An ATM placement can make a big difference to a retail business in many ways. Here are the top five benefits of installing an ATM in retail and how it can improve a business’s performance in terms of sales, customers, competition, and profits.
1. Customers like magnetic sweaters
Merchants are bound to attract potential customers like a magnet with ATMs placed in retail locations and advertised properly. Today, many customers prefer cash transactions to credit cards, mainly due to the increasing number of cybercrime cases. However, it is often not possible to carry cash with you all the time. For this reason, many buyers prefer to withdraw money through an ATM at the time of purchase. Having an ATM inside a store can attract and facilitate cash shoppers.
Studies show that when prospects walk into the store to use the ATM, they are more likely to spend up to 25 percent of the cash withdrawal at the same store where the ATM is placed. This means that the placement of ATMs will not only increase foot traffic, but will also increase sales.
2. More income and profits
Another great benefit of installing an ATM in a retail store is that it acts as a revenue generator. Not just through sales, but in many other ways as well. For example, a merchant would already know the fees that the customer must pay for purchases with a credit or debit card. This rate is variable on the total purchase price. Although it is small, it adds up. However, cash-only transactions with an ATM installed would eliminate card fees, thereby improving profit margin.
The merchant can set a transaction fee at the ATM to charge customers when they withdraw money. This fee goes directly to the retail owner, providing an additional stream of income.
3. Get a competitive advantage
The retail industry is booming and becoming too competitive. To stay ahead of the competition, retailers must deliver great shopping experiences and services to customers. With the placement of an ATM, the retail business can serve more customers as some may want to use the ATM as they may not have cash on hand to make the purchase. Therefore, instead of leaving the store to withdraw money, they can easily transact within the store and purchase the desired products with ease.
4. No risk to customers
The growing number of cases involving the theft of money from ATM users and even ATM thefts is alarming. However, at an ATM within a store, customers can easily withdraw money from the machine without any risk. This certainly contributes to a great customer shopping experience, as customers can cash and shop without worry, stress, or risk. They have the peace of mind that they will not be stolen. And that’s what customers want. They want a stress-free shopping experience that gives them the flexibility, power, and convenience to select their preferred mode of payment.
5. Satisfied customers mean more business
By having an ATM installed in the retail business, companies provide customers with the convenience of selecting their payment mode option. This convenience translates to happy customers. And statistics show that, on average, satisfied customers tell about 9 people about their experiences with a company. This helps you find new customers and sell more to existing customers.
A good customer experience also helps build buzz. Studies show that most people would like to share their good and bad experiences with an online business through tweets, Facebook, and online reviews. This exposure is great for a retail business because 81 percent of the US population uses social media, which translates to 207 million people.