The Next Big Thing By Barry Wise, Senior Marketing Consultant, Epson America
According to the 2008 North American Self-Service Kiosks study by the IHL Group, self-service kiosks are expected to nearly triple in the next four years, from roughly $600 billion in 2008 to $1.7 trillion by 2012. In addition, in a report called ICT Opportunities in an Economic Downturn, Frost & Sullivan identifies transactions via mobile phones, electronic billing services and self-service systems such as branchless banking as areas expected to do well in the downturn. These trends represent a gleaming bright spot in a downturn economy, and a real tangible opportunity for resellers out there looking for the next big growth opportunity.
There are many forces at work creating unique opportunities for resellers looking to sell and support self-service technologies. First, we have overwhelming acceptance of self-service kiosks in a multitude of customer-facing environments; from banks and airlines to retail stores and fast-food restaurants, kiosks are everywhere, and customers are getting more comfortable with them. Another reason self-service technologies are gaining momentum is due to the increasing sophistication of the systems. Whereas kiosks used to be mostly transactional or informational, now they are more intuitive than ever, complete with targeted marketing and selling functionality. In many cases, they have become a mandatory extension of traditional POS systems. The most sophisticated retailers are opening new stores with kiosk space already factored into the floor design.
Resellers looking to branch into self-service technologies should look to their existing customer base first to find out what type of solutions may work best. Savvy resellers will take the initiative, bringing together current and new vendors, to provide an array of self-service options. VARs should understand the needs of their customers and develop the ROI, based on case studies and research, around how self-service technologies increase sales and enhance customer service. Resellers need to think about self-service technologies as a complement -- not a replacement -- for current in-store systems. VARs selling POS systems to a first-time customer should include self-serve options and provide the ROI to back up the potential sale.
In some cases, a retailer or QSR operator may not even realize the benefits and options involved with self-serve technologies, giving VARs a unique opportunity to educate their customers while becoming the go-to source for an innovative new technology.
When it comes to the kiosk itself, the enclosure may change size, shape and form, but it's what's inside that counts. The majority of kiosks built today are designed from the same components used in traditional POS systems -- so VARs should really do their homework to find out what's inside the box, and sell the solutions they know to be reputable and reliable. Printers, for example, are the No. 1 reason for failure in kiosks. For this reason, it's essential to have a solid, reliable printer.
Another thing VARs need to consider is how many receipts per day will be printed and make certain they select a printer or print mechanism capable of supporting large rolls of paper, which could present a strong selling advantage for decreased downtime for paper changes. Finally, VARs should insist on drop-in connectivity, and industry-standardized components. Customers are likely to be more open if the components inside map to what they are already using in the store.
As self-service technologies emerge as the hottest trend in many vertical industries, VARs need to take advantage of this, and bring these solutions to those who are hungry for new ways to serve customers and increase sales. The potential is there.
Barry Wise currently serves as senior marketing consultant at Epson America. He has more than 25 years experiece in the areas of strategic planning and positioning, marketing communication, brand development and systems support.
According to the 2008 North American Self-Service Kiosks study by the 
