Kiosks are the future.
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 the KlearKIOSK and KlearSIGN. This combination of powerful, network-enabled kiosk and dynamic, digital display is "clicks and mortar" ready and optimized for multichannel retailing. With its advanced touch screen and multimedia capabilities, retail-hardened core technology and open platform, the 1stKIOSK KlearKIOSK helps you:

· Increase Revenue Kiosks help you reach more customers and drive incremental revenue. Busy, on-the-go shoppers will be drawn to kiosks for fast, convenient self-service. Targeted messages can attract new types of customers. Interactive sales, such as personalized special orders and try-before-you-buy, boost customer spending. Kiosks also make it easy to up-sell and cross-sell merchandise.

· Build Loyalty Kiosks help customers find exactly what they want, which reduces lost sales. They can provide extensive product information, including price comparisons, which increases customer confidence. Kiosks also decrease 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 kiosks, 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 Kiosks let you do more without increasing labor costs. You can also use them to train sales associates and improve their effectiveness. Plus, when you choose 1stKIOSK as your kiosk partner, you can depend on rugged, reliable solutions that protect your investment and deliver the lowest possible cost of ownership.

· Support Your Stores Kiosks can easily handle gift registry, credit applications, job applications, product explanation and other tasks. Plus, they can be managed from a central location. This reduces your sales associates' workload, improving job satisfaction and reducing turnover. Kiosks also help you extend your Web presence.

Meeting customer needs across multiple channels is challenging, but the ultimate reward is customer loyalty o 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

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.

from Jupiter Research, Consumer Commerce, 2001

"…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…"

from Indiana University - KPMG, Retail Technology in the Next Century, 2000 [download the article]

"…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…."

From PriceWaterhouseCoopers, The State of Retail Technology 2000, 2000

"…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…"

from Arthur Andersen, New Rules, New Realities, 2000 [download the article]

"…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…"

from Ernst and Young, Retail News, 1999/2000 [download the article]

"…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.

from Forrester Research, Mixing Bricks With Clicks, 2000 [download the article]

"…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.

From PriceWaterhouseCoopers, Retailing at the Dawn of a New Millennium, 2000

"…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 Old Economy New Economy
Organization Hierarchical Networked
Systems Mindset Closed Open
Industry Structure Consolidated Demassified
Marketing Mass Interactive
Assets Tangible Intangible
- Inventory - Information
- Real Estate - Relationships
Capital Financial Knowledge
Pricing Inflation Deflation
Economic Model Productivity Loop Value Chain Management
Management Control Collaboration
Merchandising Buy It Right Customer Directed
Real Estate Development 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 Old Organization New Organization
Value Creation Productivity Loop Connectivity
Organized Around Value Chain Knowledge Management
Product-centric Customer-centric
Organization Structure Silo: Line vs. Staff Market Facing
Management Style Controllers Coaches
Sales Associates Sales People Consultants
Cash Collectors Problem Solvers
Customers Individual Transactions Community Engagement
Information Customer Data Customer Feedback
Time Frame Product Cycle 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…"

From Meta Group, Electronic Business Strategies, 2000 [click to download]

"…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: Kiosks provide 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.