DIY Becoming Shopper Mantra in Stores

Put more kiosks and self-checkouts in stores and consumers are bound to use them. That’s the logical conclusion drawn from a report by IHL Consulting Group, which projects consumers in North America will spend $525 billion this year at self-checkout lanes, kiosks and other self-service technology devices. That figure represents a significant jump from the $438 billion consumers spent going the self-serve route in 2006.
Greg Buzek, president of IHL Consulting, said in a company press release that the use of technology to enable consumers to serve themselves is just getting started.
“We expect that expenditures made at self-service kiosks will rise by about 20 percent this year and another 18 percent in 2008,” said Mr. Buzek. He projects that sales at self-checkouts and various types of kiosks could push $1.3 trillion by 2011.
“Consumers enjoy self-service and increasingly seek out retailers that offer the technology,” he said. “Retailers and other businesses are finding that self-service kiosks can significantly increase customer loyalty, as well as customer satisfaction.”
Discussion Questions: What do you see as the primary factors behind retailer use of self-service technologies? Do you think we will we see formats in the future that are primarily self-serve with employees on hand for the purpose of dealing with tasks such as stocking shelves, store maintenance, security, and dealing with equipment malfunctions?
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21 Comments on "DIY Becoming Shopper Mantra in Stores"
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I think it’s fairly obvious that the more self-checkout lines there are, the more they will be used. As long as the lines at the self-checkout remain smaller than the human operated tills, people will continue to dash through them. I have even been to stores where there is only self-checkout available late at night to support the 24 hour shopping strategy, ensuing reduced labor for the store. It’s also fun watching people use them for the first time–with a look of complete distrust on their faces!
I’m with Raymond 100%. Although our firm is focused on in-store media technology, I feel strongly that this is a blanket statement with many fuzzy areas.
Like any other technology, self-service kiosks and DIY plays are only as good as what they provide and how the shopper experiences them. There are TONS of horrible installations out there that completely overlook good usability and providing a simple, rewarding experience in context with shopper needs. There are also many kiosks and DIY examples that are on the other end of the spectrum, truly helping the shopper and putting a smile on their faces! The two most important rules? (1) Make them optional and (2) remember the old adage “it’s not the gun, it’s the bullet!”
Shoppers will use self-service checkout as long as it suits their convenience. Waiting on a checkout line is the #1 complaint of shoppers everywhere. Unfortunately, self-service checkout isn’t a magic solution: customer lines still abound and most opportunities for upsell are lost.
The answer to the first question is to control labor costs. The answer to the second is that we’re not quite to the robot store era yet.
I think this type of technology actually appeals to consumers because they are given a sense of being in control of the checkout process and there also appears to be an element of time savings/customized service associated with self-checkout, kiosks, etc.
I also think this appeals to a more technically-savvy time-starved population and obviously provides a labor savings opportunity for the retailer.
I believe this trend will continue as it hopefully offsets the labor required to service consumer demand in the various service departments around the perimeter of the store.
I would use it on occasion for speed. Most of the time, I prefer customer service and interaction; however, if I am in a supermarket, I want speed. I want to get out fast. As it is, I bag my own groceries. If I only had a couple of items, I would use the self-checkout.
Just curious…. Has anybody yet studied whether or not self-checkout increases shrink? I don’t have a clue about the answer to that, but it’s occurred to me. As to the questions, Ryan’s right.
Wouldn’t it be interesting if the retailer offered to share the cost savings of self-checkout (no need for a checkout cashier) with the customer–say a coupon that worth 10% of the bill amount applicable for the next purchase only at the self-checkout counter….
I believe this would increase the buzz and the usage around self-checkouts and probably take them past the tipping point.
L.L.Bean has had a telephone connected to the catalog call center for years. For consumers who wanted something that wasn’t available in the store but was available through the catalog, it was a way to purchase what they wanted without having to have all inventory in each store. Certainly that is one effective reason for an in-store kiosk.
In addition, if checkout lines are long an in-store kiosk is a way of ordering the product if you are not concerned with having it the same day.
In-store kiosks also allow consumers the opportunity to browse a larger inventory than just the products in the stores.
Will all consumers use the kiosks? No. Will the consumers who use a kiosk use it on every visit? No. Will some consumers find the kiosks a way to purchase more merchandise occasionally? Yes.
Most shoppers, in most stores, are comfortable with technology whether it’s the web, kiosk, PDA, or self-check POS. For these shoppers it is easier and more desirable to do it themselves. Sometimes, the retailer makes it fun and informative. Technology then contributes to the experience of shopping.
My theory is that self-service shopping will soon be pervasive. Retailers who are not engaged will soon be catering to the doddering few.
Retailers do it for 2 reasons:
1. People who use technology are proven to buy more.
2. It reduces labor cost.
Consumers use it for three reasons:
1. Retailers don’t have enough employees to serve them so they use technology to get out of the store faster. (They have less checkers available to help me so I have to use self-checkout in self-defense.)
2. Technology is smarter then most employees and can help me make a better buy decision.
3. It gives people a feeling of being in control.
This is a concept that is finally hitting its stride. Things like kiosks and self-service checkout stands are great ways to increase customer satisfaction, decrease the amount of time spent in line and drive velocity through stores. There are no downsides to using modern technology combined with consumer demand to provide a faster, lower-touch environment.
I’m in agreement with Raymond and Laura.
Optional is key, and keeping someone staffed overseeing several kiosks to help if there’s a problem. And often there is.
For me, it’s about speed. Checkout is #1, but if it’s backed up and I have just a few items, I’m a DIY’er.
I have always been a big fan of self-service kiosks and checkouts…anything to make the checkout process faster and easier.
My 2 cents, however, says that these things still need a lot of work. They never seem to work, and I keep hearing “Please rescan your item. Credit, two dollars, forty five cents.” Hah! That gets annoying, and sometimes I get frustrated and go find a human.