Article

Snag shoppers with self-service

Self-service is a key part of any smart multi-channel strategy.

December 10, 2007

Philip Hunter is the managing director of KioskCom Europe Self Service Expo.

Although the Web has now changed the way we purchase everything from CDs and DVDs to vacations, flights and hotel bookings, people still want to get out of their houses and shop in person. After all, we are social animals.

However now that we have had a taste of how easy and convenient buying can be on line, we are less willing to stand in queues and have a limited choice of products and ranges when in-store. As a result, we see the rise of the "hybrid consumer."

There is an intense battle raging for a share of the wallet of the hybrid consumer - those moving between online and traditional interactions in search of the best customer experience. It is becoming patently clear that the Internet is not enough: successful multi-channel strategies require more than just online and traditional face-to-face options.

A key to satisfying the demands of the valuable hybrid is the adoption of the latest self-service technology. Indeed, the increasing number of organizations now using self-service technology are achieving a proven sales uplift of six to eight percent, as well as gaining improvements in customer service and a flexible business model.

In an increasingly competitive market with fast rising customer acquisition costs, complacency demonstrated by many organizations could prove expensive. Self-service is becoming a critical component of overall strategy so as these technologies now come of age, can any customer-facing organization afford to miss out?

Proven model

There are some great success stories - notably from the airline industry. According to a recent survey by SITA, the airline industry's move towards self-service is saving billions of dollars every year. Air Canada has confirmed it now costs $0.16 to check in travelers via a self-service kiosk as opposed to $3.68 to process the transaction via an employee.

And other industries are now following suit. Self-service kiosks in North American retail locations will rise 69 percent this year, according to Summit Research, and retailers show a six to eight percent increase in incremental sales when kiosks are placed in store.

Brave new world

Without doubt, the concept of self-service is changing. Gone are the days of the dated vending machine that accepted limited coin options. With the rise in secure payments via chip and PIN and the imminent arrival of card-based contactless payments to replace under-Ã‚Â£10 cash transactions, self-service technologies are really coming of age.

Other innovations include the vending machine that allows customers to download music to their iPods from the same machine that sells Coke and kiosks that can recharge your mobile phone, to contactless Minority Report-style motion sensor screens where you can activate buttons, turn pages and interact without even touching a screen.

Flexible Business Model

The uplift in sales opportunity is clear. And this is a key component of the self-service model. With organizations increasingly using analytics to tailor products and services to meet the needs of the local demographic, the kiosk enables a far broader product range to be available irrespective of actual space.

For the retailer struggling to attain adequate space in the high street or looking to trial new formats, a kiosk provides customers with access to online catalogues that encompass a far broader range of goods than could ever be carried in store.

Furthermore, the kiosk provides the hybrid customer with the required speed and quality of service experience without queuing or interacting with staff.

However, while the technology is increasingly attractive, it is critical that organizations leverage self-service technology correctly to deliver an excellent and relevant customer experience. As a Forrester report asserts, "Kiosks are back on the retail radar screen due to increasing competition, technology advances, and changing consumer demands."

However, the report continues, "Successful kiosks carry complex integration requirements and require careful consideration of consumer behavior and their attitudes toward technology. To avoid the big flop that kiosks experienced in the late '90s, kiosks require a focused approach and dedicated support; if deployed well, kiosks will yield tangible business benefits." However, as most Web retailers now know, one bad experience means the ever fickle hybrid consumer will quickly go else where.

Innovative self-service technology combined with secure payment methods may attract the hybrid consumer, but getting it right first time applies as much in the kiosk as it does online. A poor or inconsistent experience, backed up by inadequate fulfillment processes will fail.

Self-service technologies are not just another option for the emerging multi-channel business strategy, they will be increasingly critical in redefining the entire consumer experience.