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KIOSKCOM: Virgin CIO shares self-service strategies

Robert Fort outlined the brand's challenges and successes and downplayed its U.S. store closings during his much-anticipated keynote presentation at last week's show.

May 11, 2009 by

During the second of three keynote presentations at last week's KioskCom Self Service Expo and The Digital Signage Show, Virgin Entertainment Group chief information officer and president of I.T. Robert Fort explained how the company revolutionized the customer experience by using technology.

Virgin Megastores have garnered a reputation for a truly engaging shopping experience, and the brand's 10 U.S. locations have seen more than 36 million visitors.

Fort identified some of the challenges Virgin has faced, including increased competition from other types of retailers (such as coffee shops and grocery stores), the digital distribution of music, a drop in marketing revenue and a lack of direct consumer marketing communications or in-store measurement tools.

The answers to these issues, Fort said, lay in implementing self-service, digital signage, traffic counters, a new POS system, the brand's V.I.P. loyalty program and a data warehouse — all integrated to create a unique culture for shoppers and to supply accurate and up-to-date information for the retailer.

Through these technologies, Virgin met its goal of diversifying product offerings and getting to know its customer better, all while providing a distinctive in-store experience. The stores branched out from music to include games, fashion, books and electronics, Fort said.

In terms of measurable results, Fort said the company has recovered thousand of labor hours wasted by inefficient and outdated processes, as well as $2-3 million in reduced shrinkage annually, a 50-percent jump in the average sale, record participation in the loyalty program and a 50-percent click-through rate on its loyalty e-mail blasts.

Fort's speech followed the recent announcement that Virgin Entertainment Group will close all of its U.S. locations by summer. He said, however, the closures are not due to competition from digital competitors such as iTunes and Amazon.

"The wind-down is not a result of our performance," Fort said. "In fact, the last few years have been our biggest years ever. There's just more value in the real estate."