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What are the keys to kiosk success?

February 20, 2005

Jim Garrett, president of Accelerated Growth Partners, a firm specializing in technology automation and kiosk applications, recently worked with Coca-Cola's fountain division to research the present and future relationships between self-service technology and POS environments. That partnership helped him identify criteria critical to the success of deploying kiosk technology. Garrett answers six questions on how to make kiosk projects profitable.

When retailers first look at a kiosk program, they're usually concerned about the initial bill - they get sticker shock. What is the case for kiosk technology?

Anytime a new technology comes into an industry, the first response of most people is, how much is this going to cost me. They tend to gravitate to a "this is going to be expensive" attitude. But when they look at kiosk technology from a cost-savings perspective, they see that at the end of the day it affords them the opportunity to eliminate or redeploy labor. Changing the way they handle redundant tasks such as order-taking, for example, allows them to reallocate employees to more customer-oriented services.

The ROI for a kiosk program often has tangible and intangible properties. Yet companies want to be able to gauge the potential success and return of the program before making an investment. They want numbers on paper.

You have to ask, what is the kiosk doing to sales on the top line, and what is the kiosk doing to costs on the bottom line.

For example, given typical turnover at retail locations, it's nearly impossible to train an employee to adequately articulate the value of a given product. But let's say that you put a kiosk into the store, one that's sponsored by the manufacturer of that product. In this case the kiosk does a much better job of educating the consumer, and that fact results in higher sales. A kiosk program like this is a no-brainer. Consider the kiosk a resident expert at showing a product and telling the story to a captive audience.

There are four major things to consider when looking at ROI:

> Cost reduction > Streamlining operational processes > Increasing sales > Improving customer service

Which division of a company typically has more success with kiosk programs: technology or marketing?

The early adopters of kiosks typically have been driven by IT. It is now the time for marketing departments to become involved.

Do you believe consumers are ready for kiosk technology across all industries?

After 9/11, the airline industry moved very quickly to the kiosk only type of experience. The experience many people have had with kiosks in airports has translated to people feeling comfortable with kiosks in other environments, and subsequently the adoption rate of the technology in other industries has been high.

Customers want control, access and flexibility. The more kiosks can provide that, the more consumers will adopt them. The curve is happening much faster with this. For example, when credit cards first came out, it took many years for the adoption rate to become high. With the kiosk it is very fast.

You`ve told us what customers want. What do they NOT want?

They don't want restrictions, limited options or communication issues. Today's consumer is self-sufficient and wired to bypass irrelevant business processes. Operational processes that stand in the way of delivering your value proposition distract from the real value and the brand attributes you are attempting to convey.

In the new world of value creation you can no longer count on company-centric product and service development to gain a competitive advantage. For most consumers, product variety has not necessarily resulted in better consumer experiences.

What are the criteria for ensuring that the kiosk will be successful?

The kiosk must accept all forms of payment and provide change. Management must be committed to labor reduction or redeployment. The kiosk must be positioned in a prime location. The kiosk should be visible by incorporating signage. At the beginning of the project, the kiosks must be hosted for the first three to six months. Finally, staff must understand the kiosk and be committed to success.

This article originally appeared in Kiosk magazine.