
The Psychology Behind Retail Kiosk Marketing
Editors note – originally published on the Frank Mayer and Associates, Inc. blog. Link to article
Katie KochelekFebruary 8, 2019
If you’re anything like me, you’ve visited that magical, wholesale warehouse Costco with good intentions to pick up the necessities – paper towels, cheese, yogurt, the like.
Fast forward an hour and you’re now walking out with an economy size bag of Tootsie Roll pops, a jug of raw honey, and a party-size serving of chicken salad for your young family of four.
Whoa. What just happened?
We’ve all seen the silly memes about Costco, Target, and the other big box stores, gently teasing the point that there’s no way to shop these retailers without deviating from your list.
But it turns out there’s a lot of psychology behind encouraging you to go rogue during your shopping trip, and below we detail a few of the insider tricks retailers use to inspire the impulse buy.
The Science of Discovery
Much has been written about Costco’s “treasure hunt” approach to in-store merchandising, a strategy that involves constantly shuffling staple items to different locations in the store. The science behind this issimple. Rearranging items forces shoppers to walk by tempting triggers in the search for their usual goods.
Ever notice the lack of signage above the aisles at Costco, too? Chalk that up as another element of the treasure hunt, designed to encourage exploration.
But wait a second. Every article written about retail in the past few years has the word “frictionless” in it. Why is Costco so popular, consistently scoring high on the American Customer Satisfaction Index, if it’s constantly making shoppers jump through hoops to find their favorite products?
It boils down to science.
When humans discover unexpected items or experience something new, our brain releases the same chemicals associated with joy and love. So, in essence, stumbling upon the row of smart lighting solutions on my way to buy diapers makes me feel happy because my brain is programmed that way. And the fact that Costco changes up their endcap displays in addition to rotating store merchandise means I’m always entering the store subconsciously anticipating the thrill of discovery.
FOMO and the Impulse Buy
The fear of missing out, or more commonly referred to as FOMO, is another hardwired human trait that brands and retailers use to their advantage.
In the book “The New Rules of Retail: Competing in the World’s Toughest Marketplace” by Robin Lewis and Michael Dart, the authors write, “Neuroscientists have proven that the anticipation of rewards – or the potential ofnotgetting what you want – will produce dopamine, which actively drives behavior.”
They go on to use fast fashion retailer Zara as an example of a business model that draws shoppers to its stores more often than the average retailer. Why? Because Zara releases new clothing lines constantly.
As Lewis and Dart state, “Customers visit Zara seventeen times per year, compared to only three or four times for traditional retailers, because they are afraid of missing something new and exciting. The connection is so strong that customers are compelled to buy in fear of the item’s being bought by someone else.”
It’s why marketing messages like “Act now!” and “Hurry! While supplies last!” trigger our knee-jerk decisions. We appease the FOMO anxiety and release that good-feeling dopamine when we keep from missing out.
Tell Me About Yourself
Marketers have become hip to how millennials, now the largest consumer demographic, want to interact with a brand. Not only is this generation hit with traditional marketing in their everyday lives, but these digital inhabitants are also bombarded by a whole different wave of brand messaging online. And because access to product review information, pricing, and more resides at the tap of a finger, they’re known for seeking out authentic experiences to cut through the information overload.
While companies regularly use online platforms like social media and websites to share organic content and brand stories, it’s just as alluring to shoppers when done well in-store.
Merchandising displays and interactive kiosks can play a big role in helping to paint a brand picture to customers. A sleek free-standing display with a monitor featuring a video loop of a runner wearing her fitness tracker draws in the person who identifies with that woman. A shoe display with signage detailing how proceeds go to charity gives potential buyers the warm and fuzzies. Predictably, these little details help people feel more invested in your brand.
Interactive displays that allow shoppers to test a product are equally effective. Just ask the crowd of children waiting their turn at the video game demo at Best Buy. These displays are magnets, drawing in the customers and promoting the products while people eagerly test drive them in the store.
The Grocery Game Plan
It’s not just big box stores that employ consumer psychology to encourage shoppers to buy. Grocery stores follow their own set of guidelines to persuade additional purchases.
Your journey to impulse buying starts before you even step foot in the door. In an interview for a Today.com article, “Supermarkets wage war for your dollars,” marketing consultant Martin Lindstrom details an experiment of doubling the size of a shopping cart. The results? People ended up purchasing 40 percent more. So grabbing a cart the size of a Cadillac has already primed the customer to fill it.
On entry, grocers like to promote the seasonal treats that are hard to pass up. And if you manage to do so, you’ll see them populated through the store as tempting reminders.
Produce often comes next and for good reason. When you feel good about buying healthy items, you’re more likely to cave down the line when faced with junk food temptations. With all that healthy food in your cart, surely you deserve a treat.
And what about those staples like milk and eggs that brought you to the store in the first place? You’ll find those in the back of the building, forcing you to walk down an aisle or two of enticing food shelved at eye level.
Finally, just as you roll to the checkout line, congratulating yourself on avoiding the lure of snack food, you’re left waiting while staring at the array of chocolate bars and candy thoughtfully organized on the row racks.
Okay, fine. Just one candy bar won’t hurt.
The New Hip Spot to Hang
It’s no secret that, in the current market of online competition, retailers have had to get creative to get feet through the door.
It’s why there’s been so much buzz around experiential retail – the practice of offering an experience during what would normally be a traditional shopping trip.
We’ve seen it at places like Target stores that often have Starbucks coffee shops and retailers such as Tommy Bahamas that offer restaurants within some of their brick-and-mortar stores.
Even generous sampling can attract a crowd, as Costco knows all too well. (In fact, Costco’s sampling has its ownfascinating psychology.)
Brand retailers are taking experiential retail even further. There’s been big buzz around Nike’s Live concept that not only offers services like style consultations and the ability to try out products, but also curates collections based on where stores are located.Nordstrom,REI, and countless other brands have jumped on the bandwagon as well, realizing that engaging with customers and “activating” their shopping experience leads to increased sales.
Us humans are a simple bunch when it comes down to it. We’re often driven by emotions, which means when retailers can capitalize on this fact, they’d be silly not to. So the next time you find yourself in an aisle seriously contemplating taking home a fancy juicer you didn’t know you needed, consider the neuromarketing behind what’s driving your behavior.
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We’re big geeks about retail! Did we miss other strategies that brands and retailers use to delight shoppers and encourage more purchases? Let us know in the comments or on social media.
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FAQs
What is a kiosk in marketing? ›
A kiosk refers to a small, temporary, stand-alone booth used in high-traffic areas for marketing purposes. A kiosk is usually manned by one or two individuals who help attract attention to the booth to get new customers.
How do you attract people in a kiosk? ›- Utilize Multiple Kiosks. ...
- Help Customers Locate Kiosks With Signage. ...
- Employee Visibility. ...
- Use Light & Color. ...
- Location, Location, Location. ...
- Be Your Kiosk's Biggest Fan.
They install banners and billboards in crowded places and use social media platforms to attract the attention of people. The purpose is to send the message and increase the market share of a product/service. The kiosk is a type of direct marketing techniques that businesses use.
How do you promote a kiosk? ›Print eye-catching signs, posters, table talkers and flyers to promote your kiosks and their benefits in and around your stores. If you have digital signage or dual POS screens at check-out, consider using them to promote your new kiosk service for your customers' next visit.
What are the benefits of kiosk marketing? ›- Digital Kiosks Can Help Reduce Business Costs. ...
- Touch Screen Kiosks Improve Business Efficiency. ...
- Interactive Kiosks Bolster Employee Satisfaction. ...
- Digital Kiosks Will Boost Your Company's Sales. ...
- Digital Touch Screen Kiosks Offer Fast Investment Return.
They can access the retailer's website to make online purchases, apply for credit cards, and rewards. Retail kiosks also assist in wayfinding so the customer can easily find the exact location of the item they are looking for, as well as providing opportunities to advertise coupons and sales.
How can I improve my kiosk sales? ›...
- Increase Associate Productivity. ...
- Better Customer Service. ...
- Table Kiosks And Reviews. ...
- Time-Saving Service. ...
- Digital Signage. ...
- Provide Cross-Promotion And Up-Selling. ...
- Facilitates Accurate Computer-Generated Bills. ...
- Enhance Return Of Investment.
Offering discounts to event attendees not only entices them to make a purchase during the event, but can also help turn them into a repeat buyer. "People buy more if they're getting a deal," says Randolph. "They feel appreciated and it helps create returning customers."
What are two types of kiosks? ›- Information Kiosks. The primary function of an information kiosk is to provide exactly that -- information. ...
- Internet Kiosks. For those with limited or no internet access, internet kiosks are here to assist. ...
- Wayfinding Kiosks. ...
- Advertising Display and Digital Signage Kiosks.
A kiosk is a digital display or small structure that businesses place in high-traffic areas to provide information or offer self-service options, often incorporating an interactive display screen. In today's fast-paced environment, kiosks offer a great opportunity to improve store functions and customer experience.
What are the different types of kiosks? ›
- Temperature Kiosk.
- Self-Service Kiosks.
- Information Kiosks.
- Internet Kiosks.
- Advertisement Standing Displays.
- Wayfinding Kiosks.
Direct digital marketing (DDM) is the electronic delivery of relevant communications to specific recipients. DDM uses email, Web sites and mobile services in the same way that direct marketing in the physical world uses the postal service.
Who are benefited by kiosk selling? ›Retail kiosks provide many benefits to any company looking to enhance their retail revenue. Not only do they allow you to reach out to more customers, but they can also increase revenue and sales opportunities as well.
What is kiosk explain in brief? ›A kiosk (pronounced KEE-ahsk) is a small, free-standing physical structure that displays information or provides a service. Kiosks can be manned or unmanned, and unmanned kiosks can be digital or non-digital. The word kiosk is of French, Turkish and Persian origin and means pavilion or portico.
What are the benefits of self order kiosks? ›- Self Ordering Kiosks Boost Your Profitability. ...
- Increases Average Order Value. ...
- Lets You Manage From Anywhere. ...
- Improves the Customer Experience. ...
- Boosts Order Accuracy. ...
- Optimizes In-Store Marketing.
Word History: Kiosk comes from the Turkish word köşk, which originally referred to a kind of open pavilion or summerhouse in Turkey and Persia, often built on a hexagonal or many-sided base. The upper classes of the Ottoman Empire would enjoy entertainments and view their gardens in the comfort of such buildings.
How much does it cost to make a kiosk? ›Kiosk (median price) | $3,440 |
---|---|
Management software (36 months) | $1,800 |
24/7/365 technical support (36 months) | $3,600 |
Installation | $1,000 |
Initial project management | $300 |
The most common standard kiosk size is 10x10, but that can vary depending on how much storage and display space you will need. Higher ticket items require more storage space, because you can't risk leaving them visibly exposed when you aren't around.
Are kiosks profitable? ›Kiosks and carts are becoming quite popular and incredibly profitable for many small business owners. Once considered an option for only low-end markets, these small and mobile storefront options are now frequently seen in upscale markets as well.
How do you attract a crowd to your stand? ›...
Read on.
- Sweets. ...
- Table football. ...
- Beer. ...
- Fun, on-brand decorations. ...
- Seasonal touches. ...
- Arcade machines. ...
- Branded notebooks. ...
- Plants.
How do you attract people in the crowd? ›
- Target the Audience You Want.
- Reach Them Where They Are.
- Communicate the Benefit.
- Encourage Early Birds.
- Use Social Media.
- Create FOMO.
- Leverage Influencers.
Be persistent: Consistently remind your attendees where they can find your booth. Boast booth highlights: Highlight any special components of your booth, like games, giveaways or stand-out swag attendees can expect when they stop by. Share the knowledge: Consider live-tweeting the more popular sessions.
What type of technology is kiosk? ›A kiosk is a digital machine that businesses can utilize to give customers the ability to make purchases independently.
Where are information kiosks used? ›- Retail. Large shopping centers and small retail stores worldwide are probably the most active adopters of digital kiosks. ...
- Healthcare. ...
- Transportation. ...
- Hospitality. ...
- Government establishments. ...
- Education.
MDM solutions like Hexnode facilitates setting up and managing the kiosk devices remotely. The devices can be locked into a single app converting it into a single-purpose device. Hexnode MDM software supports Single App Kiosk Mode in Android, iOS, Windows, and tvOS devices.
What are the benefits of self service technology? ›- Agile service. ...
- Customer autonomy. ...
- Availability any time of day, every day. ...
- Increase in customer satisfaction. ...
- Greater customer retention. ...
- Scalability. ...
- Cost reduction. ...
- Applications.
By using a kiosk to order rather than relaying details to a person behind a till customers are more in control of exactly what goes into their order. No more awkward requests to remove tomatoes and pickles; customers can build a burger directly to their own specification in any McDonald's store.
What is the function of interactive kiosk? ›An interactive kiosk is a computer terminal featuring specialized hardware and software that provides access to information and applications for communication, commerce, entertainment, or education.
Who should be involved in developing a public kiosk? ›A balanced project team would usually consist of a content expert, a graphic designer, a programmer, a video producer, a sound technician, a project designer as well as someone with management skills: typically these skills are not all found in one person.
What is multimedia kiosk? ›1. A computer terminal featuring specialized hardware and software that provides access to information and applications for communication, commerce, entertainment, or education. Multimedia kiosks are typically placed in high foot traffic settings such as shops, hotel lobbies or airports.
Is vending machine a feature of self-service? ›
Vending machines are automated self-service machines that dispense items such as snacks, beverages and cigarettes.
What can I sell in a small kiosk? ›- Sunglasses. Sunglasses are a well-tested kiosk staple. ...
- Phone Accessories. ...
- Food. ...
- Apparel. ...
- Artwork. ...
- Locally Made Items. ...
- Accessories.
The first interactive kiosk was developed in 1977 by Murray Lappe. “The Plato Hotline” was used for informational purposes at the University of Illinois at Urbana-Champaign. During the 1980s, the interactive voice response unit (IVR) expanded as consumers demanded innovative self-service technology.
What are the limitations of kiosk? ›Self-service kiosks are pre-programmed to execute commands only to a certain extent. Complicated transactions are usually not supported. This means that employees still need to oversee the transaction in case customers have concerns that the kiosk cannot address.
Why does self-service fail? ›However, self-service initiatives can fail for a variety of reasons. The biggest and most damaging is poor customer service. Yet navigation issues, a lack of personalization and inflexibility are common disadvantages of self-service that organizations must consider before investing in this strategy.
What are some of the potential problems associated with employee self-service? ›A self-service system opens the possibility of errors introduced to personnel files by employees. While errors are also a possibility when human resource employees enter personnel data into files, the problem may be greater with employees who are unfamiliar with the system.
What are the 3 elements of direct marketing? ›The communication can take many different formats, such as postal mail, telemarketing, point of sale, etc. Direct marketing is of three major types: telemarketing, catalogs marketing, and direct mail marketing. The last type is the most common today, with the advent of social media and influencer marketing.
Why direct selling is most effectively? ›Because it communicates directly with customers, it can deliver a higher conversion rate (the percentage of the targeted group that, for example, buys your product) at a lower cost.
Who invented affiliate marketing? ›The concept of affiliate marketing on the Internet was conceived of, put into practice and patented by William J. Tobin, the founder of PC Flowers & Gifts. Launched on the Prodigy Network in 1989, PC Flowers & Gifts remained on the service until 1996.
What is a kiosk example? ›A self-service kiosk is a device that allows the user to directly interact with a company without the need to wait for an employee. They can be utilised in a variety of places but common examples include buying tickets at a train station or restaurants offering a quick payment system.
What is the purpose of a kiosk? ›
A kiosk is a digital display or small structure that businesses place in high-traffic areas to provide information or offer self-service options, often incorporating an interactive display screen. In today's fast-paced environment, kiosks offer a great opportunity to improve store functions and customer experience.
What is kiosk explain in brief? ›A kiosk (pronounced KEE-ahsk) is a small, free-standing physical structure that displays information or provides a service. Kiosks can be manned or unmanned, and unmanned kiosks can be digital or non-digital. The word kiosk is of French, Turkish and Persian origin and means pavilion or portico.
What is a kiosk business? ›Kiosk businesses are small, open-front selling stands. Typically, they're located in malls, shopping centers, or similar areas. A kiosk business sells mobile phone paraphernalia, newspapers, sunglasses, tickets, household supplies, and similar items.
What are two types of kiosks? ›- Information Kiosks. The primary function of an information kiosk is to provide exactly that -- information. ...
- Internet Kiosks. For those with limited or no internet access, internet kiosks are here to assist. ...
- Wayfinding Kiosks. ...
- Advertising Display and Digital Signage Kiosks.
There are essentially two kinds of options: non-interactive and interactive kiosks.
Why is it called a kiosk? ›Word History: Kiosk comes from the Turkish word köşk, which originally referred to a kind of open pavilion or summerhouse in Turkey and Persia, often built on a hexagonal or many-sided base. The upper classes of the Ottoman Empire would enjoy entertainments and view their gardens in the comfort of such buildings.
Where are information kiosks used? ›- Retail. Large shopping centers and small retail stores worldwide are probably the most active adopters of digital kiosks. ...
- Healthcare. ...
- Transportation. ...
- Hospitality. ...
- Government establishments. ...
- Education.
By using a kiosk to order rather than relaying details to a person behind a till customers are more in control of exactly what goes into their order. No more awkward requests to remove tomatoes and pickles; customers can build a burger directly to their own specification in any McDonald's store.
What is the function of interactive kiosk? ›An interactive kiosk is a computer terminal featuring specialized hardware and software that provides access to information and applications for communication, commerce, entertainment, or education.
Who invented kiosks? ›The first interactive kiosk was developed in 1977 by Murray Lappe. “The Plato Hotline” was used for informational purposes at the University of Illinois at Urbana-Champaign. During the 1980s, the interactive voice response unit (IVR) expanded as consumers demanded innovative self-service technology.
Who should be involved in developing a public kiosk? ›
A balanced project team would usually consist of a content expert, a graphic designer, a programmer, a video producer, a sound technician, a project designer as well as someone with management skills: typically these skills are not all found in one person.
Are kiosks profitable? ›Kiosks and carts are becoming quite popular and incredibly profitable for many small business owners. Once considered an option for only low-end markets, these small and mobile storefront options are now frequently seen in upscale markets as well.
What can be sold at a kiosk? ›Kiosks are small booths where businesses sell their products which can either be retail goods like apparel, books, t-shirts, sunglasses or food and beverage items. Sometimes carts are converted into stationary kiosks to provide displays for higher-ticket items like package vacation purchases.
Who is a kiosk owner? ›The Kiosk Owner owns, operates and manages the front end kiosks on a day to day basis as a business and is the key to the success of the e-Mitra operations.