Single-point queuing can reduce checkout
time, boost incremental sales
Exclusive web-only article for June 2008
By Karen M. Kroll
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Nick Byrnes has a name for the “waiting
rooms” hiding in plain sight at many retail
stores. They’re called checkout lanes.
“It may not have four walls and a sign, but it
typically is the only area where customers are
asked to stand in one place and wait to be
served,” says Byrnes, vice president of sales
and business development for Lawrence Metal
Products.
Making the “waiting room” enjoyable can pay off
for retailers. Ross Dress for Less, a
Pleasanton, Calif.-based discount retailer, saw
the number of “drops” -- customers who left
without completing their purchases -- decline
significantly in the stores in which the
checkout area was redesigned to move them more
quickly, says Brad White, senior director of
store planning and design. “We saw significant
improvement in drops and customer satisfaction.”
Admittedly, queue management, as it’s known,
isn’t an area that attracts a great deal of
management time and attention, Byrne says. But
the queuing area offers customers one last
chance to decide whether or not to complete
their purchases. Handled improperly, it can turn
a pleasant shopping experience into an exercise
in frustration.
While it would be a stretch to call “queue
theory” a science, it has been a topic of study,
Byrne says. Retailers typically choose from
three types of lines. One is “lane per lane,”
the typical grocery store set-up. Another option
is disbursed or “virtual” queuing; these are
commonly found within delis and bakeries.
Customers don’t actually get into line, but take
a number and are called in order.
Finally, there’s single-point queuing -- what
travelers typically encounter at the airport.
Everyone is corralled into a single line, and
once they’ve reached the front, they move to the
next available service representative.
A single-line queue is both fair and efficient,
Byrne says: customers don’t have to guess which
line is going to move most quickly. Moreover,
the queuing area typically can be smaller than
for the other methods, although it’s easy to
extend the lines to accommodate larger groups.
In late 2006, White and his team looked at
various ways to move Ross’ customers through the
checkout lines more quickly. The goals were to
reduce customer frustration and the number of
customers who left without completing their
purchases.
For these reasons, White zeroed in on the
single-line system, and decided to implement an
electronic call forward solution from Lawrence
Metal, a provider of queuing systems based in
Bay Shore, N.Y. The system alerts customers when
a sales associate is ready for the next
transaction and reduces the time customers spend
in line by about 25 percent, Byrne says.
To activate the alert, a sales associate presses
a button once he or she has completed a
transaction and closed the cash drawer. Displays
at the register, as well as at the head of the
line, indicate which register is free. (Each
register can be set up to display arrows
pointing to the now-open register -- helpful
when columns or pillars make it hard for
customers to see the displays at each register.)
The system also can be linked to the corporate
network; doing so allows for a few more
features. For example, the marketing department
can program the displays to run promotional
messages when they’re not displaying a register
number.
Prime real estate
The system offers several other benefits.
Transactions are completed more quickly, so
salespeople can check out more customers.
Because the line steadily moves forward,
customers don’t feel trapped in place; as a
result, they’re less likely to leave the store
annoyed and without buying anything. At the same
time, customers recognize the inherent fairness
of the line, since they know they’ll be served
in the order in which they arrived.
In addition, because every customer will spend
some time within the queuing area, it’s prime
real estate for merchandising. Case in point:
one client of Lawrence Metals placed impulse
items in its queuing area. Management found that
75 percent of customers looked at the items,
more than one-third interacted with them and 10
percent purchased at least one of the items.
Several other retailers have placed bowls of
small impulse items like lip gloss, candy and
tissues within their queuing areas, boosting
sales of those items by as much as 800 percent,
Byrne says. (Retailers don’t want to
over-merchandise the queue, however; if they
offer too many options, customers can spend so
much time making their purchasing decisions that
the line actually slows down.)
Deploying the system typically costs between
$6,000 and $10,000 per store, Byrne says, though
the price tag increases if the retailer has to
reconfigure the register area to accommodate a
single-line queue. While this isn’t absolutely
necessary, it’s usually the most efficient use
of space, he says. Retailers with several dozen
registers may decide that it makes sense to
configure them into several single-line
sections.
Pilot test results
The qualitative and quantitative results from
Ross’ pilot test were impressive, White says.
“We would talk with customers, and they would
say that it was better,” and the number of drops
declined to “next to nothing.” Moreover,
learning the system takes no more than a few
minutes.
Merchandising the area in which customers waited
boosted the average sales ticket, White says.
The system also enables store managers to use
employees more efficiently, as they receive a
steady stream of customers. And loss prevention
efforts receive a boost because the system
dramatically reduces the possibilities for “sweethearting”:
With the electronic call forwarding system, it’s
just about impossible for the person standing in
line to gauge which sales associate will ring
him up.
As of late April, Ross was preparing to expand
the pilot to a half-dozen stores. While White
declined to say how much Ross is planning to
invest in the system, he says his team has been
able to recoup its investment within each store
in less than a year. “It’s a very compelling
story for us,” he says.