Giving Customers the Power to Decide

1
Transfer of Power

• Giving Customers the Power to Decide

2
Core Business Precept

• Marketing / Sales Outcomes
• Strategic Business Decisions
• Core Beliefs
• Base Assumptions

3
Transfer of Power

• Empowering your customer to maximize your ideal
  sales proposition.
• How?
• By creating a relevant environment
• By creating the ideal sales process through
  predefined business logic
• By eliminating impediments to your brand
• By allowing your customer to co-create the
  ideal experience

4
Before you Transfer Power

• You must challenge and question every core
  assumption.
• You must confirm your core beliefs.
• You must realize the outcome has been
  predetermined by the decisions you make.
• You must recognize changes in consumer trends and
  preferences.

5
Consumer Preferences

• Want
• Total Access
• Acknowledgement
• Satisfactory Results
• Relevant Knowledge
• Accuracy
• Fast, Convenient, Easy

• Dont Want
• Restrictions
• Lack of Awareness
• Duplicate Processes
• Information Overload
• Inaccuracies
• Slow, Inconvenient, Difficult

6
Consumer Adoption

• 2004 Facts
• 85 of Americans used self-service devices
• (Coinstar National Currency Poll)
• 205 billion of transactions went through kiosks
• Expected to exceed 1 trillion by 2007
• Self-Service Installed Base (Devices)
• ATMs gt 100,000 U.S. Locations
• Pay At The Pump gt 24,000 U.S. Locations
• Airline Ticketing gt 12,000 Kiosks U.S.
• Grocery lt 30,000 Units
• Retail lt 15,000 Units

7
What is a Kiosk?

• A product or information specialist that can
  communicate relevant information in real time,
  allowing the user to make the best informed
  decision based on the customers unique
  preferences.
• Communicates in users preferred language
• Able to complete transaction and perform certain
  tasks
• Able to provide relevant up-sell and cross-sell
  options
• Able to accurately convey relevant features
  benefits
• Able to access other networks and data bases to
  determine product availability
• Collects relevant and accurate information for
  future use

8
The Kiosk is a Modern Day

• Coke Machine
• Ubiquitous availability
• Branch Office
• Open 9 till 5
• Sears Catalog
• Three out of ten mall shoppers leave without
  purchasing
• Fotomat
• 24 hour photo labs
• A Kiosk is the ever important last mile.

9
How we see Kiosks

• Digital Prints / Photos
• Bill Payment / Cash
• Check In / Check Out
• Reservations / Ticketing
• Product Information
• Self Service Ordering
• Music / Gifts

10
Key Concepts for Transfer of Power

• Co-Creating the ideal customer experience is
  critical to experience innovation.
• Your Brand is not defined by a product but your
  customers.
• Product innovation has been replaced by
  experience innovation.
• Customer service is what you deliver customer
  support is is how you deliver it.

11
Industry Examples

• Restaurants, Theaters, Theme Parks
• Real time point of sale decision influence
• Consistent ideal sales process
• Logic based relevant up sale and cross sale
  options
• Dynamic shift of menu options to support
  objective
• Thru-put vs. Up-sale

12
IRR Impact to Cash Flow

• Data Analysis of QSR and Theatre Combined
• 350,000 Transactions
• 3.3 Million Orders
• Average Check Increase 12 - 17
• Cost per transaction lt .20 cents vs. (.45 cents
  to .65 cents)
• QSR 80 of all transactions
• Theatre 50 of all transactions
• Blended Payment 70 Cash / 30 Credit Card
• Capital Purchase / IRR gt 50 to 60
• Cash Flow on Lease Positive after 5th day of
  the month

13
Fixed Labor Cost
14
Driving Results

• Adoption Rate
• 75 QSR w/ Cash
• 50 Theatre w/ Cash
• 12 QSR / Theatre w/o Cash
• Compelling Results - Store Economics
• Increase average order 15
• Up-selling profitability
• Targeted promotions (Desserts 50 increase)
• Labor savings (6 hours per day cashier)
• Contribution Margin (increase of 20 )

15
Critical Success Criteria to Transfer Power

• Kiosk initiatives must be considered strategic
  not tactical.
• Management must be committed to the customer and
  corporate benefits .
• Kiosk must be positioned in the prime location.
• Store must incorporate kiosk signage.
• Kiosks must be hosted for first 3 to 6 months.
• Staff must be committed to kiosk success.

16
The Power is in The Last Mile

• Industry leader of computer printers spends more
  than 80 Million annually on consumer product
  marketing.
• A recent consumer survey indicated that 65 of
  consumers rely heavily on advise of store clerk
  when making decisions on consumer electronics and
  computer equipment.