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Is gift registry kiosks' killer app?

October 26, 2004

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Today's climate demands that retailers discover new ways to increase revenue, draw new customers to their stores and keep old ones coming back. Gift registry has proven time and again to be a solution for each. And unlike many retail automation projects, this one does not march under the banner of saving money. Rather, its value-proposition is making money.

Gift registry itself first appeared in department stores reaching out to engaged couples. Initially, the programs were labor-intensive, paper-based systems centered on certain types of products, like fine china and stemware.

Now, the service covers many uses (birthdays, maternity events, anniversaries) and has largely moved to a kiosk-based environment. The industry is estimated at $37 billion annually, up 25 percent in the last five years.

Gift registry kiosks

Automated gift-registry systems can range from a clerk-assisted application installed on a single PC to a global, multi-channel and multi-lingual deployment that combines in-store self-service and Web-based transactional functionality. Small to mid-size retailers typically do not have the resources to build their own applications in-house and therefore should rely on specialists who can provide a quality turnkey solution at a reasonable cost.

The win-win-win of gift registry

For the retailer
* Revenue from gifts, unrelated purchases made by gift buyers
* Broadened customer base
* Diminished merchandise returns
* Strengthened customer relationships
* Sales as unrelated purchases are made when gift buyers shop
* Registry facilitates database-driven marketing campaigns

For those who register
* Satisfaction of receiving preferences for gifts

For gift buyers
* Time savings
* Comfort in knowing their gift will be wanted

For more information, please visithttp://retail.KIOSKmarketplace.com/giftregistry.

Larger retailers accustomed to doing their own in-house development may want to capitalize on the knowledge of registry experts. They can do so by utilizing software developer kits that include proven and flexible gift registry system engines, development documentation, GUI templates, interface and item-management tools and utilities.

Registries and ROI

The return on investment for a gift registry deployment will depend not only on the quality and quantity of management and marketing support. Other factors include:

* The number of registries per store, per year
* Items per registry
* Average item retail
* Average item margin
* Average percentage of registry sell-through
* Hardware and software cost
* Web hosting costs (if applicable)

Reputable gift registry software vendors can help calculate ROI.

Marketing strategy

Marketing your gift registry should be an integral part of the marketing campaign - not an afterthought. In-store signage, links from the company Web site, inclusion in advertising campaigns and public relations efforts are all mandatory for success. Marketing support can include a welcome package for registrants with checklists suggesting item categories to include in a registry. Some retailers provide tastefully printed cards that registrants can distribute to potential givers letting them know that their preferences have been registered at the store.

Although many online and off-line factors are involved in making sure your gift registry is a win-win-win, the system's rewards are ample enough to make investigaing it worthwhile.