About the author, Mitch Krayton, 1st KIOSK:
Mitch Krayton is a noted author, top rated speaker and technology leader, and
a self-made computer entrepreneur who has helped hundreds of businesses adopt and adapt to
ever evolving digital technologies. For more than twenty years, Mitch has helped thousands
use technology to improve their lives and their bottom line. "Contact Information"
He is a contributing writer for Kiosk
Magazine, and he has earned the Golden Microphone Award from the Greater Los Angeles Chapter
of the National Speakers Association.
Kiosks are the Future. The Future is Now!
Kiosks help you reach more customers and drive incremental revenue. Busy, on-the-go shoppers
will be drawn to kiosks for fast, convenient self-service. Targeted messages can attract new
types of customers. Interactive sales, such as personalized special orders and
try-before-you-buy, boost customer spending. Kiosks also make it easy to up-sell and
cross-sell merchandise.
- Build Loyalty
Kiosks help customers find exactly what they want, which reduces lost sales.
They can provide extensive product information, including price comparisons, which
increases customer confidence. Kiosks also decrease wait time, allowing customers to
apply for credit, purchase gift certificates and complete other tasks at their own pace.
All of which boosts customer satisfaction and loyalty.
- Extend Your Offering
With kiosks, you can give customers access to a much wider assortment of merchandise without
adding a single square foot of real estate. Offer more merchandise sizes, colors, flavors,
options and other alternatives to satisfy a wider range of customers. Or complement your
offering with value-added extras, such as a vacation-planning kiosk from a sporting goods
merchant.
- Reduce Costs
Kiosks let you do more without increasing labor costs. You can also use them to train
sales associates and improve their effectiveness. Plus, when you choose 1stKIOSK as your
kiosk partner, you can depend on rugged, reliable solutions that protect your investment
and deliver the lowest possible cost of ownership.
- Support Your Stores
Kiosks can easily handle gift registry, credit applications, job applications, product
explanation and other tasks. Plus, they can be managed from a central location. This reduces
your sales associates' workload, improving job satisfaction and reducing turnover. Kiosks also
help you extend your Web presence.
Meeting customer needs across multiple channels is challenging, but the ultimate reward is
customer loyalty an often scarce commodity in today's market. Loyal customers are not only
more profitable, they are less expensive to retain than new customers, and they are much more
likely to provide information about themselves and their preferences. It is this information
that fuels customer relationship management, the new paradigm for decision-making in retail.
Facts and Figures:
Here are a few statistical projections and studies from several major think tanks about
the growth of interactive displays in the marketplace. We don't know exactly which numbers
are correct, but we agree that the opportunity will be tremendous.
from Jupiter Research, Consumer Commerce:
"..In 2001, $200 million of goods and services will be purchased through retail kiosks.."
"..By 2006, this will rise to $6.5 billion in sales driven through interactive kiosks.."
"..An additional $77 billion in sales will be directly influenced by the use of a kiosk.."
"..This year over 3 million users will make purchases on a kiosk.."
"..The number of consumers who transact via a kiosk is predicted to rise to 23 million by 2006.."
from Indiana University - KPMG, Retail Technology in the Next Century:
"..Today's retail industry must face one truly significant reality - the consumer is in charge.."
"..On average, 76 percent rated the kiosks as an advantage, 60 percent were more likely to
shop at a store with these technologies, and 80 percent expected to use the technologies at
least some of the time they shopped.."
"..Consumers felt that the product information / ordering kiosk would make shopping faster
and easier by helping them find what they wanted and provide detailed/current product
information.."
"..Shoppers liked the frequent shopper kiosk because it would highlight items that were on
special and eliminate the need to clip and carry coupons, thus saving them money.."
"..Two technologies - the electronic POS signage and the product information/ordering kiosk
- received high marks for their ability to improve each of the identified retail weaknesses of
poor service, speed of shopping and product information. Both technologies received a positive
rating from 50 percent or more of consumers on each of the three attributes.."
"..Over 70 percent believed that they would benefit from the retailers' adoption of six
of the in-store technologies:
the product information kiosk
ordering kiosk
hand-held shopping assistant
electronic point-of-sale signage
self-scanning pricing
the frequent-shopper kiosk.."
from PriceWaterhouseCoopers, The State of Retail Technology:
"..Retailers need to examine kiosk functionality from a customer's perspective and
integrate those tasks with the potential to improve customer service. Shoppers should be able
to use a kiosk to shop, to pay for their purchases with credit or debit cards, to check the
status of a product ordered over the Web, to obtain useful product information, or to check on
loyalty account status.."
"..Retailers are increasingly focusing on the customer with their kiosk strategies. They
overwhelmingly indicate that a key reason for investing in kiosk technology is to provide
self-service shopping options and information access to customers.."
"..Retailers recognize that newer technologies are becoming more viable solutions. The
critical issue that retailers must take into account when they design, develop and improve
their in-store systems is customer service. In the increasingly consumer-centric model of
retail, customers demand faster and better service, from every venue where they shop. The
level of service they expect cannot be achieved without flexible, sophisticated and
progressive in-store system architecture. The retailers that recognize and address this will
survive and thrive in the changing retail landscape of the new century.."
The Kiosk Connection
"..Retailers continue to show interest in kiosks, and are experimenting with more uses for
these in-store devices. Most say they have or will deploy them. Stores are using kiosks to
handle a variety of functions, including giving customers access to their Web sites,
providing them with:
an in-store catalog
allowing them to set up or shop from a gift registry
processing credit account applications
processing prospective employee applications
creating personalized greeting cards
giving loyalty program members access to account information and special coupons
providing recipes and other product suggestions.."
"..In the end, customers don't care what technology retailers use.
The key is to choose a system that will enable in-store systems to enhance customer
satisfaction.."
from Arthur Andersen, New Rules, New Realities:
"..The rules have changed - the proliferation of new channels, customer connectivity in a
real-time world and heightened customer expectations. Never before has competition been so
fierce and never before has there been such limitless opportunity or such an equal playing
field.."
"..If only half of the average retailer's customers made one additional purchase in a
year, the retailer could typically achieve a comp store increase of 17 percent.."
"..In addition, the benchmark data shows that more than three-fourths of all revenues
are generated by less than half of all customers. In fact, 50 percent of revenues come from
just 15 percent of customers. By identifying these customers and focusing efforts on them,
it is possible to substantially improve returns on investments.."
"..By integrating these benchmarks into everyday business decisions, retailers can
realize the additional benefits of:
Increased customer loyalty
Identification of cross-selling opportunities
More effective acquisition of valuable customers
Layouts and locations consistent with valuable customers
Greater share of wallet
More effective and efficient use of advertising dollars
Lower inventory costs and turns
More effective pricing.."
"..Conclusion:
When a company can conduct ongoing interactive sessions with its customers, capturing the
results of each event in the form of either a direct response or variations in customer
behavior and customer value, the company can truly manage its activities toward increasing
customer equity.."
from Ernst and Young, Retail News:
"..Retailers must meet consumers' needs by establishing a clear and appreciated value
proposition, and executing on it with consistency and dependability. Whether physical or
virtual, the experience delivered by the retailer must always be relevant to the consumer's
needs. In this way, the retailer becomes a trusted agent-a guidepost in a confusing and hectic
environment.."
"..This notion of one-to-one product marketing will shape manufacturing as well as the
science of customer management; retailers will need to master this science in order to
maintain customer loyalty.."
"..Most will build e-commerce capabilities within the next few years, and many will adopt
a twin-channel, "clicks and mortar" strategy. Regardless of what growth strategy retailers
adopt, however, they must be prepared to move very quickly. Bricks-and-mortar retailing will
become one of several sales channels, and retailers will need to rethink all the arrangements
connected to its development"..."new entities that combine commerce, entertainment, education
and social centers.."
"..The leading trend is likely to be the combination of 'bricks and clicks.' The shopping
experience will incorporate looking and touching and product customization with each
transaction. And stores will continue to borrow customer relationship concepts from the
e-commerce world. They will make note of individual customer tastes and preferences and will
direct customers to the products they might be inclined to purchase, just as pure e-tailers
are doing now.."
"..Stores will also provide electronically linked connections to additional products and
brands, so that stores will have both physical and virtual departments. In the real estate
sense, this increases a store's square footage exponentially with little incremental cost.."
"..Conclusion:
The most significant development of late 20th century retailing -electronic commerce-will
also be the most important business driver of the 21st century.."
from Forrester Research, Mixing Bricks With Clicks:
"..More than 80% of brick-and-mortar merchants find that their stores benefit from online
selling efforts. By 2002:
80% intend to add kiosks to most stores and one-third plan to web-enabled cash registers
60% are implementing or piloting kiosks in stores today
80% intend to expand these programs during the next two years.."
"..Most kiosks are PC-based, but merchants expect to use touch screens and other interfaces to
make kiosks easier to use. Beyond web access, merchants plan to offer gift registries and
promotions via these kiosks.We are looking to add kiosks so we can offer services like a
bridal registry, or sell merchandise in product areas we don 't currently carry, such as
pots and pans.."
(Housewares Retailer)
"..Executives plan to add new devices to stores, with kiosks in the lead because:
Consumers are more versed in technology
US consumers no longer view technology as a mystery and use it to accomplish tasks
like buying groceries and managing finances.
Retailers' online investments create a foundation for new points of sale. As they develop
assets like robust customer databases, real-time inventory information, and online
merchandising expertise, they also create the platform on which to support new points of
distribution beyond the web site.."
Retailers will revamp Stores to meet Consumers' service needs.
"..To bridge the gap, retailers will need to:
Augment service with devices, not staff. Using kiosks, retailers will provide product
comparison tools to help customers make choices.
Sell products from virtual inventory to store visitors. Retailers continually struggle to
expand product lines and sell new items in stores with limited floor space. Low-turnover
items like XXXS or XXXL (can be) ordered from the web-enabled POS. Space can be restocked
with fast-moving new products-expanding the offering without changing the square footage.
Capture data about customers in all channels. Using mechanisms like kiosk login records,
personal bar code scanner data, and cross-channel information, merchants will surpass online
pure plays by offering a truly up-to-date and customized experience.
Modify user interfaces with consistency in mind. Kiosk providers warn retailers against
posting their web sites on kiosks in stores-the interaction takes too long, causing queuing
problems and turning kiosks into albatross. Retailers will create new interfaces that will be
appropriate for the in-store device.
Support non-English-speaking shoppers. Store shoppers who aren't proficient in English
currently find themselves at a loss-either they must shop with relatives or hope that a clerk
speaks their language. Non-English-speaking shoppers will give their loyalty to kiosks.."
from PriceWaterhouseCoopers, Retailing at the Dawn of a New Millennium:
"..Retailers and suppliers alike are well practiced in muttering the mantras of consumer
importance. And yet, their marketing, merchandising, advertising, and logistical
practices all belie their chants of homage to the consumer.."
"..The New Retail Economy will turn this product-focused logistical process on its head.
The value chain of the future will be consumer-centric and consumer-driven, with marketing,
merchandising, and logistics all directed by the knowledge of the consumer.."
"The Old Retail Economy"
"and The New"
Criteria Old Economy Organization Hierarchical Systems Mindset Closed Industry Structure Consolidated Marketing Mass Assets Tangible Inventory Real Estate Capital Financial Pricing Inflation Economic Model Productivity Loop Management Control Merchandising Buy It Right Real Estate Development
New Economy Networked Open Demassified Interactive Intangible Information Relationships Knowledge Deflation Value Chain Management Collaboration Customer Directed Redevelopment
"..Instant gratification is not fast enough on the Internet or for this generation. The
opportunity to capture the knowledge of this group is great. They want to share the ideas
they have about your product but they also expect an immediate response.."
"..New technology has improved productivity, reduced inventory, and increased the
speed at which firms adapt to changes in demand.."
"..The New Retail Economy, consumers ignore advertising. What traditional advertising fails
to do is engage the customer. Instead of broadcasting a one-directional message to consumers,
retailers will have to engage the customer in a conversation…(and) develop networks among
their customers.."
"The Old Retail Organization"
"and The New"
Criteria Old Organization Value Creation Productivity Organized Around Value Chain Product-centric Organization Structure Silo Management Style Controllers Sales Associates Cash Collectors Customers Individual Transactions Information Customer Data Time Frame Product Cycle
New Organization Loop Connectivity Knowledge Management Customer-centric Line vs. Staff Market Facing Coaches Sales People Consultants Problem Solvers Community Engagement Customer Feedback Real Time
Under-Investment in Information Technology
"..Retailers...your competition no longer lies just with other retailers…technology will be
one of the critical dimensions of that competitive battle.."
"..Retailers still don't get it when it comes to information technology. On average,
retailers spend 1% of sales on information technology investment. The economy as a whole is
spending 5.5% and that number is growing rapidly. This under-investment in information
technology is putting the traditional retail industry at risk.."
"..Other industry segments will converge on retail consumers, offering them better,
cheaper, more entertaining, more convenient ways of fulfilling their shopping wants. As a
result, retailing is going from a business where success was based on location and merchandise
to one where success depends on the unwieldy trinity of information, communication, and
entertainment systems, combined with knowledge workers to create, maintain and utilize these
systems.."
"..Organizing around real time information is the killer application of business.."
from Meta Group, Electronic Business Strategies:
"..K-Commerce: Customer Interactions in a Box.."
"..Kiosks are being deployed to complement Web-click and brick-and-mortar settings. Given
the range of kiosk implementation costs and levels of functionality, companies must align use
requirements with the selling environment to create an effective strategy for offering the
right product, to the right person, in the right place.."
"..Numerous reports project the kiosk market to grow at 20% or more per year, reaching
more than $3B in 2006….META Group agrees.."
"..The growth of Internet and self-service technology-enabled channels will realign the
customer touch perspective from point of sale (POS) to point of interaction (POI), involving
brick-and-mortar, catalog, kiosk, and online touch points. Through 2004+, critical success
factors in the retail channel will revolve around effective optimization of cross-POI
customer service, enabling consumers to perform all functions (e.g., sales, returns) equally
in all channels.."
