News

IDC white paper says self-checkout improving customer service across the store

February 17, 2005

ATLANTA - Consumer usage of self-checkout is meeting or exceeding retailer expectations, resulting in improvements to customer service at the checkout and throughout the store, according to "Self-Checkout Systems: Creating Value Across the Retail Store," a white paper published by IDC, a leading provider of global IT research and advice, and sponsored by NCR.

According to a press release, the white paper's findings were announced at the debut of Self-Service Universe, a conference of Europe's leading retail and financial executives dedicated to the growing self-service phenomenon. The study's results incorporate interviews with 6,359 consumers and six retailers across North America, Europe, Japan and Australia who have had self-checkout deployed for more than six months. IDC found that these early adopters are seeing up to 50 percent of transactions go through self-checkout, and four of the six interviewed plan to at least double their self-checkout installations by 2005.

Consumers surveyed across seven countries cited faster checkout, shorter lines and choice as the top benefits of self-checkout. The retailers interviewed view improved service at the checkout as the key benefit, followed by improved customer loyalty and better customer service throughout the whole store.

"When retailers redeploy checkout resources to improve customer service beyond the front-end to other areas of the store, it provides a point of differentiation," said Meredith Whalen, group vice president of IDC U.S. Vertical Market Research.

The significance of the impact of self-checkout is emphasized by the importance consumers place on these service improvements. When asked where they would like staff redeployed to improve service in other areas of the store, the top answer was a clean and tidy appearance (77 percent), well-stocked shelves (76 percent) and accessible staff to answer questions and locate products (70 percent).

"Consumers clearly value the convenience self-checkout can provide as well as the impact it can make on service throughout the store," said NCR FastLane Vice President Mike Webster. "To maximize these benefits, the research highlights the need for retailers to develop best practices for measuring, communicating, staffing and promoting their self-checkout implementation."

According to retailers interviewed for the paper, one of the primary keys to success of self-checkout is staffing. This begins by ensuring the right attendant is well trained, friendly and encourages customers to use the technology. Clear and consistent signage and the correct location within the store are other important factors in encouraging shoppers to use self-checkout.

"Given consumers' positive attitudes toward self-checkout, we expect retailers to deploy more self-service technologies, such as kiosks," said Whalen.

Five out of the six retailers interviewed had plans to extend the use of photo and deli kiosks to stores where they did not already have them. Consumers stated that they are most interested in kiosks that allow then to check prices (63 percent) and kiosks that allow the pre-ordering of deli items (59 percent).