In a bid to cut costs and enhance customer satisfaction, retailers have introduced self-checkouts in stores nationwide. While these have gained popularity, certain brands, like Walmart, are opting to remove self-checkouts in some locations while expanding them in others.
Despite the widespread use of self-checkouts, there’s been limited formal research into how they impact customers’ overall shopping experience. To address this gap, researchers from Drexel University’s LeBow College of Business investigated the influence of grocery store self-checkout systems on customer loyalty compared to regular checkout systems.
Customer service matters
Through five studies, the researchers found that customers are more inclined to remain loyal to a grocery store when using regular checkout services. This loyalty is reflected in an increased likelihood of customers returning to the store in the future.
The study identified two key factors—perceived ease of checkout and a sense of entitlement—that contribute to the observed effect on customer loyalty. Additionally, the researchers noted that the number of items purchased during a shopping trip also plays a role in how the type of checkout influences customer loyalty. Overall, these findings shed light on the nuanced dynamics of customer loyalty in the context of different checkout systems.
“Our findings indicate that self-checkout systems, despite their advantages in terms of speed, ease of use, and cost reduction, can result in lower customer loyalty compared to regular checkout systems, especially when the number of purchased items is relatively high (e.g., more than 15 items),” the researchers explain.
Driving loyalty
The researchers pinpointed two key factors that clarify the impact of checkout type on customer loyalty. Firstly, the perceived saved effort during the checkout process and, secondly, the customers’ sense of entitlement were found to be crucial in understanding this effect.
When using self-checkout, the additional effort needed to handle the checkout and bag purchases, coupled with the expectation of being served by the store, were identified as negative consequences that reduced loyalty to the store.
However, an interesting finding emerged: when shoppers perceived the extra effort in self-checkout as a rewarding experience, their loyalty to the store matched that of customers using regular checkout services. This suggests that the perception of effort and the feeling of being valued play key roles in shaping customers’ loyalty in the context of different checkout systems.
Rewarding experiences
“We found that when customers were encouraged to think of the extra effort involved in self-checkout as a rewarding experience, their perceived loyalty to the store was similar to those of regular checkout shoppers,” the researchers explain.
The researchers aim to provide valuable insights to retailers regarding the installation or removal of self-checkout systems and how to effectively manage them for positive customer experiences. Their findings may guide retailers in making informed decisions about the implementation and optimization of self-checkout systems to enhance overall customer satisfaction.
“For example, to overcome the negative impacts of using self-checkout on customer loyalty, retailers should attempt to make the self-checkout experience more rewarding, like encouraging shoppers to think the extra effort involved in self-checkout is a rewarding experience,” they conclude. “Doing so offers retailers a solution to improve their self-checkout customers’ overall shopping experience, which in turn will facilitate higher customer loyalty.”
