Commentary

Top 5 ways to optimize the ‘post register zone’

Brick-and-mortar retailers can use kiosks and services to generate incremental profit and promote shopper loyalty, focusing on the areas beyond the check-out lanes.

Photo: Networld Media Group.

April 12, 2021 by Maria Mullen — Strategic Advisor, THinc Partners

Brick-and-mortar retailers are under tremendous pressure — trips and average basket sizes are falling; e-commerce is replacing physical store shopping occasions; online order pickup lanes are reducing in-store visits; and alternate channels are competing for grocery dollars. It is more important than ever to increase the productivity of all areas of the store including the post register zone, also known as the PRZ, that area beyond the check-out lanes that includes the front wall, the vestibules and the outside of the store.

Managing this area in a more strategic way enrolls the PRZ kiosks and services in generating incremental profit, driving in-store trips, increasing center store sales and promoting shopper loyalty for your stores.

There are five proven ways to optimize the PRZ to ensure you are getting the most from every inch of that space.

1. Offer a wide and evolving variety of services

Start by reallocating under-utilized space — empty areas, unproductive services, storage areas, excess merchandising — to more productive services, proven performers and emerging on-trend solutions.

Just because a kiosk has always been there doesn't mean it should continue to be there. Ask yourself what "halo" value each service is providing to the overall store productivity and profitability.

Ask the following questions:

• Does it generate cash that can be spent in the store?
• Does it drive a high volume of trips?
• Does it bring in a unique shopper demographic?
• Does it allow the store to play in a new category or service?
• Can it replace a declining center store category so you can use that shelf space for something else?
• Is the kiosk on-trend or a declining business?
• Is it an essential service?
• Does it add an element of fun to the store?

It is important to remember that the PRZ assortment itself is a consideration for shoppers when they are selecting a store. A wide variety of kiosks and services will provide the broadest shopper appeal.

2. Organize the kiosks and services into groups

Grouping like-kiosks together is an effective way to advertise to shoppers that your store has these services available. Just as products throughout the store are organized by category, the same should apply to the PRZ. It will help shoppers navigate the zone and discover all you have to offer, which in turn will increase the number of services they use on a regular basis

The following is an example of how kiosks could be grouped into categories: Financial services (bill pay, coin exchange, ATM, digital currencies, check cashing, money transfers); Environmental services (recycling, cell phone trade-in, video game disc trade-in); Convenience (document scanning, photo printing, health care checks); Household services (key cutting, rug cleaning, ice, bulk water, propane, lockers); Entertainment (movie rentals, toys and trading cards, crane machines, lottery).

3. Ensure the layout of the PRZ reflects consumer behaviors

Consumers use each service type at different times in their shopping trip. The way the PRZ is laid out should reflect when and how shoppers interact with the services.

Financial, convenience and recycling services tend to be used at the beginning of the shopping trip. The shopper has a specific task they need to complete, and any cash generated from these transactions is often spent in the store. Don't make them look hard for these services. Position them in the vestibules or near the entrances

On the other hand, household services and entertainment are usually saved for the end of the shopping trip. Shoppers don't want to carry things like bulk water bottles or rug cleaners throughout the store, and amusement services can provide a reward for well-behaved children. Position these services on the front wall across from the register lanes or outside, when possible

4. Create visual appeal

Keeping the PRZ organized, bright, clean and clear encourages shoppers to browse the services. Signage can be used to attract their attention, help them navigate the service options, highlight service groupings and communicate process, price and how-to-use. All of these things will increase the average transactions per kiosk per month.

5. Ensure the best possible experience quality

Kiosks are a reliable and progressive way to deliver necessary services in a safe, labor-free, socially-distanced way. But none of that matters if the machines are always breaking down, the area is not kept clean or the services are complicated to use.

It is important to choose kiosk vendors that diligently monitor and maintain their machines for optimal uptime and cleanliness; provide services that are user-friendly and frictionless; clearly and effectively communicate price and process; provide consistent connectivity and information security; and provide machines that are safe to use (including antimicrobial screens, hands-free transaction options, ADA compliant).

One grocery retailer in the Northeast knew they were not using the space at the front of their store effectively. Many of their store PRZs were crowded, dark and unorganized. Feedback from their shoppers reflected this situation — they expressed their irritation about having to "dodge the mess" just to exit the store. The shoppers were generally avoiding the PRZ, plus the condition of the PRZ was negatively affecting their perception of the total store.

The retailer decided to work with one of their multi-kiosk vendors to employ these five techniques to make their store PRZs more attractive and productive. Specifically, they removed overstock merchande which unblocked the windows allowing more light into the area; replaced unproductive services with new options, increasing overall shopper value; created service groupings and layouts for optimal customer experience; added signage to advertise the types of services available; and worked with vendors to ensure kiosk conditions and uptime met their store-level requirements.

The result? Happier shoppers, increased PRZ dwell time and increased PRZ profit per square foot.

Experience quality is as critical for the PRZ as for any other, and maybe more so because it is the first thing shoppers see and the last. Partner with your vendors to optimize the PRZ and ensure this space aligns with and supports your customer experience in-store goals.

About Maria Mullen

---

More From CommentaryMore

---