2013.04 – Evernote Fridge | Amazon Coupons | Mobile Pay

T9000-Standing-Troy260

Evernote Fridge – As time goes on, client channels that have to be addressed by retailers continue to pile up, splinter and move all over the place.  Consider the prototype Samsung T-9000 refrigerator from Samsung.  This sleek modern refrigerator sports a 10 inch control screen built into the door.  The screen’s interface has an Evernote widget that would allow proud owners of this gleaming device to add items to their grocery list right on the door.

As Evernote is a note taking utility already in extensive use with the kind of consumers that would buy a refrigerator like this, it’s a very thoughtful addition and something that might actually justify another screen in the house.  Additions to a grocery list on the door can be synchronized with your Evernote account via a wifi connection on the unit and would be updated up on whatever device(s) are connected.  Given the add-on applets to evernote like Skitch and Evernote Food, you have to think a smarter grocery list app might not be far off .  This is a clever idea, and another challenge/opportunity for retailers who are working to engage clients at any point in the decision making process.

Amazon Coupons – While we can’t buy groceries at Amazon in Canada yet, they can in Seattle from Amazon Fresh.  I found a recent tweet on their coupon options particularly interesting.  Coupons are not used as much in Canada as the US, but if an Amazon were to come on the scene, the ability to leverage coupons like this starts to look very attractive.  If all clients have to do is go through the list and click to add the coupons to their account and then select the items – well why wouldn’t you do it?

In contrast, manufacturer’s coupons are not used as much in Canada.  Most of us can’t or won’t remember to bring a paper coupon, and we don’t want to hold up the line at a checkout.  Most Canadian retailers do not have an interface to a central clearinghouse to scan coupons as far as I have experienced in my work with retailers.  The acceptance of coupons remains relatively manual.  This exposes retailers to potential coupon fraud, expired coupon or misredeemed coupon losses, additional costs to manage and redeem manufacturer coupons.  For these reasons and more, I’ve noted a distaste for coupons and a preference for price matching policies that are simpler to administer and only really used by the zealots who will do anything to save a few dollars.

Capture

Canadian retailers are missing an opportunity and perhaps exposing themselves to a real competitive disadvantage if online providers get a simple process to leverage coupons.  Effectively these retailers can sell for less, and they are still getting their higher price via CPG redemptions.

I have an answer to this, Canadian retailers; send me a message if you are interested in how it can work.


Capture1Mobile Pay
 -  While I was working in NCR booth at the National Retail Federation Big Show in New York last week, I saw a lot of really interesting ideas but I found one of the new solutions to be particularly  interesting.   While mobile payment is a really hot item everywhere these days, some of my colleagues on the hospitality side have taken things to a new level.

All of us have had the experience where we are in a restaurant and we want a refill but the server is nowhere to be found.   Instead of trying to catch the server’s attention, imagine being able to pull out any mobile device with a browser, connect to the restaurant, pull up your tab and order another beverage.

At the end of the transaction, instead of going through the whole:  ”paper bill dropped at table – put card on paper bill – server takes card/ brings back machine or receipt” routine, you could just scan a 2D code on the bill, add your tip, pay and leave.  That’s exactly what Mobile Pay can do.  The system even allows you to rate your service right on the mobile device and even mention your experience on social media.

It’s a simple, but very intriguing solution.  For now this is offered in the US at a number of venues, but I would be very interested in trying it out at home.

2013.01 | 3D Parts, Sail, SilverCar

teenage engineering3D Parts Printing - As 3D printing becomes increasingly mainstream, we can expect to see more companies taking advantage of that to differentiate themselves.  Swedish Synth Company Teenage Engineering allows customers to print their own parts from CAD files on their website.  This is a wonderful use of the technology and while keeping clients happy, allows TE to spend their time on their next product instead of fulfilling low profit, manual, but very important requests for small replacement bits for currently installed product.  I would love to see more of this!

Capture2Sail is Done – Verifone Sail is discontinued already.  Released last year as a dongle for smartphones to be used as part of a service to accept payments aimed at smaller retailers, Verifone are apparently backing away from Verifone Sail as they say the segment is not viable in the long term, though the website is still up at present.  Curious challenge since this segment is the entire business model for Square, though their partnership with Starbucks provides an out for them to other business models.

unnamedSilverCarSilverCar is a car rental service offering one kind of car - Silver Audi A4s.  That’s it.  Clients use the website or mobile app to book their reservation.  Clients build a profile that includes not only the usual information like dates and times for rental, but addresses that they plan to visit, and even their favourite radio stations.  When clients get to the airport, they enter in their information on their mobile and their car unlocks with all of their information uploaded to the vehicle.  On return, instead of dealing with a mobile wielding attendant, the app automatically charts out all of the costs and passes the receipt electronically.  Looks like they are only operating in Dallas at present, but will be very interesting to see how they make this work.  It could change car rentals everywhere.

2012.38 | More Channels are Better

The Government of Ontario recently announced that it will be removing their network of 72 ServiceOntario Kiosks installed across the province.  The kiosks have sat unused for a number of months already as anyone who lives in Ontario can attest.  They are placed in many high traffic shopping areas across the province, and were strangely more noticeable these past few months without the usual line of 5-10 people around them.

Unfortunately it appears that the kiosks were targeted by criminals using skimming devices, and in reading between the lines, it appears that the government officials got very nervous about the potential for both payments fraud and for the security of the data of the citizens of Ontario.

As anyone who works in retail or banking can tell you, unfortunately there is always a certain level of fraud you can expect to see across any network with payments.  Pinpads are stolen or compromised from point of sale locations every day.  Attempts are made to skim the information of customers from ATMs.   So it goes.

While there is no way to eliminate fraud completely – electronic or otherwise, there are certainly options to minimize fraud on self service devices.   Admittedly, there are extra costs involved in taking precautions, and those will have to change over time as technology and fraud tactics adjust, but that’s really just part of doing business with self service, assisted service or any other consumer facing situation.    As with anything in life, it seems a shame to allow a few malcontents to ruin something that is helpful and useful to so many.

Unfortunately if you add in political posturing to this equation, it’s not terribly surprising that a government official will claim he’s protecting the public so that he can put a check mark of benefits he has provided to the voter on the mailer he gets Canada Post to send us every quarter.  That’s the game politicians have to play, but I find it surprising that any person who  walks around with a bank card, a credit card, or even a library card in his wallet can express his concern that he will not support a system that is not ‘foolproof’.  No system is completely foolproof by definition.  If you look at the comments from to the article in the Star, I don’t see any comments from people being concerned about their user data or financial data.  The comments revolve around their preferences for kiosks, people, or online, and some even make suggestions on how to fix the issue.

I used the kiosks for years and found them useful, but this year I changed over to their online service to get my new plate stickers and I found it very easy to use,  I had my stickers well before the renewal date, and I avoided lines as well as a trip to the mall.

That said, consumers increasingly expect to interface with organizations in the channel of their choosing.  I prefer online and mobile transactions, but my wife likes to transact with a real person.  I have friends who prefer the kiosk for whatever reason.

Today’s forward thinking organizations provide as many channels as are relevant and possible for consumers to ensure that they get all of the services they need.  That objective should not be limited to retail, banking or travel.  Government is a consumer facing body, and if they don’t offer the services consumers want, they will eventually face a consumer backlash or miss out on a potential cost savings or revenue benefit for their organization.

As far as the kiosks go, the implementation of a new network of kiosks is a huge investment.  With that behind them, it seems a shame that the government would just throw it all away in the name of security and savings.  Why not place the kiosks in ServiceOntario centres to reduce the load for overworked staff and to reduce the queue lengths?  The units are less likely to have security issues if staff are nearby and they could be made inaccessible after hours to further avoid tampering.

While the online option is terrific and probably growing, ask any one of the dozens of people in line at ServiceOntario sites if they would rather use a kiosk right now or wait 20 minutes to talk to a live person and see what they say.  In the end, it’s all about consumer choice, and removing a choice is a shame.

2012.36 | CIBC Mobile Payment

CIBC recently released a mobile payment app. I was very interested to see the details released, and I encourage all of the other banks and credit card companies to follow their lead. I would love to try the app if I met the criteria but at present I’m not a CIBC card holder.

This solution is certainly a welcome step along the evolution of the mobile wallet, but it’s not going to convert everyone to using their mobile phone to pay everywhere.

I see two main challenges to the success of this particular solution as it exists today: Barriers to entry, and perceived benefit.

Barriers to entry will drive down usage. To use this payment infrastructure, potential users have to be: CIBC Visa cardholders, Rogers Mobile Subscribers, and Blackberry Mobile Device owners. This immediately limits the population of potential users. Potential users will also have to register for the Rogers SureTap service, obtain a special Rogers SIM card with NFC capabilities (through the mail or at a store) to be enabled with their mobile account , download the CIBC mobile payment app from Blackberry App World, and configure the app for use.

I personally have no problems with doing any of these things, and I might do it if I was a part of the targeted user group, but then I’m not representative of the general population when it comes to technology. The vast majority of the population either have no interest in doing some or all of these things, and/or will have no idea what I just wrote. It doesn’t sound like much, but it’s a HUGE barrier to entry. We just bored thousands of users out of doing this. There are too many services, too many steps, and too much explanation of all of the plumbing. If the mobile device doesn’t come with this thing ready to go, most people simply aren’t going to use it.

The perceived benefit of this solution is also uncertain. If I go to a store today, let’s consider the experience. First, users have to discern whether the store takes this form of mobile payment. If you ask a clerk at the store, they probably won’t know or will give clients an incorrect answer.

Assuming the consumer is savvy enough to look for the contactless logo in the provided video, what is the benefit of using one’s mobile to pay? If your average person is shopping, they usually have their wallet with them. Mainly because people still carry them, and they have things other than credit cards – drivers licenses, ID, health cards, and more. (Don’t believe that’s a problem? Check out the wired special on this very subject.)

In order to pay in the traditional way at the point of sale, the consumer pulls out their wallet and their card, inserts the card in the pinpad and enters their pin. If they have a contactless card, they just tap the pinpad with the card.

In order to pay with the new mobile solution at the point of sale, the consumer pulls out their mobile, unlocks it, goes to the CIBC mobile payment app, puts in their pin if they have one in the app, and then taps their mobile on the pinpad.

Q: How is this easier than using a card? A: It isn’t, and it doesn’t add anything to the experience.

The main benefit I see is not having to bring a wallet if no ID is needed (unusual), or using the mobile in a pinch.

This is the first iteration of the solution. I fully expect this solution to expand to other handsets – they already mention Windows Phone, and perhaps to other CIBC cards. I’m sure the solution will also evolve and be offered with brand new handsets when consumers purchase them.

Moving beyond the challenges of this app, I am one hundred percent behind it and what it’s trying to do. There is no mobile wallet today that is universal, that works with every card, that is built into every phone when you get it, that works with every platform, that works at every pinpad. That nirvana isn’t coming anytime soon.

What we do have today are organizations like CIBC, Visa, Rogers, RIM and others that are well-intentioned and forward thinking in trying to get a solution like this off the ground. This is a change that will take place over years. Steps like this and others will get us there. If you have access to this solution and can do it – try it out. If you are getting a new Blackberry and you have a CIBC Visa, why not get all this set up when you buy it? Others seeing this solution in use will drive familiarity. Usage begets usage if the benefit is there.

The only way for us to get to the solutions we want is to embrace the solutions that get us part way. This is not easy – just ask Google. Let’s all be part of the bleeding edge and pull mobile payment solutions along.

2012.35 | Passbook Opportunity

When I first saw the presentation of Passbook at the iOS 6 press event earlier this year, I found it intriguing.  Apple had finally chosen to dip their pinky toe into the world of electronic wallets. I’ve watched so many other organizations with good intentions make this attempt, so why not Apple?

Passbook is intended to be your wallet on your iOS – or at least your billfold.  It’s the default Apple app where you can assemble and keep your loyalty cards, your coupons, your gift cards and your tickets.

Having all of those items in one place sounds like an improvement.  Even better, your iPhone can automatically pop up an indicator on your screen that enables a shortcut to Passbook and your usable item if you are near a store or it is time to use your ticket.

The benefit to the user here is to simplifying the process to use your mobile device as a wallet.  As mentioned many times, redemption of cash, coupons, tickets and loyalty cards needs to be dead simple and quick.

If Passbook works as advertised, one does not need to unlock the device, find the right app, and then look in the app for the ticket, coupon, or loyalty card.  For example, a person can connect a Starbucks card to Passbook and when they are near a Starbucks, they can get a reminder on their locked iPhone screen that they can touch to immediately access their Starbucks card.  If I have a flight on Air Canada, my ticket pops up on my screen when it is  time for my flight so I can use my ticket.  If I’m looking to use a gift card, I don’t have to look for some retailer app I never use and then navigate through a non-standard menu on their app to find my gift card.

That was the promise.  Unfortunately, based on my usage of Passbook over the past few weeks, I find it to be a sub-optimal electronic wallet in its present incarnation.  There are a number of reasons for that:

  • What is this thing?  Not all of the millions of iPhone users watch the keynote presentations on iOS updates.  Passbook is a lonely unexplained icon on many devices from my experience with friends and colleagues.  If an iOS user doesn’t have an enabled app, and there still aren’t many Passbook enabled apps in Canada, there is no indication of how Passbook is supposed to work.  If Passbook is selected, the user is presented with a little screen that points you to the app store that shows Passbook enabled apps.  The link is nice, but how about a link to a video or a page about  Passbook benefits at the most elemental level?  How about a link of how to set it up?  Most people are not going to try to hunt down what something is or how it works.  Why should consumers use Passbook instead of the app from their retailer?  Passbook has to have a clear and simple benefit over their current process, or consumers won’t even try it.  It’s not clear today.
  • Adding stuff to Passbook is not simple. Once users understand what Passbook is supposed to do and you  ownload a Passbook enabled app, the way to leverage Passbook with that app is not always clear.  For example, when I installed the Passbook enabled Starbucks app, I had to select my card in the app, choose Manage and add the card to Passbook.  When I did this, it asked me for favourite stores so that Passbook could provide quick access to my card, but I didn’t have time to set my parameters, so I closed the app.  When I went back into the app later, I could not  figure out how to add favourite sites.  There was no help section on Passbook within the app, so I had to figure it out through trial and error.  We can’t blame all of this on the Starbucks of the world or their app developers who are trying to use Apple’s Passbook App. There should be an ability in the Passbook App itself to scan the apps on the phone and allow users to pick from a list of potential items to add to Passbook.  There should be settings in Passbook to allow us to make any adjustments to how Passbook is used. Setting up each card you want to use and interconnecting with each retailer app is needlessly convoluted and will lose the majority of users.   At install of a new Passbook enabled app, Passbook should tell us we can use Passbook and ask how we want to do so.
  • Location based notifications are inconsistent – One of the biggest potential benefits of Passbook is that it will pop up automatically when we want it.  After I set it up correctly, it still took days before Passbook actually recognized when I was near a Starbucks store and actually gave me the notification of such.  I have an iPhone 4.  Perhaps this will be better on my iPhone 5, but lots of people use older hardware.  If the app is not consistent and accurate about bringing up the card, I have to unlock and find Passbook.  That’s no better than using the Starbucks app.  I’m not saying this happens to everyone, but I WANT to use it and I find this frustrating.   Good luck with the less nerdy demographic.
  • Accessing Passbook via popups was not explained – Once I finally got the notification that I could access my Starbucks card in Passbook, I was baffled as to how to get the card to come up on the screen.  I’m embarrassed to admit this as I’m a relatively savvy iOS user.  I swiped from the top.  I swiped across the screen.  I tapped it.  Then it went away.   After conferring with friends and looking online, we finally discovered that you have to touch the icon and swipe it across to have Passbook pop up.   This isn’t a bad system, but how about some explanation in the Passbook app?   How about a message the first time it pops up to explain it?  This swipe method is not intuitive to most users I’ve conferred with in my decidedly unscientific study.
  • Passbook doesn’t refresh on the fly - When I use the Starbucks app, it refreshes my gift card balance after I use it.  I can’t tell if my coffee was free or not! Passbook doesn’t.  This is less helpful than the retailer app.  Not more helpful.
  • Is this secure? As someone who works with retailers and is involved with payments, I assure you that a lot of time is spent on security.  If I swipe on the notification for Passbook it will bring up my Starbucks number and I don’t have to enter my iPhone security PIN.  If I leave my iPhone somewhere, someone could theoretically troll around and when they are near a Starbucks, my card will come up.  They could get a free cup of coffee or two if I didn’t notice.  If they are more insidious, they could take an image of my screen and use it to pay a little at a time.  Not entering the iPhone PIN is convenient for using Passbook, but I think it should be a configurable option.

While I’m sure all of these criticisms don’t sound like it, I’m glad Passbook exists.  I thank Apple and Starbucks, Cineplex, Air Canada and all of the others for trying to integrate their apps.  I want to try them.  I like using the apps. I want them to succeed!

I think Passbook is a great idea.  I fully comprehend the complexity of allowing all sorts of other organizations and developers build apps to leverage Passbook.  Getting consistency will be difficult.  There will be problems.  Operationalizing a wallet into retail is hard for anyone and everyone.

Apple needs to put together a very specific program about what the Passbook experience should be with feedback from retailers.  Keep it simple.  Make it easy for people to use it and show a benefit to the users.  If that happens, I think Passbook can make some headway.

I hope this input is useful to the developers of Passbook and I look forward to using it as it improves.  It’s certainly no worse than many other mobile wallet schemes I’ve seen.  But it’s no Pay with Square.

2012.34 | Square Canada | Watch2Pay | Passbook Canada

Square Canada – Square is now available in Canada.  Now small businesses in Canada who want to take credit cards or operate a very simple cash register on an iOS device can take advantage of the Square offer.  Can’t wait to see which Canadian businesses show up on their Canadian directory of users.   Should change payments in Canada as we know them if they use Pay with Square. [Interesting point - turns out they are just using their MSR dongle and not a chip and pin solution to read the card.  Not ideal in Canada where EMV is the norm, as retailers bear the risk of an MSR (non chip) transaction!]

Watch2Pay – Watch2Pay, which sounds a bit like a wig for your watch, offers an NFC enabled watch.  Basically, one purchases a watch and it includes a PayPass NFC enabled Mastercard as well as a MasterCard Watch Card.  The Watch Card looks very much like an old school SIM card but is actually an NFC chip.Plug the Watch Card in the back of the watch, and you can use your snazzy new watch to pay anywhere Mastercard PayPass enabled payments are available. Watch2Pay is currently available in the UK and Poland, and appears to be coming soon to the US and Russia.

Passbook Canada – As an iOS user, I’ve been using Passbook where I have had the opportunity – mainly as a Starbucks customer. So far in Canada,  Cineplex, Starbucks, Porter Airlines, Canada’s Wonderland, Living Social, Valpak Coupons and Air Canada have released apps that support Passbook.    If you know of more, highlight them in the comments.  I’m also interested to hear experiences with using Passbook in Canada.

While it works as a place to keep your loyalty cards and tickets, I don’t find that Passbook is working for me.  Tickets and cards are supposed to be easily accessible via alerts based on your proximity to where they would be used, avoiding the need to unlock your mobile, open an app and find the applicable item.  So far, it’s been a mixed bag on usability and functionality.   I have another post in the works where I’ll share my limited experience with Passbook.  For now, let’s say I agree with Rene at iMore on Passbook.

2012.29 | LevelUp | Drive Thru | Glass

Paying with LevelUp – The LevelUp payment system recently announced a new payment dock.  This payment system has users link a credit card to a 2D barcode they scan on a special dock at participating retailers. Their new dock now apparently allows for NFC as well.

NFC is an interesting choice given the ongoing non-adoption of NFC on many mobile devices.  It’s been next year for sure since 2005, and the iPhone 5 didn’t have it, but hey, the Nokia 920 looks incredible, as does Windows Phone 8, and they offer NFC, so you never know.

It certainly doesn’t hurt to have many options given the ongoing uncertainty around mobile interfaces and payment infrastructures.  Bluetooth is a good option to keep – never know when that might show up.  The new dock sure appears to hide a Genesis Imager under that white case, does it not?

Drive Through Grocery Pickup – Tesco recently announced it is tripling the locations that offer click and collect for orders.  Online grocery shoppers can opt for picking up their orders at the store in a special drive through area instead of having to be at home to accept their order during a specific delivery window.

It’s interesting how demographics, geography and timing play such massive roles.  Publix decided not to pursue this channel at the beginning of 2012 after a 2 year pilot at three sites.  This appears to be  solution that has to have the right fit and it may be difficult to find.  It’s certainly a polarizing subject.  There are many interesting comments for and against on a retailwire article on grocery delivery/pickup.

Google Glass – There was lots of talk back in the spring about Google’s Project Glass.  For the uninitiated, these are a set of glasses that effectively overlay a smart phone experience on glasses so users get the benefits of a smartphone without the smartphone.  The user interface elements are ‘projected’ over real life in front of your eyes.  To date, most of what has been shown to the public has been concept videos and a live demo at Google I/O.  Wall Street Journal’s Spencer E. Ante – a regular human outside of the Google Hive got to try them out.  Sounds like it’s not ready for primetime, but that’s how new tech evolves!  This is still a technology that should be watched one way or the other.

2012.27 | Starbucks and Square

Starbucks has already blazed a trail with their current iPhone and Android mobile payments app.  Yesterday’s NYT article indicating that Starbucks will be moving to Square for payments processing puts them even further along the curve of mobile payments.  This is a watershed change in the way that payments are processed in a national retail chain environment.

The article in the Times indicates that Square will process payments for Starbucks in the US, and the description of the implementation indicates that the Pay with Square (previously known as Card Case) application will be implemented as a future phase of this solution.

For the uninitiated, here is how Pay with Square works today:

To use the solution, customers have to have an iOS or Android mobile device with a Pay with Square App installed and be a registered Square User.  That registration includes the users personal details, including a photo, and a credit card connected to the account.  Customers then register with certain vendors where they wish to be recognized.  (Like having a tab at your local establishment)

When the customer goes into a store that uses Pay with Square, their proximity to the store causes the mobile app of the user to register that customer with the point of sale device in use at the store.   A customer would place their order, and at the point of tendering, the cashier can see a list of customers registered in the store based on their proximity.  The customer identifies themselves by name, and that person is selected by the cashier based on validation of their image on the screen of the point of sale register.  The payment is placed on the users card and a notification of purchase is sent to the customers mobile app.

The customer has paid by name and not pulled a wallet or a phone out of their pocket.  They simply walked into the store, asked for a Latte and said, put it on my tab, my name is Pete.  No cash, no card, no mobile, no PIN, no signature, no paper.

Starbucks may use the Pay with Square mobile apps and operate in the same way indicated above, or they may link this functionality to the Starbucks app.

Either way, consider the impacts of this partnership:

  • Square will obtain access to millions of payments every day.  Starbucks already processed 42 million payments over 15 months with their mobile app.
  • This no scan solution is a perfect fit for Starbucks clientele, product mix, and transaction types.
  • The no scan solution is a logical extension of the current mobile app and users accustomed to scanning their phones will easily transition to this payment method.
  • Non-technical users no longer have to be concerned about anything beyond registration.  They can get help with that and proceed with confidence where they may not have paid with mobiles.
  • No cards, no phone scanning, no pins, no signatures could speed transaction times.
  • eReceipts may finally mean the end of treat receipts and postcards in the mail for the free  beverage after every 15 purchases.
  • Millions of users could transfer to this mode of business, driving demand from consumers to simplify payments at other similar establishments.

Of course, the implementation of this solution opens up some other questions:

  • Pay with Square’s Retailer Solution is currently an iPad based app solution.  Will there be an API ported to the current POS HW/SW solution?  Moving to an all iPad solution seems unlikely given the sophistication, customization and inter connectivity to other systems of a POS solution in place at a Starbucks.  Moving from a POS for order taking to another device for payments would be sub-optimal. Current MSRs could potentially be used.
  • Will Square look to integrate with pinpads in future?   For EMV payments, hardware isolated pinpads are required.  Current design uses only an MSR.
  • What if someone doesn’t put a valid photo on Pay with Square?  Will the barista have to turn them down?
  • What if there are too many people in the store with the app.  Does the app have a sort function by name?  If the list is too long, it may make life difficult.
  • How will this interface with Apple Passbook expected in iOS 6?
  • What sort of fraud can we expect?  For a coffee purchase it doesn’t seem worth it or likely.  If you were selling HDTVs, this would be more concerning.

No matter what happens, this mode of payment acceptance is moving beyond experiment now, and we’ll soon see if it is fully accepted by the public.  Expect others to watch this closely.  This is a significant departure from the current paradigm.

2012.08 | Interactive Screens – not Kiosks

Interactive kiosk solutions have been a part of retail for as long as someone was able to stick a computer in a box.  While mobile is definitely a phenomenon in retail, we are far from saturation on kiosks as self service solutions.   In fact, there has never been a better time to consider a self service kiosk solution – and those solutions don’t have to be limited to a little square screen on a stick.

The technology options available to power these solutions has improved tremendously and there are an increasingly wide range of form factors, as well as peripherals of all sorts to serve pretty much any market or need imaginable.    In fact, I would suggest that the use of the term kiosk is outdated.  It refers to that little square screen on a stick or in a box from a decade ago.

The days of a cobwebbed kiosk in the corner are gone, and new technology means a new generation of interaction in sites.  Consider technology and societal changes that make these new interactions possible:

Larger format screens – 50 and 60″ LCD devices are now available for the cost of a regular old 15″ solution from a number of  years ago.     This reduced cost makes it more affordable to implement a kiosk that has some visual appeal, lots of space for visual elements, and more easily blends into the customer experience in the store than the technology of years gone by. Projection options are also finding their way into the mainstream – meaning a whole new opportunity for engagement and new placements of interactive experiences.

Increased Use of Touch –  - increased availability of touch interfaces means more people are comfortable with them.  If you think back just a few years, there was far less use of touch interfaces.  The release of iDevices, touch on Blackberries and various tablets and eReaders means that a comfort level has grown that was not there before.  This increases the willingness and comfort of the average consumer to interface with a touch system.

Pervasive Technology – There is now a generation of young adults who have never lived without mobile phones or the internet.  Where for many years one saw customers saying they “don’t want to use that thing” or “I want to talk to a person”, there is a whole new generation of shoppers are hungry for different touchpoints and shopping experiences.

What works with interactive kiosk experiences?

With the technology to enable incredible interactive experiences in any place where stores can exist, it is important to consider what experience is being provided.  I have seen a number of interactive experiences requested over the years, and there are a few learnings I can pass on.

1.  Buy-in – If an interactive experience in a retail setting is going to work, then all stakeholders have to be invested in it. If executives, store management or store staff don’t believe in the solution then it will fail.    Any half-hearted solution will not work.  It is like any other group initiative.  Without the conscious involvement, understanding and enthusiasm from the team, whatever solution you have will not work.  It will be doomed from the start.

2. Functionality – The solution has to have a benefit to all who use it.  A benefit for the user, the store staff and the business in general.  For the customer it could be helping them avoid a line, or get help without having to ask a staff member.  For the store staff, it could help them with capacity. For the business, it can keep customers in the store instead of leaving, it could upsell them, it could give them an experience that will keep them as a long term customer.

As an additional detail, my experience has been that transactional systems tend to get more use than informational ones.  Where some customers may be interested in reading product information in great details, there is greater usage and more direct measurable benefit to the business when someone wants to buy something and can do so directly on the solution.

If customers can look at product information, that’s great, but if they can buy the product and have it sent to their home, they don’t need to consider a second interaction.  They can do it on the spot.   Bottom line in my opinion – no ROI – no interactive solution.  If it isn’t driving business, it’s taking up space.  Don’t implement technology for its own sake.

As a personal aside please don’t waste time with the following:

  • e-flyers – I’d like someone to show me how this pays off.  Why would I scroll through an e-flyer at a screen in a store?  I will do it at home, but that is a different user experience.  It is always faster to scan through a paper one in a store, users have no audience waiting to use the unit, and often the paper flyers are sitting in a giant pile right next to the screen.
  • games – I’ve never understood why I would want to play a game on a screen in a store or how that would benefit a retailer. I’m also annoying others who may want to use the screen to find a product.  Exception – if it’s a contest where I get a discount and it’s quick.
  • in store wayfinding – Nobody trusts these in stores anymore.  In a small store there is no need for them.  In a large store who keeps this updated?  Stores change around so much, and I doubt that planograms are updated and automatically interfaced.  It can also take longer to scroll through than just walk through the store.  Exception 1 – if there is an automated interface to constantly updated planogram system. Exception 2 – if there is a version that works with your mobile device Meijer Findit – maybe.  Just put stuff where we can find it.

Based on what I’ve seen, these items are add-ons designed to flesh out a solution, but it never feels useful or natural to me, and drives out more value more than it adds.

3.  User Experience – If the customer doesn’t at least find the experience useful, they won’t use the screen again.  I’m not a UI designer myself, but self service best practices should be followed that suit the application, and having an experienced consultant design your interface is well worth the investment.

Examples of best practices include using as few screens as possible to get a user to completion of their task, using buttons and text that are easy to see and read, and minimize and simplify data entry unless absolutely necessary – especially duplicate requests.  Providing a simple and convenient experience will draw them in and bring them back.

4.  Ongoing Support – If the solution isn’t working, it’s not getting used.  If it’s not getting used, the benefits above are not being realized.  If people see it not getting used, it will be used even less until it is completely ignored, negating the initial intention of having the solution at all.  Ongoing support means making sure the hardware is working to it’s full potential.  No failed peripherals, or a paper sign tacked on it saying out of order.  That can’t happen.

Just as importantly, content must be accurate and updated where relevant.  If a kiosk never changes, unless it fulfills a very specific and key function it will die.  Retailers would never consider leaving their stores the same through seasons – they are always updated with fresh ideas, programs and products.  Interactive solutions must be part of any store updates – the graphics, the videos, the interactions must all keep pace.  People are always engaged with new content – we all know this.  Make sure the solutions are constantly updated to pull people in.

This is a key element that gets missed.  Project teams move to the next new thing, funding is pulled to other new projects, and solutions die.  Don’t let that happen.

5.  One Brand Experience - Retailers understand that providing a seamless single experience to retailers across all parts of the business makes it easier for consumers to buy, which means more sales.  Now that barriers are being removed web stores and brick and mortar stores, allowing returns across the banner, for example, customers are expecting this barrier removal to continue across all interface points.  As each channel becomes easier to use, customers are likely to try out the new ones.  If a customer considers an interactive screen in a shopping centre to be a window into their brand experience, they are increasingly likely to use it.  It’s no longer a separate thing – using this interactive solution should be part a consistent brand  experience.  Try as much as possible to make that experience consistent and targeted to those consumers as much as possible.

This is by no means an exhaustive list, but these are key elements to making a solution really and truly work for the customers and the retailer.

Where is this going?

There is no way to know where the future takes us, but here are a few of my thoughts on the future of interactive screens – hitherto known as kiosks:

Every screen is interactive – and it should be.  Currently there is lots of digital signage out there, but the communication is only one way.  It is showing you messages and is not open for input.  The millennial cohort and younger generations are growing up with interactive screens.  Not having input doesn’t make sense to them.  Expect walls of digital posters in stores to be enabled for interactivity in the future.  During the slow hours of the day, they show brand and product messaging.  At busy times, they can be used to engage customers on selecting their best mobile plan, finding out their balance, or contacting a service rep.

Every interaction is personal - and it should be.  Future interactions should be filtered to get to the point for specific clients.  Allowing customers to identify themselves via loyalty cards or some other simple format means that the messaging and interactions can be customized.  This can minimize screens and touches and provide a streamlined experience.  It could mean language, recognizing services or products the customer has purchased or identified to provide assistance or upsell on them, offers specific to that customer, or even providing access to profiles so that customers can validate how they want to be dealt with.

Screens can be anywhere on any surface in any place.  Large screens are pervasive, but expect projection and other technologies to start to show up as cost drops and brightness increases.  They can cover large or irregular areas, they can provide big screen surface with a small device, and they provide flexible solution options. Starbucks had a good example of this in Toronto and Vancouver last year.

Screens will interact with each other.  Everyone knows we have screens in our pocket, but some content works better in a larger format.  It is technically possible to leverage both together in a store environment in myriad different ways.  Why not have a pre-ordering menu on a mobile device to stage an order that is passed to an in store device to order?  Why not provide a message that an order is ready to a mobile device while customers wait in the store?  Why not enable selection of items for purchase of out of stock items instore from the website, and then complete the payment transaction on the small mobile screen for privacy and security?  As the general public matures technically and they see benefits, these interactions will catch on.

Once again, I think the time has passed to call these interactive kiosks.  Mobile is huge for reatil. Tablets are huge for retail as well, and some think these persona devices signal the end of kiosks, but interactive screens in stores, shopping centres, or wherever you wish already are and will continue to play a tremendous role in the retail ecosystem.

2012.07 | Mobile Payments in Canada

A few options for mobile payments that have come to my attention as of late:

Verifone PaywareVerifone will soon be releasing a pinpad solution for iPhones in Canada that allows for EMV (also known as chip and pin) enabled payment acceptance.  A peripheral attached to the iPhone allows for the card to be inserted and a pin entered on the back of the peripheral.  This effectively provides a completely portable wireless (via wifi or cellular data) payment unit to business owners in Canada.  While not necessarily a device that larger retailers will want to use initially, it certainly lays the groundwork for change to the current industry model where countertop devices are connected via internet or a phone line and enables a whole range of small business owners to take payments wherever they do business with a device they already have on hand.

It’s the right move by Verifone – effectively giving the masses what they want.  I have had the question from numerous non-traditional small business owners of how they can accept electronic payments, and this is one potential answer.

I think it’s a great idea, but see challenges for retailers who already have issues with security.  There is also the challenge of charging – hopefully these devices have a USB pass-through charging cable that avoids the challenge of a small retailer forgetting to charge their iPhone.  No matter the challenges, this is a solution that needs to be there.   The use cases and issues will be worked out over time.

Interac e-Transfer - While most Canadians aren’t aware of it, Interac has been providing financial institutions the opportunity to enable Interac e-Transfer – effectively a slightly updated debit transaction – for some time.  It allows for individuals to transfer funds to other individuals without knowing their bank account information – the key barrier for most people transferring funds from person to person.  I’ve used this solution a few times via my bank both on my PC and on my mobile.

Users establish a payee on a list and set up a personal question that they have to answer.  An email or text message with a link is sent to the payee.  The payees then follow the link to enter their banking information and complete the transfer.  While this is a fully functional and usable system, it is not terribly convenient using my present service provider.  Payees for my bank have to be established on a PC and not on the mobile device – though once they are established, they can be selected form a list.  If it is not possible to establish a user on a mobile, few people will go for it.  Why not allow users to pick from the address book?  Probably fear of security holes.  Looks the Barclays in the UK is trying the same with Pingit, and I’m sure there are other offerings I have not heard about.

Google Wallet - Google Wallet continues to stumble along.  You can only get it in the US on a Nexus S through a single carrier, and now there are concerns two different hacking issues.  Yikes.  Wonder why it might be delayed in Canada?  Here’s hoping it gets flushed out, though I continue to wonder if NFC may not be doomed from a business perspective.  It’s fine technology, but there are always too many players who want their slice of the pie, or want to keep others out when payments come into the picture.

The End of Money – On the subject of electronic payments, I recently listened to a podcast with David Wolman, author of the newly released book “The End of Money“.  As a proponent of  a cashless society, I was intrigued by his discussion of the hidden costs of currency – costs of which I’m very much aware – and have picked up the book.  I’m looking forward to reading it, and you may want to pick up a copy as well.

Follow

Get every new post delivered to your Inbox.

Join 369 other followers

%d bloggers like this: