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© 2009 NCR Corporation

Transform your business with self-checkout technologyAn NCR White Paper

2009

NCR Confidential Proprietary

“Do it yourself” technology is everywhere. Today’s

on-the-go consumer has created the demand for self-

service applications across industries. Consumers of all

ages, genders and incomes expect retailers to provide a

painless, private and speedy purchasing experience.

NCR, a global technology company leading the

way businesses interact with their customers, has

surveyed consumers for the past three years to better

understand their perceptions, attitudes and behaviors

about self-service technologies.

The message from consumers is loud and clear.

Consumers want their preferred retailers to offer

technology that helps them shop independently,

speedily and privately, or they will find another

business that does.

This paper establishes the business case for deploying

a flexible and proven self-service technology, such as

the NCR SelfServ™ Checkout solution, to help retailers

transform their businesses by making consumer

transactions easier and faster. It will also explore best

practices for a successful self-checkout deployment.

Today’s on-the-go consumer has created

the demand for self-service applications

across industries.

Introduction 1

Consumers expect and value the self-service experience

A long, slow-moving checkout line is an inconvenience

for any hurried shopper. A recent self-service survey

of 8,500 consumers around the world, commissioned

by NCR and conducted by Buzzback Market Research,

revealed that 80 percent of shoppers queried were

more likely to do business with a company that

provided the flexibility and freedom offered by

self-service technology, whether it be via the Internet,

a mobile device, a stand-alone kiosk or an automated

teller machine (ATM)1. In addition,

66 percent of survey respondents indicated that the

availability of self-service technology helped create a

more favorable perception of the retailer’s brand2.

Statistics don’t lie: consumers in large numbers are

embracing the self-service experience and are more

inclined to do repeat business with retail operations

that provide self-service technology.

NCR Confidential Proprietary

Self-checkout technology benefits both consumers and retailers

Consumers have expressed an eagerness to use

self-checkout technology. The deployment of

self-checkout technology is a win-win proposition

for both the retailer and consumer because it helps

retailers maximize operating efficiencies while

enhancing the consumer’s shopping experience.

A satisfied shopper is a repeat shopper, and some

retailers have seen up to a 40 percent reduction in

average queue time and throughput gains of up to

20 percent after deploying self-checkout technology.

Self-checkout technology implementation reduces

the burden on store personnel by lowering the

number of front-end labor hours. Personnel who

might ordinarily operate a cash register can be utilized

in-aisle to answer shopper questions, direct shoppers to

products and replenish inventory. The redeployment of

store personnel in-aisle can facilitate upselling, lower

employee turnover rates and ultimately increase the

retailer’s overall revenue per labor hour.

Retailers continually evaluate their business practices

to determine where to make improvements in order

to remain competitive. Self-checkout technology is a

powerful differentiator that has been shown to draw

consumers to stores and keep them coming back.

2

A closer look at self-checkout technology

Self-checkout technology comprises an all-in-one

hardware and software solution that allows consumers

to scan, bag and pay for purchases with limited

assistance from store personnel.

NCR SelfServ Checkout is a best-of-breed technology

solution that makes consumer self-checkout literally

as easy as 1-2-3: just scan, bag and pay. NCR SelfServ

Checkout leverages NCR’s leadership in self-service

automation, customer experience consulting, advanced

bar code scanning technology and point-of-sale (POS)

integration.

Through its open architecture, retailers can seamlessly

integrate NCR SelfServ Checkout into legacy POS

applications through a customized transaction broker

software layer, which creates a virtual cashier for

each self-checkout lane. The multimedia self-checkout

application features audio and video prompts, as well

as animated demos, that provide an efficient and

intuitive self-checkout experience for consumers.

NCR SelfServ Checkout also offers several unload

and bagging options to accommodate any retail

environment. Its attendant monitoring tools ensure

transaction security while expediting the consumer’s

checkout experience. NCR SelfServ Checkout is

supported by a comprehensive suite of services

designed to help retailers realize a faster return on

investment and increased customer satisfaction.

If retailers deploy it, consumers will come

Self-checkout is the most popular form of self-service in

retail today. A 2007 survey conducted by IHL Consulting

found that 97 percent of its respondents have used

self-checkout technology3. Forty-four percent of

respondents stated that they “really liked” using self-

checkout, and 91 percent said they would use self-

checkout even if they “didn’t like” the technology. Of

the 1,000 consumers surveyed, only nine percent said

that they would “never use” self-checkout technology.

The results of the IHL survey confirm that if retailers

deploy self-checkout technology, consumers will come.

Retailers who have deployed NCR SelfServ Checkout

have reported 85 percent customer acceptance. In

addition, these retailers have seen a seven percent

increase in revenue per labor hour.

A global leader in the self-service market, NCR deploys

two out of three self-checkout systems worldwide.

Since NCR SelfServ Checkout was introduced more

than a decade ago, more than 50,000 units of NCR

SelfServ Checkout have been deployed in 20 countries

by more than 140 retailers—from discount stores

to home improvement chains to supermarkets. In

2007, approximately 3 billion consumer transactions

were processed on NCR SelfServ Checkout systems,

amounting to an estimated $37 billion in annual sales.

Best practices in deploying self-checkout technology

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3

Once a retailer has made the decision to deploy self-

checkout, it is critical to work with a company like NCR

that possesses both the expertise and best practices

required for a successful deployment.

A successful self-checkout experience is based on an

equally balanced ecosystem of employees, consumers,

operations and support. Consumer acceptance is a

key component to overall acceptance and use of the

self-checkout solution in the store. It’s important for

consumers to feel at ease when using self-checkout.

Here are some recommended guidelines to help

consumers feel comfortable:

Promotion:• Get consumers excited about

the new technology through both external

(the media) and internal (signage and fliers)

communications.

Store location:• Strategically locate self-checkout

lanes at the store’s front-end. This creates

accessible self-checkout lanes that are user-

friendly to navigate.

Store signage:• In-lane signage is especially

important when first implementing the

solution. Signage informs the consumer of the

available self-checkout option.

Friendly greeter/attendant:• A friendly associate

who greets consumers will help guide the

consumer to the self-checkout and give

“training” as needed.

Also important to the acceptance of self-checkout is

associate support—across all levels of associates and

management. The following are some recommended

guidelines to help build associate support:

Management support: • A vital component

is store management support. Positive

management support will result in positive

associate acceptance.

High value on attendant role:• The attendant

role goes beyond the traditional cashier. Good

attendants are friendly, outgoing people who

can help “sell” self-checkout to consumers.

These attendants also train others and enforce

security policies.

Training: • Training on all functions is important

for attendants and all levels of management.

NCR can assist with setting up these training

sessions as necessary.

Finally, the overall operations and support

implementation makes self-checkout work in the store.

This process includes determining the right mix and

quantity of self-checkout lanes for a retailer’s existing

front-end operation; defining the intervention and

resolution strategy; and identifying what metrics to

use when gauging the success of the implementation.

The operations and support plan also includes how

the self-checkout solution will be maintained after

installation (e.g., through a help desk). All of these

decisions should be made prior to installation and will

help guide the self-checkout experience in the store.

NCR Confidential Proprietary

4

Shoppers have embraced self-checkout technology,

and the self-service revolution has created a new

paradigm in customer service delivery. Retailers can

leverage self-checkout as a powerful differentiator

and brand builder to consumers. Research confirms

that consumers want the convenience and flexibility of

self-checkout and other self-service options. Retailers

who tap into the consumer demand for self-service

can create the consumer loyalty needed in today’s

competitive market.

Additionally, to maintain an edge in the current

economy, retailers must continually seek ways to

maximize operating efficiencies and enhance the

consumer’s shopping experience, helping to build

shopper loyalty and increase profitability. The

deployment of self-checkout technology positively

impacts these two requisites for business viability.

With more than 100 patents and $100 million invested

in self-checkout technology, NCR continues to bring

the latest innovations to the market. Join the more

than 140 retailers worldwide already leveraging NCR

SelfServ Checkout systems and become a part of the

self-service revolution.

In conclusion

More than 50,000 units of

NCR SelfServ Checkout have been

deployed in 20 countries by

more than 140 retailers.

5

NCR Confidential Proprietary

6For more information about deploying NCR SelfServ

Checkout in your retail environment, contact your

local NCR representative, email retail@ncr.com or

visit www.ncr.com.

References

Buzzback Market Research, NCR Self-Service 1.

Consumer Survey. January 2009.

Buzzback Market Research, NCR Self-Service 2.

Consumer Survey. January 2009.

IHL Consulting, Market Study: Self-Checkout 3.

Systems. September 2007.

NCR Confidential Proprietary

NCR continually improves products as new technologies and components become available. NCR, therefore, reserves the right to change specifications without prior notice. All features, functions and operations described herein may not be marketed by NCR in all parts of the world. Consult your NCR representative or NCR office for the latest information. NCR SelfServ is either a registered trademark or trademark of NCR Corporation in the United States and/or other countries. All brand and product names appearing in this document are trademarks, registered trademarks or service marks of their respective holders.

© 2009 NCR Corporation Patents Pending EB10025-1109 www.ncr.com

NCR Corporation

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For more information on NCR,please visit: www.ncr.com/retail

Experience a new world of interaction

Why NCR?

With over 125 years of retail experience, NCR is a leading

global provider of assisted- and self-service solutions. We

help our clients around the world improve their customer

interactions, implement change quickly and proactively, and

transform their businesses to become leaders and change

agents. We can help you, too.