Kiosks help consumers apply for own financing
By Marc Barnes -- Furniture Today, March 5, 2006
High Point — Kiosks that enable customers to privately apply for credit right in the furniture store are among the biggest changes in retail furniture financing over the last several years.
But, in 2006, there have been some significant changes in how the kiosks work — and even in how they are sold and leased to furniture retailers — from the mammoth national chains to the single-location, family-owned store.
"2005 was our defining year — to realize the marketplace needs and wants of our customers," said David Weyher, CEO of Showroom Technology of Reston, Va., which builds credit kiosks. "Thus far in 2006, the demand also has been good. It should be a breakout year with independent retailers, embracing showroom-based kiosks that can help them drive sales."
Joseph Zuber, a client manager for CitiFinancial, said that the advent of kiosks has prompted his company to branch out: In addition to handling the back-office operations that enable furniture retailers to offer their own private-label financing, CitiFinancial now has deals that finance the purchase or lease of kiosks for the merchant.
"Everyone has seen the benefit of a (kiosk) program, but not everyone can afford it," Zuber said. "We have been doing this for about six months now. The industry is loving these programs and this new equipment."
Today's kiosks aren't just about taking credit applications in private. They capture customer information, which can lead to offering coupons on the spot — or following up with direct mail later. A 19-inch TV monitor on top of Showroom Technology's Show/Pro kiosk also beams ads for specific store brands, which can plant a seed with a consumer for an additional purchase.
"If they leave without purchasing, they might not return," said Weyher. "The key is to get them to make a purchase while they are in the store."
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