High-Tech versus High-Touch

Take a few moments and listen to NPR’s Bob Edwards talking with Fast Company’s Charles Fishman about his recent article “The Toll of a New Machine.” (Fascinating stuff.)

In the article and in the radio interview, Charles examines how automated self-service kiosks are increasing efficiency, productivity, and the customer’s experience at McDonald’s, Continental Airlines, and Northwest Airlines.

This troubles me … greatly.

I cannot argue with the extraordinary results these kiosks are having at 48 McDonald’s pilot locations. Sales volume has increased by 20% and the average ticket has increased by 33% from $3.00 per transaction to $4.00 per transaction. As sales have increased, so has the store staff. Every McDonald’s involved in the kiosk pilot program has hired two or three additional employees in order to keep up with rising consumer demand.

Again, this troubles me … greatly.

I am troubled because automated self-service kiosks are one more way that commoditization is seeping into the retail buying experience. While every kiosk experience will be different, I fear kiosks, of this kind, will level the playing field for retailers and drive the human equation out of the retail experience.

But wait … commoditization has already changed the game at airlines, fast food restaurants, and grocery stores. Players in these industries have lost practically all their pricing power already because customers do not perceive differences between most airlines, fast food restaurants, and grocery stores. Installing kiosks will help to differentiate these companies from one another … that is until the novelty wears off and kiosks become standard practice at every airline, fast food spot, and grocer.

Okay … I am not so troubled anymore.

After all, there will still be businesses that focus on high-touch human interactions and not on high-tech kiosk transactions. These businesses will continue to appeal to consumers willing to trade up for a more meaningful one-on-one experience.

I’m 100% fine now. No need for the marketing paramedics. Nothing out of the ordinary going on here. You can all go home now.

But before you go, one more thing. While I've enjoyed getting my airline boarding pass faster through kiosks, I’ve also endured the painful process of being stuck behind befuddled passengers who are clueless as to how to use a touch-screen display. Let’s hope the consumer adoption curve for adapting to self-service kiosks ramps up quickly so we never have to get stuck behind the befuddled and clueless again.

Comments

[Richard Kaupp]

I recently came across an article in Brandweek about Nike's use of self service technology in it's Niketown stores. They are using a new touchscreen product that allows shoppers to customize shoes, bags, and watches using the touchscreen system. The Planar DS15 retail kiosk system that Nike is using is fully integrated and ready to customize out of the box.