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Main Findings
Kiosks are powerful tools that can enhance customer experience, efficiency, and profitability for businesses across various industries and sectors. Kiosks can provide information, services, and transactions that are convenient, customized, and cost-effective for users. Businesses need to consider the costs, security, and usability of kiosk solutions and ensure they align with their goals, strategies, and customer expectations.
A kiosk is a small, stand-alone structure or device that is used to sell merchandise or services or to provide information or entertainment to customers.Â
Kiosks can be found in various locations, such as shopping malls, airports, train stations, hotels, parks, museums, and public squares. Kiosks can be manned by one or more staff members, or they can be electronic and interactive, allowing customers to access information or services on a touch screen. Kiosks can serve different purposes, such as employment, food service, healthcare, Bitcoin, and photos.
Why use a kiosk?
Kiosks can offer several benefits to both businesses and customers. For businesses, kiosks can help to reduce operational costs, increase sales, improve customer service, enhance brand awareness, and collect customer data.Â
For customers, kiosks can provide convenience, speed, privacy, choice, and entertainment. Kiosks can also create new opportunities for entrepreneurship and innovation in various sectors.
The formula for kiosk success
There is no definitive formula for kiosk success, but some general factors that can contribute to it are:
- Location: Choosing a strategic location that has high foot traffic, visibility, accessibility, and relevance to the target market.
- Design: Creating an attractive and functional design that reflects the brand identity, showcases the products or services, and engages the customers.
- Technology: Incorporating reliable and user-friendly technology that supports the kiosk's purpose and enhances the customer experience.
- Marketing: Promoting the kiosk through various channels, such as social media, online platforms, flyers, banners, and word-of-mouth.
- Management: Managing the kiosk effectively by ensuring quality control, inventory management, staff training, customer service, security, and maintenance.
How to calculate kiosk profitability
One way to calculate kiosk profitability is to use the return on investment (ROI) formula. ROI measures how much profit a business makes from an investment relative to its cost. The ROI formula is:
ROI = (Net Profit / Cost of Investment) x 100%
Net profit is the difference between the revenue and the expenses of the kiosk. Cost of investment is the total amount spent on setting up and running the kiosk. To calculate ROI, divide the net profit by the cost of investment and multiply by 100% to get a percentage.
For example, suppose a kiosk has a revenue of $10,000 per month and an expense of $6,000 per month. The cost of investment for the kiosk is $20,000. The net profit is $10,000 - $6,000 = $4,000 per month. The ROI is ($4,000 / $20,000) x 100% = 20% per month.
This means that for every dollar invested in the kiosk, the business earns 20 cents in profit per month
Examples
To illustrate how kiosks can be used in different industries and contexts, here are some examples of kiosk applications:
Retail
Kiosks can be used to display product information, offer self-checkout, provide loyalty programs, and collect customer feedback. For instance, Walmart has deployed kiosks that allow customers to scan and pay for their items without cashier assistance. This reduces wait times, labor costs, and human errors.
Financial
Kiosks can be used to provide banking services, such as account opening, cash withdrawal, bill payment, and money transfer. For example, Bank of America has installed kiosks that enable customers to access their accounts, make deposits, withdraw cash, and print statements. This enhances convenience, security, and customer satisfaction.
QSR
Kiosks can be used to offer menu ordering, payment processing, and digital signage. For example, McDonald's has implemented kiosks that allow customers to customize their orders, pay with credit cards or mobile wallets, and receive their food faster. This increases sales, order accuracy, and customer loyalty.
Tickets & Billing
Kiosks can be used to sell tickets, print receipts, and provide information for events, transportation, and entertainment. For example, AMC Theatres has installed kiosks that enable customers to purchase movie tickets, select seats, and redeem rewards. This reduces queues, paper waste, and operational costs.
Information
Kiosks can be used to provide information, guidance, and assistance for visitors, tourists, and customers. For example, the Smithsonian Institution has deployed kiosks that offer interactive maps, exhibits, and tours for museum visitors. This improves accessibility, engagement, and education.
Self Service
Kiosks can be used to provide self-service options for various tasks and processes, such as check-in, registration, printing, scanning, and verification. For example, Delta Air Lines has installed kiosks that allow passengers to check in, print boarding passes, change seats, and check baggage. This streamlines the travel experience, reduces staff workload, and increases customer satisfaction.
Limitations
While kiosks offer many benefits for businesses and customers alike, they also have some limitations that need to be considered before implementation. Some of the common challenges and drawbacks of kiosks are:
Cost
Kiosks require a significant upfront investment in hardware, software, installation, maintenance, and support. Depending on the complexity and functionality of the kiosk application, the cost can vary from a few thousand to tens of thousands of dollars per unit.Â
Additionally, kiosks may incur ongoing expenses such as electricity bills, network fees, security updates, repairs, and replacements. Therefore, businesses need to carefully assess the cost-benefit analysis of kiosk deployment and ensure a positive return on investment.
Security
Kiosks are vulnerable to various security risks such as vandalism, theft, hacking, malware infection, data breach, and identity theft. Kiosks that handle sensitive information or transactions need to comply with strict security standards and regulations such as PCI DSS (Payment Card Industry Data Security Standard) or HIPAA (Health Insurance Portability and Accountability Act).Â
Moreover, kiosks need to protect the privacy and confidentiality of user data and prevent unauthorized access or misuse. Therefore, businesses need to implement robust security measures such as encryption, authentication, firewalls, anti-virus software, and physical locks for kiosk protection.
Usability
Kiosks need to provide a user-friendly interface that is easy to navigate, understand, and operate for diverse users with different needs, preferences, and abilities. Kiosks also need to accommodate various languages, currencies, and accessibility features for users with disabilities or special needs.Â
Moreover, kiosks need to ensure a reliable performance that is fast, accurate, and consistent for user satisfaction. Therefore, businesses need to conduct user research, testing, and feedback to optimize the usability and functionality of kiosk applications.
Conclusion
Kiosks are powerful tools that can enhance customer experience, efficiency, and profitability for businesses across various industries and sectors. Kiosks can provide information, services, and transactions that are convenient, customized, and cost-effective for users.Â
However, kiosks also pose some challenges and limitations that need to be addressed before implementation. Businesses need to consider the costs, security, and usability of kiosk solutions and ensure they align with their goals, strategies, and customer expectations.
References
- Business Insider: https://www.businessinsider.com/self-checkout-alienating-shoppers-according-to-new-research-2024-1
- Fit Small Business: https://fitsmallbusiness.com/what-is-a-kiosk-examples/
- Wavetec: https://www.wavetec.com/blog/what-is-a-kiosk/
FAQ
The global kiosk market size was USD 20.29 billion in 2020.
The market is projected to grow from USD 22.69 billion in 2021 to USD 51.05 billion in 2028 at a CAGR of 12.3% in the 2021-2028 period.
The global impact of COVID-19 has been unprecedented and staggering, with kiosk witnessing a negative impact on demand across all regions amid the pandemic.
Interactive kiosks can help businesses manage information displays and booths for customers to use. They can help staff with their day-to-day jobs and can be particularly useful for taking payments in areas that might see 24-hour footfall.
The best interactive kiosk providers of 2024 include those that are best for self-service, payments, QSR, innovation, and custom solutions.
