QikServe sits down with its subject experts to find out their take on digital self-service tech as part of their new video blog series.
With over nineteen years’ experience in Finance within software and professional services QikServe’s CFO Sam Peachey discusses ROI and self-service tech; what to expect, what are the barriers to a fast return, and how QikServe supports its customers to overcome these barriers.
1. What are realistic expectations for ROI on self-service solutions?
We do have sufficient data on our customers to know that all of them have compelling return on investment. The intelligence that sits behind UI rather than UX (which is much the same as old fashioned menu psychology) and introducing data and complementing items in a way that hasn’t been done before can definitely put an average transaction value up in excess of 20%, and that’s irrespective of channel.
We do know that there are other costs that our operators can benefit from; cash in transit, reduced store error, increased throughput which can add to turnover, and some clever positioning of higher GP items and things like that can improve the proof of margin too.
We would say, to give you an example, a kiosk solution with four or five top-end hardware terminals would pay back in about twelve months. In any kind of hospitality or retail venue, there aren’t many more compelling business cases than digital self-service at the moment.
2. What are the barriers to fast ROI?
All our operators operate in different environments and the full user experience at any store are all a factor. So the capital investment from our operators perspective in terms of software isn’t expensive with us necessarily, but the wider investment for their business operation can be significant. It can involve changing operating models (fulfilment centres, things like that) – all of which are capital investment heavy.
3. How do you help operators overcome these barriers?
Again, it’s a subtle process in each venue and every guest engages with different brands in different ways and we’re very respectful of that. Some operators may have had digital self-service already and their consumers may be more educated than others. So how we can take them on that journey to adoption is something we can certainly help with in terms of the planning process. We might start with kiosk ambassadors; encouraging people where to go and where the terminals are positioned, but that might be augmented by mobile solutions and a withdrawl and a retirement of kiosks as part of a plan which would reduce some of the capital investment.
Found this interesting? Check out our sit-down with Head of Development, Alistair Chalmers, as part of our QikServe: The People blog series.