The Cost of Leaving Self-Service Kiosks Out of Your Strategy

5 minutes
Katie Kochelek

The Cost of Leaving Self-Service Kiosks Out of Your Strategy

5 minutes
Katie Kochelek

Over the last decade, self-service kiosks have reshaped customer expectations and raised the bar for efficiency and convenience. Yet, brands that haven’t embraced this technology are missing significant revenue, productivity, and CX opportunities.

Self-service kiosks offer a range of benefits, from increasing ticket order sizes and reducing labor overhead to enhancing customer experience. In this article, we explore the hidden cost of leaving kiosk technology out of your business plan and detail some important points to consider when implementing a strategy.

Financial Impact

Widely cited research reports self-service kiosks can increase order sizes by 10 to 30 percent in the quick service restaurant (QSR) industry. This is attributed to varying factors like upselling and cross-selling prompts, more customer autonomy while exploring menu items, customization options that cost extra, and an increased comfort level upsizing or indulging when ordering from a kiosk versus in-person.

While the QSR industry has successfully leveraged these features to drive revenue, the same financial benefits can extend to other sectors, as well.

From family entertainment centers to retailers to dispensaries, self-checkout kiosks utilize similar software prompts and consumer behavior insights to encourage higher spending and increase profitability.

In addition to maximizing transactions, kiosks also reduce labor strain by reallocating staff to more value-driven tasks. Further, the technology can bridge gaps during high-traffic hours versus adding another team member, saving on costs.

Ultimately, self-service kiosks don’t just boost revenue through larger order sizes and strategic upselling, but also help businesses operate more efficiently. Across industries, self-service is a smart financial move.

The Customer Experience Gap

In the age of Yelp and Google reviews, word of a frustrating customer experience can spread quickly. Slow service and order errors are common complaints that can be addressed by self-service kiosks for many types of businesses, from doctors’ offices to restaurants and beyond.

For customers, kiosks offer a convenient opportunity to place an order or check in without having to stand in line or wait for an employee to step up to a counter or desk. Additionally, kiosks run less risk of human error, since users can input their own information or add customizations to an order.

On the business side, ensuring a consistent message and interaction across multiple locations can be advantageous. Delivering a predictable customer experience builds loyalty and reinforces a strong brand identity. It also reduces the reliance on staff to convey messages correctly and consistently.

While nothing can replace the value of human interaction, technology like self-service kiosks can enhance the customer experience, providing convenience, reducing errors, and ensuring uniformity across multiple locations. By integrating kiosks strategically, businesses can create a more seamless and supportive interaction for their customers.

Missed Data Insights

With so much talk about the connection between kiosks and revenue or customer service, it’s easy to forget they’re also powerful tools to gather data and personalize the guest experience.

Self-service technology provides real-time data on customer preferences, helping businesses understand user behavior, identify bottlenecks in service flow, analyze purchase trends, and more.

Further, kiosks can also be used to influence loyalty program sign-ups or offer custom incentives if a person signs in.

Leveraging these insights, businesses can make meaningful enhancements, like suggesting products based on a customer’s previous purchase history or adjusting staff levels during peak hours.

In the end, by responding to these findings, brands can implement changes that lead to a competitive advantage in their markets.

Important Considerations

Investing in self-service technology is a good first step, but adding kiosks without a gameplan can limit positive results.

Some questions to consider:

How many kiosks are needed at each business location?
For self-ordering kiosks, more isn’t always better. That’s because offering too many can overwhelm staff with a flood of orders over a short period. In a QSR environment, only so many people can work a kitchen station, so if orders come in too quickly, patrons might wait longer for their items. In the end, that eliminates any perks gained from a faster ordering experience, tanking the customer experience.

Are there options for those not familiar with technology?
Many customers feel comfortable with technology, however there will always be those who prefer to speak directly to a person while ordering or checking in. Instead of using kiosks for every interaction, providing an option to communicate with staff is wise. In short, digital kiosks should be a complement to a business’ customer service strategy versus a complete replacement.

Is kiosk software being utilized to its full potential?
Upselling and cross-selling functions are likely the biggest influencers on larger order sizes, however, other revenue generating features often exist through the kiosk software. This includes the kiosk’s attract loop, or the “screen saver” that plays on the monitor when not in use. Using this real estate to promote specials, showcase enticing imagery, or invite people to use the kiosk can prime customers to spend before they’ve even started the process.

A kiosk manufacturer will introduce many more questions to consider when planning a self-service kiosk deployment, so businesses can realize the most benefits from their investment.

Conclusion

Without kiosks, brands and businesses miss out on added revenue, risk slower service, and lose opportunities for helpful customer data.

Not just a convenience, self-service kiosks are a strategic investment that drives revenue, improves the customer journey, and streamlines operations.

Instead of wondering if you can afford to invest in kiosks, contemplate if you can afford not to.

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