Kiosks bring increased efficiency – and sales
– to supermarket delis
From April 2008
By Len Lewis
Sponsored by
It’s 6:00 p.m. on Friday, and the weekend
shopping frenzy is in full swing. The line at
the deli is backed up clear to the bakery, and
people are leaving the line rather than waiting.
Such a scenario is not unusual for supermarket
retailers, and the solution for a growing number
of them is interactive kiosks.
“It’s about increasing our own efficiency by
collecting more orders at once and having them
printed out,” says Robert Keane, a spokesman for
Stop & Shop Supermarket. “It really helps with
accuracy and it’s been working very well for
us.” The Quincy, Mass.-based company was
scheduled to have deli kiosks in half of its 400
supermarkets by the end of last month.
The rationale for kiosk installation varies from
retailer to retailer. According to Summit
Research Associates, 27 percent cite revenue
generation as a primary reason; less than 5
percent said it was to create a new channel, and
12 percent expect the installations to reduce
costs. More than half of study respondents said
providing information to customers was their
main reason for using kiosks.
Stop & Shop’s latest program combines
all of these factors. It is being
undertaken with Boston-based Modiv
Media, whose DeliVision kiosks have
processed more than seven million orders
since their first deployment in 2006.
“DeliVision can provide a new way for
customers to shop,” says Christine
Dorman, senior vice president of
operational and strategic
initiatives
for Stop & Shop.“And it gives us an
opportunity to enhance customer
satisfaction and increase our
efficiency.”
Shoppers enter their orders using the kiosk’s
touch-screen; they can also scan their Stop &
Shop loyalty card to see what they’ve purchased
previously, and they have the option of
selecting “give me what I got last time.”
Moreover, the kiosks offer the potential for
electronic cross-merchandising by making
customers aware of featured items in other
departments. Although the printed tickets
include an estimated pick-up time, the store
P.A. systems are also being used to alert
shoppers when their orders are ready.
In a further bow to convenience, Stop & Shop is
experimenting with location by placing the kiosk
near the entrance of its store in Pembroke,
Mass. “This way, people don’t even have to go to
the deli,” Keane says, “just go shopping until
their order is ready.”
While specific figures weren’t available,
retailers are reporting an increase in per-trip
purchasing when the DeliVision kiosk is used,
according to Modiv Media president and CEO
Robert Wesley. “Because shoppers don’t have to
wait, they are more likely to order additional
items and can quickly fulfill customized orders,
including specific brand, weight or cut,” he
says.
Since convenience and speed are key elements,
the system queues up deli counter requests and
kiosk orders so deli employees don’t have to
pick and choose which ones to fill first.
Simply having a kiosk doesn’t guarantee success,
however, and ADUSA, a Lombard, Ill.-based
consulting firm, has outlined several
fundamental procedures for their implementation.
Employees should monitor the printer to make
sure it’s not out of paper or out of order. Some
retailers have installed an enunciator on the
printer that sounds an alarm alerting employees
to new orders or problems.
Deli managers should make sure that customer
touch-screens are properly calibrated and, if
possible, monitor a customer’s interaction with
the kiosk to note any problems.
Managers should undertake periodic price checks
to ensure accuracy, and out-of-stock items
should be marked as such in the kiosk system to
prevent customers from ordering them.
Some retailers have employees dedicated solely
to kiosk order fulfillment, particularly during
peak periods.
The order number should be prominently displayed
on the package so customers can easily identify
it when they return to the pick-up area.
Customer incentives
ADUSA also suggests that providing customers
with special incentives (such as coupons) can
increase kiosk use. In order to reduce the
number of cases where customers forget to return
to the pick-up location, ADUSA recommends using
the store P.A. system to announce when orders
are ready. If, at the end of the day, some
orders have not been picked up, ADUSA suggests
reusing the product in sandwiches, salads and
party platters.
Modiv recently teamed with Motorola to offer a
next-generation portable shopping assistant to
Stop & Shop customers. The hand-held “easySHOP”
device not only tells customers when their deli
order is ready, but gives them a scan-and-bag
option for items purchased in the rest of the
store. The system, now available in 100 stores,
also enables them to receive instant price
checks and running totals.
Dorman expects easySHOP to give Stop & Shop
customers “more control over the shopping trip
while making efficient and smart buying
decisions through relevant product promotions
and information.”