The future is now.
In today's retail world, consumers shop for exactly what they want, whenever and wherever they want. They demand consistent, high-quality service and product availability no matter where they shop. And they expect more from the shopping experience than ever before.
That is exactly why we developed the 1stKIOSK TotalSOLUTION ™ strategy, an integrated set of solutions that help you overcome these challenges and grow your business in a dynamic world. Most importantly, solutions within the 1stKIOSK TotalSOLUTION strategy can be deployed across your enterprise today. So, you can make an immediate impact on productivity and profitability.
For many retailers, one of the most compelling components of our strategy is a powerful Dynamic Media Publishing system: network-enabled kiosks and dynamic, digital displays which are "clicks and mortar" ready and optimized for multichannel retailing. With advanced touch screen and multimedia capabilities, retail-hardened core technology and open platform, Dynamic Media Publishing helps you:
· Increase Revenue
Dynamic Media Publishing helps you reach more customers and drive incremental revenue. Busy, on-the-go shoppers will be drawn to Dynamic Media for fast, convenient self-service. Targeted messages attract new types of customers. Interactive sales, such as personalized special orders and try-before-you-buy, boost customer spending. Dynamic Media Publishing also make it easy to up-sell and cross-sell merchandise.
· Build Loyalty
Dynamic Media Publishing helps customers find exactly what they want, which reduces lost sales. It can provide extensive product information, including price comparisons, which increases customer confidence. Dynamic Media Publishing also decreases wait time, allowing customers to apply for credit, purchase gift certificates and complete other tasks at their own pace. All of which boosts customer satisfaction and loyalty.
· Extend Your Offering
With Dynamic Media Publishing, you can give customers access to a much wider assortment of merchandise without adding a single square foot of real estate. Offer more merchandise sizes, colors, flavors, options and other alternatives to satisfy a wider range of customers. Or complement your offering with value-added extras, such as a vacation-planning kiosk from a sporting goods merchant.
· Reduce Costs
Dynamic Media Publishing lets you do more without increasing labor costs. You can also use it to train sales associates and improve their effectiveness. Plus, when you choose 1stKIOSK as your TotalSOLUTION partner, you can depend on rugged, reliable solutions that protect your investment and deliver the lowest possible cost of ownership.
· Support Your Stores
Dynamic Media Publishing can easily handle gift registry, credit applications, job applications, product explanation and other tasks. Plus, it can be managed from a central location. This reduces your sales associates' workload, improving job satisfaction and reducing turnover. Dynamic Media Publishing also helps you extend your Web presence.
Meeting customer needs across multiple channels is challenging, but the ultimate reward is customer loyalty - a scarce commodity in today's market. Loyal customers are not only more profitable, they are less expensive to retain than new customers. And they are much more likely to provide information about themselves and their preferences. It is this information that fuels customer relationship management, the new paradigm for decision-making in retail.
Facts and Figures about Dynamic Media Publishing
Here are a few statistical projections and studies from several major think tanks about the growth of interactive displays in the marketplace. We don't know exactly which numbers are correct, but we agree that the opportunity will be tremendous.
Jupiter Research, Consumer Commerce
"…In 2001, $200 million of goods and services will be
purchased through retail kiosks
· By 2006, this
will rise to $6.5 billion in sales driven through
interactive kiosks
· An additional $77 billion in sales will be directly
influenced by the use of a kiosk
· This year over 3 million users will make purchases on a
kiosk
· The number of consumers who transact via a kiosk is
predicted to rise to 23 million by 2006…"
Indiana University - KPMG, Retail Technology in the Next Century
"…Today's retail industry must face one truly significant
reality - the consumer is in charge.
On average, 76
percent rated the kiosks as an advantage, 60 percent were
more likely to shop at a store with these technologies, and
80 percent expected to use the technologies at least some
of the time they shopped.
Consumers felt
that the product information/ordering kiosk would make
shopping faster and easier by helping them find what they
wanted and provide detailed/current product information.
Shoppers liked
the frequent shopper kiosk because it would highlight items
that were on special and eliminate the need to clip and
carry coupons, thus saving them money…"
"…Two
technologies - the electronic POS signage and the product
information/ordering kiosk - received high marks for their
ability to improve each of the identified retail weaknesses
of poor service, speed of shopping and product information.
Both technologies received a positive rating from 50
percent or more of consumers on each of the three
attributes..."
"…Over 70 percent
believed that they would benefit from the retailers'
adoption of six of the in-store technologies: 1) the
product information kiosk, 2) ordering kiosk , 3) hand-held
shopping assistant, 4) electronic point-of-sale signage, 5)
self-scanning pricing, and 6) the frequent-shopper
kiosk…."
PriceWaterhouseCoopers, The State of Retail Technology
"…Retailers need to examine kiosk functionality from a
customer's perspective and integrate those tasks with the
potential to improve customer service.
Shoppers should
be able to use a kiosk to shop, to pay for their purchases
with credit or debit cards, to check the status of a
product ordered over the Web, to obtain useful product
information, or to check on loyalty account status…"
"…Retailers are
increasingly focusing on the customer with their kiosk
strategies. They overwhelmingly indicate that a key reason
for investing in kiosk technology is to provide
self-service shopping options and information access to
customers…"
"…Retailers
recognize that newer technologies are becoming more viable
solutions. The critical issue that retailers must take into
account when they design, develop and improve their
in-store systems is customer service. In the increasingly
consumer-centric model of retail, customers demand faster
and better service, from every venue where they shop. The
level of service they expect cannot be achieved without
flexible, sophisticated and progressive in-store system
architecture. The retailers that recognize and address this
will survive and thrive in the changing retail landscape of
the new century…"
The Kiosk Connection
"…Retailers continue to show interest in kiosks, and are
experimenting with more uses for these in-store devices.
Most say they have or will deploy them.
Stores are using kiosks to handle a variety of functions,
including giving customers access to their Web sites,
providing them with an in-store catalog, allowing them to
set up or shop from a gift registry, processing credit
account applications, processing prospective employee
applications, creating personalized greeting cards, giving
loyalty program members access to account information and
special coupons, and providing recipes and other product
suggestions…"
"…In the end,
customers don't care what technology retailers use.
The key is to
choose a system that will enable in-store systems to
enhance customer satisfaction…"
Arthur Andersen, New Rules, New Realities
"…The rules have changed - the proliferation of new
channels, customer connectivity in a real-time world and
heightened customer expectations. Never before has
competition been so fierce and never before has there been
such limitless opportunity or such an equal playing field…"
"…If only half of
the average retailer's customers made one additional
purchase in a year, the retailer could typically achieve a
comp store increase of 17 percent…"
"…In addition,
the benchmark data shows that more than three-fourths of
all revenues are generated by less than half of all
customers. In fact, 50 percent of revenues come from just
15 percent of customers. By identifying these customers and
focusing efforts on them, it is possible to substantially
improve returns on investments.
By integrating
these benchmarks into everyday business decisions,
retailers can realize
the additional benefits of:
· Increased
customer loyalty
· Identification of cross-selling opportunities
· More effective acquisition of valuable customers
· Layouts and locations consistent with valuable customers
· Greater share of wallet
· More effective and efficient use of advertising dollars
· Lower inventory costs and turns
· More effective pricing …"
"…Conclusion:
When a company can conduct ongoing interactive sessions
with its customers, capturing the results of each event in
the form of either a direct response or variations in
customer behavior and customer value, the company can truly
manage its activities toward increasing customer
equity…"
Ernst and Young, Retail News
"…Retailers must meet consumers' needs by establishing a
clear and appreciated value proposition, and executing on
it with consistency and dependability. Whether physical or
virtual, the experience delivered by the retailer must
always be relevant to the consumer's needs. In this way,
the retailer becomes a trusted agent-a guidepost in a
confusing and hectic environment…"
"…This notion of
one-to-one product marketing will shape manufacturing as
well as the science of customer management; retailers will
need to master this science in order to maintain customer
loyalty…"
"…Most will build
e-commerce capabilities within the next few years, and many
will adopt a twin-channel, "clicks and mortar" strategy.
Regardless of what growth strategy retailers adopt,
however, they must be prepared to move very quickly.
Bricks-and-mortar retailing will become one of several
sales channels, and retailers will need to rethink all the
arrangements connected to its development"… "new entities
that combine commerce, entertainment, education and social
centers…"
The leading trend
is likely to be the combination of 'bricks and clicks.' The
shopping experience will incorporate looking and touching
and product customization with each transaction. And stores
will continue to borrow customer relationship concepts from
the e-commerce world. They will make note of individual
customer tastes and preferences and will direct customers
to the products they might be inclined to purchase, just as
pure e-tailers are doing now.
Stores will also
provide electronically linked connections to additional
products and brands, so that stores will have both physical
and virtual departments. In the real estate sense, this
increases a store's square footage exponentially with
little incremental cost.
Conclusion: The
most significant development of late 20th century retailing
-electronic commerce-will also be the most important
business driver of the 21st century.
Forrester Research, Mixing Bricks With Clicks
"…More than 80% of brick-and-mortar merchants find that
their stores benefit from online selling efforts.
By 2002, 80% intend to add kiosks to most stores and
one-third plan to web-enabled cash registers. 60%… are
implementing or piloting kiosks in stores today, and 80%
intend to expand these programs during the next two years.
Most kiosks are PC-based, but merchants expect to use touch
screens and other interfaces to make kiosks easier to use.
Beyond web access, merchants plan to offer gift registries
and promotions via these kiosks.
"We are looking to add kiosks so we can offer services like
a bridal registry, or sell merchandise in product areas we
don 't currently carry, such as pots and pans." (Housewares
Retailer)
Executives plan to add new devices to stores, with kiosks
in the lead because…
· Consumers are more versed in technology. US consumers no
longer view technology as a mystery and use it to
accomplish tasks like buying groceries and managing
finances.
· Retailers' online investments create a foundation for new
points of sale. As they develop assets like robust customer
databases, real-time inventory information, and online
merchandising expertise, they also create the platform on
which to support new points of distribution beyond the web
site…"
Retailers will revamp Stores
to meet Consumers' service needs.
"…To bridge the gap, retailers will need to:
· Augment service
with devices, not staff. Using kiosks, retailers will
provide product comparison tools to help customers make
choices.
· Sell products
from virtual inventory to store visitors. Retailers
continually struggle to expand product lines and sell new
items in stores with limited floor space. Low-turnover
items like XXXS or XXXL (can be) ordered from the
web-enabled POS. Space can be restocked with fast-moving
new products-expanding the offering without changing the
square footage.
· Capture data
about customers in all channels. Using mechanisms like
kiosk login records, personal bar code scanner data, and
cross-channel information, merchants will surpass online
pure plays by offering a truly up-to-date and customized
experience.
· Modify user
interfaces with consistency in mind. Kiosk providers warn
retailers against posting their web sites on kiosks in
stores-the interaction takes too long, causing queuing
problems and turning kiosks into albatross. Retailers will
create new interfaces that will be appropriate for the
in-store device…"
· Support
non-English-speaking shoppers. Store shoppers who aren't
proficient in English currently find themselves at a
loss-either they must shop with relatives or hope that a
clerk speaks their language. Non-English-speaking shoppers
will give their loyalty to kiosks.
PriceWaterhouseCoopers, Retailing at the Dawn of a New Millennium
"
"…Retailers and suppliers alike are well practiced in
muttering the mantras of consumer
importance. And yet, their marketing, merchandising,
advertising, and logistical
practices all belie their chants of homage to the consumer.
The New Retail
Economy will turn this product-focused logistical process
on its head.
The value chain of the future will be consumer-centric and
consumer-driven, with
marketing, merchandising, and logistics all directed by the
knowledge of the consumer…"
The Old Retail Economy and The New
| Criteria Organization: Systems Mindset: Industry Structure: Marketing: Assets: Data Facilities Capital: Pricing: Economic Model: Management: Merchandising: Real Estate: |
Old
Economy Hierarchical Closed Consolidated Mass Tangible Inventory Real Estate Financial Inflation Productivity Loop Control Buy It Right Development |
New
Economy Networked Open Demassified Interactive Intangible Information Relationships Knowledge Deflation Value Chain Management Collaboration Customer Directed Redevelopment |
Instant gratification is not fast enough on the Internet or for this generation. The opportunity to capture the knowledge of this group is great. They want to share the ideas they have about your product but they also expect an immediate response…"
"…New technology has improved productivity, reduced inventory, and increased the
speed at which firms adapt to changes in demand…"
"…The New Retail Economy, consumers ignore advertising. What traditional advertising fails to do is engage the customer.
Instead of broadcasting a one-directional message to consumers, retailers will have to
engage the customer in a conversation…(and) develop networks among their customers…"
The Old Retail Organization and the New
| Criteria Value Creation: Organized Around: POV: Organization Structure: Management Style: Sales Associates: Transactions: Attitudes: Customers Information: Time Frame: |
Old
Organization Productivity Loop Value Chain Product-centric Silo: Line vs. Staff Controllers Sales People Cash Collectors Individual Transactions Customer Data Product Cycle |
New
Organization Connectivity Knowledge Management Customer-centric Market Facing Coaches Consultants Problem Solvers Community Engagement Customer Feedback Real Time |
Under-Investment in Information Technology
"…Retailers…your competition no longer lies just with other
retailers…technology will be one of the critical dimensions
of that competitive battle…"
"…Retailers still don't get it when it comes
to information technology. On average, retailers spend 1%
of sales on information technology investment. The economy
as a whole is spending 5.5% and that number is growing
rapidly. This under-investment in information technology is
putting the traditional retail industry at risk…"
"…Other industry
segments will converge on retail consumers, offering them
better, cheaper, more entertaining, more convenient ways of
fulfilling their shopping wants.
As a result, retailing is going from a business where
success was based on location and merchandise to one where
success depends on the unwieldy trinity of information,
communication, and entertainment systems, combined with
knowledge workers to create, maintain and utilize these
systems…"
Organizing around
real time information is the killer application of
business…"
Meta Group, Electronic Business Strategies
"…K-Commerce: Customer Interactions in a Box
Kiosks are being deployed to complement Web-click and
brick-and-mortar settings. Given the range of kiosk
implementation costs and levels of functionality, companies
must align use requirements with the selling environment to
create an effective strategy for offering the right
product, to the right person, in the right place…"
"…Numerous
reports project the kiosk market to grow at 20% or more per
year, reaching more than $3B in 2006….META Group agrees…"
"…the growth of
Internet and self-service technology-enabled channels will
realign the customer touch perspective from point of sale
(POS) to point of interaction (POI), involving
brick-and-mortar, catalog, kiosk, and online touch points.
Through 2004+, critical success factors in the retail
channel will revolve around effective optimization of
cross-POI customer service, enabling consumers to perform
all
functions (e.g., sales, returns) equally in all
channels…"
"…Bottom Line: Dynamic Media
Publishing provides a valuable point of interaction,
bridging the "click" and "brick" elements of customer
relationship management strategy"
What next? 1stKIOSK's TotalSOLUTION is where you should start. Let's discuss your project today.
k-Builder, k-Manager, k-Monitor. k-Server, k-Station, KlearKIOSK, KlearSIGN, iPedestal, iPedestal Jr.,1stTOUCH, TotalSOLUTION and the circled-k logo are the trademarks of 1stKIOSK. All rights reserved.