Scan and go mobile technology – working with retailers to provide a solution
Shoppers repeatedly report that one of their biggest irritations while in-store shopping is checkout queues, resulting in some of them quite literally abandoning their cart and walking out without making a purchase. This is a huge challenge for retailers who are already faced with labour shortages and a growing number of technology solutions which can be expensive and difficult to navigate the right fit for their requirements.
Self checkouts
Over the years we have all probably experienced the success and failures of this type of checkout while shopping. At the end of last year both Coles and Woolworths came under fire about their self checkouts and were asked if they plan to remove it from stores. Both stand by the technology and rather than viewing it as a way to decrease the number of staff, their view is it allows them to redeploy staff to other areas, for example, to cater for increased grocery delivery. It also provides greater options for customers on how to pay, delivering convenience and efficiency for those that want it, while making staff more available on the shop floor and to those that prefer traditional checkouts.
There is no doubt that with the significant global rise of smartphones, advancing technology and consumer demands for frictionless and personalised shopping experiences, that we are seeing an increasing number of established and successful retailers adopting scan and go mobile technology.
How does scan and go mobile technology work?
This technology allows shoppers to independently do their shopping with their own device, enabling them to scan, purchase and receive a digital receipt using their own smartphone. Barcodes and increasingly QR codes (which have been optimised for smartphone cameras) are on products for customers to simply scan as they shop. This enables them to find out more information about the item without having to wait for a member of staff to be free, and if they want to purchase it they can add it to their basket.
The advantages of this technology include:
- No checkout time for the customer who chooses this payment method.
- Reduced queues for other customers at traditional checkouts.
- Offers a greater variety of payment options.
- Detailed product information, including stock availability, images and videos to showcase products and services.
- Frees up staff time to be available on the shop floor and to maintain stock flow.
- Data driven, personalised recommendations and customer loyalty programs.
- No additional hardware is required by the retailer.
How can retailers meet the requirements of their broad customer base and make a success of their checkout systems?
Recently we tested scan and go mobile technology that some very well known Australian retailers are offering customers in our article, Which retailers are using scan and go mobile technology and how do you use it? We discovered that retailers are taking their time to introduce new technology to the checkout process, testing it in selected stores (in some instances it is only open to particular customers via loyalty programs). By doing this they are giving themselves time to develop the right process for both them as the retailer and their customers. They can iron out issues and develop the tech to ensure that it benefits and enhances the shopping experience, increasing customer confidence and adoption of new payment systems.
While some people, both retailers and shoppers, at times show reluctance or are slow to adopt different types of self-checkout — citing reasons such as:
- “It’s an excuse to reduce staff!”
- “Retailers being lazy and expecting shoppers to do it for them.”
- “I can’t connect online”.
The growing trend is to provide customers with multiple options for payment and shopping experiences. Younger generations tend to be quicker to adopt new tech, it is after all very much embedded in their daily lives with the vast majority using their smartphone for social media, mobile payments, health and wellness tracking apps, music and so much more. Using tech that integrates with customers’ smartphones can be a real advantage as it is instantly more familiar to the individual user than external hardware, and it can significantly reduce set up costs for retailers.
For retailers to succeed they need to provide all consumers ways to shop that address individual concerns and expectations. This includes providing traditional checkout systems for customers that still prefer this process. Customers that use scan and go will likely be quick to complain about inefficient systems and become easily frustrated when they have problems scanning products with unintuitive processes. Having a well designed app is vital, along with clear signage around the store, training staff, providing free wifi and portable charging stations can also mitigate common complaints and issues.
While mobile payment technology requires retailers to have tech savvy customers and well designed apps to be successful — the way people shop is evolving and retailers need to adapt to be successful and remain competitive in the market.