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Implementing In-Store Sales Kiosks: A Retail Case Study

The Company

A North American retailer with 1,500 mall-based locations

The Challenge

The client had developed a new offering, an in-store sales kiosk, which it tested in roughly 75 stores. Feedback from the field was mixed — some store managers reported very positive customer reaction, while others were unimpressed. The retailer could not analytically identify any significant gain in sales in the stores where it had tested this offering. Since executives could not identify a sufficient sales increase to justify the investment, they decided to abandon plans to further roll out the kiosks to other stores.

The Solution

Rather than abandoning the kiosk initiative altogether, the retailer turned to APT for a confident read on their potential value. APT’s Test & Learn™ isolated the cause-and-effect relationship between introducing kiosks and total store sales and profit. APT software determined that the kiosks, on average, had a small positive impact on sales and profits, but that this lift was not sufficient to justify the cost of the kiosks overall. Though network-wide rollout would not have been profitable, APT software identified that targeting rollout of the kiosks to some store would actually be profitable.

The Results

Rolling out the kiosks to the targeted group of stores generated $1MM per year in incremental profit.
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