AUGUST 19, 2014, Mt. Prospect, IL— In order to diversify themselves in a highly competitive market, today's grocers must offer value-added services that enhance their customers' in-store experience. And as the grocery industry faces increasing pressure from growing online shopping and delivery options, the customer experience must be a top priority.
It is important for grocers to proactively implement strategies that provide both value to customers as well as the additional advantages of increased traffic and in-store purchases. Cummins Allison, the leading innovator and provider of check, currency and coin handling solutions as well as ATMs, shares how self-service coin redemption is a cost-effective way to achieve this goal and add profitability without taking up valuable store space.
Boosting Customer Service
Grocery stores have two distinct advantages over other self-service coin redemption sites: longer store hours and more frequent store visits. Seventy percent of U.S. households report that one or more people living in that home saves loose change, and grocers can tap into this regular part of their customers' saving habits by offering the convenience of a self-service coin counters in their store. Coin redemption keeps cash in stores, and customers appreciate the convenience of redeeming coin and shopping in one trip.
Dennis Maxwell, director of advertising and branding, Reasor's grocers, explains that, although most anyone can sell groceries, not everyone delivers this extra service. "It's all about customer service," he says. "The primary reason our customers shop with us is our exemplary service and the quality of our fresh departments."
In keeping with its efforts to provide customers with unmatched service, Reasor's installed a self-service coin counter in each of their locations. The machines are well liked by customers for their convenience and counting speed and appreciated by management for their quiet operation and trouble-free performance.
Turn Self-Service Coin Redemption into Profitability
Self-service coin machines can also be a revenue generator for grocers. By setting their own coin redemption fees, grocers can gain a valuable source of additional revenue – and customers feel that fees are justified by the convenience and features offered. Grocers should consider selecting a self-service coin machine that allows them to control the coin redemption fee for greater profitability.
"No one tries harder for customers," is the number-one priority for Tesco grocery stores, and it's one of the reasons that Tesco installed self-service coin counters as an "extra service" for customers in its larger stores many years ago. And Tesco soon found that the coin machines were not only popular among customers, but also produced valuable revenue for the stores – because of this, it has recently added coin machines to its nearly 200 Tesco Metro outlets.
Self-service coin machines also put disposable income in customers' hands immediately. Cash-in-hand is the top motivator for customers to convert loose change into spendable dollars. And, in a recent study, 36 percent of participants surveyed spent the cash they received from coin machines on general living expenses such as groceries; making in-store self-service coin machines an excellent way to increase sales revenue.1 Grocers can also further tap into this by promoting store specials or high-margin items through on-screen advertising on the machine.
The success of self-service coin redemption is largely dependent upon the accuracy, speed and quality of the equipment; machine service and support; and, cost-effective procurement options. Selecting the right equipment and vendor is critical to make the process easy for grocers of all sizes to deploy self-service coin redemption, enabling them to select the option that's right for their store and delivers the most profit per square foot. To learn more about how grocery stores can cash in on revenue-generating opportunities with self-service coin machines, visit www.cumminsallison.com/moneymachine.
1 Top Six Drivers of Consumer Use of Self-Service Coin Machines by Branmark Strategy
About Cummins Allison
Cummins Allison is the leading innovator and provider of check, currency and coin handling solutions, as well as full-function ATMs. Our world-class sales and service network includes hundreds of local professionals in more than 50 offices in North America, 6 wholly-owned subsidiaries and is represented in more than 70 countries around the world. For more information about our award-winning solutions, visit cumminsallison.com/ATMs.