Self Checkout: Insights on how to grow participation and manage losses

The September 2024 working group discussion on self-checkout success case studies provides several key insights and learning points for other retailers aiming to enhance their self-checkout (SCO) systems.

Here were the main takeaways:

1. Technological Integration and Innovation

• Smart Gates and AI Solutions: Implementing smart gates and AI-driven solutions like skip scan and product switch can reduce losses and improve customer experience. These technologies help detect non-scanned items and prevent walkouts, significantly impacting loss prevention.
• In-House Solutions: Developing in-house solutions, such as bottom-of-trolley detection, can be tailored to specific needs and integrated seamlessly with existing systems, offering flexibility and control over the technology.

2. Customer Behaviour and Experience

• Behavioural Changes: Implementing technologies like skip scan can alter customer behaviour, encouraging them to scan items correctly. One retailer observed a significant reduction in alerts when transitioning from soft nudges to hard interventions.
• Customer Communication: Proactively communicating with customers about new technologies and their benefits can help mitigate negative reactions and improve acceptance. Coles' proactive media strategy helped manage customer expectations and perceptions.

3. Operational Efficiency and Staff Training

• Staff Training and Engagement: Comprehensive training programs for staff are crucial. Several retailers emphasised the importance of training staff to handle new technologies and customer interactions effectively. This includes understanding the technology, managing interventions, and maintaining a positive customer experience.
• Role of Store Managers: Involving store managers in the process ensures better oversight and support for staff. Managers can handle more severe cases and provide a visible deterrent to potential shoplifters.

4. Data-Driven Decision Making

• Algorithm Improvements: Continuously improving algorithms for spot checks and other interventions can enhance the effectiveness of SCO systems. One retailer in the group demonstrated how the focus on refining their spot check algorithm to reduce false positives and improve accuracy continually delivers results.
• Performance Metrics: Monitoring key performance indicators (KPIs) such as the speed of staff response to interventions and the thoroughness of checks can help identify areas for improvement and ensure the system's effectiveness.

5. Customer Safety and Security

• Safety Training: Providing safety training for staff to handle difficult situations and de-escalate conflicts is essential. One retailers safety training, included role-playing with actors, helping staff feel more confident and capable in managing confrontations.
• Balancing Security and Service: Ensuring that security measures do not overly inconvenience customers is crucial. Retailers must find a balance between preventing theft and maintaining a positive shopping experience.

6. Continuous Improvement and Adaptation

• Iterative Approach: Retailers should adopt an iterative approach to implementing and refining SCO technologies. One retailers experience with adjusting settings and configurations based on customer feedback and operational data highlights the importance of flexibility and continuous improvement.
• Future-Proofing: Investing in scalable and adaptable technologies ensures that retailers can respond to evolving customer behaviours and technological advancements. This includes exploring new solutions.

Conclusion

The discussion underscores the importance for this sample of retailers of integrating advanced technologies, training staff effectively, and continuously refining processes to enhance the efficiency and effectiveness of self-checkout systems.

By focusing on these areas, other retailers can perhaps also improve loss prevention, customer satisfaction, and operational efficiency.