Is it time for you to embrace the cashless self-checkout?
More and more retailers have introduced cashless self-checkouts in recent years - but should you join them? Let's take a look at the pros and cons.
Cashless self-checkouts: welcome to the future?
When was the last time you went to a supermarket that didn't have cashless self-checkouts? You might need to think about that for a moment, as they've become completely ubiquitous over the last decade. Now they've even moved out of the supermarket, as smaller retailers start introducing them. Maybe you're beginning to consider cashless self-checkouts, too, but you don't know if they're suitable for your business.
Introducing self-service checkout systems is a big decision for any retailer to make. Let's consider whether you should jump into the pool of the cashless self-checkout or stick with tried and tested staffed checkouts.
Advantages of cashless self-checkouts
They're faster
This is a big one. 75% of shoppers say that speed is a priority when they're buying things. Well, it doesn't get much faster than a cashless self-checkout. For customers in a hurry, they're ideal.
That being said, it's also true that not every shopper can use a self-checkout effectively. In order to keep things moving along, you may need to have a member of staff nearby to assist if necessary.
They're more convenient
Is the UK now a cashless society? We may not quite be there yet, but we're certainly getting there. Cashless self-checkouts embrace this trend, allowing customers to tap and pay, completing their transactions in an instant with their phone or card.
Many customers love this kind of technology, particularly younger generations. Digital payments are seen as more secure, and many offer specific incentives such as reward points or discounts. All this makes cashless self-checkouts an attractive choice for anyone who loves technology.
They allow checkout without interaction
A number of customers - particularly younger people - don't enjoy chitchat at the till. Maybe they've got their headphones in, they're not fluent English speakers, or they just don't feel like talking. For them, the chance to finish their shopping without pausing for a conversation is a real priority. If you want your business to target Generation Z, then self-checkout systems are definitely a good call.
They cut down on waiting times
Generally, you can fit more self-checkouts in the same space where you could put a single cashier. That means more customers can be served simultaneously. It's good for the customer - less hanging around waiting to pay - and it's good for your business.
They allow you to run promotions effectively
Traditionally, many shops keep promotional products by the till, where staff can offer them to customers. This isn't always an effective strategy, though. Customers may feel that they're being put on the spot - and if the offer is for chocolate or sweets, they might feel that they're being judged if they say yes.
Self-service checkouts make it easier to offer these promotions. You can just have them appear on the screen so customers can choose for themselves, with no one watching over them. You may even find this is a good way of ensuring that your retail business remains profitable.
They're more hygienic
After COVID-19, we all hope to never live through another pandemic - but the possibility is out there. During the 2020 pandemic, many shoppers found self-service checkouts a welcome opportunity to avoid germs. Some shoppers still prefer to use a machine checkout, particularly if they have a compromised immune system or are prone to illnesses. As a business owner, this is also an advantage for you: you'll find the screens straightforward to keep clean, as long as you wipe them down regularly with anti-bacterial solutions.
They eliminate the possibility of human error
We all make mistakes sometimes. During a long shift, distracted cashiers can easily slip up, adding numbers wrong or giving customers too much or too little change. Fortunately, machines don't get tired. When you have self-checkouts, there's no need to worry about human error. Everything is automated and easy to monitor. That's always good for your bottom line.
Now we've looked at the benefits, what about the drawbacks? Why isn't every retailer rushing to install cashless self-checkouts? Here are a few reasons.
Self-checkouts vs cashiers
Some customers want the human touch
One of the biggest disadvantages of self-checkouts is simple: some customers really enjoy interacting with other people. They may feel that humans are being replaced by robots, which makes them uncomfortable. You also risk losing part of what makes your small business special. If customers only interact with a machine, they may as well go to a large supermarket instead.
Luckily, there are ways to mitigate this. A simple option is to offer your customers two choices: the self-service checkout or a staffed checkout. You could also encourage your staff to focus on customer service during other parts of the shopping experience. In fact, with customers serving themselves, your staff will be free to help them browse, answer questions and so on.
Some shoppers only carry cash
We may be moving in the direction of a fully cashless society, but not everyone has caught up. For a number of different reasons, some shoppers still prefer to pay cash. If you only offer cashless checkouts, you're excluding them completely. Even worse, they may feel judged and sneered at because they still want to use cash.
To avoid losing business, try offering both options. You won't even need to have a member of staff waiting at the till most of the time; most customers will be happy to use the cashless checkouts. When someone requests to pay in cash, a staff member can simply hop onto the till and serve them. This is a simple solution that keeps everyone happy.
Not everyone is tech-savvy
Cashless self-checkouts are very user-friendly, but even in the digital age, there are people who are uncomfortable operating any kind of machine or device. Customers who are faced with a bewildering self-checkout may choose to shop elsewhere. This can be particularly costly if your business is targeting older shoppers, who are often the most reluctant to embrace technology.
To solve this, keep a staff member close by the self-service checkouts, ready to lend a hand when needed. This may actually turn out to be an extra bonus; when your staff member steps in to help, they'll interact with the customer more than they would in a normal shopping experience. Customers will remember the positive interaction and return in the future. Yes, some of them will need help with the self-checkout every single time they shop, but as long as your staff members are patient, friendly and professional, you won't lose custom.
Staff may worry about job loss
Increasingly, people are concerned about robots taking their jobs. When you make the decision to install a retail self-checkout system, your staff may react negatively, worried that this will lead to their jobs going up in smoke.
Actually, self-service checkouts don't mean that your human staff will disappear. In fact, you'll find that the new system frees them up to focus on other things. Rather than being tied to the till throughout their entire shift, they can greet customers at the door, help them find items, answer questions and so on. Self-service checkouts give your staff less to think about - which can lead to more positive customer service throughout the entire shopping experience.
Technology can fail
It happens occasionally: there's a power cut, the internet connection dies, or something goes wrong behind the scenes. This leaves you with non-functioning checkouts and customers who don't know how to pay.
Again, this is a good argument for keeping a staffed till available, just in case of emergencies. Major technical failures are rare and shouldn't cause more than a minor hiccup in the grand scheme of things. As long as you have a backup plan, you should be fine.
Keeping everyone happy
It's important to strike a balance between innovation and comfort. Self-service checkouts often feel like the future of retail - but it's vital that you meet all your customers' needs.
Don't sacrifice the human touch as you rush to embrace technology. The ideal retail business should be able to use these modern tools alongside human staff, creating an atmosphere that welcomes all shoppers. Used wisely, cashless self-service checkouts can become a valuable part of your business.
Ready to take the plunge? Learn more about SumUp's self-service checkouts. Still have questions? Get in touch with us, and we'll be happy to help!
