Stores ‘have to watch out for resistance’ in self-checkout if they ‘go too far’ with the new method – it’s a question of comfort

RETAILERS have been warned by a consumer expert about going too far with automation, specifically at ATMs.

Molly Burke, senior retail analyst at Software Advice, spoke exclusively to The US Sun about concerns that emerged from consumer research.

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O Retail Automation Survey 2024 surveyed consumers in the US and Europe to assess “customer pain points” regarding automation technology and customer satisfaction.

‘ACHIEVE BALANCE’

As a result, Burke warned retailers that “it’s tricky to find the balance between having enough human-delivered customer service at self-checkouts and reducing theft.”

One of the key insights from the survey was that most customers want to get in and out of stores as quickly as possible.

It found that 73% of global consumers apply this thinking to grocery stores, while 52% say the same for other retail stores.

As a result, these retailers need to prioritize efficiency and speed when automating services.

However, as Burke warns, stores have a difficult line to walk, as consumers are divided on what can deliver this efficiency and when this technology goes too far.

Only 8% of North American shoppers surveyed said automation would improve their in-store retail shopping experience.

Meanwhile, 29% of global respondents said they experienced issues or delays with self-checkouts the last time they used them.

With efficiency high on the priority list, retailers will need to ensure that any current and additional technology introduced to help customers is effective and functional.

‘THROWBACK’

Much of the criticism leveled at self-checkouts revolves around how the process can be inefficient with false alerts, checking receipts as a result of fears of shoplifting, and long lines due to lack of records.

Now, as retailers begin to introduce more technology, such as artificial intelligence cameras, smart checkouts and other personalized shopping features, they have to be careful about “resistance,” says Burke.

“The more retailers try to advance this AI-powered personalization, the more data they will have to ask consumers for,” explained the retail analyst.

“[And] they may face some resistance if consumers don’t really feel safe or comfortable sharing this information.

Using an example, Burke asked respondents about the use of cameras at self-checkout counters, as seen at stores like Target and Walmart.

PRIVACY CONCERNS

While 71% of customers feel they have helped reduce self-checkout theft, 44% said they have concerns about their privacy.

“Personally, it’s like, ‘Yeah, I’d like to know what’s being done with the personal data that they’re capturing with these cameras,’” Burke said.

“Is their personal data being used to track them down on a list of potential shoplifters? Is this data being sold to advertisers so they can market products to them?

“There are so many possibilities about how this data is being used and consumers want more transparency about it.”

The retail expert warned that the data consumers will be willing to share for the sake of in-store efficiency is something “retailers will have to be aware of” as they increase automation.

“Consumers don’t really want to share things like images of themselves or medical information, things like that,” she explained.

Using the example of a payment card, she looked at how shoppers who repeatedly use the same card at automatic checkout can get personalized recommendations based on past purchases.

With technology like this, Burke said, “I don’t know if customers are going to like it or if they’re going to see this, ‘Oh, they must have collected and used my personal data to do this.’”

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