Article

Can't-miss retail

With traditional advertising waning in effectiveness, retailers are turning to "event retailing" to drive sales and generate excitement - and kiosks are often central to these events.

July 18, 2005 by James Bickers — Editor, Networld Alliance

One night not too long ago, Rick Segel and his wife sat down to watch a movie they had recorded from a commercial television network. He was amazed at how quickly it went by, once he skipped the commercials themselves.

Much to the chagrin of media buyers, Rick's experience is becoming the norm, as more and more TiVo and DVR owners "time-shift" their way past the ads.

"Traditional advertising is being thrown out the window," he said. "So where does the advertiser promote? Now, it's becoming more and more events all the time. Sponsorship is becoming a huge thing - you're pinpointing a specific customer that has a particular psychographic and a particular lifestyle. That's going to continue and get stronger and stronger as traditional advertising dies."

If Rick sounds like he knows a thing or two about advertising, it's because he has been a retail consultant and author for more than 25 years. He has written seven books on successful retailing, including How to Become a Preferred Vendor and Retail Business Kit for Dummies.

Segel, who focuses on the customer's "psychographic" - the psychological profile of a consumer and the things they are willing to spend money on - eschews traditional demographic data, saying that it too is a thing of the past.

"Who cares how old they are and how much money they have?" he asked. "It's what they like, what they want, that matters. Everyone has their `black hole' - the one thing that we love so much, we don't care what it costs us, we're going to spend money on it. If you ever look at the amount of increase of specialty magazines in the last few years - they've more than doubled. There's a magazine for everything!"

That focus on specific customers with specific interests is driving the trend of "pop-up retail," event-driven opportunities to put products and services in front of customers, rather than waiting for them to come into a store.

"People are shopping differently today," said Brian Ardinger, vice president of business development for Nanonation. "There is more information, more competition, and more ways to interact with companies than ever before. Companies are looking for ways to stand out and differentiate themselves. Going where people meet is just one way of doing this."

During the past college football season, Nanonation teamed with SBC to build the SBC College Football Connection Tour, in which a converted semi-truck was outfitted with four touchscreen kiosks. Football fans could use the kiosks to order SBC Yahoo! DSL service, watch highlight videos, download ring tones and even look for area restaurants. A nearby 42-inch plasma display extolled the virtues of the DSL service.

Ardinger said that Nanonation worked closely with SBC to make sure the design was appropriate for both the audience and the environment in which it would be used.

"Integration of technology into the environment is key to creating any customer experience," he said. "The device needs to reflect the feeling, look, and expectations of the brand and company. Any disconnect between what the customer expects and what is delivered can have a negative impact on the experience and the brand."

"It's not what we're selling, it's how we make them feel," Segel added. "Look at Starbucks. They've convinced us to buy coffee at $4 a cup, because they've made us feel a certain way."

Every retailer, every industry

Before now, such events might have seemed extravagant. As consumers become better educated and more discerning of their opportunities, Segel says they're becoming essential.

"I can always tell the quality of a retailer by saying `Show me your events schedule' - what events are you co-sponsoring, what classes are you having in the store, what types of shows are you getting involved with," Segel said. "All of a sudden there's a new type of job for a retailer, and that's the events coordinator."

He explained that every retail business can benefit from event marketing of this sort, and that it doesn't have to be a huge event like following a football team for an entire season. Home supply stores can host classes on how to install tile. One of his clients, a bridal store, offered a class on "How to be the perfect mother-in-law."

Whether the event is big or small, Segel said that having a high-tech component like a kiosk is invaluable.

"You're incorporating the fun factor into retailing," he said. "It is the machine that is becoming the anchor, the focal point to bring you in. The technology is more than utilitarian."

And if by chance your event is a big one, the kiosk becomes even more important.

"When you're sponsoring something like a race, there might be 50 other sponsors there," he said. "That's why using something like a kiosk can be so great - it can be a great differentiator."

About James Bickers

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