Article

Driving the kiosk machine

Some manufacturers and dealers are embracing the flood of information and using it to their advantage. These innovators are deploying showroom kiosks that demonstrate vehicle advantages, which enable the sales associate to act as a facilitator who guides the customer through the sales process.

August 11, 2004

When it comes to car shopping, knowledge is power. And the abundance of Internet information has created a showroom revolution and changed the way consumers buy cars. In fact, the impact the Internet is having on buying decisions has increased significantly, according to the J.D. Power and Associates 2003 New Autoshopper.com study.

The study finds that nearly one-half (49 percent) of new-vehicle buyers say the Internet influenced their make/model purchase decision. On average, automotive Internet users spend a total of five hours online shopping for their new vehicle, and 89 percent go online to do research before actually visiting a dealership.

In today's information-rich society, sales consultants are responsible for knowing more about product and guiding customers through the entire purchase process, while meeting or exceeding customer satisfaction standards and goals. Couple this with the move toward multiple lines and larger inventory selections and it is increasingly more difficult for sales consultants to maintain a strong competitive edge.

Some manufacturers and dealers are embracing the flood of information and using it to their advantage. These innovators are deploying showroom kiosks that demonstrate vehicle advantages, which enable the sales associate to act as a facilitator who guides the customer through the sales process.

Targeting Gen Y

Toyota Motor Sales, U.S.A., Inc, wanted to provide young consumers with a different type of buying experience. With its new Scion line, there's no dealer inventory and there's less focus on sales associates trying to close the deal and more emphasis on getting to know the cars. The certified Scion sales staff never approaches potential buyers, but when approached, they assist customers who have questions about the car or the sales process. Toyota has succeeded in creating a vibrant, self-service experience.

The Scion showroom (also called the discovery zone) includes 50-inch plasma screens that highlight each of the vehicles' features, numerous Plexiglas accessory display cases and a customized Scion vehicle with accessories. The area also contains self-service kiosks with printer stands so customers can log onto the Scion web site, simulate customization of their chosen vehicle, and then save or print out the data for future reference.

After the customer selects a car and personalizes the accessories, the order is transmitted to Toyota. The car is taken from inventory and the accessories are installed. Once the accessories are installed, the car is trucked to the dealer about one week later.

The concept looks to be a success. Toyota reported July '04 sales of 14,793 units. Calendar-year-to-date sales for Scion totaled 46,016.

"The Scion business model has gone national and it's off to a great start," said Jim Farley, vice president of Scion. "The combination of upscale products at affordable prices served up in a buyer-friendly environment is striking a chord with consumers."

The virtual showroom

If there's a company that understands the car business, it's DaimlerChrysler Motors Co. They also understand the selling power of interactive tools. Bill Hines, manager of kiosk communications at DaimlerChrysler Motors Co. LLC, said kiosks have been a part of the company culture for more than six years.

The company started with using information kiosks, called Vehicle Information Center or VIC, at auto shows and other events. The kiosks, designed and built by Visual Productions Inc., were so successful that DaimlerChrysler decided to convert them into showroom sales tools.

In 2000, the company offered its first generation of information kiosks to 4,300 dealers as an optional purchase. About 1,850 of the dealers shelled out $3,500 per unit. "That exceeded our expectations. We thought maybe 25 percent of the dealers would be interested," said Hines.

The redesigned Vehicle Information Center

Recently, DaimlerChrysler announced a redesign. The new kiosks, designed again by Visual Productions Inc., will roll into dealerships in late fall 2004.

Hines said DaimlerChrysler is offering dealerships bigger, better, faster and sleeker kiosks for the same price, $3,500. The new design and functionality is a result of conversations with the dealers. "We didn't come up with anything radically new; we've just built on what we had," said Hines.

The redesigned VIC will deliver one-stop product information as well as assist the dealership's sales force in presenting the detailed information that customers require.

The new VIC has a 19-inch touchmonitor from Elo Touchsystems and speakers and sub-woofers with a switch to control volume. It also has four metal casters that make the unit mobile. The dealers had told the company that they wanted to be able to move the unit over to a particular car for special promotions. This mobility also led to the need for wireless connectivity, which is an option with the redesign.

"Buying a car can be a painful experience, but not in this case," said Hines. "The kiosk is a wonderful, silent salesman. It allows people to learn about vehicles without having to talk with anyone."

For an additional $100, dealers can have Microsoft's Xbox gaming unit with two controllers added to the unit. DaimlerChrysler has certain models featured in the games. "Our corporation is heavily into gaming," explained Hines.  "Now while parents shop, the kids can play games or the dealer can play a movie in the waiting area."

Bryan Williams, director of sales at Visual Productions Inc., said DaimlerChrysler has teamed up with Microsoft to "implant" its cars into the gaming industry. "It's kind of a neat twist. Gamers are very loyal, with an average age of 29 -- a perfect age for car buying." The Xbox, he explains, lets the dealerships turn ordinary information into a multimedia experience.

Surfing for sales

BMW is known as a company that values self-service. In fact, the BMW Virtual Sales Center is an oft-cited use of successful kiosk technology.

But the organization has entered a new level of innovation with its groundbreaking kiosk, the X3 Lite. These kiosks are completely portable (they fold down), are wireless and have a graphic face that can change along with content.

BMW's X3 Lite public kiosk

The design features of X3 Lite mean that its not confined to the dealer showroom. The kiosks -- which promote the new X3 Sports Activity Vehicle -- can be placed in public spaces throughout key markets to attract the attention of hip, active consumers.

"The goal of the project is twofold," said Bob Plante, manager of Virtual Sales Center for BMW. "We want to create a buzz around the launch of the new vehicle, and we want to collect the names of prospective buyers."

Plante said BMW has toyed with the idea of placing kiosks outside the showroom for some time. "The impetus comes from our salespeople. They say the VSCs are great in terms of providing content, but that kiosks also need to be somewhere else, driving people into the showrooms."

He added, "When the X3 came along, we thought, `well, now is the time to try something different.' The vehicle is sporty, innovative. I put it out to vendors to match that attitude with the kiosk."

Plante said when he first started thinking about putting self-service terminals in public spaces, he thought, "Why not make the front of the unit a big sign that can change with the content?"

Angela Zapka, vice president at Frank Mayer, the company that designed the enclosure, said, "Everybody has graphics and signage on the fronts of their kiosks. But the kiosks always look the same. We've created a tool that actually speaks to the message of the content, whatever that might be." She said the whole face of the X3 Lite kiosk broadcasts branding information before users even touch a screen.

Another design challenge was the idea of making the kiosk portable. Plante said, "Frank Mayer took the idea to the next level and made it fold-down so it could actually fit in an X3."

Said Zapka, "We had to research the appropriate hardware and then engineer the unit to fold down. It's pretty amazing from an enclosure perspective: that this kiosk is so portable considering the hardware required to accomplish BMW's requested functionality including the wireless and full motion video software," which was designed by Netkey Inc.

Feel the experience

It used to be the only way to experience a new car was to take a test drive. When you walk into one of Mazda's Retail Revolution dealerships, you'll see how the showroom experience has changed. Mazda has created a shopping experience that goes beyond the traditional dealer showroom.

To enable customers to "feel the Mazda experience," the automotive manufacturer collaborated with software developer nanonation to create interactive kiosks to deploy at participating dealerships across the U.S.

Mazda partnered with nanonation todeploy the Retail Revolution kiosks in dealer showrooms

Now customers are greeted with an interactive marketing tool that creates a visually appealing and emotionally powerful way of experiencing the fun of driving and owning a Mazda.

Unlike other dealer kiosks, the Mazda system has the ability to tailor and target the content and information for each individual dealership in a multimedia experience designed to engage and inform.

Jim Hoostal, director, retail development, Mazda North American Operations said, "We were looking for a way to engage our customers and start a conversation. The kiosks enable us to showcase our products in a way that can't be done through traditional brochures or media."

Hoostal added, "While an interactive system can't compete with the dynamic experience of sitting behind the wheel of a new car, it can complement the entire dealer experience to help the customer better understand the benefits and possibilities of owning a Mazda."

In addition to the enhanced customer experience, Mazda is benefiting from the systems' ability to remotely monitor, manage and track each kiosk no matter where it's located and interface and content updates are deployed from a centralized content management system. Additionally, the kiosk reporting functionality gives Mazda better marketing data and a way to analyze the effectiveness of the devices.

Bradley Walker, CEO and president of nanonation, said the project is an example of nanonation's approach to collaborating with clients.

"The key to creating a compelling, engaging and cost effective customer experience requires understanding the needs of the customer and the business opportunities of the client." Walker added, "It's exciting to work with clients such as Mazda that understand the benefits of building engaging customer relationships and who aren't afraid to utilize creative ways to make it happen."