By Richard Ventura
Director of Sales – Vertical Solutions for NEC Display Solutions

 

While digital screens have been deployed in a variety of retail applications such as menu boards in restaurants, digital end caps in electronics stores, directory boards in malls and digital mannequins in clothing stores, the true power of digital has yet to be fully tapped.  You may ask, what is that true power?  It is the power of full engagement via interactive digital signage.

Traditionally, retailers have used digital signage as a way to run advertising of products and goods with very little integration into store systems.  Those that have integrated focus mainly on inventory databases and their point of sales (POS) systems to capture customer data that can be mined to better align with customer preferences.  Further, many retailers utilize traditional kiosk systems to allow for online ordering, guest registry access and even for hiring future employees. 

What many are missing, though, is how to utilize their systems and capture customer interactions in order to create a full engagement between the brand and the consumer. When looking at interaction and engagement, there are three types:  passive, active, and mobile.

In the restaurant space, many brands have deployed customer-facing kiosks where people can place their orders and learn about specials without any human interaction.  This is an active way for the brand to interact with the consumer, and increase sales and efficiencies.  Following more of a passive way to interact with the consumers, others have deployed “order-ready boards,” where patrons are informed when their meals are complete.  While guests wait for their food, they have become a captive audience, a fact not lost on these businesses, which are cross-marketing and up selling various services and goods to them.

Interactive wayfinding kiosks in malls, hotels, airports and other retail businesses let consumers print maps and coupons, make dinner reservations, and purchase goods and services.  This creates an engaging experience, even if for only a few seconds, that allows the consumer to fully experience the brand(s).

Forward-thinking businesses also are letting consumers use their smart phones and tablets to interact with digital screens, kiosks, store end caps and video walls.  Many top restaurant brands have created iPhone and iPad apps for ordering food selections and counting calories – and through Near Field Communication (NFC), enabling interaction with digital screens themselves for scanning QR codes, downloading coupons and making purchases.  Also, many retailers are utilizing these applications to create a virtual store-within-a-store concept.  A consumer can pull up reviews, check inventories, place orders, and in some cases, test-drive a product all via their smart phones and tablets.

Research firm DisplaySearch says the market for public displays across industries is showing strong growth, set to push near 12 million units sold in 2018, an increase from just under 3 million in 2011.  DisplaySearch’s Jennifer Colegrove asserts, “Touchscreen penetration is rapidly increasing. Over the next several years, touchscreens will undergo strong growth in large-size applications.”

Through these devices and technologies, retailers gain opportunities to engage customers and build relationships.  But as the phenomenon of interactivity grows, the question about customer service looms large.  Is customer interaction with machines better for brands than dealing with company employees?

From my perspective, the answer has more to do with customers and supplying them more options than to say that human interaction is always better.  Interactive digital screens can empower customers to bond with a brand in ways that they choose and in ways that enhance their retail experiences.

As we’ve seen more and more, some people would rather shop online than walk into a brick-and-mortar store.  When these types of people do step into stores, they prefer to shop on their own, peruse in-store kiosks for more information, make their purchases and leave as soon as possible.  Salespeople won’t impact what they want to buy or have the opportunity to upsell additional items.

But there are others who want that personal attention.  The upshot is that the retailer can match the demands of a variety of consumers where and how they want to interact with the brand.  These options give retailers a better chance to capture more of an audience.  Interactive technologies introduce a new dynamic to selling.

Some stores are availing themselves of this new dynamic.

Best Buy, for example, has introduced interactive kiosks in airports to sell iPods, headphones, game cubes and other technologies.  It’s the “big box” retailer’s way of meeting the needs of the marketplace by giving people options on how and where to buy.  At the same time, it continues to offer its bricks-and- mortar department stores and the Best Buy Mobile stores.

Apple has done a phenomenal job of making sure that before a buyer can close out a sale online, in a store, or through its IOS application, that options for cables and extended warranties appear and are part of the sales equation.  That breeds additional sales.
While these are some of the best practices, the retail industry still has to make progress, according to a recent study.  SapientNitro’s Insight 2013 Report indicates that most retailers are failing when it comes to deploying digital signage and interactive technologies.  Just 22% were rated as truly interactive with a value-add beyond just merchandizing or a display.

Here’s how to make the interactive experience relevant:

• Deliver the right content and messaging  
• Design a technologically sound kiosk that people will be drawn to
• Deliver a meaningful experience. 

If the interaction with a kiosk or digital screen is “bumpy,” or if consumers have to scroll through too many products to place an order, they will walk away.  There needs to be a way to guide them through the process with a series of questions and interactions, and their time must be respected

An interactive system built on good design, tied to other sales channels and offering a solid customer experience will increase sales.

Here are the questions retailers need to ask themselves before deploying interactive digital signage:

•     What are our goals and strategies?
•     How will we execute the plan?
•     How will we measure results?
•     Who will support our interactive system?
•     How will we expand the deployment?
•     What types of technologies will be used?
•     Who will manage the content?
•     How do we keep the content fresh and impactful?

The question is not whether to deploy interactive technologies, but when, and to have the plan in place to do so.

Watching young children interact with technology is a particularly noteworthy barometer.  Whenever they encounter a computer screen, their expectations are that it is interactive.  A touch mentality is so ingrained in this generation that it should give retailers pause.  These little patrons are the formation of a digital interactive society.

This article was originally published in Retail Merchandiser magazine.