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The Perspective |
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Wednesday, 28 May 2008
I recently returned from Essen, Germany for the co-located shows Kiosk Europe Expo and Digital Signage Expo (the latter not to be confused with the show of the same name that took place in Las Vegas earlier this year). You can view a slideshow of images taken from the show.
After walking the show floor, I was left with two main impressions: (1) Apple’s iPhone and Microsoft’s Surface have got people thinking about multi-touch, and (2) Europe continues to produce unique kiosk designs.
First, I’ll talk about multi-touch offerings seen at the show:
Franhofer Institute, a research and development firm, had a multi-touch table application in the Self-Service Futures Parlour. Like MS Surface, several people can interact with the table at the same time, “grabbing” photos and increasing or decreasing its size with two fingers. The interesting application here was the use of architectural designs. Once you selected a place on one of the floor plans, another window displayed a 3-D rendering from which you could pan and zoom.
Hamburg University participated in the Self-Service Futures Parlour as well and students demonstrated a multi-touch screen they developed based on infrared frames, which can be mounted onto a standard LCD or plasma screen. They also developed an interesting gesture: using three figures in a vertical or horizontal motion to give you the ability to flip a picture over.
Nexio, based in Korea, develops infrared touch technology and showed a multi-point touch screen using infrared. The demonstration was using Google Earth and by using two fingers over the navigation control, you could change the view from “top down” to the “horizon” view and of course zoom in and out as well as rotate the Earth on its axis.
NextWindow, an SSKA member based in New Zealand, incorporated its digital whiteboard feature along with photos that you can move and resize using multi-touch. An online demonstration is available.
Now to some of the interesting kiosk designs at the show:
DigiQuipment had two interesting kiosk designs that are being used side by side in a bank location. First was an orange pod-shaped kiosk that hangs from the ceiling. The enclosure design provides privacy for the financial transaction. Next to the pod kiosk was a matching orange leather ottoman with a kiosk mounted to it, which is intended to entertain children while the adult conducts business with the pod kiosk.
Friendlyway, a German kiosk company celebrating its 10th year in the business, has developed a mobile kiosk with a locking brake similar to those on airport luggage carts. The idea here is that the customer can roll the kiosk around with them as he or she strolls through an automobile dealership or museum. Compared with a handheld device, it is unlikely the customer would be taking this device home with them.
Innova, from Istanbul, Turkey, has a kiosk made from polyester that only weighs 23 Kg (about 51 lbs.). Its sleek, curvy design comes in an array of colors.
Changing the world, one kiosk at a time
Sometimes kiosks are developed simply to make the world a better place.
DigiQuipment, the Dutch company mentioned above, also makes a kiosk to go into a classroom as a “stand in” for a child with a long-term illness. The kiosk, mounted with a camera on top, allows the student to see what’s going on in the classroom and for the teacher and classmates to interact with the child.
No one has a more daunting challenge of closing the digital divide than those trying to reach rural Africa. Enter Grant Cambridge, an engineering technologist with Meraka Institute of South Africa. Cambridge and his organization have developed a program called Digital Doorway, which endeavors to place a computer kiosk in remote South African villages. In many cases, this is the first time people in these villages have seen or used a computer.
The kiosks must be made to withstand the rigors of its environment, namely dust and vandalism. The students teach themselves how to use the computer and soon are able to learn about the rest of the world beyond their village. In a presentation on the project, Cambridge shared several stories of how the kiosk impacted people’s lives, both young and old, for the better.
By mid June, Digital Doorway plans to have 300 kiosks in the field.
Wednesday, 21 May 2008
 So, you’ve decided your business or institution will be well served by adding a new digital signage network. Now what?
Where to turn and what to do can be confusing, especially if you’re responsible for your organization’s communications or IT department but don’t really know anything about a digital sign. While there are many good companies in business to help you achieve your goals, you can make the endeavor easier and far more successful if you avoid the problems many before you have encountered when rolling out and maintaining their digital signage networks.
Having worked with hundreds of customers on their digital signage needs, we at Keywest Technology have seen a lot of difficulties that could easily have been avoided — along with the associated delays and added expense — with a little knowledge up front. As the saying goes, forewarned is forearmed. So, keep these top 10 digital signage pitfalls in mind as you plan your new digital signage network to make the experience smooth and rewarding.
No. 1: Lack of a clear purpose
Someone in your organization has read that digital signage can make marketing messaging more effective. It can reach potential customers at the point of purchase, promote desired behavior, target different demographic groups associated with different times of the day, and do many other wonderful things.
But what exactly does your organization need to accomplish with digital signage? That’s the seminal question. Without clearly defining the purpose of a digital signage network, it is impossible to find success in any phase of its deployment or use.
Taking the time up front to define the expectations for the system and write them out on paper for the approval of key management will provide direction and focus effort on attainable goals. Struggling to fulfill a nebulous purpose for the digital signage network will rack up unnecessary expense and leave everyone connected with the project frustrated.
No. 2: Taking on digital signage as an IT project
Digital signage network. The very words sound IT oriented. While there’s a lot of IT technology involved with digital signage, taking on a digital signage network as an IT project is dangerous.
While highly skilled, the typical IT manager does not have the background nor the experience needed to roll out a successful digital signage network. There’s a powerful temptation on the part of IT managers to look at digital signage playback as if it were a Microsoft PowerPoint presentation. It isn’t.
PowerPoint does an excellent job at making business presentations, but how many TV stations rely on PowerPoint to create and playback the programs, commercials, news and promotions you see nightly? Exactly zero. With respect to playing back video, graphics, text and animation, layering multiple visual elements and building and maintaining a playout schedule, a digital signage network is much more like a TV station than a boardroom with a projector and a PowerPoint presentation. Keep that in mind if an IT manager volunteers to take on your organization’s digital signage project.
No. 3: Lack of content
Congratulations. You have a digital signage network. What are you going to display? Having a digital signage network without content is like having a newspaper without print. There’s just a whole lot of nothing and an overwhelming sense of emptiness.
Communicating in some form must be part of the reason behind the decision to add a digital signage network. However, there is no communication without content. Fortunately, many organizations have existing resources to draw upon that can be repurposed as digital signage content. Logos, commercials, promotional video, print advertising, plans and drawings can all be reused in whole or in part to communicate a message on a digital signage network.
Additionally, RSS Internet feeds are a tremendous resource for updating a digital signage network with fresh “newsy” content, weather and sports scores that can give an audience a reason to take a second or third look.
Regardless of where it comes from, content is critical to the success of a digital signage network. Knowing where it will come from is as important as actually having the digital signage network in place.
No. 4: No one assigned to manage the project
While it’s not like designing the International Space Station, putting a digital signage network in place can be a complex undertaking. For that reason, it’s essential that any business or organization taking on a digital signage network assign someone to manage the project. Having an individual identified to own the project will minimize the impact of the unforeseen problems that inevitably creep into any complex undertaking.
Just as bad as having no one assigned to manage the project is its closely related cousin: management by committee. Offering up conflicting directions from multiple individuals will leave your system integrator bewildered and your project incomplete.
No. 5: No one to update content
While RSS feeds and subscriptions to news wire services are two sources of fresh information for a digital signage network, where will updated content conveying your company’s specific messages and current offerings come from?
A digital signage network that attracts attention has an insatiable appetite for fresh content. Thus, it’s essential that an organization taking on a digital signage network assign a qualified, competent person to the task of creating that content. Without someone in charge of the network’s content, the text, graphics and video being displayed will soon grow tired. Stale content will have the opposite of the desired result for a digital sign. It actually will drive viewers away and impart a sense of “been there, done that” that will be difficult to reverse.
No. 6: Taking the cheap way out
There’s nothing wrong with being budget conscious about a digital signage installation; however, selecting products, including displays, controllers and software, and services like content creation solely on their price tag can result in a system that in the long run will cost an organization dearly.
Systems designed solely on the price of the component miss the point. Digital signage networks are about communicating information — perhaps a marketing message, maps and directions or instructions — to their intended audience. Spending money on an inexpensive system just because it’s cheap could cost a business or organization far more in lost opportunities than the money saved.
No. 7: Not knowing the locations of the signs
Knowing where your organization wants to locate the flat panel monitors in its digital signage network is important for a few reasons. First, locating the digital signage content players needed depends on where the sign or signs it’s controlling are located. The length of cable that's running between the player and the sign must be taken into account. Clearly defining the location of the signs will allow you to minimize construction/renovation expense and avoid paying for “do overs.”
Second, understanding exactly where the signs will be positioned will make it easier to understand what will be needed to mount the flat panels in use. Are wall studs available where a sign will be located? Or, will a freestanding structure be required? What’s the condition of the wall studs? Is electrical power available? What’s the status of ambient light sources? Will a window or skylight need to be shaded to reduce glare?
Third, not knowing where the signs need to be located may be a symptom of a bigger problem: namely, not having a clear idea about the purpose of the digital signage installation.
No. 8: Installers without general contractor capability
Installing digital signage can be messy. Drywall and plaster may need to be cut. New electrical plugs with isolated grounds may need to be installed. Beyond those obvious construction challenges, less apparent structural modifications may be required. Those can vary from relocating HVAC ducts to re-enforcing walls.
For that reason, choosing a digital signage installer without the skill and experience to serve as a general contractor for the project can be a big mistake. Depending on the specific installation, it’s not unreasonable to assume carpenters, electricians, plumbers and even heating and cooling contractors might need to be involved to make necessary structural modifications. Having an installer who can serve as a general contractor to bring those diverse resources together and manage them properly can save lots of time and expense.
No. 9: Failing to allot adequate time to learn the system
Far too often, the people responsible for new digital signage installations at businesses or organizations are so excited about their systems that they can’t wait to show them off to upper management. After all, a significant sum of money went into making the digital signage network a reality. So showing it off as soon as possible only seems natural.
However, creating content for a digital signage system, scheduling it and making changes to playback along the way require some skill. It takes time to be properly trained to use a digital signage network. Failing to allocate sufficient time to learn how to use the system not only could be embarrassing in front of management, but disastrous to your communications efforts with the general public, if they’re your first audience.
No. 10: Failing to keep future expansion in mind at the time of initial design
Designing yourself into a box when first contemplating a digital signage network can be costly. Without casting an eye towards future needs, it’s possible that portions of the network might need to be replaced before they’ve been amortized to accommodate expansion.
Without exception, experience shows that businesses and organizations that fund the addition of digital signage networks express interest in expanding their systems after they’re installed.
* * *
There you have it, the Top 10 Digital Signage Pitfalls. Take these lessons to heart as you proceed with your digital signage rollout, and you’re much more likely to have a successful experience. More importantly, your company or institution will avoid costly mistakes that will delay the installation and prevent your communications from having their desired effect.
David Little is the director of marketing for Keywest Technology.
Monday, 19 May 2008
Sometimes, when I speak at conferences, I joke about some of the long-standing traditions we have at the Postal Service: "More than 230 years of tradition unmarred by progress.”
Beyond that self-deprecating attempt at humor, I’m proud to say that there has been significant progress over the years – from simple innovations like self-adhesive stamps and flat-rate priority mail boxes to more complex ones like automated mail sorting and printing postage online.
The Postal Service also has made progress with the testing and deployment of large, complex communication networks. In 1996, we introduced Postal Vision, an employee communications network that now is integrated with our USPS-TV network. As an “early adopter” of digital signage, we began testing the impact of digital vs. static menu boards in retail lobbies in 1999. And in 2003, we laid the groundwork for a test of digital signage that began in selected post offices in 2004 – The Post Office Channel. This third effort took advantage of the advances that had taken place in a growing medium including content delivery methods and the declining costs of technology.
One of our challenges is to improve the customer experience in more than 32,000 retail locations. Digital signage can have a positive impact on the retail environment in several ways. One opportunity is to increase the range of information available to customers while they are waiting to be served. The Post Office Channel features product and service messages to educate and inform retail customers. For example, one message compares the product features of overnight express mail and two-to-three-day priority mail. Another compares delivery confirmation to signature confirmation and shows which form to use depending on which service the customer chooses.
A second opportunity is to redirect customers and actually change customer behavior. Part of the long-standing tradition of how customers behave in our retail space is that many are totally focused on getting in the full-service queue and getting served as quickly as possible. That sounds reasonable.
But what if there are 10 people in line and all you need are some stamps? Can digital signage help change customer behavior and redirect them to the Automated Postal Center (APC), a fully automated kiosk that not only sells stamps but also allows customers to mail packages?
We focused on changing this customer behavior specifically by including a digital screen at the main entrance to each of the test sites. Nicknamed the “Stop and Turn” device, it is a 30-inch screen hung portrait fashion in a custom mount. The content on this screen is all very short (3-5 seconds), bright colors, and designed to catch the eye of customers as they walk into the post office. It’s also very direct in its messages. “Jump the line. Ship packages at the APC.” Or, “Get out of line. Buy stamps at vending.”
In addition to 2,500 APCs, the Postal Service offers 70,000 alternate access locations where customers can buy stamps or mail packages without ever setting foot in a Post Office. This includes supermarkets, drug stores, convenience stores, ATMs and a robust online commerce site at usps.com.
We established four key metrics for our digital signage test: revenue lift in products promoted on the screens, actual and perceived wait time in line, customer satisfaction and shift to alternate access. For the fourth metric, we defined success in three ways:
- Re-direct traffic away from full-service
- Increase number of customers using self-service options (APCs and vending machines)
- Increase awareness and usage of alternate access channels for purchasing stamps and other simple transactions
The shift to alternate access channels was the most successful result in the test. The Post Office Channel had a positive impact on redirecting customers to in-store self-service options. Customers who saw the Stop and Turn screen were more likely to use vending (8.7% vs. 6.5%) and the APC (7.4% vs. 3.4%).
We also tracked revenue changes in the test sites as compared to alternate access locations within a five-mile radius. We measured customer awareness of the availability of alternate access locations before we installed the digital signage and again post-installation and found that awareness rose by 22 percent. Revenue from stamp sales declined at the test sites and increased at alternate access locations within the five-mile trade area, indicating that customers were getting the message that they did not have to come to the Post Office to complete a simple transaction such as buying stamps.
Similar findings were reported by the Platt Retail Institute in a February 2008 working paper entitled, “Test Results from a Bank Branch Digital Communications Network.” In this study, ATM use at test branches increased following introduction of digital signage. Customer visits to tellers decreased by 8.3 percent in the test sites as compared to a control group of bank branches without digital signage. Customers who viewed the digital signage messages were more aware of which forms needed to be completed and what type of identification was required, thus decreasing wait time in line and improving teller productivity.
Our research results are consistent with this bank-based study. Digital signage can have an impact on changing ingrained customer behavior. And the Postal Service will continue to innovate and make progress in the years to come.
Margot A. Myers is the manager of retail in-store programs for the U.S. Postal Service.
Monday, 12 May 2008
Is this country teetering on the edge of a recession?
Depends on who you talk to, I guess. If you believe this doomsday YouTube rant by the always-animated Jim Cramer, host of MSNBC’s “Mad Money”, (and if I were you, I’d check it out because it’s pretty darn funny toward the end) then you’re probably ready to make a run on the bank and hide in your bomb shelter.
On the other hand, as I write this, the stock market just closed with the Dow Jones Industrial Average up over 200 points at 12849.
Unlike so many other things in life, the state of the economy often depends solely upon your perception of it.
But there are few things that are eminently clear: Gas prices are up, food prices are up and it’s fairly likely that consumers – and retailers – in the future are going to be watch-dogging their wallets like Ebenezer Scrooge in a Dollar Store. What’s more, watching the stock market vacillate between the nosebleed section and the abyss on a day-to-day basis reminds me of that time in the eighth grade when I got stuck on the back seat of the pirate ship ride at King’s Island. You know, the one where the ship keeps swinging back and forth and your stomach and esophagus switch places?
Something is amiss and we can’t blame it on what Ben Bernanke had for lunch anymore. (FYI, it’s now a week after I first started writing this, and the Dow Jones Industrial Average is up 190 points, but gas is at $3.75 a gallon.)
So some people in the self-service industry – whether they’ll admit it or not – are quietly asking: What would happen to the industry if the economy goes sour, or even slips into recession? Will we see fewer self-service deployments or more?
I’m not an economist, but I’m willing to bet the latter. (FYI, the stock market just plummeted 115 points. Hey look – oil is $123 a barrel!) After all, business has been, is and always will be about the bottom line.
And self-service helps the bottom line.
Retailers that deploy self-service are able to save on labor costs. Airlines can staff fewer attendants wherever self-service check-in kiosks are deployed. Self-checkout terminals at Meijer mean human cashiers are becoming an endangered species by the midnight hour. And just imagine how much cheaper it is to staff the electronics department when you’ve got a fleet of photo kiosks in place.
True, the initial investment cost of a widespread self-service deployment can be substantial, but it’s just a one-time investment. Cost-conscious retailers that have never entered the space may be hesitant to take the plunge for the first time if they see the value of the dollar continue to plummet, the Dow Jones fall several hundred points or the cost of gas rise to $126 per barrel (the latter of which just happened for the first time this morning.) But I think the reluctant ones will be in the minority.
That’s my opinion, anyway. But then I’m not an analyst. Kerry Bodine of Forrester Research is – one who focuses on retail customer experience.
Like anyone these days, she’s hesitant to predict either sunny skies or doom and gloom for any industry in the economy before us. I asked her about my armchair theory that a recession would cause companies to consider replacing human labor with self-service technology. She offered a more tempered assessment.
“It might – it might – present some new business to the industry,” said Bodine. “There’s certainly that possibility and there are certainly firms that may think that. Whether or not I think it’s going to be a boon to the self-service industry, I can’t go as far as to say that.”
What she worries about is a downturn in the quality of self-service deployments as companies eager to cut costs in a tight economy might decide to shortcut certain design processes and make a beeline straight for assembly and deployment. Design is something Bodine says some kiosk manufacturers have a hard enough time focusing on in a good economy – in a sub-standard one, she says it’s almost certain to suffer.
“I spend a lot of time looking at the kiosk industry, and compared with other self-service technology channels like the Web, the kiosk industry is really far behind in terms of understanding some of these design processes and methodologies,” she said.
Specifically, she’s referring to methodologies that focus on identifying and pleasing the prospective kiosk user, such as conducting ethnographic research, usability testing, focus groups and analytics. Unfortunately, she says some kiosk deployers and manufacturers have such a tenuous grasp of R&D that they don’t know which methodologies to use.
“If you want to know if your system is easy to use, you can’t run a focus group to find that out. That’s something that I do see in the kiosk industry a lot,” she said. “They use focus groups for everything because it’s really the one primary tool that they understand. Instead you should either be conducting an expert review…running a usability lab test – there are a lot of ways to evaluate usability, but not through a focus group.”
Bodine fears the economy may drive some companies to eliminate usability testing altogether and rush substandard deployments to market. She says this approach could seriously hurt the industry.
“If they’re not building something that people are going to want to use in the first place, that whole investment is for naught,” she said. “It’s really about two things: Design the right thing, and design the thing right. All of that just takes a really good understanding of user-centered design process, and I do think that’s a challenge for the kiosk industry.
“The firms that are going to make it…are the firms that can really tie whatever application they’re working on with real business methods. The firms that can put some rigor on that, I think, probably don’t have much to worry about.”
So I guess the moral of the story – on this day when the Dow is now down 126 points – is that consumers will always want good products. They’re not going to spend their hard-earned dollars on a self-service solution that doesn’t fit their needs perfectly. If – and I emphasize if – the economy does sink into a recession, we’re all going to be looking for costs to cut.
But research and development shouldn’t be one of them.
Wednesday, 07 May 2008
 Sometimes, when I speak at conferences, I joke about some of the long-standing traditions we have at the Postal Service: "More than 230 years of tradition unmarred by progress.”
Beyond that self-deprecating attempt at humor, I’m proud to say that there has been significant progress over the years – from simple innovations like self-adhesive stamps and flat-rate priority mail boxes to more complex ones like automated mail sorting and printing postage online.
The Postal Service also has made progress with the testing and deployment of large, complex communication networks. In 1996, we introduced Postal Vision, an employee communications network that now is integrated with our USPS-TV network. As an “early adopter” of digital signage, we began testing the impact of digital vs. static menu boards in retail lobbies in 1999. And in 2003, we laid the groundwork for a test of digital signage that began in selected post offices in 2004 – The Post Office Channel. This third effort took advantage of the advances that had taken place in a growing medium including content delivery methods and the declining costs of technology.
One of our challenges is to improve the customer experience in more than 32,000 retail locations. Digital signage can have a positive impact on the retail environment in several ways. One opportunity is to increase the range of information available to customers while they are waiting to be served. The Post Office Channel features product and service messages to educate and inform retail customers. For example, one message compares the product features of overnight express mail and two-to-three-day priority mail. Another compares delivery confirmation to signature confirmation and shows which form to use depending on which service the customer chooses.
A second opportunity is to redirect customers and actually change customer behavior. Part of the long-standing tradition of how customers behave in our retail space is that many are totally focused on getting in the full-service queue and getting served as quickly as possible. That sounds reasonable.
But what if there are 10 people in line and all you need are some stamps? Can digital signage help change customer behavior and redirect them to the Automated Postal Center (APC), a fully automated kiosk that not only sells stamps but also allows customers to mail packages?
We focused on changing this customer behavior specifically by including a digital screen at the main entrance to each of the test sites. Nicknamed the “Stop and Turn” device, it is a 30-inch screen hung portrait fashion in a custom mount. The content on this screen is all very short (3-5 seconds), bright colors, and designed to catch the eye of customers as they walk into the post office. It’s also very direct in its messages. “Jump the line. Ship packages at the APC.” Or, “Get out of line. Buy stamps at vending.”
In addition to 2,500 APCs, the Postal Service offers 70,000 alternate access locations where customers can buy stamps or mail packages without ever setting foot in a Post Office. This includes supermarkets, drug stores, convenience stores, ATMs and a robust online commerce site at usps.com.
We established four key metrics for our digital signage test: revenue lift in products promoted on the screens, actual and perceived wait time in line, customer satisfaction and shift to alternate access. For the fourth metric, we defined success in three ways:
- Re-direct traffic away from full-service
- Increase number of customers using self-service options (APCs and vending machines)
- Increase awareness and usage of alternate access channels for purchasing stamps and other simple transactions
The shift to alternate access channels was the most successful result in the test. The Post Office Channel had a positive impact on redirecting customers to in-store self-service options. Customers who saw the Stop and Turn screen were more likely to use vending (8.7% vs. 6.5%) and the APC (7.4% vs. 3.4%).
We also tracked revenue changes in the test sites as compared to alternate access locations within a five-mile radius. We measured customer awareness of the availability of alternate access locations before we installed the digital signage and again post-installation and found that awareness rose by 22 percent. Revenue from stamp sales declined at the test sites and increased at alternate access locations within the five-mile trade area, indicating that customers were getting the message that they did not have to come to the Post Office to complete a simple transaction such as buying stamps.
Similar findings were reported by the Platt Retail Institute in a February 2008 working paper entitled, “Test Results from a Bank Branch Digital Communications Network.” In this study, ATM use at test branches increased following introduction of digital signage. Customer visits to tellers decreased by 8.3 percent in the test sites as compared to a control group of bank branches without digital signage. Customers who viewed the digital signage messages were more aware of which forms needed to be completed and what type of identification was required, thus decreasing wait time in line and improving teller productivity.
Our research results are consistent with this bank-based study. Digital signage can have an impact on changing ingrained customer behavior. And the Postal Service will continue to innovate and make progress in the years to come.
Margot A. Myers is the manager of retail in-store programs for the U.S. Postal Service.
Monday, 05 May 2008
Whatever your business, you're almost certainly familiar with the benefits of self-service kiosks. Conducting transactions via an automated platform cuts staffing costs, boosts efficiency and creates added convenience for your customers. Thanks to these advantages, self-service payment systems are becoming marketplace staples.
Perhaps you've considered kiosks for your company. You've investigated costs and calculated the potential ROI. But have you developed a kiosk customer strategy?
Consumer acceptance of any automated payment platform is critical to your program's success and profitability. Before designing your kiosk, you must understand what the consumer will minimally accept and how he or she will respond to new options. For which types of transactions will customers use kiosks? Will customers demand person-to-person transactions in some cases? What do customers anticipate regarding forms of payment accepted? The forms of change offered? Before you build, develop a plan to manage and meet customer expectations.
If you build it, will they come? And will they stay?
There are plenty of cases in which customers prefer automated transactions at the point of sale. Personally, I prefer to use an automated platform at quick-service restaurants rather than interact with a cashier — I think my order is processed faster and more accurately when I input the data myself. On the other hand, I rarely use ATMs because I prefer to deal with a teller who knows me and understands the transactions I want to complete. I'm especially uncomfortable using ATMs for complex transactions, such as paying my mortgage.
I also have preferences about forms of payment at a kiosk. While I often choose the convenience of a credit card, in some cases I pay by check. In other circumstances, I prefer the anonymity of cash. And when I use cash, I want my change in cash, too — not as a credit on my next bill or purchase.
Consider your customer base and current POS model. Will a new kiosk meet current expectations? And if it doesn't, will customers leave?
Your kiosk strategy
When crafting a kiosk strategy, first choose between partial or total automation. Partial automation is ideal if a significant segment of customers will not accept automation of all transactions, or if you don't want to offer a full range of payment options at the kiosk. You could, for instance, automate only credit card transactions, accepting other forms of payment via cashiers. This solution allows for simpler kiosks, but does not completely eliminate staffing costs.
A total-automation solution, on the other hand, may create greater efficiency for customers and a greater ROI for you as wait times are reduced and staffing costs disappear. Total automation, however, requires a more complex platform if you intend to accept multiple forms of payment.
This brings us to your next decision: selecting accepted forms of payment and methods for providing change. Consider the types of payment and change to which your customers are accustomed. Offering fewer options may cut your costs, but how will customers react? Will the consumer accept a diminished set of offerings in an automated platform or will the reduced flexibility generate resentment?
Keeping options open
An ideal successful kiosk will process every type of transaction available through a company's current point of sale model. Consumers expect consistent payment and change options, regardless of transaction medium.
Should you limit types of payment accepted at a kiosk, consider implementing a consumer education program prior to launch. At a minimum, provide clear signage regarding payment and change issuance. If a customer waits in line to pay by credit card only to discover at the last minute that the kiosk is cash-only, frustration will result.
You also should consider cost-effective, customer-satisfying kiosk upgrades. In the United States, the credit-card-only platform is straightforward and fairly common and could be offered, for example, as part of a high-speed experience at a retail location. But for a reasonable cost, you could add a Triple-DES PIN pad, enabling PIN-debit transactions as well.
Show them the money
If, in a traditional transaction, I pay for a $12.75 purchase with a $20 bill, I expect the cashier to provide $7.25 change — in cash. Customers will expect automated platforms to provide change in cash, too.
If your kiosk doesn't include a change dispenser, this should be disclosed prior to payment. You should carefully consider customer reaction. Some bill-payment kiosks, for example, credit overpayment to the next month's bill, but customers generally respond negatively. For a compromise solution, place a "bill breaker" adjacent to your kiosk. Consumers can pay using the smallest possible denominations, limiting their exposure to $0.99 at the most.
Customer reaction determines success
In short, consumer acceptance will define the success of kiosk deployment. If the automated platform does not handle my preferred form of payment or does not provide change in the form I expect, I may not use it. If I'm forced to use it, through the elimination of other options, I may resent it. Neither are desirable results.
Automating a point of sale requires careful study of consumer expectations. When planning your deployment strategy, your ROI model must take into account the level of automation that can be achieved with the component mix selected for the platform. The key question, in essence: Is a simpler platform, with a limited set of payment and change options for highly targeted consumers, more beneficial than a complex platform with many payment and change options that targets a larger set of consumers?
The answers depend on your line of business, your location, your current POS model and other factors specific to your situation. The good news is that answers can be found through careful research — and that you don't have to find them on your own. Work with your management team and kiosk designer, an expert in the field who can point you to products and components suited to your needs. With collective input and careful consideration of customer expectations, you can build kiosks that will serve your customers and your company well.
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