Self-service sales to top $525B

Share this content:

North American consumers are expected to spend more than $525 billion, at self-checkout lanes, ticketing kiosks and other self-service machines in 2007, up from the $438 billion spent in 2006, according to a new report by IHL Consulting Group.

The report titled "2007 North American Self-Service Kiosks" predicts that revenue generated by self-service transactions should continue this pace of growth in the coming years. It found that the reason for the growth was there were 24 percent more kiosks that accept payments in 2007 than in 2006 and an increase in consumer adoption.

"Consumers are getting more comfortable with self service payment terminals," said Greg Buzek, president of IHL Consulting Group, an analyst and consultancy firm to the retail industry. "Most people didn't like ATMs when they first came out and it was the same thing with shopping online. There is a learning curve that consumers have to adapt to."

The study examines the increasing use of four types of self-service kiosks in the United States and Canada: self-checkout systems, ticketing kiosks, check-in kiosks, food ordering and postal kiosks.

It only measured purchases at the actual terminal and did not count previous purchases made that are being picked up at a terminal. For example an airline ticket that is purchased online is not included in the $525 billion figure, but an upgrade to the ticket purchased at the kiosk is added in.

The report found that retail and grocery self-check-out kiosks accounted for 46 percent of self service systems, transportation ticketing kiosks make up 22 percent, check in kiosks like those in hotels and airports represent 7 percent, food ordering 10 percent.

Buzek expects nearly $1.3 trillion in self-kiosk transactions by 2011.

"The accuracy and efficiency of self service check out terminals is great," Buzek observed. "With the shrinking labor pool and the lower cost of these systems, I expect that you'll see more of these kiosks used."

close

Next Article in Marketing Strategy

Sign up to our newsletters

Company of the Week

Brightcove is the world's leading video platform. The most innovative and respected brands confidently rely on Brightcove to solve their most demanding communication challenges because of the unmatched performance and flexibility of our platform, our global scale and reliability, and our award-winning service. With thousands of customers and an industry-leading suite of cloud video products, Brightcove enables customers to drive compelling business results.

Find out more here »

Career Center

Check out hundreds of exciting professional opportunities available on DMN's Career Center.  
Explore careers in digital marketing, sales, eCommerce, marketing communications, IT, data strategies, and much more. And don't forget to update your resume so employers can contact you privately about job opportunities.

>>Click Here

Relive the 2017 Marketing Hall of Femme

Click the image above