head when I go on a software company's site and see a little Chestnut of what is digital signage.

Oh God. 2020 guys. (Laughter)

Nancy: Yeah, exactly. And I think, the questions about business case ROI, I think those have all been answered for the industry. 

We were talking earlier about digital transformation and how COVID-19 has forced a very rapid acceleration of digital transformation plans. You were talking in terms of going from three to five-year digital transformation plans to things that had to happen in a matter of months or even weeks instead 

Nancy: Yeah. It's interesting, and I was just looking at some more industry literature yesterday, in the banking industry, they've all been pretty clear on the shape of things to come in terms of increasing levels of digital adoption on the part of bank consumers. And with that has come, a general understanding that as time goes on, the number of branches will decline, the nature of the activities that take place in those branches will move from the transaction on cash-based activity toward consulting activity.

And by and large, that was something the industry really wanted to see happen because it changes their cost dynamics quite dynamically for the good. So what's happened now is that there's been a really rapid acceleration of what everybody knew was gonna happen anyway. And in a certain way, that’s kind of welcome news for the industry in the sense of accelerating something that was desired. 

On the other hand at this level of speed, I think it's given people a lot of challenges in the very near term. 

So what's transforming in a retail bank? 

Nancy: Strategically, what's transforming is when and why customers are going to want a physical location. So, as I said a moment ago, it's really going to be far more of an advice and guidance proposition than a transactional proposition. But in the near term, what's transforming is the manner in which that advice and guidance proposition is delivered. So when your lobbies are not open and all the time, when people don't have free access, that's creating all sorts of logistical complexities about how do you let people in the branch, how do you manage appointment traffic? Nobody envisioned that they would have to answer all these questions all of a sudden in one big hurry, that has an impact on digital signage, of course, because it provides an opportunity to actually use digital signage to convey to customers new policies.

Obviously, there are opportunities to manage, customer check-in, and flow using digital tools. The screen's gonna be an important part of conveying where you stand in the queue and what's going out in the branch. In some senses, this is making digital signage a more integral part of a successful branch operation, which is good.

It's more than just a communications tool. And there were other examples of that. I think increasingly people are going to embed digital experiences in the onboarding process. We've all seen these bankers clickety clacking away on their computer terminals when we're opening an account.

Some banks now turn that screen toward the customer when they're clickety clacking. But I think hopefully it will be a full-on multimedia onboarding experience, so seminars and financial wellness or all sorts of things that are going to happen, as the branch becomes more of a center for health and guidance than a teller-counter.

Yeah, I go to a particular bank and it's just a suburban location, so there's not a lot of razzle-dazzle there, but it does have digital signage and it's the same bank I've been banking with for 30 plus years or whatever. So I don't see a lot of other ones, but there seems to be a standard feature set that I noticed there and in other banks in general, where there are displays behind the counter and there are displays in the seating area and maybe there's a display over the ATM bank, but it is generally just being branch marketing, “We're wonderful. We have this new thing. Here's the weather”, blah, blah, blah. And it's not terribly compelling and when I've seen banks of the future, in North America and, particularly in places like Dubai, I've seen things like virtual tellers and remote Financial service advisors, where they go into a little pod and you can discuss with somebody who's on the other side of the city or country.

And those things have been very “branch of the future” sort of things that I've never seen adopted, but I'm getting a sense from what you're saying, that the novelty of that will become much more an operational thing out of necessity. 

Nancy: Yeah, I think that's right. There are a lot of things in what you just said that interests me. To your first comment about the placement of screens inside a bank, you're absolutely right. Where you would typically see them as the areas you describe but what's happening now as banks are moving more toward almost a lounge conception of the branch where the bankers are now untethered from their desktops, and maybe can help you with that with an iPad and in a roving fashion, it really diffuses the problem of where to place your digital media, because now suddenly everybody is milling around in a kind of uncontrolled environment, and there are obvious focal points, dwell areas, sightlines, like there always were in the past, which is a challenge.

But then, on the level of the content and just compelling experiences, one of the things that we've learned over the years through mentors, many different experiments and trials and tests is that it's really important when you're thinking about innovative change to a bank branch that you don't lose sight of the fact that the consumer is seeking utility above all else.

So do you have a really cool idea of a touch screen? And I think we've all seen many of these in branches of the future. It might be cool from the perspective of the multimedia designer who gets to create it and win an award for it. But it's a real challenge to get banking consumers to decide what they want to prolong a visit to their local bank branch in order to interact with content that most people intuitively believe is available to them at home.

Anyway, it's tough to reign in the impulse to, I don't know, saddle a bank branch with all sorts of “cause you can” stuff without thinking long and hard about what customer utility is being imparted. So the example you gave of the video conferences is a perfect example of a high utility, high-value digital investment in a bank branch. And there are all sorts of reasons why doing something like that is valuable to both customers and to the bank versus some of the multimedia poster children that we've had. 

Yeah. Let's do something to connect and gesture and all that and embarrass the hell out of people. 

Nancy: Although you had on your podcast just this week, I think an article about one that made sense, but it kind of proves the point I guess.

Yeah, probably a $2 million popup event by IBM, and that's what everybody's going to do, but it was good. (Laughter)

What is the content based on all those years of experience that customers do want in a branch?

Nancy: This is interesting and actually this is my favorite topic, really. So one thing we've learned, and this will come as no surprise to you or to anybody, is that Financial services advertising on its own is not that commercial for people. And there's a very good reason to use sort of general interest communications in a bank branch as a way to get people used to view the screens at all.

So you mentioned the weather before. Our testing and results in time and time again, whether it comes up as the thing that people remember most and want the most. And it also happens to be very easy to deliver us as so if you can mix and match general interest information with bank information or place bank information in a more general interest context, and, an example that might be. If there's something happening in the mortgage market, tying your mortgage messaging to something that consumers are generally aware of and concerned about is a good thing. We've also seen some kind of interesting results that would suggest that if the ratio of bank messaging is a little bit lower than you might initially think you want, the recall of those messages goes up. And I think that's because there's more sustained viewership of the general interest information. People’s attention is more fixed and focused and for that reason, the bank messaging that crops up intermittent get more attention and more recall, which is really interesting. 

In my exposure to banks, I've certainly got a sense that they're very excited. The bank market is excited about being able to have some continuity between online and broadcast and other mediums and push that same campaign into the branches.

But you're saying that at that point, they're in the branch and they don't need to be sold and drawn into the branch cause you got them. 

Nancy: Yeah, and it can reinforce the value of your brand by providing helpful tips. There's a huge demand for financial wellness information right now, not just because of recent events, which has accelerated it, but also because a lot of younger consumers actually don't know much about money management and want to, so that kind of helpful guidance information is also something people like to see. Another thing that people really want, believe or not, is to see pictures or names of people who actually work in the branch. That is always a highly recalled type of messaging. 

Just casting back to something you just said about content creation for other mediums. I think where this is all headed in terms of digital signage, content production in banking is toward, more and more repurposing assets that were created for other digital channels and bringing those repurposed assets together and to constantly updating, constantly iterating news and information streams.

It’s less of a purposeful agency endeavor where somebody's building a 60s mp4 and more of rethinking it more as a large-format webstream, something like that. I don't know exactly the right metaphor. And I think banks will find that they don't have to spend a lot of money on content production to have a lot of really good locally relevant information on screens in their branches. 

That sounds to me back to the work I did with a very large bank. And, I sat at a meeting where we're talking about content with the agency and I became persona non grata, the devil, the antichrist by suggesting just that what was the point of a 60s spot in a window display that was going to cost a hell of a lot of money when you could be repurposing all kinds of other media assets and automating the content. And that did not go over well with the agency because that was their cash cow. 

Nancy: Exactly. It is interesting because, and I was thinking about this earlier this week that this is one of those rare instances, where to do it better, is also a way to do it cheaper. It's not like you're giving up anything, you're gaining something when you start thinking about digital signage content in a more disaggregated way, just snippets of bursts of information using static assets even that you have. And, our clients have huge repositories of assets and tips and all of these things are available aplenty inside of banks’ asset management databases. And mixing and matching these things creates a really low-cost way to build content, but also superior content, which is just such a great thing. 

Yeah. I assume that bank marketers are pretty savvy and understand this whole concept of Omnichannel and more so than let's say, “regular retailers” or all kinds of other potential clients in that, they have these digital asset management systems and everything else, and they understand automated and dynamic content based on data assets? 

Nancy: I think they do in all of their online applications, but it seems to me that they are generally puzzled by why they can't somehow better leverage their online assets to digital screens. And I suppose that's because maybe we in the industry have not rapidly embraced that model or educated the market to the model that actually, no, it is a logical thought to think that those other assets can be repurposed to digital signage. But you don't see a lot of it happening, right?

So maybe the digital signage industry too has been a little bit in the paradigm of the agency that wasn't so happy with you creating longer-form content, purpose-built for this media versus looking at an alternative way of doing it.

Yeah, you get the sense that even regionally sizes and certainly national and international banks, they are in the thrall of probably multiple agencies and it's in their express interest to control the thinking really, and certainly the budgets of these bank marketers. There's no incentive for them to say, “Hey, you don't need to do all this really expensive stuff. Just do it this way, and we'll surrender to that $5 million.” 

Nancy: Exactly. But I'll tell you what. I think with declining levels of traffic and branches and the general stressors that banks are facing now, in terms of justifying marketing investment at the point of sale, that's going to prompt a change. 

One of the things that gets batted around a lot these days is the whole idea of “interactive” in a bank setting and other retail settings. Is it safe to touch things and all that... 

You know, banks have ATMs, there's just no way around. You can't do voice control, or at least I don't think you can, or I wouldn't want to use that. So you go into a bank, you're already conditioned that, “Yeah. I'm going to use a touch screen and I'll whip up my notes advisor and everything will be fine”. Is there antsiness at all around introducing more interactivity to reduce the one-to-one contact with staffers? 

Nancy: For sure. I'm hearing a lot of focus on touchless experiences, and so trying to figure out how to clone interfaces to people's personal devices or bypass the need for them, that's a huge issue the industry is trying to address because, as you mentioned earlier, video tellers, video conferences, these things are really important to the branch of the future because they become the only kind of financially viable way to deliver certain services to certain branches in the network. So they're essential to the value proposition and will only become more essential. 

So yes, I think there's a lot of work being done and a lot of time being spent on how to make those interfaces appealing and acceptable to people in some of the ways I described. I think on the level of our business, digital signage, thinking back on the concept of utility touchscreens roles for marketing purposes has been very difficult to implement successfully. You've probably seen Microsoft, like those surface tables in bank branches, they came in and then they went away, interactive kiosks came in and then they went away. We've done a lot of things with touch through bank windows, we've done QR codes, we've done scannable brochures, that launch interactive experiences, printing brochures on demand, and all of them face the same challenge that they require a customer to prolong their visit in the bank branch and they're not delivering really clear apparent utilities. So it is just at the level of the basics. The tougher problem with all that, I think, is not just managing people's concerns about hygiene today but just the use of it at all. 

Yeah. It's not as private as going on a touchscreen to look up some health issues, but, if you're going to be doing loans, calculators, mortgage calculators, and things like that on a screen then other people can see.

I don't know if it bothered me all that much, but I'm sure a whole bunch of other people would be very concerned about anybody seeing that. 

Nancy: It's not just that, but you're also likely having in your hand a device that does exactly the same thing, So you can use your phone to do these things when and where you want to do that versus standing at a kiosk, so it's an interesting challenge. 

In terms of banks. you’re focused on retail banking, but there's a whole bunch of bank office space and giant office towers full of banking people and even with work from home, that's not going to totally change, those office towers are not going to clear out.

Have you guys done much work in terms of the back-of-house digital signage for banks? 

Nancy: Yeah, that is actually how we got our start. Our first network was a 900 branch training network within the UK, delivered by satellite because that's all there was, daily kind of huddle and corporate communications. So we've done a lot of that, more focused on the branch and then the corporate headquarters. But the technology as that you would know well drives one versus the other is exactly the same. 

Is it hard to crack the larger opportunity on the back of the house side? 

Nancy: I think it didn't use to be. We got our start prior to things like the internet and email and podcasts and websites. All of those become really viable corporate communications vehicles for the sort of information that we were imparting through our digital networks. So the case needs to be made that multimedia delivery of some of these messages is a superior form for those messages than plowing through an intranet.

And I think that the case can be made, but given all the other things that banks have to contend with in their overall digital transformation, I don't think that's going to make the top of the heap. 

I know that you've spent a lot of time thinking about where all of this goes and you have the benefit, so to speak of working in an already demanding vertical where the security demands are a lot higher. Where do you see things going or do things like PCs and media players and all that will start to go away? 

Nancy: Yeah, definitely there's a move afoot in the world around us toward, edge solutions, and there's no reason to think that digital signage wouldn't be an edge compute solution. What we hear from corporate customers a lot is that they're very frustrated by the proliferation of point solutions in their branches. They'll have a solution for digital signage, they’ll have a solution for POS, solution for managing appointments and on.

And each of these solutions is vertically integrated. It contains a monitoring component. There's a service plan that they have to have with somebody for it. And this kind of really adds up a lot of complexity. So this future of bringing these disparate point solutions together in a sort of commonly managed edge environment, I think is very real and the sort of streamlining that clients that we deal with would really like to see.

So I think those of us who provide digital signage solutions should be hunkering down and really focusing on our software and imagining that it might be deployed in a manner like that in the future. 

So this is a couple of steps beyond the recent and prevalent question of, “Do you have an API?”

Nancy: Yeah, I would say so. Yeah. 

A few months ago now, I think, you guys were acquired by AU Optronics out of Taiwan, a company that had already acquired ComQi, which does digital signage. How is that going? 

I know the AUO people and they're from Taiwan, so they're super nice and super smart and all that, I assume this was a good event for you guys. 

Nancy: Yeah. It's interesting because we remain a very entrepreneurial, agile company as JohnRyan. We're operated pretty much autonomously from the other units in the group. So from a day to day experience, it's actually just the same.

But on top of that is something very nice, which is a huge resource for engineering and the number of patents. I think they have 29,000 patents. There's a lot of people that can answer tough questions within that company. Access and understanding of the really detailed aspects of display technology both now and in the future.

I mean, it’s really a great thing to have that sort of resource available to us and obviously an incredibly strong financial group as well. So that opens up opportunities for subscription-based deals with clients and all manner of things. So it's been going well.

Yeah, there have been instances in the past of hardware companies, display companies, buying software companies, and you just go, “Oh boy, this is just going to meander into nothing.” And that's what happens. But, I've certainly got the sense from Stu Armstrong, who is now overworking with you guys, came from ComQi.

The ComQi experience was just that. They have certainly mentored them and had their back and everything else, but left them alone to do what they needed to do. 

Nancy: Yeah. And I think the interesting part of that might be that in some of these acquisitions by hardware companies buying digital signage companies, they might be viewing those digital signage companies as routes to market for their hardware.

In this case, I think it's almost the reverse where AUO was interested in closer to the customer, more solutions-oriented businesses in order to provide feedback to it about where it is going. And so that's a great role for us to play. We're obviously interacting with people every day on the level of their business challenges and we have good and meaningful insight, I think for them.

So it's a two-way traffic and AUO supplies some display panels, but they're also a supplier to the other manufacturers who produce digital signage displays and other displays. And so there is no agenda that our goal is to sell AUO products in particular only when they get the solution.

Right, but it does give the opportunity. If you're looking at a bank deal that's 1100 branches and 10,000 screens or whatever. You don't necessarily have to buy from a consumer or commercial brand, you can go directly to a manufacturer and cut some of that cost out, which is going to be attractive.

Nancy: Yeah, affordability is really going to be a very big factor for our business going forward. It's going to be interesting to see how people reformulate their offers and streamline them. We talked about content earlier. I think there's going to be a lot of interest in that sort of content approach. Now, when there really isn't the luxury to do it any other way, and that's going to affect every aspect of our business. We've been spending a lot of time over the summer looking and kind of reinventing digital signage. There's some stuff that we're going to be putting out in the weeks months to come, but not taking anything as a given, right? Let's look at the hardware. Let's look at the connectivity. Let's look at how content is created. Let's look at how maintenance is done and just across the board, trying to emerge from all that with a really streamlined, focused approach. 

All right. that was great. Thank you for spending some time with me.

Nancy: Well, it was nice to catch up. Thanks.

 

Bobby Marhamat, Raydiant

Bobby Marhamat, Raydiant

August 19, 2020

The 16:9 PODCAST IS SPONSORED BY SCREENFEED - DIGITAL SIGNAGE CONTENT

A seemingly oversaturated ecosystem has not stopped more and more companies from entering the digital signage market with their own software solutions.

I get lots of email pitches from companies, and admittedly, I do a mental sort, with a bucket for no-hopers, and a different one for those I find interesting in some way. Raydiant is a VC-funded start-up in Silicon Valley that's interesting to me for a few reasons.

Their CEO came from the executive team of Revel Systems, one of the upstarts that has changed the look of point of sale systems in small retail. Think of iPads, card taps and digital signatures instead of those big,  old-school POS machines that ate counters.

I was also intrigued by the company's partnerships, which go off the normal, well-traveled path, and instead feature integrations with companies that do things like restaurant menu management, KPI data screens and video conferencing.

I also thought these guys are doing a better marketing and messaging job than a lot of software companies, who are often just re-telling versions of the same old stories. The industry and its customers don't need another "What is Digital Signage?" page.

Raydiant produces a lot of content, including podcasts that are more than just the sales guy talking to the product manager.

Bobby Marhamat, who joined Raydiant about a year ago, joined me for a good chat.

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TRANSCRIPT

So Bobby, thanks for joining me. I know very little about Raydiant and I gather it's a reasonably new company in the digital signage ecosystem. Could you give me the background on the company? 

And it would be really helpful to explain what sets you guys apart from the many other companies who are doing digital signage software.

Bobby: Absolutely. First of all, thanks for having me. Just to give you a quick glimpse into what Raydiant is and what we're up to. I've been personally a part of the company for the last year, leading the company, prior to this. The company has been around for about two and a half years and in the last year, we've really done a couple of different things. 

One is, really we did a rebrand from the name Mira to Raydiant, and a part of that also is that although we're digital signage platform and advancing the digital signage side, we noticed that the companies that we work with want something a lot bigger, and that is really creating, phenomenal experiences in brick and mortar locations. So for the last year, we've been focused kind of talking to these customers and figuring out what that means and how we can create experiences on our platform. 

And the part that's really, I'd say, relevant to the brick and mortar operator and what we've started to build is tying in these different things that happen in different locations. So whether you're a retailer or restauranteur. And maybe as a restauranteur, you want your point of sale system to talk to your digital signage, you want certain music to play at a certain hour, you want certain promos to be on the screens. We basically enable all of that and then put all of that together to really create a phenomenal experience for your customer and what that does, of course in turn is, it creates more loyalty with your customers. It increases your revenue. And you're able to use that to be able to create this experience that people will remember as they leave your location. So in a nutshell, that's what we do. 

Okay. How would you describe the breadth of the solutions and product offer?

Bobby: I'd say, we have eighteen different industries that we work in right now but we're really focused on the six or seven industries that most of our customers sit in. We're a very customer-centric company and of those six or seven industries, we really try to bring in best of breed solutions that tie into our platform and what our customers demand and what they want in their locations.

It’s primarily contact management software? 

Bobby: Primarily, but tied into other things, like music, videos, all these other elements in the store.

And a lot of companies are saying, “We can do soup to nuts for you. We can do front end consulting. We can take you all the way through to deployment, ongoing management, and so on.”

Would you describe yourself as turnkey or are you more focused on the software and the experiential side? 

Bobby: Our goal is to be a turnkey through software, right? To be as turnkey as possible. And actually, I was trying to explain this to my six year old the other day. The same way he gets iPhones now, so my whole thing was the same way that you receive your iPhone, you can download five or six or ten apps and create that personal experience on your phone. We'd like to think of ourselves as the same. You unwrap our hardware, you tie it into your TV, and you can look at the different solutions that you can tie together on our platform, to be able to create that experience that you're looking for.

So very turnkey, but using software to make it very simple. So SMB customers can configure things out, tie things in quickly. Cause, they're focused on a lot of other things in their business. So creating that enterprise experience that you can create in larger stores and making it simple enough for an SMB customer to be able to deploy. 

When the company started, was the mission and charter the same as it is now, or has it pivoted?

Bobby: No, it's expanded. From the time that we started, it was to create one very easy to use digital signage platform, simple to deploy in a few minutes so you can go on your way to put messaging on a screen and that's it transformed into.

And since we've been listening to our customers, that's transformed into how do you take that a step farther? And you take that a step farther by what we call creating an experience platform. And that's why we're focused on that.  

I would assume that your customers have also told you that, “Guys, we must have been visited by 30 companies selling software that's easy to use, friendly, all those sorts of things.” So I suspect when you came into the business, you looked at it and looked at the competition and said to yourself, we need to do a better job of differentiating ourselves. 

Bobby: Absolutely. One of the things that’s really interesting is that when the company started, a lot of people asked me when I got involved, whether I think it was good and what did I think that we have to do differently to be able to listen to our customers? 

And the part that I think we did really well is we built a very strong product and had great support. We have the highest NPS. If you look at the G2Crowd and Capterra, as far as product standpoint goes in the cloud in the cloud segment.

But the thing that was missing or the thing that we needed to transform the company into is more of listening to what our customers’ needs are as far as being able to differentiate themselves, comparable to their competition. And that's a lot of what inspired us to transform our platform to be able to create a lot of stuff for them. 

Bouncing around your website, It looks like a lot of the focus, particularly in terms of your marketing and case studies, and “thought leadership” is around retail. Has that always been the case or is that because you as the CEO come out of retail in your past life with a point of sale system?

Bobby: No, our largest base of customers are in the retail segment. Our second largest set is in the restaurant segment. And with that, we're trying to make sure we give them the tools to be able to thrive. And, I'd say third and fourth industries for us are our banking and real estate, and we're trying to also focus on those as well, but you're right to note that because our largest customers and segment of customers are really retail and restaurants, our content and what we've been able to provide in a lot of our marketing has been centered on that.

Because you came from a point of sale, from Revel Systems. Did you have, what you would consider, a better sense of how retailers operate and what they really need versus what software developers think retailers need? 

Bobby: Absolutely. You know, a lot of people ask me, you got out of the brick and mortar with, basically exiting the Revel business, so why'd you get back into it? And I really fundamentally love the brick and mortar world. I love restaurants and retail for better or worse. I know right now we're going through tough times across the board for those segments. But, if we can be helpful in creating solutions, that's what makes me happy and content. And that's a large portion of what got me back into making sure that I stay within the industry and can continue to be helpful. 

Those two industries in particular are distressed right now. I wouldn't say they all are, but you would imagine a hell of a lot of them are because of the pandemic and lockdown capacity controls and everything else.

How do you sell into them right now when they're just trying to hang on by their fingernails?

Bobby: Yeah, so the beginning of when we went into the pandemic, a large portion of what we tried to do was that we tried to help these segments figure out what to do with their digital signage, to be able to continue to attract customers, educate customers, and basically put in use cases that help them use their digital signage to continue on and carry on with their business.

I'd say, fast forward to now where these businesses have been going through the pandemic for a few months, how we really capture and talk to them is we really look at the use cases that can be relevant to them. These days, to give an example, we have an outdoor package that helps restaurateurs really put menus on the screen, put messaging on a screen, tie it into a mobile phone so that people can get the menu, and be able to order at table and stuff like that. So we're really focused on what solutions we can push out there to be helpful to our customers and this pandemic has been tough for us, tough for them in the sense of that we had to pivot in our marketing and our messaging and how we go to market to be able to help them, and that's been hard for us as well. 

I have found since COVID-19 really broke out that a number of companies have introduced very specific technologies that they have packaged up as solutions to the problem facing retail and small business in general. And, I've sat on a number of podcasts and Zoom calls and everything else and presentation. My concern about these things are that they are just things in a lot of ways. There's a thermal screener, there are hybrid screens and hand sanitizers, hand sanitizing dispenser, and so on. 

And I just wonder if the retail market is really interested in buying a “thing” or do they want to talk to somebody who can provide a solution and maybe the solution is something that already exists, just like software and a screen that's as you say, putting the menu up on a screen so that you don't have to print menus or you don't have to wipe down plastic menus and assure people that they're wiped down. 

Bobby: Yeah, we were actually just talking about this in the morning with one of our customers and they were asking us, what technologies do they buy during this time to piece together the curbside stuff and all the other stuff that they're dealing with. 

And what we start with always is we tell them to start from the beginning. Who is your customer? What are you trying to do? What's the long term strategy? Putting all that together. Then we either come out with, here are the solutions that you want to tie in, whether they're with Raydiant or other solutions that you can tie into Raydiant, or, honestly, in some cases, we're not going to be the right fit for you for the next six months or a year as you rebuild and do that. And then we can be helpful at that point. 

So we take a more consultative approach and help figure out, who's your customer, what are you actually trying to achieve? And then piece together technology. Because one of the biggest things that we always say is, just turning on technology to turn on technology and tying in different technology pieces together where you' don't have a strategy, you don't know who you're actually trying to attract what your customer is. With those fundamentals you're not doing yourself or your business any good. 

You mentioned earlier the value of having integration with other applications, again, coming out of point of sale and kind of with Revel, they turned the whole idea of point of sale on its head by going from big iron, big bulky machines to using iPads and things like that.

And, part of the answer I suspect with Revel was, we are were in a world now where we can easily integrate with different systems and inventory management systems and everything else. 

It’s the same sort of thing applied here. If you're going to be relevant in the B2B market for retail and restaurants and so on, you need to be able to easily tie in with other systems.

Bobby: Yeah. A big part of the strategy at Revel was, point of sale is the central nervous system of a location, but what happens outside of that is all these other dispersed technologies that you're trying to use and trying to manage. And so a large portion of our success there is, listening to our customers and them saying, “Hey, I'm using these five solutions in my store, none of which talk to each other, but I'm using them to try to get 1% out of each of them so I can advance my business.” 

And part of our success was tying those together and really making that a cohesive system for them, whether it was tying in like a loyalty partner, gift card partner, and all that good stuff into one platform that talks to each other. 

Part of our success at Raydiant is very similar in the sense that, right now, when you walk into a location, whether you walk into a location or whether you want to walk into a location, that experience from the beginning is important and how those things talk to each other is important. As an example, there are lots of cases wherein the restaurant world, in particular, I run out of something on my POS and a simple thing of that not transferring over to the digital signage board, where that item gets listed off the menu and it's still on the digital signage board and customers come up and ask me about that. That's a simple thing, right? 

But tying those two things together, it makes it a lot better of an experience. I can push out promos a lot easier. I can do things a lot easier when these things are talking to each other. And so that's a large part of what we've seen our customers have success with.

You're working with some things like a menu system to simplify that process. Was it a case of those companies coming to you? I'm thinking of Trabon Menu Net, did they come to you or did you see this as a need to integrate with that sort of thing?

Bobby: I can tell you it was mutual. A large portion of our larger customers were using the Trabon system and in using the Trabon system, there were also adopting Raydiant. And, we came together as two companies and said, oh, we have this many mutual customers and to give you a little bit of a glimpse of what Trabon does, Trabon is the largest print manufacturer of menus in the US for enterprise customers. And, they're in mid-market and SMB as well, but they really focus on enterprise at a high level. And the biggest part of that is now, as we may make any sort of, menu changes or we make any sort of planogram changes, or we make any sort of print, design changes, we can push that out on digital signage and it could be better for our customers, better for the environment, better for all that. So we came together and created this combined solution. 

You still have to compliment that with their solution. You still have to compliment print with digital but it's more cost-effective for their customers. It's a better experience for their end-users and ties in together really well. 

You have since then, or maybe concurrently integrated with a number of other, different kinds of systems. I've written in the past about postering my wall and done a podcast with them, so it's content templates, but you're now integrated with like Blue Jeans for video conferencing and a company called Hoopla, can you tell me about that? 

Bobby: Absolutely. So Hoopla is actually very interesting. We have a new virtual room product that we just launched about a month ago and that virtual room product ties in videoconferencing content and services on top of that. And when I say services, it's music and other services that are tied in into one platform. And one of the biggest asks from our customers was, “Hey, we have the video conferencing, we have the whiteboarding, we have the content all in one place. What's missing is if I could go and put KPIs for my sales team on the screen as well as I'm having that video conference, or if I could go put company KPIs on the bottom of the screen for all my team to know”, and especially relevant during these days of the pandemic where people are working from home, it's been very relevant.

So tying that in together. So we went out to search and realized that Hoopla is the best of breed product out in the space. And so in having a talk with their management team decided that the two companies come together and what's happened out of that also has been a lot of other use cases that have come from that. We are working on tying in other solutions for the office environment, which only happened because we went into the pandemic. Otherwise, our focus has always been kind of brick and mortar, but what we created for the brick and mortar side has been very relevant to the office side, and integration with Hoopla completely sets that productivity tool. 

So what's the primary thrust behind virtual rooms? 

Bobby: So what happened initially though, I'll start from the beginning is initially we had brick and mortar operators come to us and say, “Hey, listen, I own a hardware store, and in the middle of my lumber aisle, I want to put a virtual agent type setup where customer can walk up and hit a button and they can interact with someone sitting in my corner office that knows all about lumber, and can basically be the expert there because I can’t have a lumber expert at every store. 

So, given that, that's what initially sparked our virtual room product. Being able to go on and have on-demand video tied into the content. So if I say, “Hey, go to aisle six and get that lumber.” I can also put some specifics about that lumber on the screen as well as I'm interacting with that customer, and I can also tie in a QR code on the bottom of that if they want to, scan that and learn more about that lumber or purchase on their phone or whatever the case may be. 

So that was the initial, I want to call it “burst” of our virtual room product. Again, what's transformed into these days of, going into COVID and the pandemic has been offices saying, “Hey, my team is not remote and I want to mimic that same, in-office experience, even though we can't be in the office.” 

So our virtual room product is a perpetual video product that's always on. And with that, we've created an office product tied into Hoopla where you can be in different rooms and interact with different people as if you're in the office. You can get content pushed back and forth. You can double click on someone and go have a personal meeting and then come back into the main room as if you're in the office and all that tied in together to productivity and motivation, stats and KPIs that Hoopla provides on top of that.

So at that point, you're starting to compete with the Zoom companies of the world that have quasi digital signage products as well, right? 

Bobby: Zoom is actually a partner. We haven't put this on the site, so you're hearing this first, but we started with Blue Jeans and Zoom is now a partner as well.

So no, we're not trying to be a video conferencing player by any means. We're actually trying to embed video conferencing into our product and I know zoom also has a very light digital signage product. But the virtual room product essentially works completely different where you have content on the screen and you can basically slice up the screen in different zones. So, content on the screen together with video conferencing. I can do news flashes and push out information to my team, talk about happy hours if I wanted to. So putting that all together is basically your productive tool for the remote world. 

And your platform is built around something called a Screen Ray, which by the looks of it is a Linux-based PC stick, is that right? 

Bobby: You're correct. Yep. Absolutely. 

Those things have been around for a number of years. I've always been intrigued by them. I know a few companies that use them, but I've always worried that they're kind of cheap and dirty and will last and everything else, but I've seen enough companies using them that they seem to be happy with them. 

How much of a journey was it to come across something that you guys could put out there and say, okay, this is the mothership and this is what we're going to use?

Bobby: Yeah, our hardware is only the enabler to our software really and yet a good number of companies use the Intel sticks. We're actually in the works of creating our own proprietary sticks that still use Intel’s processing and all that good stuff, but it's more proprietary so we can control a little bit more of it. We can have that built-in and all that good stuff. We are envisioning and we are in the build mode of getting that out to the market. But, the Intel Sticks have been very reliable, and a lot of what our secret sauce happens in the cloud, in our software. So the hardware is really the enabler and it's been very consistent for our customers.

Now for companies such as yours, I would say broadly, those who are chasing retail in particular, small to medium business retail, and other similar kinds of businesses that get public foot traffic, they tend to be SaaS companies that are at a certain price to an end, it’s sometimes referred to as the race to the bottom or commodity pricing.

I looked at your pricing and it's not like that at all. If anything, it's up. I would say it's on the high side. And I'm curious about that, how that resonates with people. And my gut tells me it's probably not a problem. 

Bobby: It's not a problem for the customers that really truly believe in building experiences in their location. If you simply want to put a picture on a screen or put a flyer on the screen or whatever the case is, there's a lot of solutions out there that you can go get that are gonna be cheaper than ours. But we want to work with customers to create experiences and our platform for creating that experience is actually relatively very affordable, but our focus is really those customers that understand that experiences are paramount to having longevity in retail and restaurants and all the brick and mortar type industries. 

One of the other things that struck me in banging around the site was you have a lot of content on there. A lot of self-generated content. You have your own podcasts, a presentation. I listened briefly to one of them, so you're spending the money on content and effective marketing, is that just how it works when you're out in Silicon Valley and San Francisco, that it's part of that DNA that's what you do? 

Bobby: I think it's a part of the DNA of what I believe in, which is being very helpful to your customers and I think that'll payback and help us grow as a company, and so a large portion of what we do is exactly what you said. And even during the pandemic days, we took more of a focus on that, accelerated a lot of the content we pushed out there, accelerated a lot of the interviews that we're doing for the podcast. to be able to give relevant information back to our customers. We think that's going to pay dividends back. 

How do you get known? 

Bobby: That's tough, right? It's tough especially because we rebranded again about a year ago, but a large portion of our business, at this point at least, I would say is through referrals. So us pushing out the content, us pushing gaps, and being helpful in the space has paid dividends in the sense that we're getting customers to come to us. We're getting customers to buy from us. We're getting customers to talk to other customers about it. 

And that is one of those things that day in and day out, we're focused on continuing to do, to be able to build more of that brand because there's of course legacy providers in the space that are well-known brand names. You know, no one gets fired by bringing on a well-known legacy provider but what you don't get is you don't get the innovation. You don't get things working as fast as we do. And so we're really focused on building the brand focused on what our customers want.

I'm curious, about a year ago when you were looking at joining the company, I suspect you would have either not known very much about digital signage or maybe you did, but did you look at the marketplace and wonder, okay, this is awfully crowded. There's a lot of people saying essentially the same thing, do I want to get involved in this? 

I always wonder how much of a struggle it is for startups to cut through. 

Bobby: Yeah, that's a great question. So a year ago, to answer your question, I did not know almost anything about digital signage. I was very new to the industry. But as I looked at the industry, you're right, there are a lot of companies providing digital signage solutions, but as you think deeper, taking my experience from the Revel days and hearing what I heard with restaurants and retail specifically, and doing a good amount of research.

And I actually, before I even, took the role here, I did speak to 50 customers that are using digital signage. Not all were Raydiant customers, but all across the board. And then talking to them, I heard the same common theme: there are solutions out there, but there is no one solution that brings everything together into one experience.

And that's when the “aha!” moment went off in my head and I thought, if we can create this really phenomenal experience and do it at a very low cost and be able to help these brick and mortar operators, basically create the same shine that they can do online. You know, you can go online and create websites and social and all that good stuff, why can't we create the same thing in store? And so that's what intrigued me with joining the company. 

How much coaching do you have to do to your customers? Because there are lots of people who make investments in technology, and then, it just kinda sits there. And I've been involved in this for a long time and I don't know how many retail environments I've walked into and looked at the screen and I thought, “oh dear God, why did they bother?” And yes, you have all these templates from PosterMyWall, and access to other content, but do they use it? And how do you get them to use it?

Bobby: That's a great question as well. You know, on the backend, we can see how often these screens are being updated and it’s not like all businesses don't have to always update screens, but we can see that and our customer success team actually takes this up very seriously in the sense of reaching out and saying, “Hey, can I help you create maybe a summer special?” or whatever the case may be depending on the business.

So that's one of the areas that we do focus a lot of our time on. We do have integration with PosterMyWall, which is great. They have 150,000+ templates, a lot of templates to choose from, but the content is the hardest part of digital signage. And that's the part that either you have a full department doing it, or you have one or two people focused on it or to your point, you never get to it and you just have that one thing that you put up there when you first started the business and you're never updating. 

So we make it our problem to be able to, again, reach out and make sure that they always update content if they want to and make it very relevant to the messaging they want to push out to their customers.

You're in the land of venture capitalists, and I know that you're VC funded. You had a 7 million round last fall. Is it easier because you're out there to tap into VC funding or is it actually harder because there's a lot of competition? 

Bobby: It's a lot harder. And digital signage is not sexy to investors.

We are fortunate in that what we're creating is an experience platform. We are attracting investors that we typically wouldn't if we were just focused on a digital signage segment if that was our only kind of focus area. So it is harder in the Valley, especially because there are so many pitches going on with so many companies, like you said, in the digital signage space, particularly, but with what we're doing, we're actually in the next few months are going to go talk to new investors about our next round of funding. And I think they're going to be impressed with what's happened to the business and continue to grow. 

With COVID-19 being a bit of a wildcard in terms of how long this is going to last, and certainly creating a lot of trepidation for business operators, where do you think you're at in six months to a year?

Bobby: I could tell you, just very candidly, pre-pandemic, we were growing at 200% to our numbers. During the pandemic, we’re right on par witH 100-110% to our numbers. So we slowed down for sure, but we have not gotten to a place where we think that Anything is detrimental to our business. We continue to work with our customers, continue to provide value there, and kind of taking it day by day, to be very honest with you, as things change where we're trying to be very helpful. 

Yeah. I've certainly heard from a number of software companies, if they operate on a software as a surface basis, they've had N number of small businesses, small restaurants, and so on and saying, “Hey guys, we're not open. We need to trim back our costs. Anyway we just skip paying our subscription until we actually need it?”

How have you handled that?

Bobby: Yeah, there's been a percentage of our business that's gone through that, especially in areas where they're completely closed or continue to be closed or opened back up and then got closed again. So I'd say some percentage of our business has paused but at a high level, there are other ways to use this where signage should be very helpful. Like in your windows signage is one way, outdoor signage is another, so there are multiple ways depending on the business to be able to still provide a lot of value with digital signage and we help our customers to fire that out. If they are at a place where they need to pause, we, of course, allow them to do that.

Okay. All right. Thank you very much for spending some time with me. Just one final question. If people want to know more, where do they go online? 

Bobby: Oh, sure. they can come to raydiant.com. And I always say this and people say, why are you giving out your email? But you know, if anyone ever wants to contact me, I’m at bobby@raydiant.com, and I’m always happy to provide any information that I can.

Okay, great. Thanks again.

Advocates For Connected Experiences: Industry Panel - Re-opening For Business

Advocates For Connected Experiences: Industry Panel - Re-opening For Business

June 10, 2020

This is a special version of the 16:9 podcast - the audio from a recent online call put on by the new Advocates For Connected Experiences, focused on the challenges of getting people back to work, and what that means for connected experiences and technology.

The chat, done on a Zoom video call, features senior folks from several organizations, talking about what's changed, what's going on now, and how technologies are being applied. I was the moderator.

On the call, you'll hear from:
- Kim Sarubbi, ACE
- Joe' Lloyd, AVIXA
- Trent Oliver, Themed Entertainment Association
- Debbie Hauss, Retail Touchpoints
- Cybelle Jones, SEGD
- Bryan Meszaros, SEGD
- Kym Frank, Geopath
- David Drain, ICX Association
- Beth Warren from CRI

I didn't have time to buff this up with the audio leveled, etc, etc, so you may have to monkey with your volume controls. But it is a good chat that's well worth a listen. 

Warning - it is 60 minutes or so, but you can always listen to half and come back to it later.

 

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Rick Mills, Creative Realities, Inc (CRI)

Rick Mills, Creative Realities, Inc (CRI)

May 13, 2020

Creative Realities is a solutions provider heavily focused on retail, an industry that has been pretty much shuttered in the United States and everywhere other than Sweden because of COVID-19.

These are rough times for store operators for the people who run them, the people who work in them, and the industries that support retail, like digital signage.

While CRI's CEO Rick Mills agrees it's a dark period, he also has a lot of optimism - particularly for the retailers who have the fundamentals to be around when doors are allowed open again, and for service providers who have the tools and know-how to help address what will be new norms.

Mills and I chatted last week about what CRI is doing, as well as about new pandemic-focused tools like thermal sensing screens that his company has started marketing. We spoke, as well, about his company's outlook, including thoughts of acquiring one or several of the companies who are competitors right now, but might not come out of this situation in one piece.

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Florian Rotberg, Stefan Schieger - Invidis Consulting

Florian Rotberg, Stefan Schieger - Invidis Consulting

April 29, 2020

Florian Rotberg and Stefan Schieker of Munich's Invidis Consulting have been active in the digital signage market since 2006, mainly focused on Europe, the Middle East and Asia.

Their work spans everything from straight-up consulting for vendors and end-users to organizing and running industry conferences in Europe and globally.

That puts them in steady touch with a lot of people, and gives them a solid perspective on what's going on and what's changing.

One of the things Invidis has been doing in presentations is a regular look at the impacts and implications on vertical markets of COVID-19, and what that means for digital signage companies.

We talk about that in this new podcast, as well as dig into some suddenly red-hot marketplace requirements like sidewalk displays and access control technologies. 

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Remi Del Mar, Epson

Remi Del Mar, Epson

April 15, 2020

For a bunch of years, projection seemed like one of these digital signage technologies that had seen its day.

But that's changed in the last two or three years, and if you follow the industry and go to trade shows, you're seeing more projection product and applications.

The big reason is lasers, which last way, way longer than the lamps that were used for many years in projectors.

The big projection guys like Christie, Barco and NEC have a range of suitcase-sized products that get used for big budget events, but another company more historically known for office products has made a strong and interesting expansion into digital signage and visual experiences.

Epson has a variety of projectors that can be applied to signage jobs, but the one that has got most of the attention lately is the LightScene. It looks entirely different from boxy projectors - instead looking very much like the spotlights you see hanging from track systems in shops and galleries. It changes the whole idea of projection in key markets like retail and museums.

I spoke with Remi Del Mar, the LA-based product manager who runs Epson's LightScene team.

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Chris Riegel, STRATACACHE (2020)

Chris Riegel, STRATACACHE (2020)

April 1, 2020

These are some of the oddest, craziest, scariest moments many of us have ever experienced.

If you're sick, you'll hopefully recover quickly.

But the global economy is now very much under the weather, so to speak, and it is not at all clear when it will get better. Businesses are shuttered and many won't open again, or if they do, they'll probably come back in a different way.

The digital signage and digital out of home sectors are hit just like everything else, and this virus is going to take out companies the way it is indiscriminately taking out 100s and 1,000s of people.

I wanted to spend some of  the next few episodes talking to smart industry people about what they're hearing and seeing, as well as what they're doing.

First up is Chris Riegel, who runs what is now the STRATACACHE Group of Companies. We've spoken in the past, but I wanted to speak with Chris because he's very smart, well-travelled and connected, and always has an ear to the ground.

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Tina Williams, Greater Toronto Airports Authority

Tina Williams, Greater Toronto Airports Authority

March 11, 2020

Airports are very different places from when I started my working life, and technology has done a lot to not only change travel experiences, but also help monetize what are, often, very busy public places.

The Greater Toronto Airports Authority runs that city's Pearson Airport. It is the busiest airport in Canada, with some 50 million passengers going through the two terminals each year.

Tina Williams runs the media and partnerships programs at Pearson, which is increasingly using technology for everything from fixed, standardized ad positions to very customized, elaborate brand activations that mix mediums. In one case, an automaker's brand messaging starts with projection mapping and video walls in the parking garage and extends all the way to a micro showroom across from the airport's busiest gate.

I've known Tina for a bunch of years, extending back to when she did similar work at Canada's busiest shopping mall. We spoke last week at an airport that, at times, has felt like a second home for me.

We grabbed a room at an Air Canada lounge, which is why it's got a bit of an echo.

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Stephen Gottlich, Gable

Stephen Gottlich, Gable

November 20, 2019

I have heard some people in this industry starting to describe what they do as visual solutions, as opposed to digital signage. I'm not sure that really fits in all cases, but it certainly does for Gable, a Baltimore-area company that's been doing analog signs of all kinds for four decades. About 10 years ago, Gable added digital display solutions.

They work with all kinds of end-users - heavily with retail, but also in other verticals - on visual solutions that cover the full spectrum of options. That might mean a contract that involves a big direct view LED display for a venue, but also the meat and potatoes printed and crafted material that just helps visitors find their way around a venue.

I spoke with Stephen Gottlich, Gable's Senior Vice President of Innovation and Strategy, about what the company is up to, and what the marketplace is looking for and doing.

We also get into what he sees happening more broadly in the marketplace, and what he's seen in numerous technology trips to China.

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Daniel Black, Glass-Media

Daniel Black, Glass-Media

November 13, 2019

Projection on window film is one of those things that I thought had come and gone from digital signage, with too many technical challenges to make the idea really workable.

But projection is having a comeback, and arguably the company doing the most with it for retail and campaign-based marketing is a scrappy little startup in Dallas, called Glass-Media.

I chatted with Daniel Black, who co-founded the company roughly five years ago and is its CEO. The big differences between the first wave of projection in signage, and now, are better technology and smarter vendors.

The film is better. The projectors are brighter. Specialty lenses mean the set-up takes less space. And the big one - laser projectors are supplanting older-style projectors that steadily needed expensive bulbs replaced, and weren't engineered for commercial applications.

The other factor is guys like Black selling this as a solution, with measurables for retailers and brands, as opposed to a technical thing with short term Wow Factor.

If you've been curious about the state of projection in signage, this is a worthwhile listen.

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Trey Courtney, Mood Media

Trey Courtney, Mood Media

November 6, 2019

There's a decent chance that when you walk into a retailer in a developed country, and you hear music or some sort of in-store audio playing, that's Mood Media.

The company is in more than half a million subscriber locations in a 100-plus countries delivering in-store media solutions. While that started with music, it was natural as digital signage technology matured to add on visual messaging.

Now the company has launched something called Mood Harmony, a new platform that grew out of a signage CMS and offers a single user experience to do sound, visuals, social media and even scent marketing off of one platform.

I had a great chat with Trey Courtney, the Global Chief Product Officer for Mood Media, to get the back-story on the company, why it developed Harmony, and how retailers are defining and using technology designed to deliver on customer experience. 

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2019 DSF Coffee And Controversy

2019 DSF Coffee And Controversy

October 30, 2019

A couple of weeks back I was in New York for the annual Digital Signage Federation Coffee and Controversy event, which I moderated.

I was able to grab audio last year and post as a podcast, and this year we managed the same. The audio is OK, at best, but you should be able to hear just fine.

Your big challenge will be discerning who is saying what, because the session was me and five great panelists, all with terrific insights and experience.

The topic was privacy and proof, as it relates to tech being used for retail and advertising insights. The speakers were:
- Dylan Gilbert, Policy Fellow at DC-based PublicKnowledge
- Laura Davis-Taylor, the Co-Founder of Atlanta's HighStreet Collective & LivingRetailLab
- Kym Frank, President of New York-based Geopath
- Amy Avery, Chief Intelligence Officer at New York agency Droga5
- Jeremy Bergstein, CEO of New York agency The Science Project

By all accounts it was a great session that could have gone another hour or more. The DSF is working on video clips, as well, which will be available to its membership.

Please note it is double the length of a "normal" 16:9 podcast.

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IV Dickson, SageNet

IV Dickson, SageNet

October 16, 2019

It's now really common that businesses of all sizes and types who decide to deploy some sort of digital signage network look to a solutions provider who will not only help put it in, but help the client go from the idea stage all the way through to ongoing operations.

Effectively, they're outsourcing the whole shooting match to people who know what they're doing. That helps companies stay focused on what they're good at.

Tulsa-based SageNet has been doing outsourced IT work for 20 years, and about two years ago saw enough shaking among its core customers - and had enough requests for help - to branch into digital signage and make it part of a very rich suite of services.

The company brought on IV Dickson, who has been around the signage business forever, to help build out the signage business and function as a subject matter expert in a company that was more conditioned to selling IT network services.

It's worked out, and the company is now mining a lot of new opportunities in verticals like c-stores and QSR.

I had a great chat with IV about SageNet and SageView, what is described as a one-stop shop for everything signage.

We also talk opera. Yeah, opera.

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Matt Schmitt, Reflect

Matt Schmitt, Reflect

October 9, 2019

Reflect is one of the longest running companies in the digital signage sector - operating out of Dallas since 2001. The company built up its CMS software business largely in retail, but in early 2017 did something of a pivot into ad scheduling and targeting.

I wondered, when I first got walked through what's called Ad Logic, why Reflect was going in that direction, given the addressable market seemed a little limited and companies like Broadsign had a serious head-start on competitors.

Turns out that Reflect was responding to client needs for something that was kinda sorta digital OOH, but was less about agency-driven media scheduling and more about retail and place-based networks that wanted to monetize their screens with endemic advertising. So in a medical office network, they wanted to schedule and runs ads for, say, big pharma and medical device brands.

I spoke with Reflect's president and co-founder Matt Schmitt about his company's journey, and how Reflect has evolved from a software shop to one offering everything from strategy to creative work and media sales.

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Fab Stanghieri, Cineplex Digital Media

Fab Stanghieri, Cineplex Digital Media

May 22, 2019

Canadians all know Cineplex as the dominant movie theater chain in that country, and the Toronto-based company has also been expanding its reach, in recent years, into other related lines of business.

Cineplex now has entertainment-centric restaurant-bars, is bringing Top Golf into Canada, sells out of home media and runs a thriving digital media group that's doing most aspects of digital signage for major enterprise customers in Canada and beyond those borders.

Fab Stanghieri was a senior real estate guy with Cineplex, charged with building and managing the company's movie house portfolio. He had digital media added to his responsibilities a few years ago, and while it was unfamiliar territory at first, he's embraced digital to a degree that it is now his primary focus in the company.

I was passing through Toronto a couple of weeks ago, and Fab kindly took some time to show me around new office space, which is set up to help ideate, deliver and manage digital signage solutions for Cineplex clients.

 

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Dan Hagen, 10net

Dan Hagen, 10net

May 15, 2019

Dan Hagen is a relatively young guy, and a bit of an Energizer Bunny. I know of him as the 10net guy from Vancouver, but I was surprised to learn in a conversation that he has been involved in digital signage since before it was called digital signage.

He was a funding founder of Mercury Online Solutions, which in the late 90s and early 2000s was a big player in this business. That company sold to 3M, and as way too often happens, things went south quickly when a plucky little company gets absorbed into a monster of a company.

Hagen did a few things but eventually found his way to 10net, which is a solutions provider that does most of its work in Vancouver, BC, but is now trying to establish itself south of the border in the Pacific Northwest and beyond.

In our chat, we get into how 10net does things, the kinds of projects it works on, and our shared point off view that sum of the most effective digital signage jobs out there are, at first glance, kinda boring looking.

There's not a lot of sizzle in things like backroom screens for safety messaging on ferries, but they make a real difference.

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