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Self-Serve Helps Biz 'Cash In on Consumer Behavior'

Self-service kiosks can help retailers make buying decisions, especially for modern consumers who are cautious and well-informed. That's the message one expert gave to retailers at a GlobalShop seminar.

March 17, 2003

CHICAGO --Self-service kiosks can help retailers make buying decisions, especially for modern consumers who are cautious and well-informed, said David Bersoff, research director for Yankelovich Monitor.

His presentation, "Cashing in on New Consumer Behavior," targeted retailers trying to understand what drives buying decisions. It was part of the first day of activity at the GlobalShop retail exhibition at McCormick Place.

Bersoff discussed recent shifts in consumer values post-9/11, and the actual buying patterns that accompany those shifts.

He offered information helpful to self-service vendors trying to market their wares to potential retail customers.

Bersoff used check-in systems employed by Delta Air Lines as an example of useful technology that helps consumers speed and simplify their mission. Delta, and practically every airline company, has installed kiosks that simplify and speed up the check-in, seat assignment and boarding processes. He said that consumers are ready to embrace technology-driven services, but only where they make sense.

"Use of Delta's online and kiosk check-ins have soared 230 percent quarter over quarter," Bersoff said, quoting research from Techlinks.

He reminded an audience of about 100 GlobalShop attendees that when airport check-in kiosks first debuted, travelers could not check in bags. That was an obvious limitation.

"Now you can use the kiosks not only to check in bags, but to change seat assignments, or even put yourself on standby for an earlier flight," Bersoff said.

He added, "That industry has closed the gap between full-service and self-service options."

What Are They Thinking?

Bersoff said the overall consumer attitude that could have been characterized as "aggressive optimism" during the economic boom is today more one of "patient optimism." Consumers know risk is real in the world, and are more leery and skeptical in general. They have adopted a wait-and-see stance.

Most consumers are more disciplined about sticking to a budget, though they still splurge on expensive treats from time to time.

Bersoff called this a "post-accumulation marketplace," meaning consumers don't necessarily need more material possessions; their enjoyment lies more in the experience of consumption.

The very nature of retail, though, is less about experience, and more about rows and rows of merchandise.

One way to change that approach in terms of marketing (and one way in which kiosks fit nicely) is grouping similar products and creating the illusion of an experience.

"Put items together by situation, not by category," Bersoff said. For instance, retailers could generate more purchases by putting DVDs next to DVD players, popcorn poppers and comfy throws. Bathing suits could be grouped with suntan lotion, coolers, beach towels, ocean sounds and smells. Kiosks could point out complementary products and promotions.

Bersoff said consumers get a large amount of information tossed their way in the course of a day, but they still seek advice from expert sources.

He also noted that consumers haven't lost their appreciation of technology, and that it is essential for retailers to keep up with the latest innovations.

Needs Work

But even the latest and greatest technology innovations must make sense and provide a clear benefit. Bersoff cited his personal experience with grocery self-checkouts as an example of self-service technology that needs improvement.

He said his attempt to purchase a large number of items using the system revealed its flaws. By the time he got three large, full bags of groceries into the bagging area, he found he had been running up and down the aisle several times and still had items left to scan.

"When you are talking about a big load of groceries, it just may be more pleasant, easy and convenient to use the cashier," he said.

In all fairness to that technology, though, Bersoff said he realizes how new it is, and that work is probably being done to improve it.

He said that's fine, as long as the consumers' needs and buying tendencies are kept in mind.