CreataCard personalizes greetings; new computerized card designing kiosk is catching on at discounters - American Greetings' CreataCard kiosk for personalizing greeting cards

Discount Store News, April 19, 1993

CLEVELAND--If Americans can write messages to President Clinton via their personal computer, they certainly can personalize a greeting card from a computerized kiosk in a discount store.

And, apparently they are doing just that.

Since last October, shoppers in more than 2,000 retail locations in the United States and Canada--plus another 100 in the United Kingdom--have been purchasing greeting cards they design themselves from a kiosk called CreataCard by American Greetings. By year-end, nearly 6,000 such kiosks will be in place worlwide, including new markets in Europe, said Don McKee, vice president, general manager of American Greetings American Operations.

"This is not a fad or a novelty but something the consumer has grasped really quickly. We've gotten great reviews from retailers," said McKee.

In addition to providing American Greetings with an opportunity to expand its offerings, especially in the alternative card arena, CreataCard is helping the company develop ties to new customers--particularly men and young people--as well as heighten its appeal to the traditional adult female purchaser.

At Hills Department Stores, Canton, Mass., a one-unit test started before Christmas and has produced outstanding results, said Gary DeMarchis, general manager of the chain's Robinson Town Centre store in the Pittsburg market. Use of the machine is so high that DeMarchis had his store associates learn how to service the machine themselves rather than use American Greetings' field service organization.

"The customers really want to do this," said DeMarchis, noting that the program is particularly appealing to computer literate young adults aged 18 to mid-20s. Word of mouth has deepened use of CreataCard for the Hills test store, he said.

The CreataCard machine features a video touch screen that displays art and verse options to a customer. A user touches the screen to access the options for one of CreataCard's 1,000 designs for everyday or seasonal giving. Shoppers may also choose from more than 100 verse options or choose to write one themselves. Once the selection is made, the card is printed out. The customer can choose from one of two envelopes. A $3.50 purchase price is collected at the checkout registers.

Although CreataCard has been in stores for only six months, American Greetings has found that birthday and romance sentiments lead others on an everyday basis. At Christmas, however, the top card was a Dear Santa letter.

American Greetings also has discovered the hightech machine is particularly appealing to young adults, who are most familiar with computer technology via school programs and electronic games, and daunting to people over 35, especially consumers in the 45 to 50 age bracket who are a little phobic about computers and "need a little enticing" to try the machine.

As a result, American Greetings just started an instore demonstrator program to help introduce the machine and its technology to shoppers. This will be an ongoing program, McKee said. The first retailers to get the demonstrators are retail chains not performing at the minimum level, 11 to 12 cards a day. American Greetings also is working on a brochure for the kiosk to provide users with helpful hints on making their selection as well as providing them with a place to write out the message before approaching the machine.

"We have found that if we can get the consumer to use the machine once, she is hooked," McKee said.

American Greetings has found that CreataCard produces the best sales results in a high traffic area like a greeting cards or flora department. In fact, American Greetings stated in its literature on CreataCard that gross profit contribution per linear foot of $1,000 or more is common. At a cost of $3.50 per card to consumers, retailers reap $1.05 per card for every sale. Retailers invest nothing in inventory or equipment. American Greetings provides the machine and a field service organization services the kiosk. The retailer provides the in-store site for CreataCard and an electrical outlet to plug it into, said McKee.

At the Hills store in the Pittsburgh market, CreataCard is in the greeting cards department on a power aisle. The kiosk produces 50 card sales a week on average. During Christmas the CreataCard machine generated 75 customized card sales.

The CreataCard program was made possible for American Greetings via its July 1992 purchase of a small company called Custom Expressions.

The alternative greetings card features ink drawings and free form printing. The back of the card says: "Created especially for you by American Greetings."

To keep both the designs and sentiments fresh, each are being reviewed and/or revised every 60 days, said McKee.

Keeping the distinctive look to CreataCard is important to the program and American Greetings is set to add some new design techniques this June. One of the new designs looks like a child's crayon work, said McKee.

In addition, American Greetings will launch a national contest in May to help consumers understanding CreataCard and all the personalization options available to them with the program.