What is important to note here is not that advanced function ATM's are
coming. It is that an accessibility feature, audio output of transaction
prompts, was responsible for the demonstrated success of advanced
function ATM deployment, surprising everyone. Audio output can have the
advantage of making people more comfortable with an automated service
channel and help move people away from the tellers and service counters.
Read in particular this portion:
Myers-Jordan said the machines also feature audio prompts that guide
consumers step by step through the unfamiliar money order
transaction. Though the audio was installed almost as an afterthought,
she said it's been popular with consumers.
"We're finding that they're listening to the audio instructions more than
they are looking at what's going on at the terminal," she said.
They like it! Hey, Mikey!
Kelly
ATM Marketplace.com
Sssh, not so loud - money order pilot a success
by Ann All, editor
. 11 July 2002
As with any pilot of new ATM functionality, particularly one with a
tight-lipped retail partner, no one is saying just how many money orders
have been purchased at three Diebold ATMs in New Orleans over the past
nine months.
But it isn't because they don't want to.
"It has wildly exceeded our expectations," said Tonya Myers-Jordan,
Diebold's director of business development. "The amount of transactions
that we've encountered is four times greater than we anticipated."
"The results have been very positive so far. Sales have been very, very
good," agreed Ann Jackson, vice president of product development for
Travelers Express, Diebold's partner in the project.
The test went live on Oct. 1 at three locations of a major discount chain
-- one which just earned the top spot on Fortune's list of the world's
top 500 retailers -- and will continue through at least Sept. 30.
Discussions on possible expansion of the program are expected to begin
next month.
The Diebold 1062ixs are outfitted with an additional printer, cash
acceptor (to allow those without bank cards to purchase money orders) and
coin dispenser. Myers-Jordan said the machines also feature audio prompts
that guide consumers step by step through the unfamiliar money order
transaction. Though the audio was installed almost as an afterthought,
she said it's been popular with consumers.
"We're finding that they're listening to the audio instructions more than
they are looking at what's going on at the terminal," she said.
They like it! Hey, Mikey!
During the first few weeks of the pilot, representatives from Travelers
Express handed out pamphlets and conducted some demonstrations to show
consumers how the transaction was done. Though that was the only
advertising of the service, Jackson said money orders at the ATM ramped
up about as quickly as money orders typically do at the service counter.
Both Diebold and Travelers Express think the customer adoption rate would
be higher if the service was better advertised, however.
Money order sales at Diebold 1062ix ATMs like this one have exceeded
original expectations in a 9-month pilot at three retail locations in New
Orleans.
A bonus in the pilot: "(The retailer's) money order pricing is very
competitive," Jackson said.
Consumers seem to prefer the ATM to the counter, Jackson said. In
particular, they like the shorter lines and longer service hours at the
ATM. "While more and more stores are open 24 hours, the service counters
generally aren't. And the lines can get quite long, because they sell all
kinds of products there," she said.
Jackson believes that trust also plays a part in consumer acceptance. "I
think the customer feels good knowing they can go to (the retailer) if
there is a problem with the transaction, and (the retailer) will make it
right," she said.
The three ATMs are located in high-profile spots within the stores, two
of them just inside the front entrance and another near the checkout
lane.
Ready for prime time
According to Myers-Jordan, the average time required to complete a money
order transaction is about 30 seconds, slightly longer if a customer buys
more than one money order. The addition of money orders hasn't made a
discernible impact on standard ATM transactions, she added.
Diebold opted for money orders because the manufacturer felt that the
transaction was less technologically complex and thus more "ready for
prime time" than some of the other advanced function options and also
seemed to generate the most interest among its potential retail partners.
Speed to market was also accelerated by Diebold's decision to drive the
three terminals, Myers-Jordan said.
"We took the attitude that advanced functionality wasn't occurring fast
enough, and we made a concerted decision to try to break down a lot of
the barriers," she said. "We thought one way to do that was to drive the
terminals ourselves."
While Travelers Express is interested in offering other advanced
transactions at ATMs -- and has inked a deal with Concord EFS to offer
MoneyGram money transfer services at ATMs in the Star network -- Jackson
thinks that after the dust has cleared and pilots have ended, only a
handful of large players will offer these kinds of services.
Picking the right partners will be a key to success in the real world,
she said.
"You don't want to waste research and development money on someone who's
not going to be around in a year or two," she said. "We're pretty open to
investigating possibilities on the business side. But when it comes to
the actual IT development, you have to choose carefully. Otherwise, you'd
be doing nothing but designing interfaces and doing pilots."
Despite the success of the money order pilot, Jackson believes additional
services must be added to help defray the high costs of the hardware --
peripherals like cash acceptors and additional printers aren't cheap.
"As more and more of these kinds of terminals are deployed, I think the
costs will come down, but I think you'll need at least three or four
products to make it a profitable model," she said, noting that costs of
program management also tend to rise with expenditures like additional
vault cash.
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