Self-checkout systems have gone from being a novelty to becoming a consumer expectation in most retail environments. Their functionality offers improvements to operational efficiency and store performance, while also providing customers with an ideal checkout solution.
What is a self-checkout?
Self-checkout is a software system that allows customers to scan goods themselves and pay without a cashier. While initially implemented in grocery stores, self-checkout systems have gained widespread popularity and can be found in practically all modern retail spaces.
Ultimate guide to self-checkout systems
What are the different approaches to self-checkout?
While there are many self-serve options in the current market, full-featured self-checkout machines, like the ones found in grocery stores, are the most popular types of self-checkouts. However, mobile self-checkout options as well as or carts that track items as they are being deposited, are increasingly being adopted in certain retail spaces.
Fixed self-checkout machines
Also known as self-service kiosks, these machines have become a common sight in modern big-box stores and specialty retailers alike. They have been deliberately designed to streamline and facilitate the checkout experience, allowing customers to make a purchase without the need to ask for help from an employee.
The functionality of self-service kiosks includes barcode scanners and weight-sensitive systems. Customers can easily scan items using barcodes. For items without barcodes, such as fresh produce, customers can choose the item type from an interactive display and the checkout kiosk will automatically calculate the price based on the item’s weight.
Scan device-based self-service checkout systems
This model consists of the retailer providing customers with specialized scanning devices. Customers must scan the barcodes of the items they wish to purchase as they introduce them into the shopping cart. In some cases, the scanning device will be placed in the shopping cart itself. Once the customer is ready to pay, they must head towards a fixed point in the store, similar to heading to a traditional checkout line. Once there, they must dock the scanning device in a terminal, where the amount due will be automatically calculated.
Mobile self-checkout systems
With this option, consumers can use their own mobile devices to scan the items. Mobile checkout has started gaining traction with certain retailers. In order to implement mobile self-checkout, customers must download an app, which can belong to either the retailer or a third party.
Mobile checkout can be performed using the camera functionality built into mobile devices. Customers must use their cameras as a scanner to record the products they wish to acquire. The availability of mobile self-checkout systems may also depend on RFID technology, which is commonly found in the vast majority of modern mobile devices.
Self-checkout vs. Checkout-free systems
Checkout-free systems are similar to self-checkout technology. These cashier-less systems detect customers’ selected products and bill them. Checkout-free systems implement QR codes, RFID chips, smart shopping carts, and machine vision.
The main difference between both systems is that the transaction, invoice, and billing processes in checkout-free systems are automatically handled by technology. While this is preferable by many consumers, self-checkouts offer a more hands-on experience. Users may require an app to use checkout-free systems, which certain consumers may consider to be cumbersome and obtrusive.
Why are retailers adopting self-service checkout systems?
Retailers are adopting self-service checkout systems because they offer customers a convenient, safe, and reliable method of shopping. Likewise, self-service checkouts can help enhance retail store operations while also reducing labour costs and mitigating labour shortage challenges.
Self-checkout lanes help improve customer service
Research shows that implementing self-checkout options helps improve the customer experience. Customers enjoy self-checkout systems because they offer a more agreeable shopping environment, faster purchase processes, and reliable transactions.
A U.S.-based study conducted in 2019 acknowledges that more than 70% of consumers are in favor of the wide implementation of self-service alternatives (source). As younger generations join the consumer market, their technologically savvy preferences point to self-service systems becoming even more popular.
The benefits that self-service checkouts offer to customers include:
Shorter waiting times
Long lines are the number one complication customers face with retail checkouts. Not only is the waiting process extremely tedious, but a line that’s too long may also cause consumers to drop their purchase altogether. According to research, almost one third of consumers will abandon checkout lines if they consider they are taking too long to be attended. Moreover, 11% will abandon their purchase if they’re faced with an unacceptably long line (source).
Self-service checkout kiosks provide customers with a solution that allows them to purchase items at their own pace. Therefore, the frustration of waiting for a cashier to be readily available and the time it takes for them to receive their items is minimized.
A controlled purchase process
By using self-service kiosks, customers take the reins of their own shopping experience. A customer can access a store, select their preferred items, pay, and leave without ever having to interact with another human being. Additionally, customers can bag their items at their own leisure. This way, self-checkout kiosks don’t break the pace of a customer’s routine.
Secure transactions
The payment process of self-checkout kiosks has been designed to be as appealing as possible. Thanks to access to quick and easy transactions, customers don’t have to be afraid of their cash or card being mishandled by a retail employee.
Solution to labour shortages
Self-checkout kiosks have become increasingly popular, especially following Covid-19. In fact, it represented 30% of grocery store transactions in 2021 according to a report from FMI-The Food Industry Association. Due to labour shortages as well as high employee turnover rates, companies have been leveraging technology to meet customer needs and stay afloat. There’s no telling when the labor crisis will end and self-checkout machines make it possible for employers to have less workers on site while still keeping up with the volume of transactions.
Increasing customer lifetime value
A positive self-checkout line experience will translate into a better consumer-brand relationship. Instead of having second thoughts about making a purchase due to having to contend with line-ups associated wtih traditional checkouts, access to self-service solutions let customers know that, whenever they visit a retail space, they will have a fast and engaging shopping experience.
The widespread popularity of online shopping has driven many customers away from physical stores. However, there are many advantages to retail shopping that can’t be accessed through the online sphere. For instance, customers still prefer to see, touch, and smell the products they’re interested in. Self-service checkouts provide the perfect compromise between a personal shopping experience and being face-to-face with items.
Self-checkout stations as a guide for process mining
Data is the new oil. It is in the best interest of every retailer to know who is purchasing their items, how often are they being purchased, and the average market basket composition. Luckily, self-service checkouts are able to collect and make reports on purchase data.
Data collected by self-checkout kiosks can revolutionize the management of a retail store. Retailers can use data to customize offers and design better customer engagement strategies. For instance, information about what items are frequently bought together can be used to offer customers the most appealing and accurate deals.
Reducing the risk of theft
In contrast to human cashiers, self-service systems won’t be fooled or distracted by ill-intentioned consumers. When a customer uses a self-service kiosk, the machine automatically recognizes scanned items based on their weight.
The checkout process will be stopped if the machine notices that the total weight of items does not match the information it has been pre-loaded with. Self-checkouts can also be equipped with various cameras to log everything happening at or around the machine, reducing potential opportunities for theft.
What a self-checkout kiosk looks like in retail
Modern self-service machines are compact, discrete, and attractive to the eye. Self-checkout lanes occupy considerably less space than traditional retail checkouts, allowing retailers to take advantage of more usable floorspace.
How does the self-checkout work?
The self-checkout process is quick, easy, and accessible to all kinds of customers. Users must only scan their products, place them in a bagging space, and select their desired payment option.
The self-checkout process includes the following steps:
- Interacting with the machine: The startup process depends on the machine. While some machines automatically begin processing checkout the moment the first product is scanned, others may require that ID be presented before starting a transaction.
- Adding products: Customers add products by scanning their barcodes and placing them into the bagging area. Certain items, such as fruit, lack a barcode. These must be chosen from an easily-navigable interactive menu.
- Selecting a payment option: Users have a variety of choices when it comes to payment, including cash, card, store credit, gift cards, and more. A store’s POS system can be easily integrated into a self-checkout machine.
- Completing the purchase: After payment, the kiosk will automatically produce a receipt. Retailers can trust the POS system to sync the complete order with their retail system in real-time.
Self-checkout solutions
You can rely on SIR solutions to provide you with the best state-of-the-art self-service technologies. As leaders in point-of-sale software solutions, the experts at SIR are ready to answer all your questions about self-service systems and guide you and your team throughout the installation, operation, and maintenance processes.