Cyphermint to provide in-store shipping tech for Walgreens

I don't know if the systems are going to be customer-facing (and self-service) or just used by store personnel, but one thing I do know is that in-store shipping is becoming the new replacement for in-store photo development. Office supply companies like OfficeMax have offered in-store shipping service for a while now (and of course, the bigges like the UPS Store and FedEx/Kinkos have been making it the focal point for even longer), but DHL is definitely ratcheting up their presence by putting shipping points in 6,500 Walgreens locations across the US. From this press release:

Cyphermint designed a Windows based software solution which is the operating system for the DHL Shipping Spots. At Walgreens and OfficeMax retail locations, The DHL Shipping Spots are staffed by fully trained associates to weigh, label and ship customer packages to US and international destinations.

The user-friendly interface within the DHL Shipping Spots feature intuitive screen prompts which help retail associates quickly prepare a customer shipment. After the associate selects the destination, weighs the package, attaches the label and collects payment, the package is secured and available for DHL pick up. Associates working with customers that already have a DHL account can also enter the customer account number and have the remaining information auto-filled for their convenience. Cyphermint utilized the strengths and experience gained from the transactional and financial application of 7-Eleven's Vcom project and the customer service usability of the recent AAA kiosk to implement the functionality that was essential for the DHL Shipping Spot.

From the "user-friendly interface" comment, I had assumed that this might evolve into a customer-facing application, but after a second reading it's clearly geared towards being staff-assisted. Still, shipping packages seems like one of those things where a self-service solution could probably address 95% of customer needs. If these Shipping Spots prove to be popular, I wouldn't be surprised to see a self-service enabled version 2.0 roll out in the future.

Tags: interactive kiosks, self-service, cyphermint

Microsoft Develops Digital Kiosks For Grocery Stores

I know, I know, we've heard this kind of news bite several times before and it's always garnered mixed results at best. Yet, according to this article in AdWeek, Microsoft is obviously determined to provide a more interactive grocery store experience that is tied into shopping carts.

There is definitely reason to be skeptical with this kind of announcement, yet there is also reason to be at least partly optimistic. From a tech stand point, Microsoft is certainly a name to be trusted. If the right advertising and marketing know-how can get behind the kind of well-developed technology that Microsoft is capable of, then it could work.

Reading this article, and then looking back at articles about similar attempts, I got the same feeling that I had when I read Nielsen was going to try to put together a way to better measure digital signage/out-of-home ads. No matter how many attempts have been made at a promising idea and how badly they may have failed (which has certainly been the case with measurement systems), I feel it's worthwhile to look past those failures if an organization with a strong reputation shows up to tackle the issue.... Maybe I just haven't been working in this industry long enough :)

Microsoft is obviously putting a lot of stock into digital advertising because according to the article:

"While Microsoft has trailed large rivals like Google and Yahoo! in selling Web ads, it is moving to extend beyond the computer with its digital ad platform. It bought Massive, a provider of advertising on video game platforms. Last May, it bought ScreenTonic, a tech company that serves ads on mobile phones."

It's no secret that Microsoft isn't quite the dominating presence it once was (I'm sure they aren't hurting for money, but Apple, Google and Yahoo! are gaining strength) so if they can successfully move into the out-of-home digital ad realm and gain dominance before the others then it could be a pretty big victory.

With this, and the recent upfront announcement from NBC, it's obvious that very big names are circling this industry. So now it's just a matter of seeing which ones get things right...

Tags: interactive kiosks, smart carts, mediacart

Digital merchandising helps combat 'feature fatigue'

There's admittedly not much new info about kiosk or digital signage projects in this recent article by MTI's Jason Goldberg on CE Pro, but they did introduce me to a term that I hadn't come across before: feature fatigue. Simply put, it "refers to electronics customers and their overwhelmed state in researching and becoming acclimated to new products and their—you guessed it—feature-laden natures."

I consider myself a fairly tech-savvy guy, but I can identify with this phenomenon. Even the relatively simple task of selecting a new digital camera for my mom this past Christmas proved it true: I wanted to be able to pick up and handle the different models, so a bricks-and-mortar store was a must. But at the same time, it was hard to compare the features listed on the little tags next to each model, and the sales reps were hampered by big crowds and a lack of detailed product knowledge, so a link to the 'net (and product manufacturer websites and Amazon.com reviews) was also a must.

But I'm guessing I'm one of the few people who will still go into a store and whip out their smart phone (a Blackberry in my case) to look up additional product info. Even "big screen" phones like the iPhone are limited by screen size and connection speed.

An in-store kiosk or smart POS would have been an ideal solution in my case, but sadly the store I was in lacked both. Not surprisingly, Goldberg's firm MTI makes such devices (as do many other companies, of course). Their favorite bit of kit is an item pull, barcode or RFID-based system that lets customers retrieve product information simply by handling the desired item. But when it comes to trying to figure out the pros and cons of various electronics, I find that nothing beats physically handling the different products, and then using one of those comparison matrices to pull out the salient features and compare them head to head. Once I have a product that looks/feels goods and stacks up well against the competition, a quick check of popular product review sites lets me know what past product owners have thought about their purchase.

It's an elaborate system that probably only increases my feature fatigue, but given how complex buying something even as simple as a camera has become, I'll take it over buyer's remorse any day.

Tags: interactive kiosks, smart POS, feature fatigue

Best Buy kiosks continue to contradict web prices

We wrote about this issue plaguing Best Buy as far back as June 2005, and still the chain can't seem to make the prices on their website match the ones customers are finding at their in-store kiosks.

This article from the Los Angeles Times discusses how a particular customer ran into such a continuity error when purchasing a DVD player.

In all fairness, a rep from Best Buy named Sue Busch was quoted in the article saying that, "Bestbuy.com is the national price. Individual store prices may vary from market to market."

That may sounds good in theory, but Best Buy can sell that company line all they want and they are still going to have to face mobs of angry people complaining, and then possibly shopping elsewhere, because they saw a product listed cheaper on the company's website. While some shoppers may recognize the national vs. local advertised price conundrum when they see it, they're just as likely to think that the store's trying to pull a fast one on them.

This whole issue is a prime example of how major companies still have trouble understanding multi-channel marketing, i.e. they need to think of the web and in-store kiosks not as separate shopping experiences, but rather as a part of the whole. Providing a seamless shopping experience from the web to the store is how the best companies are moving ahead of the rest in this rapidly changing market. Everything from major concerns like prices to the kinds of colors and logos used on the web and in-store should be made to match as often as possible.

I guess maybe I'm more picky than a lot of people, but it really annoys me when a chain store doesn't have a comparable theme to their website than what I come to expect from the in-store shopping experience. I want to see the same colors, the same logos and the same slogans and instructional signage to make me feel like I'm shopping with a company that has moved with me from the web to the brick-and-mortar store.

Tags: interactive kiosks, store experience, retail marketing

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 :)


Tags: digital signage, interactive kiosks, gas station kiosks

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

Are you ready for the self-service restaurant?

RetailWire has a neat article (free registration required) on a concept restaurant that recently opened in Germany. Called Baggers, the shop positions itself as the restaurant of the retro-future, and has customers place orders via touchscreen, with a complex system of rails and trolleys used to deliver food right to the table.

Never mind that the interior of the place looks like Rube Goldberg tried to redesign Chutes and Ladders, my question is whether people are ready for a do-it-yourself restaurant experience outside of a QSR or fast-casual environment?

I have to admit that I'm a sucker for gimmicks, so I'd probably give the restaurant a shot just so I could see my order whizzing across the restaurant and down to my place setting, but after that, I'm not so sure. What happens if I drop a fork and need a new one? Is there an easy way to order a drink refill? What if I spill something?

One of the nice things about going to a sit-down dining establishment is that you know that there's a small army of people waiting on you -- literally. That's why we (or I, at least) get upset when service is lousy -- it's like we've been betrayed. So while the Baggers concept certainly looks cool, I have a lot of questions that I'd want answered before settling on whether it's a good idea or not.

Tags: self-service, interactive kiosks, restaurant kiosks

Marc Ecko's digital grafitti inspires interaction

Maybe it's a kiosk, or maybe it's an interactive digital sign, but whatever you call it, it's pretty slick.

According to Ads of the World, "Marc Ecko wants to promote his roots and love for graffiti. Digital citylights are created that consists of an LCD and a bluetooth interface. People will get the possibility to access the citylight via bluetooth with their cell phones and spray their own graffiti with the cursor of their phone."

While the electronic poster doesn't really provide any kind of self-service function, the ability to engage passers by and engage users with a unique interactive experience puts this thing -- whatever it actually is -- firmly in the "kiosk" camp for me.

There's no word on whether this is a one-off project or part of a larger deployment, but JC Decaux has experimented with similar interactive advertising devices in the past, and in fact this could be the same exact hardware used for some of those past campaigns.

Tags: interactive kiosks, digital signage, out-of-home advertising

Microsoft's Surface takes a new twist on touchscreen tech

Sorry for the awful alliteration - hadn't noticed it until it was too late :) While Elo and others have offered infra-red (IR) and camera-based touch screens like the CarrolTouch for a while, and IBM has used them in products like the Anyplace Kiosk for a few years now, it took Microsoft to make them exciting and sexy for the mass market. Their new Surface technology combines multiple cameras together on top of a projection screen to create a multi-touch capable surface that takes the computer "desktop" metaphor to a whole new level.

While Microsoft has been pitching the thing as an interactive coffee-table type thing designed for in-home use, the $5-10K price tag ensures that the first few adopters will be a bunch of technophiles with too much spending money, and, more importantly, businesses trying to use the device to advance their own goals.

While most of today's crop of self-service applications are optimized for quick, streamlined user interactions that don't require the use of a multi-touch device (heck, the applications we deploy usually don't even allow for mouse dragging), as users become more tech savvy and applications become more complex, I think there could be applications that could make good use of such a novel interface.

Tags: interactive kiosks, self-service, Surface

Airports try gaming kiosks

Another good post from the Kiosk and Self-Service Blog points out that "Denver International Airport can now play one of roughly 19 computer games at individual stations located throughout the concourses" thanks to new self-contained Internet cafe-style kiosks courtesy of Zoox Stations and RMES Communications. For $0.25/minute, users can surf the Internet or play any one of a number of games while waiting for their Nor'easter-delayed flight to arrive.

Zoox and RMES have apparently noticed that anybody with a laptop capable of connecting to the airport's free WiFi connection suddenly doesn't need a cybercafe very much, and those lacking such hardware probably aren't the best market to go after anyway.

However, unless you have a really big, really expensive laptop, the gaming experience isn't up to par with the latest generation of high-def blockbuster games. That's why this kiosk makes sense. With more space and no need for portability, the devices feature huge 23" screens, enhanced graphics and sound, and plenty of room for whatever computer/console equipment is needed to run today's games.

Tags: Zoox, RMES, interactive kiosks, gaming kiosks

Making the case for music download burning kiosks

The Kiosks and Self-Service Blog caught this blog article/rant on the music downloading kiosk industry, or rather, the lack of such an industry right now. Despite projects of varying success levels by Starbucks, Wal-Mart and TWE (via their holding in Mix-and-Burn), music kiosks still seem to be a hard sell. Maybe it's because anybody with an Internet connection can download music -- legally or illegally -- with ease directly to a CD-R or MP3 player. Maybe it's because the world's most popular MP3 player, the iPod, uses a proprietary DRM system. Or maybe it's just because people aren't primed to buy music when they happen to encounter these kiosks out in the real world. Enter Mediaport Entertainment, a Salt Lake City-based kiosk provider whose machines can be used to transfer audiobooks, music, games, ringtones, etc. to compatible devices. The company has just entered an agreement with Power Music (they supply of workout soundtracks and compilations), to help push the Mediaport kiosks into gyms and fitness centers.

While I know that I arrive at the gym with an iPod pre-loaded with tunes that I hope are going to give me some help during the next hour of aerobic hell, I love the idea of using the kiosk to push a value-added content product instead of individual tracks that could be downloaded anywhere, and I'd be much more likely to try out somebody's "ultimate 30 minute weightlifting mix" or "60 minute power walking tracks" compilation than use a kiosk to buy a random assortment of tunes that I could just have easily taken off of the net or downloaded from iTunes.

Whether this business model will work remains to be seen. But at least MediaPort has recognized the struggles of much larger competitors, and is working to address those challenges in a unique way.

Tags: MediaPort, interactive kiosks, music download

MobilLime to merge with Cuesol

According to this press release, Cuesol, a company that for me is synonymous with the shopping-cart mounted Shopping Buddy kiosks (now apparently renamed the Cart Companion) is planning to merge with mobile marketing firm MobilLime. The merger apparently comes with the goal of combining MobileLime's mobile loyalty and payment platform with Cuesol's kiosk and shopping cart solutions. Obligatory press release quote:

The merger with Cuesol offers the opportunity to measurably improve the shopping experience by bringing together cell phone-based rewards and promotions with interactive, self-service shopping," said Robert Wesley, president and CEO, MobileLime. "In combining the passion, creativity and technology of these two companies, we will continue to help retailers develop one-to-one relationships with their customers by transforming the retail shopping experience."

I personally like this one. While not the most obvious combination on first glance, Cuesol has demonstrated a willingness to try out unique ideas in order to improve the in-store experience, and I think that -- if done correctly -- mobile will be a natural part of that.

Tags: MobilLime, Cuesol, interactive kiosks

TNR Entertainment introduces 'Win Movies for a Year' promotion at DVD kiosks

TNR Entertainment, providers of $1 DVD rental kiosks to a growing number of US grocery stores, has introduced what it calls an industry first: a new promotion that promises a year of free DVD rentals from the kiosks to a lucky group of winners. As this press release notes:

Every day of the promotion, one lucky shopper's name will be randomly chosen to receive free movies for a year. Shoppers can rent up to three movies per day. The winners will receive a New Release-branded Visa check card with $365, plus tax pre-loaded. No purchase is necessary to enter and both new and existing New Release renters are welcomed to participate. There are two ways to enter, either online at http://www.thenewrelease.com or with the mail-in entry form on flyers at TNR's rental kiosks.

Considering that the total cost of the prize is only $365 x the 45 winners they plan to have, this a great yet very inexpensive way for TNR to generate buzz, and possibly bump us usage of their kiosks at the same time. And usage they need: in order to keep up with their deployment schedule, the firm had to raise about $45M last year.

Tags: interactive kiosks, dvd rental kiosks, promotions

PayByTouch introduces kiosks to bring web-style analytics into retail

PayByTouch has been using sophisticated biometric systems for payment acceptance for a while now, having installed their fingerprint readers in thousands of retail stores across the US. But up until now, their offerings were limited to fairly vanilla payment acceptance and loyalty program integration.

However, according to this article in Internet Retailer (and backed up by the original press release from PayByTouch), the system is already impacting 50% of store revenue in its installed locations, and has had offer redemption rates in excess of 20% (which is insanely high, even for "easy" card-based loyalty programs). Apparently, shoppers who have enrolled in SmartShop have also increased their visits by 10% over past years, which is also a critical metric for highly competitive grocery chains who are increasingly feeling competition from drug stores like Walgreens and convenience stores like 7-11 for quick "top up" shopping trips for a few items. PayByTouch's research into the system's performance also indicated a 5.1% increase in revenue growth average, 6.1% increase in consumer spending versus stores not equipped with the kiosk.

Granted those results were taken from a single trial grocer for a single month in 2006, so there's no telling how accurate they really are, however numerous in-store loyalty kiosk systems have been shown effective and well-received by customers, so I wouldn't be surprised to see the same reaction and results for this one.

While it's still going to take a bit of time for me to get used to the idea of using my fingerprint to get coupons, this kind of technology is becoming increasingly more common, so I expect that adoption rates will climb quickly if biometrics are shown to significantly improve loyalty program performance.

Tags: PayByTouch, SmartShop, interactive kiosks, loyalty programs

Interbank Peru receives award for self service kiosks

Interbank Peru has won an award from PricewaterhouseCoopers for introducing self-service systems with an intelligent deposit function to better served the large unbanked Peruvian population. Led by Wincor Nixdorf, the project utilized 115 multifunction ATMs hooked into the bank’s IT back-end to provide check depositing and cash and bill payment. The PR notes,

"Few Peruvians have bank accounts of their own. Most people simply make cash transactions at the bank counter. It became necessary to reduce the number of counter transactions – and at the same time the endless queues associated with this personnel-intensive service. And so, in partnership with Wincor Nixdorf, the self-service project was launched. To date, 115 Wincor Nixdorf self-service systems of the ProCash 2100xe type have been installed across Peru at Interbank’s subsidiaries and at off-premise locations.

"This means improved service for the bank’s customers. Cash withdrawals, cash and check deposits, and bill payment are all now handled by ATMs. Two currencies, Peru’s Nuevo Sol and the US dollar, are accepted by the self-service system. Up to 50 bank notes per transaction can be accommodated by the machines. When payment is by check, the amount is posted instantly and a receipt printed out. Bank customers without a bank card need only press a button on the ATM to proceed with their transactions."

I love seeing self-service technology being used to genuinely improve some kind of product or service offering, and that's exactly what we have in this case. What ATMs did for the traditional banked population in the 90s (in terms of speed, efficiency and convenience), bill pay terminals are increasingly doing for the poor and unbanked. While some number of them probably take advantage of these people with high service fees and transaction charges, I think there's a very healthy middle ground where banks and others can improve service, treat customers fairly, and still make money doing it.

Tags: interactive kiosks, billpay kiosks, self-service, Wincor Nixdorf

Survey suggests more restaurants may deploy self-service solutions

Self-service software provider NextChoice announced the results of a survey indicating that many of America's top restaurant executives are considering implementing more self-service technologies to improve customer satisfaction and control costs. Key findings include:

• Achieving better ROI and improving service were cited as key challenges.
• Respondents were most aware of MICROS, NCR, NextChoice and Radiant as leading self-service solution providers.
• Top self-service advantages: Accuracy, speed and store reporting.
• Top self-service challenges: Cost and point-of-sale (POS) integration.
• Top self-service features: Customer data capture, gift cards and web ordering.

Here's the press release, and here's a link to where you can download the whitepaper.

Tags: self-service, ordering kiosks, interactive kiosks, POS

TIO Networks Announces Fourth Quarter and Year end Financial Results for Fiscal 2006

According to this press release:

TIO Networks Corp. (TIO), owner of North America's leading automated bill payment and financial services network, today announced financial results for the fourth Quarter and the year ended July 31, 2006.

Revenue for the fourth quarter was $2,969,553, an increase of $801,126 or 37% over $2,168,427 as recorded in the fourth quarter of fiscal 2005. Transactional revenue increased by $496,648 to $2,343,660, an increase of 27% as compared with the same period last year. Gross profit for the fourth quarter was $1,302,624, an increase of $578,488 over $724,136 as recorded in the same quarter a year ago. Fourth quarter EBITDA(*) (earnings before interest, tax, depreciation and amortization) was $115,000 compared to ($196,000)(xx) in Q4 2005.

After meandering about for a while and attempting multiple different business models (the company was originally a vendor of Netkey-like kiosk software), TIO Networks looks like they've really settled on a unique and (finally) profitable business model providing financial services kiosks and software primarily for use by unbanked individuals.

Tags: TIO Networks, interactive kiosks, kiosks, self-service