What is the downfall of self-checkout?

07 Dec.,2023

 

The simplicity of self-checkout counters is one of its main advantages: the customer uses a machine to scan items and puts them in a bag.

The weight of the items in the bag is measured to confirm that the item scanned is the one added to the bag. Customers can pay for the items using cash or a card.

Cost of space

When it comes to cost of space, checkout counters definitely take up less space than registers. Since self-checkout is typically faster than registers, there is typically one queue per several checkout counters, which saves additional space.

However, compared to other self-checkout options, counters are at a disadvantage – they are one of the least optimal options when it comes to cost of space.

Efficiency

When it comes to efficiency, here are some of considerations about self-checkout counters:

  • Reduced wait times compared to using a cashier lane. However, the speed of transaction is significantly lower compared to some of the other systems covered in this article.
  • Reduced labour costs as one member of staff can overlook several self-checkout counters.
  • High customer engagement: buyers need to scan product barcodes and place products into a bagging area, and sometimes even weigh products.
  • An obvious disadvantage of self-checkout in general is shoplifting. A store that has 55 -60% of transactions going through self-checkout can expect losses to be 31% higher. However, with reduced costs and constantly improving security, this percentage is decreasing over time.

Customer experience

Speed of transaction, perceived control, reliability, ease of use and enjoyment are the most influential factors leading to customer satisfaction. Taking this into account, this form of checkout is at an advantage compared to cash registers, however it is behind other systems listed below.

As self-service checkout counters have been around for a while, most customers are quite used to this experience.

Even though self-checkout counters do optimise use of space, efficiency and customer satisfaction, its ease of use can be improved. According to a study, 74% customers say that difficulty in entering goods and frequent overrides were their biggest concerns with the technology. 59% of consumers said that they would be more likely to use self-checkout if the technology was improved.

It’s difficult to recall a time when supermarkets didn’t have self-checkout. They’ve swiftly established themselves as a standard in the retail and service industries. Self-checkout is becoming increasingly popular, thanks to the inevitable trend towards automation and the growing preference for social distancing. According to Cision PR Newswire, the global market for self-checkout systems is projected to hit $7.8 billion by 2027, while Loss Prevention Media estimates that self-checkout would expand 10.3% annually until 2024.  

Even small businesses can benefit from self-checkout machines under typical conditions. The advantages of deploying a self-checkout system in retail retailers go far beyond the bottom line, especially in the modern age.

What Are the Pros And Cons of Self-Checkouts?

When evaluating self-checkout POS systems, the most important factors to consider are space costs, efficiency, and the customer experience they provide. When weighing the pros and cons of self-checkout, these elements should be at the forefront of your mind.

The Advantages

  • Shorter queues

Self-service checkout helps you to serve more consumers in less time. Because several terminals share a single queue, self-checkout lines move more swiftly than traditional checkout lines. Self-service tills process purchases faster because a cashier does not have to manually look through product numbers to discover the correct pricing, and these tills are not human-powered. This leads to more sales in the same amount of time and shorter lines. Shorter lines result in happier consumers, who are more likely to return.

  • In-store productivity

Employees can be more productive outside the counter with a self-checkout system. During a busy day, essential duties like restocking, inventory checking, cleaning, scheduling, and more are frequently overlooked. Rather than facing customers all day, your staff can work on other things that might otherwise go unfinished throughout their shift. Your employees will be able to get more done in your store if you have self-checkout.

  • Enhanced customers experience

Customers don’t always want to talk to strangers while shopping. Other benefits include faster checkouts, greater privacy, greater control over their purchase, and the elimination of the need to converse with their cashier. They may finish their purchase while on the phone, listening to an audiobook, or simply resting after a day’s work. thanks to our self-service checkouts. During the COVID-19 pandemic, 87% of shoppers prefer to shop in stores that offer touchless or robust self-checkout options. Checking out their own products is ideal for many buyers, especially if they merely have a few things or are in a rush.

  • Cut down on costs

With self-checkout, you can quadruple your checkouts – and your revenues – without adding another staff. You can have one staff monitor many checkout machines rather than having one cashier each checkout. Additionally, the human factor accounts for between 30 and 50%of all store losses. Cash handling concerns such as miscalculations, fraud, and theft are no longer a concern with a self-service till. Although the cost of the self-checkout terminals may appear high at first, you will quickly recoup your investment through increased sales and lower staff costs.

  • Better store capacity

Self-service checkouts take up less room and can handle many more consumers than traditional checkouts, making them far more surface efficient than a traditional till. It’s easier to accommodate 8 self-checkout stations into a location where 1 or 2 employee-assisted checkouts could be placed. As a result, if you have limited space and discover that you have long lineups, it may be ideal to maximize your checkout area by having a large number of self-checkouts rather than manned checkouts. You can reduce customer wait times and increase sales efficiency by more effectively utilizing space.

  • More social distancing

One of the primary benefits of self-checkout, especially during these times is that it allows personnel to keep a comfortable social distance from their customers while also allowing for more checkouts without increasing your store’s capacity. Retailers have struggled to stay in business since the COVID-19 outbreak. Even though retail companies have reopened, there are certain constraints on preserving social distance that make it difficult for enterprises to operate. The most efficient approach to stay safe while simultaneously increasing sales is to use self-checkout.

The Disadvantages

  • Cleanliness concerns

Customers are becoming increasingly worried about self-checkout terminals’ hygiene. With more people using and touching the machine, it can be quite concerning for the next user. It’s best to let your customers witness employees cleaning the self-checkout devices as often as possible. You can also attempt adopting self-cleaning by providing disinfecting wipes to clients, but this may not be used by all customers, and some may perceive this as the business shifting duty to the customer. What’s best is to make sure that your business has established and constantly follows health protocols.

  • Lack of personal interaction

This can be interpreted in both positive and bad ways. Self-checkouts are appealing to some people because they allow them to avoid social encounters, while others may find the process alienating. It’s hard to determine how someone feels about conversations, but what’s sure is that the more competent and composed your checkout clerk is, the better your customer’s experience will be.

Attendants should seek obvious ways to assist, such as dealing with errors, scanning difficult products, and providing coupons or discounts on products when they are available. These brief, useful conversations are ideal for clients who both desire and don’t want personal engagement.

  • User difficulties

Another disadvantage of the self-checkout system could be its interface, making it hard for customers to use. They can easily be irritated when a self-checkout machine does not work properly. Many self-service checkout devices will alert you if there is an issue. While self-checkouts replacing jobs is a big concern, having staff in the self-checkout section is still critical. An engaged self-checkout attendant can make a significant difference in the customer’s experience, especially when they encounter faults or minor inconveniences.

Employees should be instructed to be on the lookout for clients who are having problems and to offer assistance as often as possible. They should also be watching out for consumers who are purchasing a large number of things without barcodes, which may require looking up and weighing.

There are numerous benefits to implementing a self-checkout system at your company. There are some significant disadvantages to consider as well. Fortunately, most flaws may be overcome with the help of a well-trained self-checkout attendant.

Are you considering purchasing a self-checkout system? Call POSRG Canada for reliable and user-friendly self-checkout systems in Canada at (905) 332-8809 today!

What is the downfall of self-checkout?

The Advantages and Disadvantages of Self-Checkout ...