With the growth of technology and the constantly moving target of customer satisfaction, the equation for what makes a successful multi-state operation shifts constantly. This mercurial nature of retail challenges category managers to continually look for innovative strategies or risk losing their competitive edge. One emerging trend that offers a potential solution is the integration of clerkless solutions and new revenue streams. By embracing technologies such as skill gaming, can provide a significant boost to the bottom line without the need for increased labor costs.
Further complicating matters is the dual objective of increasing revenue while judiciously managing operational expenditures. Conventional approaches often lead to dead ends that hardly move the ticker on customer satisfaction. On the other hand, overcomplicated strategies to boost sales can quickly become costly endeavors with diminishing returns, particularly if they require bringing on more employees.
So, how can category managers ensure that every location under their care achieves financial efficiency while keeping customer engagement high?
Skill gaming as a passive income stream is gaining traction in more states. It promises to catalyze the paradigm shift toward a pragmatic solution that can redefine retail locations’ revenue capacity without the burden of additional labor costs.
The Rise of Clerkless Solutions
Not long ago, clerkless solutions consisted of pay-at-the-pump gas stations and ATMs. However, the last several years have witnessed a sweeping takeover of clerkless solutions in retail and restaurant locations, underscoring a broader industry trend towards measures that maximize efficiency and give customers more autonomy.
In the Retail Industry
A recent study found that by 2027, the global self-checkout systems market is expected to reach $7.3 billion, up from $3.5 billion in 2020. This is a direct response to the increased demand—40% of shoppers prefer self-checkout over going through manned lanes, particularly the 67% of millennials who find the process more efficient.
In addition to immediate gratification for patrons who want to avoid manned checkout, clerkless solutions have a long-term, sustainable effect on customer satisfaction.
Supermarket automated checkout systems allow customers to scan and pay for purchases without cashier intervention. Thus, managers can reallocate staff resources to focus on higher-value tasks—assisting with loading vehicles, helping locate a particular item, handling returns, etc.—further improving service quality and operational flexibility.
In the Fast Food Industry
Similarly to grocery stores, the fast food industry’s move to self-service kiosks has been met with consumer enthusiasm. Since gaining traction over the last decade, it’s won over customer favor, with 79% of patrons reporting that kiosks make ordering more convenient and 65% preferring self-ordering over traditional ordering.
Kiosks have also proven invaluable for increasing point-of-sale revenue. Customers tend to spend 10-30% more when using a kiosk because they have more consistent access to upsells, cross-sells, and customization options that complement the meal they’ve ordered.
Growing Past Checkouts and Kiosks
The main driver behind the rise of clerkless solutions is evolving consumer expectations for swift, seamless service interactions. Consumers constantly use technology to make everyday tasks easier and expect no less from their retail experiences.
When multi-state operators are willing to innovate with clerkless solutions like skill gaming, they demonstrate that businesses are committed to meeting customer expectations, positioning them as forward-thinking and patron-focused.
But it doesn’t have to end at the checkout line or order kiosk.
Skill Gaming as a Clerkless Solution
The pressure to control operational costs requires category managers to find low-maintenance profit growth solutions that are resilient to changing market conditions and scalable as the business grows.
Skill gaming is one such clerkless solution for opening new retail revenue streams—up to $5,000 per location when partnering with INAMAX, 17% above the Georgia average.
Here’s how.
Low Operational Costs
When partnering with INAMAX, multi-state operators can get started with very little investment, typically just the cost of each location’s license fee, which will vary by state.
Once installed, INAMAX terminals are primarily self-sufficient, requiring minimal day-to-day management or intervention. And when they do need service or repair, we offer industry standard-setting customer service, with an SLA time of under 6 hours.
With the Titan Redemption Card, customers can reload their digital wallets, replay their winnings on other machines, and redeem for prizes such as gas, gift cards, and in-store merchandise. This autonomy reduces the need for dedicated staff and minimizes ongoing upkeep costs, resulting in a highly efficient revenue stream that complements existing business operations and optimizes operational expenditures.
Customer Engagement
Skilled gaming terminals are intrinsically appealing to customers because they promise the immediate gratification of an interactive experience in which patrons are challenged and their finesse is rewarded.
In turn, they’re an excellent tool for tempting foot traffic and repeat visits with the promise of entertainment and prizes during mundane tasks like grocery shopping. As patrons come in more to play games, they’ll become increasingly loyal to that location, increasing dwell time and impulse purchases, particularly refreshments and snacks.
Then, while they’re playing and perhaps even winning, they’ll associate that experience with the location. Even if they never play on a terminal again, that positive feeling will make them look forward to returning.
Flexibility
Because INAMAX partners with three of the industry’s top manufacturers, including JVL, Banilla, and IGT, our Location License holders have unmatched access to a wide variety of games that are sure to appeal to various customer demographics. Our team works closely with category managers to hone in on their target audience’s preferences and interests, making data-informed decisions to curate a gaming mix that resonates with customers.
Additionally, depending on state laws for each location, skilled gaming machines are highly scalable. They have a small footprint of only 5-7 square feet and can fit in venues of all sizes, from large megamarts to corner convenience stores. As spatial constraints lessen or customer volume grows, Location License holders can easily integrate more terminals to meet the increase in demand.
If you’re a category manager ready to take the next step in clerkless solutions or want to learn more about INAMAX, we’d love to chat with you. Please call 770.449.0400 ext. 700 or email info@inamax.com.