Market Research For Retail Kiosks
Retail is the global growth engine for self-service kiosks. According to the latest 2018 Frost & Sullivan report Retail, Transportation & Logistics, and Hospitality are the key vertical markets with revenue contributions of 22.6%, 17.7%, and 14.5% respectively. Here is some 2018 data by Frost and Sullivan and their kiosk research report.
Interactive retail kiosks are the largest segment of deployed kiosks. Analysts estimate that retail kiosks comprise at least 30% of the entire self-service kiosk market. Locations include Department Stores, Grocery Stores, Big Box Specialty Retailers and Convenience Stores.
Retail kiosks provide convenient services to customers such as bridal and gift registry, non-stock product ordering, wayfinding directories, employment, product lookup, company information and targeted offers. These services increase consumer awareness and offer new channels for retailers to grow their business.
Retail Kiosk Case Studies
Looking ahead: Stores still matter
As the rate of digital sales increases, retailers are faced with the dilemma of what to do with their physical stores. The easiest solution to help their bottom line is accelerating store closures. M&S appear to be doing this, with 60 planned branch closures by 2021 . This can be short-sighted, as it diminishes their catchment area and reduces scale benefits. Looking ahead, the role of the store will still matter, as few categories will reach 100% online penetration, and shopping will continue to be a social and tactile experience .
Instead, M&S should focus on innovating their in-store experience. Their ‘browse & buy’ in-store kiosks are a step in the right direction (Exhibit 6). These enable customers to scan bar-codes on items and order these in their size during stock-outs, or view and purchase items on M&S.com which are not available on display .
Retail Kiosk Benefits
- In-store product ordering kiosks reduce on-hand inventory and associated warehouse costs
- Wayfinding directory kiosks reduce employee headcount and improve customer service
- Kiosks offering promotional opportunities through coupon printing and other targeted offers increase revenues
- Loyalty cards reward frequent customers, increasing brand loyalty
- HR Self-Service applications can be utilized in an in-store retail kiosk for after-hours use, leveraging your existing investment
Retail Kiosk ROI
Studies show an average of 7% increase in incremental sales when kiosks are added. More compelling investment returns are as follows:
- Self-service kiosks reduce costs by lowering employee headcount
- Gift card kiosks increase revenue at off-site locations
- More loyal customers encourage new customers
- Reduction in inventory overhead and warehousing costs
- Increased customer satisfaction = increased sales
- Lower headcount for HR departments with multi-use kiosks
Some of the advantages discussed include:
- Virtual sales assistance for customers
- Expanding the footprint of the retailer
- Reducing labor costs
- Redeploy staff to increasing revenues
- Eliminate standing in line (line busting)
Good examples of kiosks like this are the ones in REI where you can look up extended stock and sizes, same thing for Cabela’s and also Kohls.
For additional background & examples
For more information Contact KMA
More Retail Kiosk articles
- NRF Forrester “State of Retail 2019” report
- Retail Marketing Psychology – Frank Mayer
- Whitepaper Retail Zivelo
- Online Retailers Moving To Physical Stores – Bloomberg podcast
- Updated: Retail Kiosk Case Studies
- Generation Z and the Impact on Retail
- Elo – The 2018 Retail Landscape Will Be Driven by Digital Experiences
- Doing More — A Success Story – A Child That Should Have Been a Statistic
- 2017 – What’s in-Store for Retail – Frank Mayer thought session
- 365 Retail Markets Reaches Wireless Milestone With OptConnect – Vending Times
- CVS introduces vending machines – Retail Industry News & Automation
- New Cashierless Smart Store – Prototype in California
- Retail Technology Landscape Infographic – retail kiosk
- Nike uses AR augmented reality in Paris retail
- 5 Ways to Create In-Store Experiences That Drive Traffic and Sales – Vend Retail Blog
|Craig is a longtime writer of technical stories and documentation for many companies. He has 25 years of experience in the industry|