April 30, 2007
Kiosks Take Over Perfume Sampling Duties
By George Anderson
New kiosk technology may mean that fragrance brands and stores can extend their reach in sampling while cutting down on the number of workers. Lost in the process is the ability of a sampler to answer questions and close a sale.
Five-foot kiosks created by Scentest Communications are now being positioned next to perfume counters in roughly 80 malls on the East and West coasts of the U.S. When fully deployed, the manufacturer projects its network of Scentesters will generate in excess of one million consumer contacts on an average weekly basis. Impulse purchases have jumped up to 40 percent where the units have been installed, according to Scentest.
Cyrille Guyot, senior vice president at Scentest, told the FabSugar website, “This is an alternative sampling medium. The [scented] strip has been around for 30 years and it’s a successful medium. It’s necessary to the marketing mix when a company is launching a fragrance. But we wanted to push the envelope and introduce Scentesters into department stores to address the concern of traffic in anchor stores.”
The
units also act as an in-store ad vehicle with paid brand messages on the exterior.
Armani, Ralph Lauren, Kenzo, Bulgari, CK, Cerruti, Cacharel, Lancôme, Paul Smith,
YSL and Azzaro are among the brands that have been featured in the kiosks.
In response, proponents of traditional samplers are likely to point out that, in fragrances and cosmetics, the ability of a seasoned sampler to “reach” a customer and prompt a sale is a very important component of the marketing mix.
The fragrance kiosks are part of an ongoing trend toward self-service in customer service situations. A number of studies have pointed towards a trend of letting consumers do it themselves in retail stores. BCC Research projects the global self-service market will grow an annual rate of 17 percent a year through 2010.
Discussion Questions: Do you see kiosk technology such as that highlighted in this story enabling stores in more self-service channels such as food, drug and mass to be able to reduce the service gap that exists between these operations and department and specialty outlets? Do you see retailers making greater use of kiosks to help better serve customers and drive health and beauty related non-foods and foods purchases?
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Ever since the invention of the personal computer, kiosk proponents have suggested an infinite variety of uses. But kiosk penetration has been very selective compared to the wide-ranging promised applications. Most shoppers simply haven’t got the patience to stand very long at a kiosk, so the return on investment is only good for very specific applications, like airline check-in, photo development, and automatic tellers. Any store can let customers spray perfume on themselves today, using tester bottles.
As each technology innovation comes along, the proponents say it will save money while delivering comparable or higher service. The opponents say it will detract from service and will negatively impact sales, or at least not grow them. Yet, technological innovations continue to come our way. Kiosks will work well in some situations (probably mid-priced brands), not work well in others (high priced brands), and likely be overkill for the remainder (low priced brands). It will take some time for customers to adapt, but they will adapt relatively quickly because technological innovations are not new. Now, at what point will store personnel be limited to stockers?
Did you ever call an 800 number and get passed through so many “prompts” when you just have a simple question to ask–and would like to talk to a human being? Welcome to the world of future kiosk non-human interaction. In the 25+ years I have been doing in-store research I have yet to see one kiosk or electronic display that isn’t constantly breaking down, being mangled by children or cause a WOW with consumers. A 40% lift in impulse purchases? Like to see that data.
As more and more retailers are focusing on customer-centric strategies, I’m sure this flash in the pan will dissipate soon enough.
Kiosks are here to stay, at least until something better comes along in the way of a more functional robot. Kiosks have taken their place in the world as the first questions companies ask before they hire new employees is, “Can we do this job differently and can we do this without hiring another person?” First it was the ATM, then airport check in, then order-your-sandwich at a kiosk or place your order at the deli and then come back and pick it up while your shopping for other merchandise. Now they sample perfume…I wonder what they will do next….
I agree with Mark Lilien. Kiosks do have a niche and work well in some applications–but more isn’t always better! Why would a shopper use some fancy kiosk when a low-tech tester strip works just as well? All technologies need to provide consumers with some meaningful, unique value. They have to justify their existence.
How might that work with the perfume-dispensing kiosks? Suppose the kiosks recorded shoppers’ personal preferences, and knew what perfumes each person liked and didn’t like? That’s the kind of technological-based function that people would find valuable, and would elevate the machine over the tester strips.
An added note: The kiosks should never take the place of human interaction. The technology should compliment the human touch, not replace it.
Kiosks have been around long enough so that most people have a point of view about their effectiveness. Unfortunately, the experience on which these points of view are based, is–for the most part–out of date and doesn’t reflect the newest technology and practices.
We believe that personalization will be a cornerstone to success in retailing in the 21st century and that kiosks are one of a series of methods needed to cost effectively deliver personalized offers to shoppers in a self-service retail environment.
A kiosk for perfume selection can be a great application of kiosk technology for mid-range department stores. As it is, there’s never any help behind the counter, and when there is, they know nothing about the products.
What it will come down to is execution:
Will the kiosk have content that helps consumers make a selection?
Will there be an employee available to complete the sale?
Will the employees know how to use the kiosk so that they can assist customers who get stuck?
Will the employees know when an appropriate time is to approach a customer using the kiosk? Or learn how to best integrate the kiosk into their sales techniques?
These things, far more than the kiosk technology itself, will determine whether this scent kiosk will work.
We have only begun to see the movement towards kiosks. Using a kiosk to sell perfume is only a start. The opportunities are endless since it will open up numerous new locations for products to be sold, and with labor becoming more and more of an issue it only makes sense. The concern is that, if a department store uses a kiosk to help market fragrances, it will quickly destroy the aura and image a staffed cosmetic counter helps create for the whole department store.
Absolutely. Self-service kiosks have the potential to change the way retailers interact with consumers in radical ways. Those consumers who depend and thrive on fast interaction for their informational needs stand to benefit from these types of kiosks. As everyone knows, this demographic is growing.
Kiosk growth must be controlled. Retailers need to spend the time understanding which functions are beneficial to consumers, and which are irrelevant. Obviously, they must be cost-efficient.
Last week I had the honor of Judging at the KioskCom Excellence Awards in Las Vegas. One of the best entries I saw was from APUNIX. This application went way beyond just spraying scents. It was an interactive sales tool that allowed the customer to preview a wide variety of Men’s and Women’s fragrances. It offered comparisons and provided ingredients that empowered the customer to make an informed choice. Kiosks are not always about quick transactions. The better the software, the more enjoyable the experience becomes. One of the great things about this example was the ability for a sales associate to pick up a tablet and go out to the customer. Digital Signage integrated Kiosk applications can take the que out of the equation.
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Ever since the invention of the personal computer, kiosk proponents have suggested an infinite variety of uses. But kiosk penetration has been very selective compared to the wide-ranging promised applications. Most shoppers simply haven’t got the patience to stand very long at a kiosk, so the return on investment is only good for very specific applications, like airline check-in, photo development, and automatic tellers. Any store can let customers spray perfume on themselves today, using tester bottles.
As each technology innovation comes along, the proponents say it will save money while delivering comparable or higher service. The opponents say it will detract from service and will negatively impact sales, or at least not grow them. Yet, technological innovations continue to come our way. Kiosks will work well in some situations (probably mid-priced brands), not work well in others (high priced brands), and likely be overkill for the remainder (low priced brands). It will take some time for customers to adapt, but they will adapt relatively quickly because technological innovations are not new. Now, at what point will store personnel be limited to stockers?
Did you ever call an 800 number and get passed through so many “prompts” when you just have a simple question to ask–and would like to talk to a human being? Welcome to the world of future kiosk non-human interaction. In the 25+ years I have been doing in-store research I have yet to see one kiosk or electronic display that isn’t constantly breaking down, being mangled by children or cause a WOW with consumers. A 40% lift in impulse purchases? Like to see that data.
As more and more retailers are focusing on customer-centric strategies, I’m sure this flash in the pan will dissipate soon enough.
Kiosks are here to stay, at least until something better comes along in the way of a more functional robot. Kiosks have taken their place in the world as the first questions companies ask before they hire new employees is, “Can we do this job differently and can we do this without hiring another person?” First it was the ATM, then airport check in, then order-your-sandwich at a kiosk or place your order at the deli and then come back and pick it up while your shopping for other merchandise. Now they sample perfume…I wonder what they will do next….
I agree with Mark Lilien. Kiosks do have a niche and work well in some applications–but more isn’t always better! Why would a shopper use some fancy kiosk when a low-tech tester strip works just as well? All technologies need to provide consumers with some meaningful, unique value. They have to justify their existence.
How might that work with the perfume-dispensing kiosks? Suppose the kiosks recorded shoppers’ personal preferences, and knew what perfumes each person liked and didn’t like? That’s the kind of technological-based function that people would find valuable, and would elevate the machine over the tester strips.
An added note: The kiosks should never take the place of human interaction. The technology should compliment the human touch, not replace it.
Kiosks have been around long enough so that most people have a point of view about their effectiveness. Unfortunately, the experience on which these points of view are based, is–for the most part–out of date and doesn’t reflect the newest technology and practices.
We believe that personalization will be a cornerstone to success in retailing in the 21st century and that kiosks are one of a series of methods needed to cost effectively deliver personalized offers to shoppers in a self-service retail environment.
A kiosk for perfume selection can be a great application of kiosk technology for mid-range department stores. As it is, there’s never any help behind the counter, and when there is, they know nothing about the products.
What it will come down to is execution:
Will the kiosk have content that helps consumers make a selection?
Will there be an employee available to complete the sale?
Will the employees know how to use the kiosk so that they can assist customers who get stuck?
Will the employees know when an appropriate time is to approach a customer using the kiosk? Or learn how to best integrate the kiosk into their sales techniques?
These things, far more than the kiosk technology itself, will determine whether this scent kiosk will work.
We have only begun to see the movement towards kiosks. Using a kiosk to sell perfume is only a start. The opportunities are endless since it will open up numerous new locations for products to be sold, and with labor becoming more and more of an issue it only makes sense. The concern is that, if a department store uses a kiosk to help market fragrances, it will quickly destroy the aura and image a staffed cosmetic counter helps create for the whole department store.
Absolutely. Self-service kiosks have the potential to change the way retailers interact with consumers in radical ways. Those consumers who depend and thrive on fast interaction for their informational needs stand to benefit from these types of kiosks. As everyone knows, this demographic is growing.
Kiosk growth must be controlled. Retailers need to spend the time understanding which functions are beneficial to consumers, and which are irrelevant. Obviously, they must be cost-efficient.
Last week I had the honor of Judging at the KioskCom Excellence Awards in Las Vegas. One of the best entries I saw was from APUNIX. This application went way beyond just spraying scents. It was an interactive sales tool that allowed the customer to preview a wide variety of Men’s and Women’s fragrances. It offered comparisons and provided ingredients that empowered the customer to make an informed choice. Kiosks are not always about quick transactions. The better the software, the more enjoyable the experience becomes. One of the great things about this example was the ability for a sales associate to pick up a tablet and go out to the customer. Digital Signage integrated Kiosk applications can take the que out of the equation.