Bobby Marhamat, CEO of Raydiant, offers up seven benefits of self-service checkout kiosks that underscore why retailers would benefit from investment in self-checkout this year.
May 3, 2021 by Bobby Marhamat — CEO, Raydiant
(Editor's note: an earlier version of this article ran on Retail Customer Experience, a Kiosk Marketplace sister publication.)
We know from our 2021 State of Self-Checkout Experiences report that consumers are increasingly drawn to self-checkout over traditional checkout methods — 60% of the 1,000 American consumers we surveyed said they prefer self-checkout over cashier-assisted checkout.
Any retailers selling goods in a physical location would be wise to pay attention, as our data suggests that this trend will only amplify in the coming year.
So what is it about self-checkout that has made it the preferred checkout option of the typical American shopper?
There are at least seven benefits of self-service checkout kiosks that underscore why retaoilers would benefit from investment in self-checkout this year.
It's noteworthy that the past year, a year defined by concerns about COVID-19, coincided with increased self-checkout usage. This is certainly a point worth exploring further, and might indicate that self-checkout is a technology well-suited to these unpredictable times.
There are also benefits of self-checkout that consumers gravitated towards even prior to 2020, with convenience topping the list. The combination of pandemic-related shopper concerns and decades-old consumer desires make self-service checkout kiosks an essential feature of today's physical businesses.
#1 Shorter wait times during checkout
Customers generally perceive self-checkout options as faster than being served by a cashier. 85.5% of survey respondents agreed that self-checkout is typically faster than its alternatives.
This perception may be formed by shoppers' real-world experiences. Self-checkout kiosks often serve as a "10 items or less"-type checkout option. Those with a cart-full of items they don't want to scan themselves may generally enter the cashier-assisted lane, while those who have few items or don't want to wait for a cashier can check out on their own.
The difference between the "10 items or less" line and self-checkout is that as a business owner or manager, you may only need to dedicate one staff member to man self-checkout lanes.
#2 Self-checkout eliminates one (or two) human contacts
Depending on whether your store incorporates dedicated baggers during the checkout process, self-checkout may eliminate one or more points of contact from the shopper experience.
Concern about the health risks of dealing with strangers is real. It could account for the drastic rise in self-checkout use in the past year. 36.3% of shoppers increased their use of self-checkout kiosks in a major way in 2020, while another 23.5% said they'd increased their use to a more moderate degree.
Persistent safety concerns could also account for nearly 59% of respondents who said they plan to increase their self-checkout usage further in 2021. Human contact and viral transmission have become synonymous in the minds of many, and shopper behavior reflects it.
#3 Self-checkout is another opportunity to drive revenue
If there is one word you do not want associated with your sales tactics, it's "pushy." Salespeople who attempt to push this extra item or that upgrade on a customer risk adopting the perception of pushiness, even if their intentions are pure.
Self-service kiosks provide a more subtle opportunity for you as a business owner or manager to upsell the customer. You may present complimentary items or exclusive discounts in a seamless way, as you often see them presented during the online checkout processes.
Self-service checkout kiosks may be an untapped revenue driver for your physical stores.
#4 Self-checkout kiosks are another conduit for your brand messaging
The versatility of self-service checkout kiosks may just be their greatest appeal. They serve the purpose of securing customer payment, but they can also communicate the brand messaging that you consider most vital to your business.
For example, we know that more than 67% of consumers have some level of concern about the cleanliness of self-checkout kiosks. With their customizability, these kiosks can be programmed to explain to the customer precisely what you are doing to sanitize the kiosks, as well as the latest charitable cause you are donating to.
In-store messaging helps define your brand, and self-service checkout kiosks can be a direct channel to customers' attention.
#5 Stronger customer retention
Though it may be an oft-forgotten consideration, the checkout process is a critical feature of the customer experience. Customers who associate your store with long wait times will find a store that treats their time with more respect.
The convenience and safety that self-checkout options provide customers could pay dividends in the form of customer retention. After all, nearly 50% of surveyed shoppers said they'd shop at a store with a self-checkout kiosk rather than a comparable alternative without one.
#6 Self-checkout provides true choice
Customers are not a monolith. While 59.8% of customers do prefer self-checkout over cashier-led checkout, the fact also remains that 34.5% prefer to have a store attendant scan and bag their items.
You don't have to make customers suffer through a checkout process that they don't like. By providing self-checkout, you cater to those who want to complete the checkout process on their own. You also continue to serve those who want a full-service checkout experience.
#7 Self-checkout will allow you to remain competitive
Self-checkout is no longer a technology of the future. Customers demand the relative safety and convenience of checking out on their own. Odds are that your competitors already have self-checkout options or will offer them in the near future.
Soon, if not now, offering self-checkout may be a basic necessity for any business to remain truly competitive in the physical-location marketplace.
The majority of shoppers we polled prefer self-checkout over cashier-led checkout, even when factors like lines were constant. Having at least one self-checkout kiosk could allow your business to continue competing in 2021, a time when shoppers will continue to be uncompromising about their health, convenience and checkout options.
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