Thursday, February 24, 2011

Retailers Should Offer Coupons to Boost Self Checkout

I was waiting on line at the Supermarket last week and noticed most people were not using the self checkout. In fact the line was 3 or 4 deep at the cashier checkouts, while only 2 of the 4 self checkouts were being used. While many grocery retailers have invested heavily in self checkout to reduce labor costs, they don't appear to have thought out a good marketing plan to get consumers to use them. From a consumer point of view, yes you can sometimes save time if the regular lines are pretty long or if you only have a few items, but it's more work than a regular check out. How about rewarding the consumer who uses the self checkout?

If the retailers are really saving on labor costs, why not use a portion of the savings to incentivize the consumer to use the self checkout by offering coupons to those who use it? This would significantly increase the percentage of customers who use the self checkout, further reducing costs. In fact, you could even have brands chip in some dollars for sponsorship (for example use the self checkout this week and get a 50 cent coupon for Chip Ahoy cookies that you can use on your next shopping trip). Another option would be to tie it to the store loyalty card - i.e. Use self checkout 5 times this month and get double points all next month.

What are your thoughts?

5 comments:

  1. That is a smart idea. Usually there is one person there "overseeing" the self-check lanes. He/she could hand out $.50 off entire order coupons to promote usage.

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  2. Hi Kevin,

    Good idea. I think one of the reasons we have not seen this is that most Supermarkets tend to view Self Checkout purely as a cost cutting measure, rather than an opportunity to engage their customers.

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  3. Some stores don't constantly monitor the self-checkout lanes, so if the machine malfunctions (some items weigh so little they do not register when you bag them so you get a "wait for assistance" prompt) I land up standing there waiting until the cashier returns. One day I just got tired of waiting so I left my groceries and just walked out. So if I'm in a hurry and I have an item I know will cause me problems in the self-checkout lane, I just go to a regular checkout. I've also seen people confused about how to scan produce in the self-checkout lines; it tends to hold up everything until someone comes to assist them. Stores need to have two people at the self-checkout one to run the register and scan coupons, and another to assist people who are not familiar with the procedures. But I'd use it more if they handed out a 50¢ coupon for your next visit.

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  4. the voice on the machine is too annoying and they malfunction too easily

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  5. Good points on how the machines and staffing can be improved. I would add, don't turn off the self checkout machines in the evening while the store is still open. I'm hoping retailers will see beyond using self checkout to reduce labor costs but rather a tool to improve customer service and loyalty.

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