The Growth of Self-Service Kiosks in Retail

Staff Writer
15 January 2015
Engagis
You’ve seen it with your own eyes. In Australia, New Zealand and across the globe, it can’t be denied that the presence and usage of self-service kiosks is on the rise. From airline self-check in to banking ATMs, retail store kiosks to medical waiting rooms, it seems that the popularity of self-service kiosks is becoming a key driver in the design of customer service journeys in a range of industries.
In this piece, we take a look at the key advantages of self-service kiosks and self-ordering technology and their place in the ever changing landscape of retail and business.
In the retailer’s constant battle to balance service quality with efficiency and cost, we then ask the question; is it a wise decision for retailers to invest in self-service?
Building the Multi-Channel Environment
At present, Multi-Channel Retailing is becoming a non-negotiable for retailers – as demanded by customers. The need to connect with customers anytime, anywhere, is now a necessity in the connected world of smartphones, tablets and ‘the internet of everything’. In order to keep from losing revenue, it is crucial for retailers to make a range of channels available through which they can market and sell their products and services. This is where self-service kiosks come in. Apart from functioning as an extra channel for those tech-savvy, time poor customers, it can also serve as a platform from which customers can obtain information to aid them in the decision making process.
Elevated Levels of Service
In today’s day and age, people are constantly on the go. In our time poor society, customers are demanding services in a swift and convenient environment. Self-service technology allows you to significantly reduce queue time. Another advantage of self-service kiosks that stands out is their ability to provide you with a prediction of transaction processing levels. It’s also able to do this independently and in real time. The result is an ability for store managers and marketing teams to better predict demand, and offer an elevated level of service.
Appealing to the Tech Savvy Customer
It’s no secret that customer adoption of technology is far outreaching retailer adoption. Our customers are moving quickly, and retailers are struggling to keep up. With the adoption of digital, be it digital signage, touch screens, self-order kiosks, or beacon technology, retailers are creating integrated, world class destinations that are attracting customers due to their novelty and offer of the seamless connected experience. This demand is growing stronger in the millennial consumer and communicates to those tech savvy customers, that your business embraces innovation, and speaks their language.

Self-Service vs Staff-Assisted Self-Service Service
With the reluctance to remove staff entirely from the customer journey in store, many retailers are taking a smaller step to self-service, by introducing “staff-assisted self-service”. It sounds contradictory, but with staff members welcoming customers upon arrival and introducing them to the self-service kiosk (how it works, benefits & features etc), retailers are finding much higher engagement levels and kiosk usage. What’s more, customers also have the chance to see, and speak to a staff member upon arrival. This process allows a single staff member to serve multiple customers at once, further helping to reduce staff cost, without compromising service quality.
Increased Transaction Size
A little known benefit of offering self-ordering is a rise in the average basket size that can result from purchases. ‘We’ve seen Quick Service Restaurant clients increase their average order size by as much as 22% when using self-order kiosks. With interactive menus offering customised product recommendations based on their order, customers are far more likely to order additional sides, drinks and extras as a result’, says Matt Abercromby, Engagis Marketing Manager. ‘Coupled with a significant reduction in the cost of each transaction, this makes self-order kiosks an extremely viable option for cost conscious fast food retailers’.
Reduced Transaction Costs
Perhaps the most compelling reason for the prevalence of self-service kiosks is due to the reduced transaction costs that result from deploying them. Airlines have seen the cost of a typical check in be reduced by over 600% with the introduction of self-service kiosks. Online even check-in further reduced this cost. By using self-service terminals, you put your company in a position to eliminate a certain portion of your overhead costs, primarily staff, admin and compliance as transactions are made entirely on the floor.