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Rethinking The Kiosk As A Digital Touch Point That Drives Revenue

By Sam Cinquegrani,
ObjectWave

Whether it’s CVS’s recent announcement about introducing
in-store vending machines or Uniqlo’s move to set up airport kiosks, retailers
are realizing that interactive kiosks are a powerful way for customers to serve
themselves. They are increasingly driving revenue and positive customer
engagement across markets and retail applications, whether for purchasing goods
or services. And while use of these automated consumer
touch points
has grown significantly in recent years, retailers have barely
scratched the surface in terms of their potential applications.  

This article will describe the specifics of kiosk
functionality, lay out the potential benefits they can provide to companies,
and discuss how to implement them to gain the maximum impact across all of an
organization’s operations.

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Fundamental Elements And
Common Applications

Certain elements are always present in a kiosk. A
touchscreen — whether used to facilitate purchasing or enhance the customer
experience — branded housing and a visually distinct appearance are all
critical, unchanging components. In a more abstract though no less important
way, all kiosks feature a self-service component as well.

Beyond these common attributes, there is an incredibly wide
range of uses for kiosks. Some applications center completely on commerce,
while others offer support and information for customers. Additionally, certain
use cases bridge the gap between the two. Let’s look at some of the most
commonly seen and successful applications of kiosks:

  • Fast food and quick-service restaurant ordering,
    as at McDonald’s;
  • Stand-alone automated sales, such as movie
    rental service Redbox;
  • Enhancement of the customer experience, such as
    Sephora’s Color IQ kiosks;
  • Quick completion of an important step in a
    process, as in automated flight check-ins;
  • Improved convenience for in-store shopping, as with
    self-checkout at supermarkets and home improvement stores; and
  • Easy cross-referencing of online purchasing
    history while in a brick-and-mortar store.

There are nearly limitless applications for kiosks, and
their popularity only seems to be growing. From a retailer perspective, what
are the benefits of using a kiosk?

Direct Benefits For Retailers

The value of kiosk technology is clear: 69%
of customers
are more likely to make a purchase when provided with
effective in-store tools like kiosks. Research
also suggests
that customers prefer interactions with kiosks over their interactions
with store employees. Not only do kiosks offer improvements to a retailer’s
revenue and reputation, they allow businesses to use staff more efficiently,
pairing them with tasks that are better handled by live workers than by
automation.

These self-service platforms provide a significant sales
advantage, but executives should make sure they understand that kiosks do more
than offer effective opportunities for additional sales. In some instances,
providing assistance, support or general engagement for customers is just as
important, as they help your organization form positive, long-term bonds with
shoppers.

Kiosks enhance flexibility and optimize employee utilization
by taking on tasks that are easily automated. From offering product information
and pricing to serving as an interactive in-store directory, and giving patrons
the option to purchase an item available online but not inside a given
location, kiosks successfully execute tasks that lead to positive responses
from customers.

Similar to facilitating online sales while customers are
inside a brick-and-mortar location, promoting a loyalty program is another
major function of kiosks that ultimately involves purchasing but focuses more
on engagement. Instead of visiting a customer service desk, customers can use a
kiosk to redeem points, view available rewards, check on points earned and much
more
, without tying up a staff member in an involved one-on-one discussion.

Why Customers Keep
Using Kiosks

Kiosks mean more choices in how customers interact with your
organization. They accommodate the preferences of a larger group of shoppers
and therefore create a broader, stronger appeal for your business. Because they
simplify a variety of processes, they often offer faster resolutions than
seeking out and working with an employee.

According to one survey,
78% of U.S. consumers want commercial businesses to improve their utilization
of in-store technology to enhance their overall experience. While there are
many ways retailers can deploy technology to forward this goal, kiosks are
uniquely suited for the role. In fact, in the same survey noted above, 72%
would rather use an in-store kiosk or self-serve tablet than find an employee
or spend time waiting in line. These tools are highly configurable and can be
used in many different roles, lending assistance and support to customers in a
way that makes sense for businesses and their engagement and revenue
objectives.

Additionally, kiosks are more than just screens and sources
of information. They can include card readers and bill acceptors, offer
climate-controlled product storage, and even function as a closed-loop commerce
system, as seen with Redbox. With kiosks offering so many attractive options
that align with customer preferences, business need to prioritize their
inclusion of kiosks in stores as part of their ongoing modernization efforts.

The Future Of Kiosks In
The Retail World

Kiosks offer a major dual benefit: they create a more
attractive and engaging environment for customers while encouraging more purchases
and a stronger affinity for your organization. For business leaders focused on
developing attractive, engaging and successful in-store
experiences
that match up with modern consumer desires and preferences,
kiosks can play a vital role.


Sam Cinquegrani is CEO and founder of ObjectWave Corp., a full-service provider of digital
commerce solutions, and co-author of the
Executive’s Guide to Digital
Marketing. He can be reached at
[email protected].

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