Independent Study Reveals Healthnotes Kiosks GenerateNearly Seven-Fold Return on Investment for Retailers

Study Proves that In-Store Health & Wellness Information Drives Product Sales, Improves Labor Productivity, & Increases Customer Satisfaction

 

PORTLAND, Ore.—Feb. 27, 2006—Healthnotes Inc., the leading provider of healthy living retail marketing solutions, today announced the results of an independent controlled study demonstrating that Healthnotes® kiosks generate a positive return on investment for retailers. Conducted by Wisner Marketing Group (WMG) in 2005, the study shows that by using Healthnotes kiosks retailers can generate increased product sales, improved labor productivity and increased shopper satisfaction.

Key findings from the study indicate that complete payback of purchasing the solution, including the hardware required, was obtained after five months of usage and a 677% ROI achieved after three years. Most significantly, over 40% of the shoppers purchased a product as a direct result of information they had obtained from a Healthnotes kiosk. According to the report, the products purchased covered a wide range of categories across all departments. Another significant finding: sales of coenzyme Q10, a substance depleted in the body of individuals taking medication to manage hypertension and cholesterol, and one of the topics most frequently accessed by shoppers, increased by more than 20%. This strongly reinforces the finding that exposure to the information generated new sales.

"The results of this study prove that employing a health and wellness solution like Healthnotes in drug stores and supermarkets is a viable merchandising strategy that generates substantial economic value for retailers, " stated Dr. Schuyler Lininger, president and CEO of Healthnotes, Inc. "Healthnotes will continue to design solutions that help retailers capitalize on the mainstream growth of health, wellness, self-care and organics."

Other key findings

  • Over five hours per week of employees' time was saved from addressing routine customer questions. The majority of time saved came from the pharmacists, making it possible to redirect efforts towards improved productivity and customer service.
  • Over 75% of shoppers indicated they found the information useful; 93% believe it is important to have the Healthnotes kiosk in the store.
  • Employees felt the information made a positive contribution to customer care and was complementary to information obtained from their pharmacists.

"Numerous industry studies have shown that consumers want health and wellness information available where they shop, but many retailers have been reluctant to make the investment without a measurable return," remarked Jim Wisner, WMG president. "This study shows quantitative evidence that retailers can generate a positive return on investment in virtually every situation."

Methodology
The study was conducted at a chain drugstore beginning May 2005 and lasted 12 weeks. Healthnotes Touchscreen kiosks were installed in three test stores, with three demographically comparable stores chosen as control stores. The employees in each test store were given an introductory training on the kiosk, and in-store signage was used to increase customer awareness of the kiosk. Brochures were also handed out at the pharmacy drop-off and pick-up windows. The results of the study were compiled from consumer interviews, employee interviews, sales data, and kiosk usage data.

For full details on the study, contact pr@healthnotes.com for a copy of the white paper, The Value of Providing Health and Wellness Information in a Retail Setting: Research Summary.

Note to editors: Healthnotes also announced today Healthnotes® Connect™ retail solutions, providing a healthy living merchandising and marketing platform for retailers. For details about the announcement, visit www.healthnotes.com.

About Wisner Marketing Group Inc.
Wisner Marketing Group Inc. develops and implements solutions to complex retail marketing issues for manufacturers, retailers and others in the pharmacy, foods and non-foods industries, serving clients such as the American Egg Board. With over 30 years in the food and drug industry, Jim Wisner, President of Wisner Marketing Group, has authored several healthy living and pharmacy continuing education programs in both the United States and Canada, including Whole Health for Retail Pharmacists, a joint project of the Food Marketing Institute and the GMDC Educational Foundation, and the widely publicized, Women's Well-Being Merchandising Strategies. For more information, visit www.wisnermarketing.com.

About Healthnotes Inc.
Healthnotes Inc. was founded in 1989 on the premise that informed consumers become loyal customers. Healthnotes® Connect™ delivers health and wellness product information, lifestyle articles, and targeted advertising and promotions to consumers via interactive touchscreen kiosks and retail Web initiatives.

Currently serving thousands of retail locations and Web sites worldwide, including six of the top seven U.S. grocery retailers, Healthnotes Connect empowers consumers to make educated decisions and drives product sales—in-store and online. For more information, visit us at www.healthnotes.com

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Note to editors: HEALTHNOTES is a registered trademark of Healthnotes Inc.

For more information, contact:

For more information, contact
Bill Schneider
Aisle7
503.234.4092,