Moving customers in and out of brick-and-mortar retail stores can feel like a game of chess. There are many moving pieces that lead up to the ultimate goal of a strong and successful finish. Strategy is involved every step of the way, but oftentimes, most of the strategic focus is on the front end.
Retailers constantly use marketing to capture prospective customer attention and persuade them to visit. They offer in-store specials to encourage sales on certain products. Stores regularly reconfigure their layouts and inventory to facilitate a smoother traffic flow. These are just a few of the well-deployed tactics retailers flex to help bring customers inside and ensure an enjoyable in-store experience while shopping.
However, according to a recent Retail TouchPoints article, brick-and-mortar stores may be losing up to $37.7 billion in potential sales over any given 12 months. The article refers to 86% of customers leaving a store due to long lines. In other words, the final phase of a customer’s retail journey can become an expensive missed opportunity that stores struggle to adequately address.
Plenty of investments and resources are allocated to attracting foot traffic and enabling a gratifying shopping experience. Ultimately, what does that matter if the final phase — the checkout — is hindered to the point of resulting in lost sales? Even more unfortunate, whether the customer completes a sale or not, a subpar checkout can leave a negative impression that discourages future visits, referrals and brand loyalty.
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Beyond long lines deterring customers from checking out, there are other problematic (and often overlooked) factors contributing to a less-than-stellar checkout. After over a decade of working with the industry, I’ve noticed three ways the final phase of a customer’s retail journey can be improved.
Optimized Line Configurations
The debate over the best line configurations has been researched and discussed for years. Many retailers swear by the single-line method, where all customers wait in the same line before proceeding to the next available register. The single-line method instills a sense of fairness for all customers. Conversely, there is substantial evidence that parallel lines are more efficient[1]. This method provides each cashier with their own dedicated line and empowers employees to be more productive, increasing the speed of checkout.
Both methods have downfalls, too. The single-line method can easily contribute to the appearance of a long line, which may result in balking. The line may get so long that a customer chooses not to enter at all. Jockeying can also emerge as an issue. This means if a customer enters one line, then perceives it to be moving too slowly, they might jump to another line hoping it will be faster.
I often see retailers adhere to a specific line setup because they believe it is proven to be the best option. The reality is that not every retailer is structured in the same way, so there is no single “best practice.” If a store has ample floor space and multiple registers, parallel lines may be the most efficient setup. When physical space or registers are limited, a single-line system might be the best option. The only way of finding out is through dedicated experimentation.
Retailers should not be afraid of testing out multiple line configuration scenarios. Tracking and measuring different line formats provides tangible ways of comparing and contrasting customer wait times and overall sales. Experimentation is the real “best practice,” providing every retailer with the proof they need to confidently create a long-term solution.
Automated Queue Management Solutions
Time is a precious resource, and that is true for customers as well. When it comes to waiting in line, there are two different types of time: perceived and real. A perceived wait time is the customer’s estimate of how long they feel like they’re waiting. Perceived time usually conflicts with real time, which is the actual amount of time spent waiting in line. While real wait times tend to be lower, studies have long shown that perceived wait times are what ultimately matter, resulting in the largest impact on customer satisfaction2.
I’ve noticed that virtually all retailers emphasize the importance of finding ways to decrease real wait times. This can be as simple as manually monitoring lines and opening new registers when bottlenecks occur, installing self-checkout stations to offer more points of transaction, or implementing expedited payment options like Apple Pay. These strategies are crucial, but they don’t always correlate to lowering perceived wait times.
Effectively decreasing both perceived and real wait times is the goal. Investing in automated queue management solutions help with both. This technology typically ties directly into the store’s POS system, using overhead displays and audio functions to clearly indicate which lines are available, whether certain registers are opening or closing, and alerting customers to come forward when it’s their turn.
Some solutions also project the current wait times, eliminating the chance for a customer to overestimate the perceived wait time and potentially forgo their purchase. By automating the queues and proactively displaying this information, customers feel more confident in the store’s efficiency, and satisfaction increases. Furthermore, automated queue management limits the need for manual oversight of checkout lines, freeing up more staff to work the registers or improve the in-store shopping experience.
Stimulating POS Content
Instead of treating checkout as nothing more than a waiting area, it should be considered an immersive component of the shopping journey. Retailers commonly address this by incorporating products into the checkout line. These are considered impulse purchases that tantalize the customer.
The method works well depending on the store, but it’s an old technique, and savvy shoppers have been conditioned to expect certain items in the checkout line. For example, grocery stores habitually stock magazines, candy bars and other low-priced add-ons. When it’s treated like just another aisle in the store, the discovery element is lost. Rather than solely stocking the same traditional items at checkout, stores should vary the offerings, including more novelty items the customers enjoy browsing while they wait.
Another compelling method is to display enticing content on overhead monitors. Whether installing monitors just for this purpose or making creative use of the screens provided by the aforementioned queue management solutions, retailers can hold a customer’s attention with visual monitors and help them forget about the time spent waiting in line.
Monitors can be used for a broad range of purposes: promoting branded moments, in-store specials and upcoming events, entertaining with images and video content, reinforcing important messaging like COVID-19 physical distancing guidelines and beyond. Monitors are like customizable in-store billboards and are an inexpensive way to air content, almost like the retailer has its own TV network, all while speeding up perceived wait times. Consumers are accustomed to living in a high-tech and content-driven world, and catering to that reality can go a long way.
Every step of the customer’s retail journey deserves thoughtful planning. This final step, however, can easily be overlooked. There’s an irony to undervaluing the importance of this final phase, because it’s the part of the retail journey where stores cinch the transaction and generate revenue. Be careful not to “check out” on your opportunity to make checking out more meaningful.
Bob Musa is President of Computer Presentation Systems, located in the Sacramento, Calif. area. A veteran of retail experience and augmentation, Musa oversees the company’s product growth, business development strategies and its daily operations.
[1] Source: Scientific American, The Science of Getting Through a Checkout Line Faster
