Article

Opinion: 2010 was "the year the kiosk died"

One expert says retailer focus is shifting to smartphones, smaller interactive tools.

January 13, 2011

By Troy Carroll, Intava

Much has been written lately about the coming demise of the PC, as tablets and smartphones relentlessly grab market share. In fact, research firm IDC predicts that shipments of such devices will overtake PCs within the next 18 months. One can only wonder when the first declines in PC shipments will appear. RIP, PC.

A similar phenomenon is happening in the world of consumer-facing retail technology. For years, self-serve interactive retailing has mostly meant kiosks. You know the ones I mean, a 17-inch touch screen embedded into some form of enclosure, standing alone or sitting in a product display. Kiosks for gift registries, employment applications, wine selection and health supplement information all fit into this mold. They are so omnipresent that you may be surprised to hear me say this, but 2010 saw the beginning of the end for kiosks in retail spaces.

The proliferation of digital signage, mobile devices, affordable large-scale touch screens, and smart software platforms to tie them all together are forever changing the look, power and performance of in-store digital touch-points. We’re rapidly evolving from old-school kiosks to a world of in-store interactivity delivered in an array of formats. Retailers are adopting everything from smartphone shopping apps to large-format touch screens that attract and entertain as much as they let you interact and transact. The result is a far more engaging and exciting array of solutions that connect people and products where they shop.

You might say, “These trends have been around awhile; what’s so special about 2010?” The answer is that this was the year retailers’ attitudes turned against the kiosk. Without exception, every retailer I spoke to about traditional kiosks this year met the topic with frowning brows, shaking heads or statements that kiosks simply aren’t that interesting. In other words, retailers have moved on. While traditional kiosk installations will continue to grow (for the short term), retailer focus is on newer technologies and formats, which include digital signage, smartphone apps, large-format all-in-one touch panels and small self-contained systems that can be attached to store shelving.

This re-alignment of attitudes is refreshing. It will be very good news for shoppers, retailers and technology providers alike, as helpful digital touch-points are packaged in more appealing ways and presented to shoppers where they need them.

This diversification of consumer-facing technologies is not without consequence, however. As retailers embrace newer technologies in earnest, one word keeps coming up: integration, integration, integration. The promise of these technologies—a shopper that is more engaged and more willing to buy—is realized more often when the technologies all work together.

Ideally, Jane Sixpack sees a digital sign that directs her to an aisle containing a sale. There she finds a touch screen that educates her on the products and helps with her choice. She confirms the price is a good one from the shopping app on her phone. Finally, the phone reminds her to re-order from the retailer’s m-commerce site a few weeks later.

Now, have you ever seen a retailer pull this off? Probably not. So, as we look to 2011, I believe retailers will look increasingly to software and integration solutions that can make all of their technologies present a unified front to consumers. Deeper integration among in-store systems is a good first step, while integration between in-store and mobile/online technologies will be a longer-term goal. I believe it will all happen eventually, because integration is key to maximizing the sales-lifting potential of the technologies. Two plus two really can equal five.

So don’t mourn the loss of the kiosk. Instead, make a toast to the smart, interconnected network of technologies that is taking its place, and take a moment to consider what this means for your retail business in 2011.

Troy Carroll is CEO of Intava, a provider of interactive retail technology. (Photo by Ryan McLean.)