Article

Kiosks driving higher tickets and more sales at retail outlets

"It's exciting to be part of a deployment that allows up-selling, cross-selling and instant ROI," said Sylvia Berens, vice president of Apunix.

January 27, 2004

David Weyher, chief executive of Innovative Retail Systems, is setting out to transform the big-ticket retail landscape. And he is using kiosk partners to do so.

Innovative has developed the 360° Retail solution, consisting of the 360° Retail Kiosk designed by Olea Exhibits, and the 360° Retail Portal. The complete solution combines technology from Sun Microsystems, kiosk software from Apunix, and portal and open-source technology from CommNav.

"We have designed the solution for big-ticket items sold in showrooms. These are high-priced goods like furniture, electronics, jewelry and art, that are sold by commissioned salespeople," Weyher said. These are items starting at about $500, for which consumers will most likely want to apply for credit.

Customers simply use a touchscreen kiosk application integrated with the retailer's credit processing system to apply for credit in the showroom. Product advertising and promotions can be targeted to the customer via the kiosk, as well. And the retailer's sales staff can access real-time information via a user-friendly and secure portal to improve the selling process.

Retailer's private label credit banks appreciate the system because it helps them increase the use of credit and offers retailers more value for their credit services.

"This is a big opportunity if we move quickly," said Weyher, "Right now we're first to market with the technology."

Sylvia Berens, vice president of Apunix, said, "This project has a lot of perspectives. It brings together a number of solutions. And you can tell it has great potential by the support of the banks involved."

She added, "It's exciting to be part of a deployment that allows up-selling, cross-selling, and instant ROI."

Weyher explained that electronic credit applications are the "low-hanging fruit" that get banks and retailers interested in the system. "They see equal benefit and immediate ROI," he said. Add-on applications include couponing, swipe-and-win promotions, and product lookup.

Welcome screen for retail kiosk

Furniture first

The kiosk system has been in place at Cardi's Furniture in Swansea, Mass., for two weeks, and already, expectations are high.

"Customers can apply for credit first and know the amount they're approved for before even shopping," said Jo-Anne Almeida, credit manager at Cardi's. "We anticipate they will purchase more than they had planned, based on their knowledge of available credit."

Almeida said customers will probably be a lot more comfortable applying for credit in private on the kiosks, and that they will be able to get in and out of the showroom more quickly.

Cardi's has one kiosk in trial, and Almeida said the company will probably have two kiosks in each of its three stores eventually.

Levin Furniture is the flagship customer for 360° Retail. Frank Olea, vice president of sales and marketing for Olea Exhibits, designed the kiosks for the Levin deployment. "We did about 22 kiosks for the chain. The application used our newly redesigned Los Angeles Kiosk. It was the first application for the new design."

Levin Furniture, a $110-million retailer, has deployed sales-productivity portal applications integrated with kiosks in 11 showrooms.

In about a year's time, Levin has seen dramatic results - 98 percent of its customers applying for credit now use the 360° Retail Kiosk. Open and activated credit accounts have seen increases as much as 100 percent, and Levin Furniture's average ticket size continues to increase.

Weyher said he will focus on the furniture market for a while, and is in talks with several furniture retailers in the Midwest.

"We want to do things right in furniture by solidifying our relationships with customers and building momentum. Then we will tackle another market segment."

Next up? Jewelry. Weyher explained that the vendors will pursue this market in a matter of months.