Digital Retail A solution to retail slowdown

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Digital RetailA solution to retail slowdown?

• Presented by
• Andy Egan Chairman CEO
• MaxBox Digital Retail Ltd

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Some of the challenges faced during retail
slowdown

• Need to reduce costs
• Improve efficiency
• Reduce staff
• Develop multi channel trading/new revenue sources
• Increase profitability
• Increase market share
• Find new ways of engaging consumers
• Get to know your customers better to fine tune
  your offering
• Gain competitive advantage
• How can digital retail help?

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The evolution of the digital retail kiosk

• 1960 Bankograph installed in New York's First
  National City Bank
• Customers pay utility bills get
  a receipt without a teller.
• 1967 First ATMs that dispensed cash
• 1977 First self service, interactive kiosk
  developed - University of Illinois
• 1982 First touch screen shown by Elotouch at
  Worlds Fair
• 1985 First successful network of commercial
  interactive kiosks
• Deployed by shoe retailer
  Florsheim Shoe Co for stock control

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The evolution of the digital retail kiosk

• 1990s
• - BT upgrade pay phones to interactive kiosks
  with internet service
• - Boots launch its loyalty-card kiosk
• 1998 First UK cash machine deployed by a
  non-financial institution
• 2002 Mobile Top-up available from ATMs for the
  first time
• 2004 Kiosk industry surpassed 1 bn in worldwide
  annual revenues
• 2005 First combined ATM Payphone appears on
  London streets
• 2006 Increased use of digital signage in retail
  environments
• 2008 Integration of Digital signage with kiosk
  technology

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Established and emerging kiosk markets
Source Summit Research Associates, Inc., 2007
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Uses and projected life-cycle of the kiosk
Source The 7th Annual KIOSK Benchmark Study
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Convenience is king - the 21st Century consumer

• Consumer is cash rich and time poor
• Hectic lifestyles have led to a steady decline in
  social time consumer demands convenience and
  speed.
• The average Brit wastes 4,560 hours of their
  lifetime queuing! (Source YouGov, Greenflag,
  ONS, 2007)
• Queuing is becoming no longer acceptable
• Kiosk development driven by this consumer desire
  for convenience
• Consumers are becoming more techno centric and
  increasingly more confident with new technologies

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Where is Digital Retail now?

• Bringing digital retail into the
• high street via the Digital Retail Kiosk

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What is the Digital Retail kiosk?
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Digital Retail - Ultimate RetailWhy?

• No warehouse
• No stock
• Few staff
• Efficient
• LIVE!

1 m2 20,000 m2 of retail floor space
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Digital Retail multi content retail

• Ready now digital retail kiosk products
  services-
• Mobile Top-up - all UK networks
• Digital Printing - instant and order prints
• Order Flowers - inc. next day delivery option
• Football photos - Top Premiership team, player
  stadium shots instant and order prints
• Mobile phone downloads - ringtones, wallpapers,
  games
• Fun games - no games licence required
• Wi-Fi hotspot - automatically created on
  installation of broadband enabled kiosk
• MaxBox promo - sales promotion redemption
  mechanic
• Advertising screens - revenue stream, third
  party advertising, own advertising

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Digital Retail multi content retail

• Coming soon digital retail kiosk products
  services
• Music Download access to over 4 million traces
  inc. all the Top 40 hits and new releases
• E Books and Audio Books latest best sellers
  available to
• download to email address and/or hand held
  e-book reader
• Gift voucher vending
• MaxCard
• Web browser with pay-per-click ad revenue share
• Contactless payment card - prepaid

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New for 2008! Music Downloads direct to device
from the kiosk

• Give your customers access to over 4 million
  tracks including every single Top 40 UK hit since
  the charts began in 1952
• Quick easy download direct from the MaxBox
  kiosk to mobile phone, mp3 player and email.
• Content updated weekly
• Download sales contribute to The Official UK
  Charts
• Record label support to run promotions
• Music videos, TV shows, feature film downloads
  e-books coming soon

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Digital Retail - Customised content

• Customise kiosks to the needs of your business
  e.g.
• Travel Information point connections with other
  transport services flights, underground, coach,
  bus etc - and timetables with option to print
  out specific routes and connections times
• Fast Track Ticket search, booking, payment by
  cash card, and ticket printing
• Local services point/Community notice board
• Extended range screens
• Different language options for services
  language translations for basic services
• Consumer data capture
• Frequently asked questions
• Etc the list is as big as your imagination

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Customised content - Community notice board
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Community notice board
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Community notice board
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Customised content

• Extended range presentation
• DEMONSTRATION SAMPLE

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SAMPLE
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Customised content

• Data capture
• DEMONSTRATION SAMPLE

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Why are businesses deploying kiosks and what are
their expectations?

• Keep pace with the competition
• Gain a ROI
• 61 of businesses expect to see a return within
  2 years
• 42 within 1 year
• (Source 6th Annual Kiosk Benchmark Study, Kiosk
  Business)
• Improve customer service
• Free up sales staff
• Maximise ROI from floorspace
• Showcase and sell larger items that you dont
  have floor space to display

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Why are businesses adopting kiosk solutions

• Qualified, quantifiable data
• Queue buster
• Improved operational efficiency and add value
• Easy to audit with simple management data
• Customising your kiosk content via off the
  shelf digital retail content and bespoke
  application development
• Enhance existing e-commerce strategy

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How self service technology is currently being
used
Revenue Driven
Service Driven
Technology Driven

• Biometrics
• RFID
• Contactless Payments
• Enhanced Bluetooth
• WiMax
• HD Digital Signage
• Enhanced capabilities usage of Wireless
• VOIP
• M- e-payments
• Multimedia
• Security

• Betting
• Lotteries
• FX
• Financial Services
• Vend pre paid money cards
• Music Film download to device
• Ticketing
• Gaming
• Retail

• Information kiosk
• Web access
• Bill Payment
• Staff Voluntary Benefits
• Ticket Collection Point
• Extended range
• Digital catalogue
• Health sector information
• Human Resources
• Order entry
• Directory

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Current consumer usage of kiosks
Source Adapted from Q.20 of the Self-service
survey Customer Perspectives on self-service
technology by The Self-Service Kiosk
Association/NetWorld Alliance
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Convergence of kiosks with digital signage in
the retail environment

• The kiosk as a channel for call to action
  response to in-store digital signage campaigns
• Receipt printed with offer details, or free
  samples from kiosk applications
• Kiosk facilitates Bluecasting/proximity marketing
  in store
• Promotional response driven digital signage
  campaigns combined with analytics data base to
  measure campaign performance
• Convergence of kiosk with other sales promotion
  activity in store
• - ticket/receipt printer
• - on screen advertising
• - customer rewarded with free or discounted
  content direct from kiosk

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Integration of digital signage, e-commerce and
kiosk technology
Digital signage in-store For products not on
display
To kiosk for product info, price comparison,
opportunity for targeted cross and up-sell
Customer directed back into store
Immediate measurement of campaign effectiveness
data capture from kiosk
Printed receipt issued from kiosk featuring
cross-promo offers for related products in
store today
Place order, arrange delivery time and pay at
kiosk.
Order info goes directly to stock control and
delivery management
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Future developments Digital Retail
extensionsDigital Retail Kiosks Prepaid Money
Cards

• Full Visa Debit Functionality
• Chip and Pin
• Reloadable / Non-Reloadable
• Multi Currency
• Custom branded bespoke promotions
• Multi Channel
• Seamless link between individual kiosks, the
  kiosk network, stores tillpoint, ATM and
  consumers home PC/laptop

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Digital Retail extensions

• Earn cash when not at a kiosk
• Data back to venue
• Drive consumers back to store
• Cash when asleep
• Generate loyalty

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Where to next - Digital Retail extensions

• Driving customers to your store via MaxBox Lite

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Summary digital retail a solution to retail
slowdown?

• Increase footfall onsite and visitors online
• Generate incremental revenue
• Retain customers by better understanding their
  buying habits behaviour
• Increase average spend in-store
• Reduce staffing costs
• Gain competitor advantage
• Improve efficiency
• Increase market share
• Find new ways of engaging with your consumers
• Get to know your customers better to fine tune
  your offering
• Join a growing industry expected to be worth 24
  billion by 2010

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As big as your imaginationThis presentation is
available for download from www.theMaxBox.com