Self-checkout has been popular in many of the larger grocery stores for some time. Now it appears that this technology is branching to other retail categories. Giving consumers the option to scan their own items can have a big impact on customer service, Jeff Roster, senior retail analyst for Gartner (NYSE: IT), told CRMDaily.com.

"It is a new customer service trend and a very interesting one at that," he said. "It gives the customer the ability to control his own environment."

Many Reasons

Retailers are finally beginning to realize that self-checkout is not limited to grocery stores or gas stations, Mike Webster, general manager of NCR FastLane, told CRMDaily.

Webster cited a study commissioned by NCR that found that 33 percent of consumers indicated that self-checkout would be a differentiator that would make them more loyal to one retailer over another. Other studies have shown that between 20 percent and 40 percent of consumers opt for self-checkout when offered a choice. And for retailers that providing this option, there is a 7 percent to 9 percent improvement in customer satisfaction.

There are a lot of reasons why this technology is becoming popular with consumers, Webster said. "The consumer experience is driven by speed and convenience. This technology allows them to get out of the store faster."

Then there is the privacy factor. "There are categories of merchandise that lend themselves to unassisted transactions," he said, such as contraceptives or personal care products," Webster added.

In addition, retailers, especially those located in areas that have a shortage of labor, can see benefits from the lowered cost of processing a sale.

Question of Costs

But Roster suggested that retailers might not save that much money. Employees still have to work at the self-service station to monitor for possible theft and help with any problems that arise.

However, he said, the increase in customer satisfaction far outweighs any incremental costs.

Originally, Roster said, the industry thought only the younger demographics would be interested in self-service checkout.

"But I have heard a number of anecdotal stories about older folks embracing it -– not because it checks them through faster, but rather because it allows them to go as slow as they want, double-checking prices.

"Normally, I don't like to sound like a cheerleader, but I don't see a negative with this technology, except maybe the expense," Roster said.