Friday, November 16, 2007

Kiosk replaces front desk in Amerstam's Qbic hotel

There's an interesting story that ran in The Denver Post about a hotel in Amsterdam that has eliminated their front desk altogether in favor of a self-service kiosk.

In theory, if the kiosk can actually handle all of the typical transactions that take place at a hotel's front desk, it might work out. Hotels can be tricky environments, though, and a faulty computer system or incomplete transaction could potentially mess up reservations and quickly lead to chaos on on crowded weekends or holidays (though of course an attendant could still be present during peak traffic times).

To avoid those types of issues, check-in kiosks are often implemented in hotels that are primarily aimed at people traveling on business, since their transactions tend to be straightforward, and the travelers quickly build up experience using the kiosks. They don't work so well (in my experience) in more touristy hotels where people are infrequent travelers, have complicated reservations, or are simply looking for that unique human interaction that comes at every turn while staying in another country. For that reason it's pretty interesting that Qbic has decided to go the route of ditching the front desk altogether.

One other possible concern is how older, less tech-savvy users would respond to the technology. Granted Qbic is billed as a state-of-the-art hotel, so guests are probably going to be of the variety comfortable interfacing with computers, but the issue of tech support is bound to come up anyway. A lot of the more common pitfalls can probably be avoided with lots of well written and easy-to-follow instructions on nearby signage.

If all else fails, though, a "roving concierge" is still around to assist customers.

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Thursday, November 15, 2007

Got a self-service app you hate? Maybe now you can do something about it

At least, that will be the case if RedesignMe! takes off. The site is a collaborative database of poorly designed products (uploaded by regular folks), and helpful suggestions about how they might be made better.

While there's no focus on self-service per se, I can certainly think of a number of kiosk apps that I've encountered in the past that could have used a bit (or a lot) of design work.

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Wednesday, November 14, 2007

Diebold study focuses on ATM habits

A recent study from Diebold takes a look at the banking preferences of Boomers, Gen-X and -Y consumers, and the results have some clear implications for the kiosk industry. According to this synopsis on CNNMoney.com, "The analysis considers three distinct demographic groups in its findings: baby boomers (age 43 and older), Generation X (ages 26-42) and Generation Y (ages 18-25)" the article continues to discuss the findings saying, "Specifically, study results reveal that automated teller machine (ATM) usage continues to find strong support across generations. In fact, the study shows that aside from withdrawing cash, all generations unilaterally rate viewing account balances, making deposits and transferring funds between accounts as their three most-preferred ATM services."

So what does this mean? Simply put, if ATMs can top the traditional banking system in terms of consumer preference, then it's possible kiosks providing different services can also do the same.

Younger customers are more tech savvy and our lifestyles reflect that. I would fall in the "Generation Y" category, which according to the study showed the biggest preference for ATMs, and I know for a fact that I use banks as little as possible. I also know that more advanced technology makes my life easier in some ways and makes it more hectic in others. While ATMs may save me the time of going to the bank, I also compulsively check my e-mail sometimes to the point of addiction. Regardless, I've grown up with a variety of advancements that came into their prime during my lifetime and most of them seem more natural to me than anything that came before it. And I'm certainly not alone. I can't remember how many times my friends from college would ask me in all seriousness, "How did they do reports before the internet?"

When relating these concepts to kiosks, the key is that everything has to lead back to convenience. That's how to get the attention of the average, everyday consumer. Flashiness doesn't matter nearly as much as practicality. I doubt that my generation is any lazier than past ones, but we do expect a certain level of convenience that comes from our constant exposure to technology. If we can do something at a screen instead of doing it in person (and it's not a social thing), then we will. It's more comfortable for us, and it's almost always faster and more convenient too.

A lot of companies in the kiosk business get this, and more businesses are starting to hop on the bandwagon. Now there are places in public where we can download songs, pay bills and even get directions. It's a trend that is only going to grow stronger. ATMs lead the way. But now airport check-in kiosks are pretty much universally accepted, and hotel check-in kiosks are rapidly catching up. I wonder what the next "killer-app" kiosk will be?

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Thursday, November 08, 2007

Google places mapping system on gas pumps

Serving as a nice follow up to Monday's article about pay-by-touch gas station pumps, MediaPost reports that Google has struck a deal to include mapping systems at the pumps as well. According to the article, "Men who hate asking for directions now have a savior in the form of Google Maps, which will soon be available via interactive displays installed in gas pumps at stations across the country. The Internet connections are appearing courtesy of a deal between Google and gas pump manufacturer Gilbarco Veeder-Root, which says the first wave will bring the service to about 3,500 pumps."

According to the article, advertisements will not be utilized immediately. That's really a shame for advertisers, because this a perfect venue for them. My guess is it won't take long before they start popping up.

Putting displays with easy access to directions near gas pumps obviously has some very practical benefits, and as a great service to customers, I think advertisers on such a system would be given a lot more consideration than other pump-top ad networks. Plastering ads in places where they aren't welcome is always a tough sell, but putting in ads for local restaurants, supermarkets and other businesses on these displays will be much more welcome, especially when you can touch a screen to get directions to them. This will be especially true in high tourist areas where people tend to be lost or unfamiliar with their surroundings.

Once they've gotten into the game, why stop at directions or basic advertisements? Why not include actual reviews for restaurants or the capability to print out coupons to local supermarkets, or beam them down to your cell phone. The more interactive these displays are the better, since there's a several-minute long period that people must wait while filling up.

Now, if only they would invent ad-subsidized fuel to bring gas prices down to a more reasonable level :)


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Monday, November 05, 2007

Paying by touch at Chicago-based Shell stations

According to this article on Yahoo!, some Shell gas stations in Chicago are testing kiosks from Pay By Touch that will allow consumers to pay based on fingerprint identification. The firm has traditionally placed its biometric scanners into grocery and pharmacy chains, but has decided that it offers a value-add anywhere that purchases can be streamlined or made faster or more convenient.

The first question I asked myself when reading this was, "with technology like this how long will physical money survive?" It's an important question to ask, and my guess would be not too much longer. In all honestly, I make a good portion of my purchases by just using my debit card. I rarely write checks and with online checking I don't really keep a check book in the conventional sense. I'm also guessing that I'm not in the minority. So what does this mean in regards to my shopping habits? That's simple: more impulse buying. Using a debit card makes a purchase seem less real than using cold, hard cash.

Technology as advanced as this will only increase impulse purchasing, and that is always a good thing for business. It's a lot easier to place your thumb on a screen to buy something you really want but know you shouldn't buy than it is to reach into your pocket, grab the cash and physically see the tole it is taking on your net worth. Not to mention, you can leave your wallet at home, or worse, lose it. You're never without your thumb (hopefully).

Of course, there is the issue of paranoia that comes into play with technology such as this. To most people, finger identification is a tool used by secret agents to infiltrate the lairs of criminals. They don't expect to see it at their local gas station. And if you think I'm over-simplifying or even exaggerating just read this interesting bit from the article:

"Sunflower Market, a Chicago grocery store, also has Pay By Touch systems installed. About 2 percent of its customers signed up for the payment option, said the store's manager, Debbie Britton.

"I think it scares people," Britton said. "They're more confused about the whole system. Some of them say, 'Well, now the FBI can find me.'"

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Tuesday, October 30, 2007

Walgreens adds burn-on-demand DVD kiosks

You have to give it up to Walgreens. First they reach outside of their relatively unexciting image as a drugstore in order to start a promotion along side Live! With Regis and Kelly, and now Yahoo! reports that they'll be installing kiosks that will enable costumers to download movies and burn them onto a DVD right at the store.

Burn-on-demand technology isn't exactly new, but what makes this deployment unique is that Walgreens is trying to use the kiosks to reach new customers stores as well as expand their reach and broaden their image with existing ones. From a business perspective, the idea of having thousands of products available for sale in a condensed space is excellent. Studios don't need to ship DVDs in bulk to the stores and Walgreen's doesn't need to clear out large portions of the store to accommodate them. It's win-win. It also allows the stores to carry hard-to-find titles that may not sell as fast and would waste valuable shelf space if they were physically in a store.

By going the burn-on-demand route, Walgreens is also aligning itself with the future of film viewing. Ever since Netflix came along, traditional film rental outlets like Blockbuster and Hollywood have had to scramble to compete. Since then, people have also started becoming more reliant upon downloading media instead of renting a hard copy. So the whole rental business is becoming about meeting viewers halfway between controlling content and making things convenient. And talk about multitasking: if a customer can pick up prescriptions and groceries and then burn a movie to DVD while they wait, chances are it will make their day easier than making another stop at a video store.

Of course, the one thing Walgreens really needs to keep in mind is that their customers tend to skew a little older and therefore may not always be tech savvy. This means they'd better spell things out pretty clearly on the kiosks unless they want to create some severely confused customers. In addition, they'll also need to make it cheaper or at least competitive in price to other DVD sales outlets right from the start. It's never wise to underestimate the willingness of people to go completely out of their way to save money.

Once again, the fact that Hollywood is going to be taking advantage of the kiosk as a method for both promotion and distribution bodes well for the future of this platform. It'll be a while before DVD kiosks can take a sizable chunk out of the profits of more conventional outlets like Blockbuster and Best Buy, but as long as they move towards streamlining the process, making it affordable and making it convenient, they'll have a shot at taking a piece of the pie while letting once niche-retailers expand into a new and profitable product category.

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Tuesday, October 23, 2007

MediaMouth expands onto Facebook

This piece of news came out a little while ago, but it's still worth a mention:

MediaMouth (previously known as Digital Kiosk Technologies), a company known for retail kiosks which allow users to download music to a CD, is expanding their operation onto the hugely successful social networking site Facebook. According to this article on Yahoo! Finance, "MediaMouth's new Music Gifts(TM), brand music application for Facebook, is the first and only music store application on Facebook that allows users to buy and gift individual music tracks and create custom mix CDs directly from their profile page, as well as share music clips and playlists with their Facebook friends."

This is a great move on the part of MediaMouth, even if it does take them away from their self-service roots. Facebook really is one of the best places to reach younger audiences, and it is arguably more powerful than MySpace (at least until the new phenom site comes along). Young audiences are a notoriously fickle yet very desirable crowd to gain the attention of, so gaining visibility via one of the Internet's irising stars is a very savvy approach. Additionally, this is a shining example of how kiosk companies can expand their brand into other technologies in order to reinforce their recognition. My guess would be that joining with Facebook will draw people to their in-store kiosks (or at least make the kiosks more visible) more than the kiosks will bring people to the Facebook feature. Either way, it's win-win for MediaMouth.

If MediaMouth can show success with this project, it opens doors for other companies to think outside the box and pursue similar advancements. Don't be surprised if others (e.g RedBox, DVDPlay, etc.) start to look for an angle they can take in order to establish some kind of Facebook, MySpace or other social media network tie-in in the near future.

Although, given how long social networking sites are hot these days, the wisest decision may be to look for the next Facebook and work towards joining forces with that :)

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Sunday, October 21, 2007

Does self-checkout reduce impulse buys?

Over a year ago we first heard rumblings that shoppers who routinely used self-checkout lanes were less likely to make impulse purchases. Whether it was because people who use the lanes are inherently less likely to make impulse buys, or that the lanes were causing regular shoppers to become a little too efficient is still a matter of much discussion. But only just recently the topic resurfaced when research firm IHL Consulting Group noted that, "impulse purchases among women drop 32.1 percent and men 16.7 percent when self-checkout is used instead of a staffed checkout."

This time, though, the group suggests a few possible causes, backed up with real data. The first cause is simple enough: not many retailers that have installed self-checkout lanes have bothered putting the racks of chewing gum, salty snacks and other popular impulse items nearby. Similarly, while the science of arranging racks of impulse goods near traditional checkout lanes is fairly well understood, the same can't be said for self-checkout, so it's possible that stores will have to re-arrange items near these aisles to make them more eye-catching.

Second, and problematic for the industry, is that customers do appear -- for one reason or other -- to make fewer impulse buys even when the items are nearby. Again, there's no new info on whether it's due to the self-selection effect, some property of the environment, or a surplus effect of the self-checkout lanes themselves. One thing's for sure, though: if retailers find that same-store sales of impulse products fall after the installation of self-checkout lanes, that drop needs to be considering when determining the true cost -- and ultimate ROI -- of self-checkout systems.

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Wednesday, October 17, 2007

Flytech introduces new all-in-one unit

There's been some noise in the all-in-one space lately, what with IBM launching an updated version of their popular AnyPlace kiosk and this new product getting released by Taiwanese hardware vendor Flytech. According to the (admittedly limited) product website, the "K790 series is an advanced metal Panel PC. Its ultra slim and exquisite metal enclosure catches most eye contacts (sic). [The] K790 series includes four different display sizes, 12”, 15”, 17" and 19" equipped with high brightness TFT panels and resistive/SAW touch screens." Additionally, the units are rated NEMA 3 / IP 55 dust and water proof, and are thus suited for industrial applications as well as more mundane retail, government and transportation-oriented self-service applications.

Thanks to Gadgettastic for the much better-looking images than the manufacturer has on their site :)


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Friday, October 12, 2007

High Tech Carts Inform Shoppers Of Unhealthy Choices In London

ABC News has reported that shoppers London may soon be pushing around "trolleys" (that's shopping carts for us Yanks) that have the ability to warn them when they are buying too much unhealthy food at the supermarket.

According to the article, "the high-tech model will be fitted with a computer screen and barcode scanner. It will read each product's individual code to give customers information about calories, nutrition, ethical sourcing and the environment." This is definitely an interesting concept and it opens up the possibility for other similarly themed technologies that can provide shoppers with useful information (ill-fate of the Shopping Buddy be damned). It's also a potentially great way for customers without in-depth knowledge of the foods they eat to maintain a healthy diet.

However, the system is not without its drawbacks, the first of which obviously being that there are tons of products in any supermarket that are not healthy (in fact their numbers probably easily outweigh the healthy options). What will the folks at places like Frito Lay feel about a machine attached to a cart that essentially tells shoppers not to buy their product? My guess is they won't be making any contributions to EDS, the U.S. based company responsible for the technology. Plus, it could also cause a lot of overly crowded shopping aisles as customers stop and read information about various products.

This kind of technology is probably better suited to specialized health food stores where people are making the conscious decision to eat an entirely healthy diet, and are willing to take the time to learn about the different options the store offers. In mainstream supermarkets, the systems simply have too much potential to do more harm than good, at least from a business perspective.

Tags: kiosks, smart cart, marketing at retail

Wednesday, September 26, 2007

Kiosk not found to be cause of TJX security breach

A few weeks ago we speculated (with the help of some other speculation) that the security breach at TJX (the company that owns TJ Maxx, Marshalls and others) could have been caused by hackers who used unattended employment application kiosks to gain access to the firm's corporate network. Both Information Week and StorefrontBacktalk suggested that the kiosks were a reasonable vector into the net, especially since many suggested that it was not firewalled away from other connected devices.

However, this story in the WSJ today suggests that was not the case at all. Instead, the privacy commissioners of Canada and the province of Alberta (who jointly conducted a probe), found that:
"TJX was using a weak encryption protocol to protect its consumer data in July 2005, when hackers first broke into its computer system. The protocol, known as Wired Equivalent Privacy, or WEP, isn't recommended by securities experts even for wireless home networks because it is so vulnerable to hackers.

"TJX decided to upgrade to a more secure Wi-Fi Protected Access encryption protocol at the end of September 2005, Canadian officials said. By then, however, hackers had been able to access the company's internal transaction database. They did so initially from outside two stores in Miami, the probe found."
While this isn't the only investigation going on inside the company, and it's possible that others will find additional ways past the firm's security systems, at least for now it looks like kiosks were not directly at fault for causing the breach and subsequent theft of up to 45.7 million credit card numbers.

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Thursday, September 20, 2007

NBC U Steps Into The Retail Kiosk Arena

Media Post has reported that NBC Universal is going to be installing retail kiosks that allow customers to download music and will promote NBC's new TV programs (in particular, their late night line-up). According to the article, "The network will have access to hundreds--an exact figure was not provided--of so-called Mediaport ATMs at retail locations to display their promo content. The ATMs, or "vending machines," offer some 1 million tracks that can be downloaded to mobile devices or CDs."

This comes right on the heels of the announcement that NBC U has put together an ad council to look into further advancements in media buying and planning. Plus, it's also no secret that major media outlets are starting to pay more and more attention to out-of-home advertising.

This is a great move on NBC U's part, and if their research and experiments pay off they're going to look very smart when the other major networks begin to follow suit. Considering that the network consistently falls behind CBS, ABC and FOX in the ratings wars (watch a week's worth of Conan O'Brien and you'll likely hear a joke about NBC being #4), they really can only gain momentum by experimenting with non-traditional advertising methods and media.

I also think that a music download kiosk could be a very solid platform for ad delivery, as it's a prime example of giving back to ad viewers. Whether they are drawn in by the content on the screens or by the prospect of downloading songs, viewers are bound to get something worthwhile out of the experience. It's also a good way to engage younger audiences, which is certainly a big reason why advertisers and networks have been experimenting so much recently. The TV ad market, while still huge, is slowly being eroded by the prospect of something better, whether it's YouTube, TiVo or the fast-growing video game market. These things are not only eating away at the TV viewer base, but also at where viewers' attention spans and taste for TV advertising.

But the fact remains that television is still the defining media platform, and if NBC and the other big networks can bring more viewers back with techniques such as this one then it will serve as a big lesson for traditional media.

Tags: NBC Universal, interactive kiosks, kiosks

Friday, September 14, 2007

Would self-service airports be better than what we have now?

Normally descriptions of sterile future environments clad in stainless steel and devoid of bustling humans can get pretty creepy and dystopian, but after reading this blog post at Smarter Travel I wonder if airports might be an exception to that rule.

While few would argue that airline check-in kiosks have dramatically improved things both travelers and airlines, Smarter Travel posits that we could probably see even better results -- including lower costs, less stress and lower airport traffic -- by pushing self-service to the limits. Envision, as they suggest, this scenario:
As the automatic doors part, you step into your familiar old airport. Except it's not familiar at all. Gone are the ticket clerks, baggage handlers, and other airline personnel you've long depended on to get you and your luggage to your destination. You walk up to a kiosk and check in for your flight by waving your cell phone at a laser, then drop your suitcase into a chute, and proceed to security. You're ready to fly and it's only been three minutes, but you haven't interacted with a soul.
Creepy? Yeah, still a little. But darned efficient, you have to admit. And it's not just a pipe dream, either. Apparently there are proposals on the table to fit Amsterdam's Schiphol Airport with this kind of technology, along with other possible concepts like a shared check-in counter for all airlines and RFID luggage tracking. But the article also notes that just like other self-service experiments it will take a combination of customer education, employee training and a good deal of hand-holding to make everything work properly. Smart Traveler ultimately asks two critical questions: "if there's no one around to help when the machines break down,
what do you do?", and "are airline officials really interested in
improving the customer experience, or is the prospect of cutting labor
costs really behind this push to automate airports?"

These and others will certainly need to be addressed, but I'd say they're part of the same, larger question of, "do airline officials realize that making things better for customers can make things better for the airlines as well?" After the rapid adoption of self-service check-in kiosks, I'm hoping they've started to realize that. To realize the kinds of benefits that they're hoping for with this new level of automation, airlines and airport management companies need a true win-win scenario -- without customer, airport and airline all receiving some benefit from the new technology and practices, the system will never take off, if you'll pardon the pun.


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Wednesday, September 12, 2007

Ice cream kiosks dispense product based on happiness

As this story from Advertising Lab tells us, the Royal College of Art-Platform 11 has developed an ice cream kiosk that will dispense a portion of ice cream commensurate with how happy or sad the user is. Having a bad day? Voice sensors will detect the stress in your voice and dole out a healthy portion of the cold, creamy manna (I'm an ice cream addict, if you couldn't guess :). Not so unhappy? Then you can afford to cut back on the calories and save more for those who may need it. As Demitrios Kargotis, the kiosk's inventor, simply states, "the more unhappy you are, the more ice cream you need."

While the machine (which is more of an art project than something intended for commercial production) is certainly novel, as a generally happy person I still feel the need for a big portion, thank you very much.

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Wednesday, September 05, 2007

NYT blogger uncovers user perceptions about check-in kiosks

New York Times technology columnist David Pogue isn't exactly a Luddide, so I was kind of amused to see this recent blog post about his experience with a hotel check-in kiosk at a New York Hilton. Here's his account of what happened:

There were about 400 people waiting in line for the Reception desk. But me, I just breezed up to the kiosk, fed it a credit card for I.D. purposes, and pocketed the card key that the machine spat out. The machine then printed a page that identified my room number, and even gave me directions on how to find the elevator! (“Cross the lobby,” etc.)

They’ve had check-in kiosks at airports for years now. But in my view, hotels need them far more desperately. What the heck took so long?

O.K., the concierge told me that this Hilton has actually had them for two years now. But still, you get my point: At most hotels, you get there, you stand in line, you’re tired from travel, and you just lean against the counter for—what, seven minutes?—as the reception agent taps away on the computer. What on earth is so complicated about checking somebody in?

Hate to say it, but the little kiosk machine completed the same transaction in under 30 seconds. Let the revolution begin!

Of course, hotel check-in kiosks aren't anything new, and while still less utilized than airport check-in kiosks (which have reduced some airlines' check-in staff by over 40%), they're still one of the fastest-growing areas for self-service devices today. My own (wholly anecdotal) observation does agree with Pogue's: people seem reluctant to use the machines, as they still seem to get some additional benefit/service from speaking with somebody at the counter. This is distinctly different from airports, where very few people need or expect to get anything other than a boarding pass and seat confirmation before heading to the gate.

More interesting than Pogue's post, though, are the 100+ reader-submitted comments on the subject, ranging from "kiosks are great" to "kiosks suck." I don't know that I've ever seen a more varied display of opinions on the matter, and I suspect that kiosk application designers will be able to gain a little insight into the love-hate relationships that many people have with self-service technologies. The comments themselves are well worth the read. Here's a brief selection that I found pretty enlightening:

  • I don’t know, there’s something about check-in kiosks that I just don’t like. I see the obvious benefits of having them if you’re tired, don’t feel like waiting in line, etc. But I just prefer interacting with a person, especially when I’m at a place like an airport. They’re great as long as they’re just an additional option for checking in, not if they replace normal check-in desks altogether (Nick Schumacher).
  • I have seen them in other Hilton’s over the past 2 years. Most times they are not even noticed by the folks in the check-in line. I was in a hotel in Oakland near their airport about 6 months ago, and not only did they have kiosks to check-in, they also had lobby kiosks to let you print boarding passes for every airline serving the Oakland Airport. Talk about convenience (Jim McNerney).
  • I often wonder if keeping the traditional check-in method is some misguided idea of providing high-touch service… (Brian)
  • There’s a big reason to use a person. A person can find you a better room, especially if you have status with the chain. The computer will give you nothing better than what your reservation says. (Stew)
In those four comments alone there are a range of shortcomings that need to be addressed, not so much with technology, but with marketing, customer education and staff training. Thankfully we're now passed the stage where kiosk reliability is measured in the number of reboots/day, but the problems that we'll face as they become more pervasive will be even harder to solve.

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