Article

KIOSKmarketplace asks: What advice would you give to retailers?

With so many kiosk pitches directed at retailers, it's important they know how to make good kiosks decisions. We asked industry experts to give retailers the benefit of their experience.

March 24, 2002

Periodically, KIOSKmarketplace questions industry leaders on the issues. This time, we asked, "What advice would you give a retailer that was considering buying a kiosk system?

According to the experts, retailers should carefully consider the hidden costs a cheaper kiosk might cause, use good project design up front, create clear metrics for return on investment (ROI), and develop fast, simple software applications. Here's what they had to say:

Shamira Jaffer, vice president, TouchPoint Technologies:

Kiosk deployments are challenging but offer an incredible opportunity to build another

Sound off! Got some advice for retailers or an opinion on this article? E-mail the editor.

sales and marketing channel. Many retailers are finding that kiosks are an excellent way to extend shelf space (virtually) by directing people to their Web sites.

They also offer a variety of other revenue stream opportunities, as well as branding, marketing, etc. Here are a few thoughts about making sure it all actually works:

Get a complete, tested solution from a single vendor if possible. Build on their expertise while you leverage what you're good at. The result will be significantly lower costs and more success in the long run.

Build a solution that can grow to meet your long-term needs. Cheap PCs, expensive custom enclosures, and poorly architected software can sink your project very quickly.

Build a business proposition with an eye toward clear metrics for success. ROI opportunities are quite varied, and more sublime than you might expect. Partner with a strategic kiosk firm that can provide relationships and revenue streams right from the start.

Peter Kelly, European managing director of Inter*Act Electronic Marketing:

For a retailer considering buying a kiosk system, the first question to ask is not what to buy, or where to buy it, or how to install it, but why install it?

Most retail explorations of kiosks are prompted by an industry figure that 80 percent of retailers are going to install kiosks. This approach means that the kiosk is a solution looking for a problem. The catch is that if you install a kiosk before identifying what it can do for you, you end up with all of the costs and few of the benefits. And when you finally realize why you needed kiosks, you find you've got the wrong set-up.

Kiosks are a great solution. They give you the ability to interact with customers on the shop floor without hiring extra staff. They are there all the hours you trade at no extra cost, and they are consistent. Two different kiosks in different stores on different days will only give a different response if you have programmed them that way. This removes one of the challenges of training sales staff. But making sure the response is the right one is still up to you!

Don't make the mistake of thinking of a kiosk installation as a fire and forget solution. Not only does it need to be kept up to date in the area of content - product information, prices, store opening times, etc. - it needs to be kept fresh.

Treat it as a living solution. You would reset your shelves, repaint the store, clean the trolleys - so why think a kiosk is any different. Unless and until using the kiosk becomes as much of an ingrained customer habit as picking up a basket, you need to give your shoppers the reason to go over to the box in the corner, and to keep going back whenever they visit.

Understand your needs, but don't forget those of your customers. Many of them do not have endless patience, degrees in computer science and the eyesight of a hawk. Simple works best, and sacrificing simplicity for extra functionality will usually cost you effectiveness and customer satisfaction.

So start with the problem, evaluate the options, and if kiosks are the right answer, you'll know why and what it is that you need them to achieve. You can then check out the solution providers to find the one that best meets your set of requirements.

Kathleen Nagy, director of worldwide marketing, Elo TouchSystems Inc.:

Kiosks provide product information so that customers can make quick buying decisions. They allow customers to complete self-service transactions. They expand inventory reach by providing in-store access to online inventory. The make possible countless other customer interactions in retail settings.

Touch-based systems are an integral part of the rapid growth of retail kiosk applications because the touch interface is universal and can be used by anyone regardless of language, education or socioeconomic or cultural background. According to Frost & Sullivan, 80 percent of kiosks use touchscreens.

If you are planning to invest in a touch-based kiosk system, some key things you should keep in mind are:

• Make sure the software that you choose for your kiosk is touch oriented. The software must be developed with touch in mind so that the parts of the screens to be touched are simple point-and-click interfaces with large buttons.
• Always give your users feedback as soon as they touch the screen.
• Make your applications fun and fast.
• Make the application intuitive, limit choices, and guide the user as much as possible.
• Make your application part of an overall attractive package.

Jonathan Arfin, president, SeePoint Technology LLC:

Don't sacrifice long-term considerations. Most importantly, don't sacrifice system reliability for short-term cost savings.

Most kiosk customers don't realize that the biggest cost of a kiosk deployment is initially a hidden cost. If a customer chooses a low-cost but more unreliable or less robust kiosk system, the cost of supporting and maintaining the system over the long haul may be exponentially greater than the cost of purchasing the system.

It seems that the retail industry is susceptible to small margins and lots of competition. Thus, there may be an inclination to find the cheapest available kiosk system to minimize the cost of deployment. Unfortunately, retailers that choose the least expensive option are likely to be disappointed with the long-term success and profitability of their kiosk deployments.

A malfunctioning or vandalized kiosk will not add to the retailer's bottom line because the kiosk is not available to serve its primary function: to sell. In fact, an unreliable or flimsily-constructed kiosk will quickly start to cost the retailer money because of the high costs of on-site support and replacement of parts. 

Thus, while a cheaper, PC-based kiosk may initially seem attractive from a cost perspective, this option will quickly become less desirable when the retailer's inoperative kiosk gathers dust and wastes precious space while awaiting costly repair.