As a kiosk business, Outerwall develops partnerships with retail companies to allow their kiosks (Redbox, Coinstar Etc.) to be placed outside or within a retailer’s storefront. As part of a retailer’s evaluation, Outerwall sales reps are frequently asked questions by potential partners such as, “What type of consumers will your kiosks bring into my retail store? Will they buy my products and will they be good for my business and brand? Will there be an increase in shoplifting at my store?” In order to address these questions that retailers ask, Outerwall needed to better understand the characteristicsdata-driven of who uses their various kiosks.
The location of Outerwall’s kiosks is a key component to the success of the company’s business. Kiosk revenue performance can vary widely and identifying optimal locations can have significant impact on top-line revenues. Their previous methodology for determining where to locate kiosks centered around partnerships with retail businesses that had a comprehensive footprint within highly to moderately populated areas. Outerwall was to roll out over 20,000 new Gift Card Exchange kiosks, and wanted to understand if there was a better way to determine optimal kiosk locations. Rather than simply focusing on population, they wanted to become more and explore using large volumes of consumer and sales data and predictive analytics to help determine where to locate new kiosks.
To determine where to locate new kiosks using large volumes of consumer and sales data.
Outerwall gained a much deeper understanding of their customers as well as the general population around their existing kiosks in a matter of hours at a fraction of the cost, cutting analysis time by 90%.
Outerwall can also use Versium’s Predictive Locator Score to determine the best locations for future kiosks, as well as leverage the insights found through LifeData for future marketing efforts.