The retail industry is rapidly shifting towards mobile self-checkout, with more and more retailers globally introducing this technology in their stores. In the absence of publicly available data, shrinkage is still a major concern, and many retailers expect increased theft when using the technology.
Fortunately, practice tells a different story and proves that retailers can rightfully rely on the innovative checkout method. It’s for good reason that RBR expects the number of stores offering self-scanning to triple by 2027, exceeding 160,000.
Follow along as I explain our proven loss-prevention strategy and the available solutions to protect your Scan & Go checkout.
Does Scan & Go increase shrinkage?
The common conception is that customers are more likely to sneak products out of the store without paying when they are allowed to scan products themselves. Or that they scan a cheaper product instead, which is why self-checkout kiosks typically verify scanned items through integrated scales. What does this mean for Scan & Go shopping, where customers scan items anywhere in the store without employees or scales monitoring their actions?
Independent research by Dennis Lawo et al. (2021) found that Scan & Go customers are much more self-conscious when it comes to theft. “Notably, they were less afraid of paying too much than they were of accidentally taking an item they had not paid for.” Customers feel that a purchase is more easily traced back to them with Scan & Go, drastically reducing the likelihood of theft.
This is supported by measurements taken by our customers, which show that the introduction of Scan & Go has not increased shrinkage.
Define your loss prevention strategy
To achieve the same excellent results, we recommend following our comprehensive loss prevention strategy that combines psychological and technological measures with human action and engagement. In combination, these three factors minimize risk for your business while giving you complete control over the checkout experience.
Monitor customers’ baskets and behavior
Traditional cash desks and most POS self-checkout areas involve human interaction and visual basket checks while items are scanned. Scan & Go, on the other hand, allows you to monitor customers as they make their way around the store and scan the products they want to purchase.
shopreme uses this data to feed a robust risk analysis algorithm that selects customers for spot checks based on defined parameters and custom triggers. If a basket is selected, an employee is called through shopreme’s Employee App to perform the inspection. Triggers can be the overall basket value, a specific high-risk product, or a particular scanning behavior.
The algorithm also considers a customer’s spot check history to ensure that regular customers get only checked at certain intervals while inspecting high-risk groups after every purchase.
Empower your employees
Employees in the store are pivotal stakeholders in the Scan & Go process, with a vital role to play when it comes to protecting the business against shrinkage. To successfully oversee the mobile self-checkout and engage with customers when an interaction is needed, they need thorough training and easy-to-use tools that help them get their job done safely and efficiently.
shopreme’s Employee App gives your retail staff a live view of all active and recently paid Scan & Go baskets and informs them about required actions like spot checks or age verification. By scanning a code in the customer app, they get immediate access to all required information and can even perform a complete basket re-scan if necessary.
Raise customer awareness
Making Scan & Go customers aware of the loss prevention measures in place is essential. That’s why shopreme displays in-app notifications to remind customers about possible spot checks and further security measures. This is true for all available clients, be it our native apps, web app, or SDK option.
Knowing they are being monitored and can be selected for a random check at any time is usually enough to nip theft in the bud. This can be supplemented with physical signage at the store and a dedicated exit lane for Scan & Go shoppers to amplify the effect.
Provide dedicated Scan & Go exit lanes and hardware
A dedicated Scan & Go exit provides clarity for Scan & Go customers and employees and adds an extra layer of security. That’s why we developed shopreme vector, the first Scan & Go optimized exit terminal, together with umdasch.
shopreme vector helps you craft a clear endpoint to the customer journey and efficiently funnel Scan & Go customers through the checkout. It creates a psychological deterrent and physical barrier in the store. Advanced QR Code validation ensures each receipt is checked for timestamp, location, and validity before the checkout is completed. This is made possible by the seamless integration of vector into the shopreme ecosystem.
shopreme vector can be combined with any barrier system on the market to create an additional security layer before leaving the store.
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Get started with Scan & Go
We are here to help you get started with Scan & Go. Contact us with your questions and requirements, and we will be happy to set up a personal call.