Self-service technology has created a wealth of opportunities for retailers to serve customers. A panel at the Hi-Tech Retailing Summit during the CES show in
Thanks to the progress that has already been made by self-service pioneers, such as
"Everyone is comparing you to
Diversity rules
The four panelists explained the diverse ways self-service technology has enabled a more successful retail customer experience, including Maeve Duska, chief marketing officer,
USA Technologies provides a cashless payment service for small-ticket, unattended retail that includes remote machine monitoring.- Lululab, a skin care retailer, uses artificial intelligence to conduct skin analysis and recommend skin care products. A camera uses light-correction technology to measure zones in the customer's skin, then conducts an analysis of age, pigmentation, wrinkles, redness, pores and other issues. Using AI big data analysis, the software recommends products suitable to the customer.
Position Imaging Inc. uses computer vision and laser guidance to expedite item retrieval for customers who buy online and pick up in store, known as BOPIS.Aetrex , a provider of foot-scanning technology and orthotics, uses computer vision, sensors, AI and machine learning in a foot scanner to provide customers data about their feet, such as size, length, width, height pressure, arch type and more to determine the best shoe fit. The company then uses 3D printing to produce a custom orthotic.
Duska said digital payment technology has allowed retailers to bring their offerings closer to where consumers already are in their daily lives through self-service selling opportunities. She said self-service technology allows retailers to compete with Amazon.
"Retailers aren't thinking about this (opportunity) by and large," Duska said.
Duska also reinforced Wichter's introductory remarks by noting that because of pioneers in this field, like
"They want to engage with technology over humans," she said.
The study also found that 86% of the respondents want to purchase health and beauty products using unattended technology.
In addition to winning more sales, Duska said self-service devices, such as kiosks and vending machines, provide a point-of-sale advertising opportunity.
"It is a bit of a billboard when you have it where people are," she said.
Duska did not sidestep the challenges that unattended retail involves. In order to scale a business using unattended retail, she said inventory replenishment and equipment maintenance are imperative.
Wichter said retailers also need to consider the fact that e-commerce sales are higher when the retailer also has a physical store. Self-serve kiosks, he said, provide a physical presence.
What about ROI?
Much of the discussion focused on the area that retailers are most concerned about when considering investing in self-service: return on investment. Duska said ROI can be measured by improvements in revenue, margin and efficiency.
Hill of Position Imaging said ROI can be measured by comparing the monthly cost of the automated in-store retrieval process, with that of in-store labor. He noted that one of his retail customers delivered an average customer wait-time of 15 seconds.
Schwartz of
Another benefit of the technology, Schwartz said, is it generates customer data that the retailer can use for marketing.
Data privacy concerns
The panel also addressed the hot button issue of data privacy.
Choe of Lululab said data privacy is not an issue for that brand's customers since the data is merged and therefore anonymous. Once the service is provided, individual customer data is discarded.
"Data is not owned by the retailer," Choe said, referring to customer provided data. "It's only owned by the customer."
Wichter said customers have shown they are willing to share personal data if they believe doing so will benefit them.
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