Most of us have had ‘that’ battle with a self-service checkout at some point: “unexpected item in the bagging area”; does this sound familiar? The self-service checkout has been a part of retailers’ checkout strategies for a number of years now, but what hasn’t been clear is to whose benefit they intend to serve.
In this blog I look into who really benefits, and if self-serve checkouts are likely to stay.
Source: Twitter user @HopelessSurfer
Who benefits from self-serve?In the early 1900s, when mass retail made the profound shift from counter to self-serve, the role of store employees changed considerably. No longer were they required to serve each customer individually; invariably greeting customers by name and reciting regular orders.
Their role turned more to replenishment, enabling customers to shop almost entirely unaided, self-navigating stores with minimal assistance. Customer service took on a new guise, primarily driven by customers as and when needed by them.
The one guaranteed point of interaction - until relatively recently - had been the checkout. The introduction of self-serve tills changed that. With promises of faster throughput and cost-saving economies, these were supposed to benefit customers and retailers alike; benefits that I don’t see having come to fruition as intended.
Reduced interaction between customers and store employeesFor quite a while retailers believed customers wanted to be self-sufficient to quicken the shopping process. A significant amount of time and energy was spent optimising store labour models, reducing time allocated to customers and introducing self-serve at checkouts.
From a customer perspective, however, the opposite couldn’t be more true. RSR Research from July 2015 shows that retail ‘winners’ are far more likely to have increased payroll as a percentage of sales, in order to ensure staff are more productive. The cost per employee has gone up, but the overall labour bill has gone down with fewer employees in store. True, or were they redeployed, and thus has overall cost gone up?
This is something to be discussed another day, but the point is that more customer/store employee face-time leads to an improved customer experience.
Faster - and more - transactionsWhen everything goes well, customers get the faster shopping experience they ‘want’, and retailers get a much lower staff-to-checkout ratio.
But there is an associated risk to this when, for example, a product doesn’t scan, the scales sense an inaccuracy or an ill-informed customer presses the wrong button, all of a sudden you hear the “please wait for assistance” claxon sound and the customer is left abandoned. If you’ve ever been in this situation (and let’s be honest, who hasn’t), the embarrassment, frustration and panic that can suddenly strike is unnerving.
Yet, don’t forget the tasks that can only be undertaken by store staff (such as scanning a lot of coupons) and thus detracts from self-serve yet again. In theory, using this type of checkout is all fine and well, as long as store employees are plentiful, experienced and extremely attentive, which given labour model changes rarely is the case.
Shift to focus on customer centricityStill one of the most despised points in a store customer journey, retailers have outsourced the checkout to only now think about taking it back again. The shift to become more customer-centric has prompted retailers to put the customer truly at the heart of everything they do. In turn, the checkout experience is back on the agenda for a revamp:
- Staffed checkouts reinstated– In addition to promising to invest in the number of staff in-store, Morrisons has recently re-introduced the ’10 items or less’ checkouts that they got rid of a number of years ago. Tesco too has talked a lot about putting more staff hours back into store
- Self-serve models upgraded– Tesco and Sainsbury’s have introduced new card-only slimline self-service checkouts, aimed at the grab- and-go or top-up customer who will only have a few items. Morrisons has also upgraded their aging Wincor-Nixdorf models to a sleek and modern NCR model
- Choice offered– Marks & Spencer in London Bridge has recently replaced the majority of their staffed tills with self-service models, but with a strong staff presence remaining, there has been little negative impact on the overall customer experience
- The non-human made more ‘human’ - Tesco has gone so far as to re-record their self-service checkout audio voices to be “friendlier, more helpful and less talkative” – a more human touch, even if there aren’t quite enough humans available
The next era of self-serveSo what’s next? Many retailers have adopted a digital transformation strategy and many self-serve disrupters have appeared such as RFID, digital wallet and Scan & Go. These are the concepts that offer the potential for even greater mutual customer/retailer benefit, with lower capital investment and a means of providing a more seamless and multichannel experience.
In my opinion, the introduction of self-serve checkouts was a cost-driven exercise prompted by retailers, with a little customer benefit to boot; this must change.
The checkout is an essential part of the retail customer journey to get right. Whether the decision is to reinvest staff hours to improve quality of customer interaction, or simply improve self-serve options, retailers must ensure they offer a great customer experience throughout. Can retailers really afford not to invest in strong and positive lasting impressions in the current climate?
What is for certain is that a flustered and frustrated customer exit from store is not conducive with a repeat visit, or longer-term customer loyalty.