Commentary

Self checkouts pro and con: Some common sense solutions

Adding tech features can be fun, but you don't want them to hinder your operations or negatively affect the shopping experience. The solution: only add features that will have more benefits than setbacks.

Image: iStock

April 15, 2024 by Peter Alcock — Head of Product Marketing, Network Merchants Limited (NMI)

Of all the innovations in modern retail, self-checkouts are possibly one of the most divisive. Retailers and customers alike seem to either love or loathe them. But why?

Here are five of the contested benefits, disadvantages and proposed solutions.

Efficiency

The upside: Self-checkouts can help reduce checkout lines and waiting times, as customers can scan and pay at their own pace. This is particularly beneficial during peak hours when traditional checkout lanes may see long queues.
The downside: Self-checkouts are not well-suited for customers purchasing a large number of items, where scanning and bagging a large shop can be time-consuming and less efficient than using a traditional cashier.
Proposed solution: This can be simple, such as using scanners on long cables to ensure consumers are able to check out larger items at self-checkout. Interestingly, furniture retailer Ikea actually employs self-checkouts for very large items by having scanners with longer cables.

Cost reduction

The upside: Reduced labor costs. From a retailer's perspective, self-checkouts can help in reducing the need for a large number of cashiers, leading to potential labor cost savings. This can be particularly beneficial for businesses operating on tight profit margins.
The downside: Increased losses. Self-checkouts are vulnerable to theft, both intentional and unintentional. Customers may make mistakes while scanning items or attempt to bypass the scanning process altogether.
Proposed solution: Retailers need to invest in additional security measures (ironically, more staff!), to deter theft and monitor self-checkout areas effectively.

Convenience

The upside: Get me out quick. Customers can have a more autonomous shopping experience by using self-checkouts. They can quickly scan items, make payments and bag their purchases without the assistance of a cashier. This convenience is especially appealing to those who prefer a faster and more independent process.
The downside: Limited assitance. Unlike traditional checkout lanes with human cashiers, self-checkouts offer limited assistance for customers who encounter difficulties during the transaction process. This can lead to frustration for less tech-savvy individuals or those unfamiliar with the specific self-checkout system.
Proposed solution: Have someone on standby, similar to how Target has a worker in the self-checkout lane, to help support customers who need additional assistance.

Accessibility

The upside: Some like no interaction. Shoppers with autistic spectrum disorders will sometimes go to great lengths to avoid human interaction in an environment which they already find uncomfortable through noise, alarms and lights.
The downside: Some may need more help. Particularly older individuals or those with disabilities may face challenges using self-checkout kiosks. The reliance on technology, small touchscreen interfaces, and the need to lift and bag items can pose difficulties for certain demographics.
Proposed solution: Be patient and educate your shoppers on how to use self-checkout, and have an additional worker around to help in case a consumer needs support.

More cool features

The upside: Expanded payment options. Self-checkouts often support various payment methods, including cash, credit cards and mobile payments as well as loyalty card redemption. This flexibility can cater to a wide range of customer preferences and contribute to a more seamless transaction experience.
The downside: When the tech fails. Self-checkout kiosks may encounter technical glitches such as barcode scanning errors, touchscreen malfunctions or issues with payment processing.
Proposed solution: These problems can lead to frustration for both customers and staff and may require additional maintenance.

Adding additional tech features can be fun in retrospect, but you don't want them to hinder your business operations or negatively affect the shopping experience for consumers. Only add features that will have more benefits than setbacks, such as contactless payments, to ensure you're minimizing friction around the checkout experience.

Self-Service Hardware

About Peter Alcock

Pete has over 25 years experience in technology marketing, joining Creditcall (acquired by NMI), in 2000 from a Swiss telecoms company. A versatile marketer, he has held several management position within the company and is responsible for product marketing and content creation. He has particularly broad knowledge of unattended payment solutions in parking, vending and kiosks. Pete is passionate about music, is a part-time live sound engineer, and has a home studio.

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