News

Make more money with your kiosks

April 27, 2005

Having a great kiosk program is one thing, but turning it towards profitability can be another. Just recently I was talking about a kiosk program with a large retailer. They were happy with the initial success of their program, but the question came up "is there more that we can be doing?" Like so many kiosk owners, they had successfully rolled their kiosk program out, but were bewildered by the prospect of taking the program to the next level. Were there more features that could be added? Are there more ways to make money? I didn't have an immediate answer, but I had a few ideas and was determined to address the issue. 

Most successful kiosk programs have one thing in common: They are focused. In other words, they are built for a specific user with a specific intended purpose. Winning kiosk programs are, by the majority, designed to meet a need of a customer base, and subsequently help the business by empowering the customer. However, there are kiosks today that take multi-functionality to the extreme. Although this is not the norm, Swiss Army Knife-type kiosks can work. Let's take a look at one such kiosk.

The megalith of the convenience store world, 7-Eleven, has had their Vcom kiosk system in place for nearly three years. Now totaling over 1,000 stores, the Vcom has been a combination financial transaction center, banking machine, and loyalty system, all combined. Just when you'd think their kiosk could do everything under the sun, they made the announcement of a new addition to their kiosk program.

Now at Vcom, Kissimmee Utility Authority (KUA) customers can pay their utility bills when they stop by a 7-Eleven store equipped with a Vcom machine. The new service, starting this month, will allow 24-hour, touchscreen convenience for KUA customers through a variety of payment methods. Under the agreement, customers can choose to pay their utility bills using cash, automated clearing house checking accounts and PIN-based ATM debit cards. touchscreen and directional instructions are available in English and Spanish. Receipts are issued for each payment, and KUA is electronically notified of the payment.

The question is, "are these type of additional features right for your kiosk?" By virtue, the kiosk is inherently flexible. Whether or not you want to add to it really depends on several factors, the least of which is whether it will be confusing to the user or complicate the original purpose for which the kiosk was intended. Issues such as these are on a case-to-case basis. But, if you're seriously thinking about pushing the envelop with your kiosk technology, here are some suggested areas to focus in on to make more money:

Partnerships: As in the 7-Eleven example referenced above, partnerships are an excellent way to extend the features, functionality, and options available at your kiosk. In some cases partners can help to bare the burden of costs associated with increases of services available at the kiosk. In other situations, a strong partnership could be a source of revenue for the kiosk, such as advertising income, or even couponing.

Advertising: Another revenue-generating method is to monetize/sell the idle time and turn the idle kiosks into digital billboards. This could consist of national brand advertising if the kiosk network is large, or more regional/localized ads for smaller networks.

More visibility: If you're from the school that believes more traffic to the kiosk could equate to more sales, an investment in digital signage can work wonders for drawing attention. Additional attract screens could be located above the kiosk or in high-traffic areas of the store, referencing the kiosk's purpose and location. Just putting a new, fresh face on the kiosk is all it takes sometimes.

Big ticket: High-ticket items, like those that have a high level of consumer involvement, have been proven to do well on kiosk terminals. By bringing high-ticket price items to the kiosk, and using a good presentation in conjunction with an experienced human sales representative, the kiosk can help to close deals.

Extend credit: Why put off until tomorrow what you can buy today? Adding the ability to apply for and receive credit at the kiosk can open up a whole new budget for cash strapped customers.

Accept cash: A large majority of kiosk terminals do not allow for transactions or payment by cash carrying customers. By adding bill acceptor functionality you may be able to capture cash customers, as well as the estimated 17 percent of unbanked customers in the U.S.

Up-selling: No one has experienced the power of up selling more than quick service restaurants using kiosk technology. However, the concept of up selling is a universal tool, and the kiosk is superb at the art of up sell without embarrassment or pressure.

Robotics: This is a concept we will be addressing in greater detail in a future issue of KIOSK magazine. Basically, we are anticipating a new generation of kiosks will be coming out soon that will be using robotics to deliver tangible products directly through the terminal. Image vending machines on steroids!

Marketing and incentives: Kiosks work great with post-deployment marketing. I preach a ton on this topic, but still it isn't heeded enough. Once the program is out, consider advertising, coupons, discounts, and any other type of usage generating schemes to prompt customers to transact at the terminal. The investment in usage has to be an ongoing effort, and does not end simply at the existence of the kiosk.

Charge more: Attaching a price to your kiosk is not a good idea if you're trying to build a user base. However, people are also willing to pay for convenience. Heck, back in the days I would have gladly paid two dollars to use the self check-in kiosk at the airport to bypass ticket lines. (I probably still would today) We are accustomed to convenience charges to use commuter roads and at ATMs. If your kiosk can save time or help people bypass more vexing processes, you can be assured they'll support a fee.

Originally published in the July/Aug 2004 issue ofKiosk magazine.