Article

The kiosk challenge: Critical factors for the holiday season

The Future Foundation reports on what shoppers expect from retailers – now and in the future.

December 22, 2014 by Nicole Troxell — Associate Editor, Networld Media Group

/What kind of role can kiosks play with regard to holiday shopping? How can they enhance the consumer's in-store experience? And will kiosks be accepted by shoppers as replacements for store staff?

Kiosk Marketplace turned to Heather Corker, VP of Consumer Insights for research company Future Foundation, to find the answers to these questions as well as others as the holiday shopping season reaches its climax. The Future Foundation recently released its survey results on holiday shopping trends, including what shoppers expect from retailers, and Corker dipped into the study's findings to explore consumer expectations now and in the future.

Kiosks coming of age

In the past few years, the slow but steady rise in kiosks is beginning to quicken pace. Why? According to Corker, it's because kiosks have come a long way to mature into the intuitive machines they are today.

"They no longer feel clunky or slow, and in many cases they can retrieve information, help customers check out more quickly than staff can and help brands streamline processes," she said.

An important factor in the rise of kiosks has not only been their increasingly intuitive interface, but how they take the pain points out of the consumer experience as they engage with brands. Consumer pain can come from waiting in line, needing information or checking out, and the rise of ecommerce speaks to the trend in easing pain points, a trend that depends on the use of kiosks to meet demand.

The maturation of kiosks can be seen in a trend Corker has documented the past few years that Future Foundation refers to as "Versat-aisle Shopping." The trend shows that the line between offline and online shopping has blurred, becoming a blend of both.  

"Consumers are using technology while in-store to access information, price compare, etc. While a couple years ago many predicted that the brick-and-mortar store would become only a showroom for online shopping, what has begun happening is the exact opposite of that," Corker reported. "Individuals research a product, look up prices and then go in-store to purchase the item -- in order to touch and feel it, but to also have the shopping experience for those who find such things pleasurable."

Kiosks are the vehicle that enhances the offline and online shopping experience, said Corker, by providing information, enabling self-order and self-pay and more. For example, customers can look up information on items out of stock or order a different color or size at a kiosk.

Customers prefer in-store shopping, staff interaction

"As consumers become accustomed to using and seeing kiosks in-store they will increasingly be attracted to them for in-store use for quick information. This may mean a reduction in staff numbers. However, this certainly will not replace all or even a majority of staff. There remains a strong desire among consumers to have that personal connection and speak to someone to get answers directly," said Corker.

While customers still prefer the shopping experience and a personal connection with staff, Future Foundation believes that, in the next couple of years, it will be unusual to see a store without a kiosk or other form of digital service.

The Future Foundation's projection comes from its studies on another trend they call Wired Guanxi. In the future as digital customer service evolves, according to the Wired Guanxi trend, automated kiosks and robotics will serve as the starting point for consumers. Customers will only encounter staff at the moment they need to speak with someone or when assistance is required.

Type, place and age

Future Foundation's demographic data aligns with many industry studies, indicating that millennials, those aged 25-34 in the study, show the most interest in and preference for self-service technologies across the board. The company's data confirm similar preferences for those in a higher income bracket.

But preference for using kiosks and self-service depends on type and place, the company said. For instance, those aged 35-44 express slightly more interest than even those 25-34 in using self-service kiosks at gas stations and the post office. Corker attributes this difference to the fact that the younger generation sends less mail and also drives less.

Finding meaning in the holidays

Digital kiosks will play a specific role this season for retailers utilizing the technology, in that they will help brands understand their customers in more depth, such as the types of products they're looking for or what they need assistance with while in-store, Corker said. But perhaps more importantly, she added, kiosks can reduce the stress for staff, allowing them to give more attention to the customer and job at hand.

"From a purely economic standpoint, there are many who believe that digital kiosks and robotics will get to the point at which retailers and stores can actually begin reducing the number of floor staff in favor of digital partners instead," Corker said.

For this holiday season, kiosks can be used in a number of ways for the consumer's benefit, says Corker. They can find a coupon that was in a paper or advertised online that the consumer might not have come across or known about. The coupon can be added at a kiosk to reduce the total cost.

If a consumer is using a kiosk to browse a retailer's selection of items, the kiosk can suggest similar products that are at a lower price point, Corker added. For example, a suggestion of a similar pair of brown boots with a high online rating, be it the store's own brand or the name-brand product, could offer a coupon or discount of interest to the shopper.

Kiosks can also help consumers navigate inventory, from new items to clearance racks. They can track consumer loyalty, and add discounts based on the number of 'check-ins' or purchases, whether in a restaurant or store.

"The biggest advantage kiosks have is their ability to reduce pain points for the consumer," Corker said. "And happy consumers are likely to be returning consumers. So kiosks that are implemented to reduce lines in store, to assist consumers and store staff in finding merchandise, checking stock and comparing products will reduce stress for both staff and shoppers. It's the little perks that make customers feel like a VIP."

Swimming in an ocean of technology

"While it's true that consumers are searching for more connection, the fact remains that technology is now the ocean we swim through in everyday life; it is unescapable. For consumers, it's about managing the levels to which they engage, along with when and how. Is it a benefit to my life to be on Facebook five hours a day? Probably not. Does it benefit my life to get in and out of the drug store as quickly as possible using self-service technology, so that I can get on with my life? Probably so," Corker said.

The Future Foundation concluded with stressing the importance of retailers implementing digital in-store kiosks and mobile content tied to all channels to enhance the shopping experience and complement conversations with sales staff.

"There will certainly be some industries or moments at which speaking with a person will just always be the best option. For instance, those who prefer to use self-service, rather than a member of staff at banks is only at about 30 percent of the total population, whereas with supermarkets, 46 percent of the total population say they prefer to use self-service technologies. The challenge for kiosks, still, is uptake in use and consumer familiarity with them in store."

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