Installing an ATM at a convenience store or petrol station increases loyalty, footfall and sales according to a new survey of consumer habits by independent cash machine operator Cardtronics UK.
Findings from a newly published report demonstrate that by offering customers access to cash at the same time as purchasing petrol, groceries or paying a bill, shop owners are more likely to encourage return visits and additional spend in store. Moreover, cash is used as the primary payment method at local shops, with 90% of consumers choosing it over card payment.
“The Value of Cash” report, launched by Cardtronics UK and research company Populus, is based on first hand market research across the UK. It shows that just under three quarters of shoppers (74%) consider a cash point as an important service to have on site.
Jonathan Simpson-Dent, Managing Director of Cardtronics Europe, said: “We’ve always been given anecdotal evidence to suggest that a cash point is able to offer shop owners a boost to their business, but now for the first time, we’ve been able to prove and quantify it. We’re pleased to share this customer insight and think it could become a central aspect of the business models for shop managers if they are looking to expand and grow.”
“It is perhaps not surprising that in an increasingly cash-rich and time-poor society, we want to achieve more than ever when we visit our local shop. By offering a diverse range of services to their customers, local shops remain a ‘one shop’ hit for the local community, and cash access is a central part of that customer experience.”
Over half (53%) of shoppers said they wouldn’t come back to the site if the cash point was removed or broken. This could result in a loss of an average of £11.49 per customer who wouldn’t return if the cash point wasn’t there.
Cash machines in-store also provide a welcome boost to in-store spending with cash machine users, among all spenders, shown to have a higher average spend of £16.39 – those who didn’t use the cash machine spend on average 68p less.
The uplift from cash in hand translates to an upsurge in purchases, with a further £6.08 on average being spent on other services. Furthermore, those who withdrew money to spend it in store, spent on average £13.09 on site.
For local shops, cash machines are a key driver of consumer footfall, with 82% of cash machine users planning their visit to the store around the presence of the cash point. Even further, access to cash vitally proves to be an additional pull for repeat visits, with over half (52%) the customers using the cash point in the shop at least once a week. In addition, over a quarter of consumers (26%) said the cash machine in their local convenience store was the one they always used.
The report also shows that consumers consider it useful to have several services in the same place; they can check their balance via the cash machine at the same time as purchasing products. Furthermore, a third of respondents (33%) would visit the shop more often if the cash machine dispensed discount coupons to be used in store.
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