Revolutionize Retail Experiences Efficiently with Hybrid Checkouts

Today’s retail landscape is evolving rapidly and has turned massively competitive. One way for retailers to remain relevant and profitable is by optimizing the customer’s in-store shopping experience. Smooth checkouts are integral to experiential retail, and 90 percent of shoppers say a smooth checkout process significantly impacts their shopping experience.

While cashier-staffed checkouts have been the traditional norm, there’s been a recent rise in the use of technology to facilitate automated self-checkouts. Market data suggests that the global automation and self-checkout system industry is expected to grow to USD 12.01 billion by 2029, at a CAGR of 15% since 2022. Interestingly, these checkout modes have pros and cons for delivering optimum customer experience while balancing retailer interests.

In this blog, we will examine the status quo regarding checkouts and explore hybrid checkouts as the way ahead for balancing customer experience and retailer interests.

What do retail customers expect during checkout?

Today, customers primarily expect ease and agility in their checkout experiences. Key expectations include:

• Efficient and quick service: They dislike waiting in queues to complete billing or get their age verification.
• Accurate billing with all details: They expect billing to be correct immediately, with adequate information provided.
• Choice to use multiple payment options with security: With payment options extending beyond cash and cards, customers want to access their chosen method at checkout without compromising security.
• Ability to solve any queries quickly: Customers often have queries, such as how to take advantage of promotions during checkout, to which they expect prompt responses.
• Bagging options: They also desire additional convenience services like bagging assistance.

Providing all this as a retailer requires a well-rounded infrastructure to stand out and deliver solid customer experiences. This comes at a cost, which is getting steeper in light of the rising wages and labor shortage.

Now, let’s examine the status quo when it comes to checkout.

What are popular checkout options at retail stores today?

Currently, two primary means of check-out are widespread in the retail landscape: traditional cashier-staffed checkouts and various automated check-out modes. Let’s examine them in more detail.

Traditional cashier-staffed checkout: In this method, staff members assist customers by scanning their items, processing their billing, and providing personalized service during their transactions.

Advantages:

• This method produces accurate customer billing, with quick age verification for restricted items.
• Human interaction, social connection, and convenience services often make the checkout experience more memorable.
• Human intervention unlocks an easy way to get answers to queries about aspects like special discounts or coupons.

Disadvantages:

• Traditional checkout options depend entirely on a limited set of employees. This can lead to longer wait times, especially during peak hours, frustrating customers.
• On the retailer side, it requires significant investment in staff whose wages are on the rise. This often raises costs and curtails the bottom line.

Self-checkout technology: In this checkout method, customers use different types of technology to scan, pay, and bag their purchases autonomously without manual human intervention. For example, basket self-checkout, trolley self-checkout, smart cart, or mobile shopping.

Advantages:

• It increases speed and cuts down on weight time.
• It also eliminates the need to interact with other humans, a growing preference among new-age shoppers. According to a survey, ~85% of customers prefer technology that automates their shopping trips.
• Retailers’ staff requirements and costs are reduced. Their limited team can focus on more valuable activities, like upselling, rather than low-value tasks, like generating bills.

Disadvantages:

• Less tech-savvy customers get frustrated if they encounter technical difficulties.
• Some customers prefer human interaction and feel neglected without staff assistance. Retailers like Walmart and Target have found that customers value human interaction more than self-checkouts.
• Stock shrinkage arising from self-checkout emerges as a drawback for retailers. This commonly occurs when customers perform malpractices like bar code mishandling.
• For age-restricted items like alcohol, age verification without human authentication becomes complicated and requires investing in additional technology or making customers wait.

An alternate solution that combines the best of both worlds is needed to align with customer preferences while catering to retailer interests.

The answer lies in hybrid checkouts

A meaningful way ahead is combining traditional cashier-staffed and automated checkouts with hybrid checkouts. The stores are equipped with automated checkout technology, with staff present to oversee and assist those needing it.

In such a case, customers who prefer autonomous checkout options and those who value personal interaction and social connection are simultaneously taken care of. At the same time, retailer interests like resource efficiency and stock shrinkage concerns in the case of self-checkout are also better addressed with the vigilant eye of staff.

Some advantages of hybrid checkout systems include:

• Excellent customer experiences: Hybrid checkouts ensure that technology can expedite checkout speed. At the same time, human intervention availability ensures that those needing assistance get it promptly. It also supports the provision of add-on convenience services like bagging options. These factors ensure customers get the experience they desire.

• Optimized resource allocation: Retail companies can economize labour costs by deploying technology. Staff can focus more on assisting customers and upselling than on mundane, low-value tasks. At the same time, self-service kiosks are space-saving compared to cashier-staffed checkouts, leaving more area to display items for sale and generate revenue.
• Greater safety: Integrating AI with self-checkout systems allows companies to detect unusual behavior and data breaches, block payments, and avoid fraud. This benefits both retailers and customers.

Thus, hybrid checkout systems create a holistic and satisfying shopping experience that meets the multifaceted expectations of modern consumers. This approach streamlines the checkout process, enhancing efficiency and customer satisfaction. It also ensures resource usage on the retailer side is optimized. Staff are better able to focus on crucial aspects like customer service, checking in on suspicious behavior, etc.

Want to make the most of hybrid checkouts?

Combining hybrid checkout systems with retail intelligence and analytics is optimal for designing excellent customer experiences. This helps turn the raw data you capture into meaningful insights that you can use to become more competitive. At the same time, data guides best practices to economize costs and improve efficiency.

Leveraging retail can help you put all your tools in one box, helping you focus less on logistics and more on growth. To know more about how we can supercharge your retail growth, contact us for a demo: https://www.magstarinc.com/contact