News

Retail on demand

October 26, 2004

Retail on demand is a means of seamlessly integrating all aspects of retail, including self-service technologies such as kiosks.

One goal of retail on demand is to "touch" customers at as many relevant points as possible during their shopping experience. These touch points include kiosks, PDAs, self-checkout, cell phones, handheld devices and shelf-mounted units.

In addition to providing a relevant shopping experience, retail on demand must be consistent, according to Jerri Traflet, IBM's solutions executive for retail on demand. IBM provides a Web-based infrastructure for these touch points, integrating them with the retail enterprise in real time. Traflet stresses that it is important to integrate other store-level functions, such as point of sale and external Web sites, into a retail on demand solution.

Retailers can grow into IBM's retail on demand solution, making investments over time as touch points are added, notes Scott Hallihan, worldwide kiosk solution manager for IBM.

Many retailers are incorporating retail on demand. Circuit City, a leading specialty retailer of consumer electronics, is in the process of transforming its store technology to incorporate retail on demand functions, including wireless handheld POS systems. Integration will support pickup order fulfillment, store inventory control and product delivery, and repair and installation. As a result, the retailer will be more responsive to customer demands both in-store and online.

A home-improvement store chain is working with IBM to develop a guided customer experience via kiosks. Customers are led step-by-step through 20 of the most common household do-it-yourself products. Store associates are alerted by a handheld device when it is appropriate to assist the kiosk customer with purchasing materials for the project or by answering questions.

Year of the kiosk

Traflet believes that retail on demand will bring kiosk technology to the forefront, perhaps making 2005 the year of the kiosk. She likens this trend to the previously slow adoption of self-checkout.

"We are providing the infrastructure and the form factor," notes Traflet, which helps drive the use of retail kiosks. Retail on demand eliminates out-of-sync information. "They (retailers) don't have a one-off kiosk solution," explains Traflet.

Kiosks are slimming down and becoming more portable as well as affordable. Customization is more common. Adding dynamic signage to kiosks boosts their value. Screensavers are used to run ads or promotions, according to Hallihan. Combined with loyalty cards, for example, signage can change according to individual customers. This is a subtle but effective way retailers can demonstrate just how much they know their customers.

As a consumer-focused solution, retail on demand improves customer satisfaction and increases customer loyalty. It also provides more opportunities for upselling during the shopping experience. Retail on demand offers a win-win situation: Consumers benefit from an enhanced shopping experience while retailers gain a much better understanding of their customers.