Can a frictionless checkout experience really improve your bottom line?

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How can retailers use analytical insights and advanced technology to innovate their checkout experience and influence overall customer satisfaction?

Can a frictionless checkout experience really improve your bottom line?

As lockdown restrictions ease and shops begin to reopen, modern retailers are facing growing pressure to deliver an in-store experience that attracts and retains customers. Retail records an abundance of behavioural information, and innovative brick-and-mortar stores are now turning to Data Engineering and Analytics to better understand the optimal customer insights for their stores. This includes measuring the customer satisfaction, frequency and volume, staffing needs for high and low traffic time periods, and which setup of checkout methods would lead to faster throughput and increased basket size.

Combining store-level (transaction) data and customer experience (survey) data can help with store-level insights such as average basket size, preferred payment options per customer, and checkout line optimisation, without significant expenditure at the outset.

Customer satisfaction is known to have a direct impact on the bottom line, along with significantly influencing the customer perception of the brand/store. A positive checkout experience is one of the major drivers of overall satisfaction and customers now demand the ease and speed of an online checkout experience, forcing brick-and-mortar stores to adapt accordingly. Popspots, one of the largest digital advertising networks in grocery, conducted a national study and found that 70% of customers feel checkout experience influences their perception of a store more than any other factor. Additionally, about 79% of customers say a negative checkout experience makes them less likely to return.

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Even though the final moments of the in-store experience provide one of the most significant opportunities to drive awareness, engagement and conversion, there has been minimal innovation around the retail checkout experience beyond improvements to point-of-sale (POS) systems.

How can Analytics and Technology help in this process?

With growing competition from online and offline stores, retailers have realised that customer satisfaction plays an even more significant role in the success of a business. With the plethora of checkout options, the need to reconcile and validate transactions has increased, and analytics companies are using anomaly detection algorithms to isolate transactions that require reconciliation. Similar algorithms also help detect and isolate fraud.

Through advancements in dashboarding and reporting, analytics companies can arm store associates with simple and clear dashboards that are helping them make smarter decisions with better accuracy, with real-time forecasting and create impactful promotion strategies. Based on behavioural information, customer profiling and product features, analytics companies identify markers that record customer loyalty, product preferences and forecasts for future purchases.

Example: Helping a large retailer to deliver a powerful and actionable solution that improved the checkout experience

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Kantar’s Analytics Practice performed a comprehensive analysis for a retailer to identify key drivers of Customer Satisfaction and how to operationally improve customer experiences. The study was conducted combining CX survey data, store-level operational data, customer transaction and behaviour data across both satisfied and dissatisfied customers.

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One of the key outcomes of the study was that checkout experience had the most negative impact on overall shopper satisfaction. Factors impacting a poor checkout experience were further analysed to identify if any of the below components had a significant influence:

  • Self-checkout vs Associate-assisted checkout
  • Store location
  • Shopping hours (peak vs non-peak)

Through a study of customer satisfaction data, we could show a shopper’s expectation of an ‘ideal’ checkout experience and the different drivers of checkout satisfaction. A study of transactional, operational and observational data revealed the gap in the current state of check out versus customers expectation. For example, lower satisfaction (as per the CX survey results) was heavily correlated to a longer payment processing time (derived from transaction data).

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The friction points were grouped into shopper issues, staffing issues, process (operational) issues and technology issues so that relevant business stakeholders could take ownership in resolving the issues. To supplement the learnings from the CX-CRM analytics, the checkout process of key retail competitors was also analysed to identify qualitative avenues of improvement for our client.

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The power of transactional data facilitated granular analysis, which helped provide customised recommendations at a customer and store level. For example, a recommendation to reduce the payment processing time by 6 to 10 seconds for card transactions, which account for 60% of all transactions that happen in a day, had a potential to improve Checkout Satisfaction NPS up to 600 basis points.

The customer impact

Based on customer transaction history, Machine Learning-enabled triggers (apply for membership, upsell) were recommended to be built into the prompting system at the checkout, which could save 10 to 12 seconds per transaction by cutting down unnecessary upsell prompting and potentially improve prompt acceptance rate from current levels of 4% up to 21%.

In addition, predictive analytics-based store optimisation solutions were recommended to estimate traffic and queue length to facilitate optimal lane scheduling and cashier staffing. Improved Self Check Out Adoption (an estimated increase by 10% in adoption) could reduce wait time at POS (assisted check out) transactions, and has a potential to improve NPS from 34 (point-of-sale) up to 54 (self-checkout) for at least 10% of all transactions.

Our solution helped the retailer deliver a frictionless checkout experience, which influenced overall satisfaction and had a ripple effect on customer engagement with the retailer.

Data-enabled processes can help retail stores capture and use customer transaction data and behavioural data in tandem to outline solutions and design a better checkout experience for the customer. With ever-evolving customer behaviour and the advancement in technology, retail is changing at an accelerated rate. Retailers need to integrate analytical insights with the latest tech innovations to offer a better customer experience.

BRAND SPUR

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Can a frictionless checkout experience really improve your bottom line? - Brand SpurCan a frictionless checkout experience really improve your bottom line? - Brand Spur

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Can a frictionless checkout experience really improve your bottom line? - Brand SpurCan a frictionless checkout experience really improve your bottom line? - Brand Spur

Latest News

Spackman Entertainment Group’s Upcoming Musical Film THE BOX, Starring EXO’s Chanyeol, Scheduled To Be Released In The Spring Of 2021

  • Following the art film STONE SKIPPING, THE BOX is the next film production of the Company's wholly‐owned indirect subsidiary, Studio Take, founded by veteran movie producer, Mr. Song Dae‐chan
  • THE BOX will be EXO's Chanyeol's first lead acting role in a film
  • Directed by Yang Jung Woong, the Executive Producer of the 2018 PyeongChang Winter Olympics opening and closing ceremonies, THE BOX is set to be screened in Korea in the spring of 2021
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SINGAPORE - Media OutReach - 3 March 2021 - Spackman Entertainment Group Limited ("Spackman Entertainment Group" or the "Company" and together with its subsidiaries, the "Group"), one of Korea's leading entertainment production groups, wishes to announce that its upcoming musical film THE BOX, produced by the Company's indirect wholly-owned subsidiary, Studio Take Co., Ltd. ("Studio Take"), is set to be released in Korea in the spring of 2021.


Following the art film STONE SKIPPING, THE BOX is the next film production of Studio Take, which was founded by veteran movie producer, Mr. Song Dae‐chan.

THE BOX is about the musical journey of an aspiring singer and a once popular producer.

Directed by Yang Jung Woong, the Executive Producer of the 2018 PyeongChang Winter Olympics opening and closing ceremonies, THE BOX stars EXO's Chanyeol who plays the aspiring singer and Jo Dal Hwan who acts as the once popular producer. This is Chanyeol's first lead role for a Korean commercial film. Jo Dal Hwan is known for his role in SECRET HEALER (2016), TRAFFICKERS (2012) and THE CON ARTISTS (2014).


About Spackman Entertainment Group Limited

Spackman Entertainment Group Limited ("SEGL" or the "Company"), and together with its subsidiaries, (the "Group"), founded in 2011 by Charles Spackman, is one of Korea's leading entertainment production groups. SEGL is primarily engaged in the independent development, production, presentation, and financing of theatrical motion pictures in Korea. According to Variety, Korea was the world's fourth largest box office market in 2019, behind only North America, China and Japan.


The Group also invests into and produces Korean television dramas. In addition to our content business, we also own equity stakes in entertainment-related companies and film funds that can financially and strategically complement our existing core operations. SEGL is listed on the Catalist of the Singapore Exchange Securities Trading Limited under the ticker 40E.

Production Labels

SEGL's wholly-owned Zip Cinema Co., Ltd. ("Zip Cinema") is one of the most recognised film production labels in Korea and has originated and produced some of Korea's most commercially successful theatrical films, consecutively producing 10 profitable movies since 2009 representing an industry leading track record. Recent theatrical releases of Zip Cinema's motion pictures include some of Korea's highest grossing and award-winning films such as CRAZY ROMANCE (2019), DEFAULT (2018), MASTER (2016), THE PRIESTS (2015), COLD EYES (2013), and ALL ABOUT MY WIFE (2012). For more information on Zip Cinema, do visit http://zipcine.com


SEGL also owns Novus Mediacorp Co., Ltd. ("Novus Mediacorp"), an investor, presenter, and/or post-theatrical distributor for a total of 79 films (58 Korean and 21 foreign) including ROSE OF BETRAYAL, THE OUTLAWS and SECRETLY, GREATLY, which was one of the biggest box office hits of 2013 starring Kim Soo-hyun of MY LOVE FROM THE STARS, as well as FRIEND 2: THE GREAT LEGACY. In 2012, Novus Mediacorp was also the post-theatrical rights distributor of ALL ABOUT MY WIFE, a top-grossing romantic comedy produced by Zip Cinema. In 2018, THE OUTLAWS, co-presented by Novus Mediacorp broke the all-time highest Video On Demand ("VOD") sales records in Korea. For more information on Novus Mediacorp, do visit http://novusmediacorp.com.


The Company owns a 100% equity interest in Simplex Films Limited ("Simplex Films") which is an early stage film production firm. The maiden film of Simplex Films, JESTERS: THE GAME CHANGERS (2019), was released in Korea on 21 August 2019. Simplex Films has several line-up of films including A BOLT FROM THE BLUE (working title).


The Company owns a 100% equity interest in Take Pictures Pte. Ltd. ("Take Pictures") which produced STONE SKIPPING (2020) and shall release THE BOX and GUARDIAN (working title) in 2021 tentatively.


The Company owns a 100% equity interest in Greenlight Content Limited ("Greenlight Content") which is mainly involved in the business of investing into dramas and movies, as well as providing consulting services for the production of Korean content. Through the acquisition of Greenlight Content, the Group's first co-produced drama, MY SECRET TERRIUS, starring top Korean star, So Ji Sub, achieved #1 in drama viewership ratings for its time slot and recorded double digits for its highest viewership ratings. Greenlight Content was one of the main investors of MY SECRET TERRIUS.


The Company owns a 20% equity interest in The Makers Studio Co. Ltd., which plans to produce and release four upcoming films, the first of which will be THE ISLAND OF THE GHOST'S WAIL, a comedy horror film.


Our films are theatrically distributed and released in Korea and overseas markets, as well as for subsequent post-theatrical worldwide release in other forms of media, including online streaming, cable TV, broadcast TV, IPTV, video-on-demand, and home video/DVD, etc. We release all of our motion pictures into wide-theatrical exhibition initially in Korea, and then in overseas and ancillary markets.

Talent Representation

The Company holds an effective shareholding interest of 43.88% in Spackman Media Group Limited ("SMGL"). SMGL, a company incorporated in Hong Kong, together with its subsidiaries, is collectively one of the largest entertainment talent agencies in Korea in terms of the number of artists under management, including some of the top names in the Korean entertainment industry. SMGL operates its talent management business through renowned agencies such as MSteam Entertainment Co., Ltd. (Son Ye-jin, Lee Min-jung, Ko Sung-hee), UAA&CO Inc. (Song Hye-kyo, Yoo Ah-in, Park Hyung-sik), Fiftyone K Inc. (So Ji Sub, Ok Taec-yeon), SBD Entertainment Inc. (Son Suk-ku), and Kook Entertainment Co., Ltd. (Kim Sang-kyung, Kim Ji-young). Through these full-service talent agencies in Korea, SMGL represents and guides the professional careers of a leading roster of award-winning actors/actresses in the practice areas of motion pictures, television, commercial endorsements, and branded entertainment. SMGL leverages its unparalleled portfolio of artists as a platform to develop, produce, finance and own the highest quality of entertainment content projects, including theatrical motion pictures, variety shows and TV dramas. This platform also creates and derives opportunities for SMGL to make strategic investments in development stage businesses that can collaborate with SMGL artists. SMGL is an associated company of the Company.


The Company owns a 100% equity interest in Constellation Agency Pte. Ltd. ("Constellation Agency"). Constellation Agency, which owns The P Factory Co., Ltd. ("The P Factory") and Platform Media Group Co., Ltd. ("PMG"), is primarily involved in the business of overseas agency for Korean artists venturing into the overseas market. The P Factory is an innovative marketing solutions provider specializing in event and branded content production. PMG is a talent management agency which represents and manages the careers of major artists in film, television, commercial endorsements and branded entertainment.

Strategic Businesses

The Company owns a 100% equity interest in Frame Pictures Co., Ltd. ("Frame Pictures"). Frame Pictures is a leader in the movie/drama equipment leasing business in Korea. Established in 2014, Frame Pictures has worked with over 25 top directors and provided the camera and lighting equipment for some of Korea's most notable drama and movie projects including ITAEWON CLASS (2020), HOW TO BUY A FRIEND (2020), KIM JI-YOUNG, BORN 1982 (2019), FOUR MEN (2019) and ASADAL CHRONICLES (2019).

We also operate a café-lounge called Upper West, in the Gangnam district of Seoul and own a professional photography studio, noon pictures Co., Ltd.

For more details, do visit http://www.spackmanentertainmentgroup.com/

Can a frictionless checkout experience really improve your bottom line? - Brand Spur
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