Thanks to Kiosks, Do-Not-Call Lists Do Not Scare Us Anymore

The circulation department at the Herald-Mail Company in Hagerstown has had a kiosk sales presence at different retail outlets for many years now. Within the past year we have been able to turn the corner on order production with a full-time kiosk sales person. Our focus has been to supplement our newspaper’s reliance on telemarketing orders.

In the past year, we have probably used telemarketing to account for less than 15 percent of our total pressure sales mix, with an eye toward eliminating it altogether. With increasing heat being placed on telemarketing, and the continued contempt of the practice by much of the public, we knew we had to do something to change the tide.

One of the finest parts of the kiosk program is that the per order cost is $12 to $14 and 90 to 95% of the people pay on the spot. Converting those "pay on the spot" folks to long-time subscribers is a challenge for another day, but should not be underestimated. This is paramount to continued growth.

As of today, our combined daily home delivery is up 1.5% year over year, with a spike yet to come this month. (July was when we began using our kiosk source on a full-time basis.) We may choose to do some telemarketing at that time, but depending on how the numbers look we may choose not to.

As do-not-call lists grow and electronic gadgets snuff our calls out, something it seems is going to give way. Quite obviously, no company can simply turn its telemarketing efforts off tomorrow and hope kiosks are the answer. But, if you have enough locations available and can dedicate the right person to the task, you may be surprised.

Our kiosk sales manager is responsible for establishing kiosk opportunities at grocery stores, convenience marts, department stores, malls, festivals, carnivals and many other community gatherings. In an effort to prevent becoming a nuisance, he limits use of all locations so as not to over-saturate any one.

The kiosk sales manager purchases $5 gift certificates from the location where he is posted and hands out free papers for the hours he is there. The offer of a free paper draws the folks in and the interview begins. It’s very brief and friendly, but an offer is made for a subscription. When the sale is closed the customer receives the gift certificate. On occasion, mail-back offers are given to those that are on the fence regarding a buying decision.

If the location does not offer gift certificates, and a deal cannot be made about creating some for the location, purchasing a product to distribute is considered. The creation of a win-win is the key for location set-up. If a manager begins thinking about charging you for setting up there, you can tout the fact that you are already putting money in the coffers, and making customers happy by providing them with this subscription sign-up service.

As with any great opportunity, there are risks, and we are trying to avoid the pitfalls. It’s all about developing relationships with retail locations. Offer to give out flyers or direct customers to special sales going on at the location you’re set up at. They can see you as a liaison between the store and your paper.

This may not be a silver bullet, but is perhaps one part of the alternative.

Kiosk Do’s and Don’ts

• A new manager can create challenges by claiming it’s against policy to allow solicitation. Knowing you have four stores within that chain that do allow you to set up your kiosk, do you ask many questions? Pressing the issue could result in a corporate directive to all stores disallowing all kiosk activity. Draw reference to the manager in the other store that allows you in. Request to try it once, and if the manager is not happy, offer to stop.

• While trying to land a new location, managers may try to use corporate policies limiting solicitation to get rid of you. Be tenacious if it is important enough. Many times we have (with the manager’s blessing) contacted the corporate office to clear this, provided proof of liability insurance and they open the door for us, or at least let us stand outside.

• If you are working kiosks in a competitive market, and your competitor is doing so as well, chances are, you’re calling on the same locations. Be careful not to over-saturate, or they’ll order everyone out and not allow it again.

• Smaller newspapers may have unique challenges in this regard. There may not be a sufficient number of locations to support a sustained campaign for a full-time representative. You can still make this happen. There are some companies out there that you can contract with for this service. Alleviating some DSM responsibilities in exchange for manning one or two kiosk locations per week may be a better choice.

Kukiela is circulation director for the Herald-Mail. He serves on the MDDC Circulation Committee.