Vending
How to drive ROI with self-service technology
Panelists during a live event at the Self Service Innovation Summit addressed how to drive kiosk ROI with touchless solutions and an omnichannel strategy.
December 21, 2020 by Bradley Cooper — Editor, ATM Marketplace & Food Truck Operator
(Editor's note: An earlier version of this article ran on Kiosk Marketplace, a Vending Times sister publication.)
When it comes to self-service technology, it can be a challenge to demonstrate its real value from an ROI perspective, especially during COVID-19 when margins are tight and restrictions are high. However, new software tools are making this an easier task by providing services ranging from personalization to data analytics and mobile/physical convergence.
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Panelists during a live event at the recent Self Service Innovation Summit addressed this topic in detail. The panel, which was moderated by Bradley Cooper, editor of Digital Signage Today, a Vending Times sister publication, featured Faris Alqadah, senior director of data science innovation at Ulta Beauty, a beauty retialer, Bart DeCanne, founder and CEO of Sophatar, a provider of mobile engagement software, and Brad Winslow, a payments industry executive.
The panelists discussed a number of ways that the retail landscape has changed in ways that affect self-service. DeCanne, for example, said that before the pandemic, self-service kiosks were drifting towards larger touchscreens and a blend between e-commerce and in-store offerings. Now, post pandemic, customers expect more touchless options such as tap-to-pay and more mobile integrations with the device to avoid having to touch a screen directly.
Customer expectations change
Alqadah pointed out that customer expectations have become more demanding.
"Fifty-two percent will churn if retailers do not anticipate their needs," Alqadah said. "Sixty-eight percent said it's crucial that brands understand their specific preference."
The payments ecosystem is also becoming more demanding for retailers, said Winslow, a payments consultant and formerly vice president of strategic partner development at Elavon, the payment processor subsidiary of US-Bank. Customers now expect contactless options that can work both with payment cards and without. Winslow also said there is a major challenge to address this payments landscape while keeping customers safe.
DeCanne said that there is a large number of services which are making many of these omnichannel convergences possible, such as digital signage and POS integration through web and mobile technologies.
Self-serve kiosks can now link directly with POS systems to dynamically change content on displays based on what customers buy. Data gathering can also take place across all owned properties such as in-store, website and mobile app.
Self-checkout options expand
In order to deliver these omnichannel solutions, Sophatar developed its ProxiPay-Go platform for a point-of-sale checkout experience delivered via a self-service kiosk. It communicates with a media player and a point-of-sale device for an integrated solution. The platform provides a variety of other services such as:
- Contactless payment options and receipts.
- Works on regular displays, with no touchscreen needed.
- Uploads sellable items as digital signage content.
- Enables mobile device control for digital signage content.
- Prevents crowding, since multiple people can use it at the same time via a mobile device.
- Users can use cell phones to add physical products to virtual shopping carts.
The overall goal of this system, according to DeCanne, is to create a personalized checkout experience that also performs other tasks such as promoting social distancing.
For retailers, embracing this sort of omnichannel strategy is not an option, according to the panelists, it is a necessity. Alqadah said that omnichannel is now a fact of life post-COVID and customers fully expect to be able to both discover information about products in-store and make their purchases with minimal contact.
The reward for embracing omnichannel will also lead to a clear-cut ROI improvement. Alqadah said companies that market omnichannel, for example, see an 89% retention rate compared to 33% for companies that do not.
At the same time, the companies are working to ensure the customers' security, while not "creeping them out." For example, DeCanne pointed out that the ProxiPay platform does not deliver push notifications.
Ultimately, the goal of this platform is to deliver a more seamless experience for guests to both keep them safe and deliver a better ROI for businesses.
The session was sponsored by Sophatar.
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