November 8, 2019
Download the report: How to increase profits by reducing costs of cash
With the ever-increasing growth in online shopping options, it’s evident that customers have more options to shop outside the store. A prime way to encourage them to shop in person is to build a better shopper experience. When you deliver an exceptional experience to your customers when they shop your store, they’ll want to come back again and again.
One proven way to create a better shopper experience is to redirect store employees to devote more time to the customer and less on repetitive tasks. You can create this improvement in your stores by reducing labor hours dedicated to the handling of cash at the store level.
You know that cash handling comes with a cost, of course, but you may not realize the many factors that influence just how much the
costs of cash affect your bottom line. Balance Innovations, along with research partners, commissioned an industry study to explore the cost of accepting cash and how to simplify process to focus on higher value tasks within the store.
Every segment is different, and every retailer has different costs of labor. The study finds the average cost of managing cash among all retail segments is 9.1 percent. Your own percentage may be lower or higher, depending on many variables and on the unique nature of your business.
To download the full retail study, click here.
Here are highlights of what we learned from the study:
- The process of taking and reconciling cash varies wildly by segment.
- In all, $96 billion was spent on retail cash handling activities in the U.S. and Canada in 2017.
- Many of the costs of cash are hidden, due to the very small time increments employees spend on cash management many times during the day.
- Available technology solutions can be configurable for your unique operations and they have a dramatic effect on lowering the cost of cash.
- Redirecting activities employees perform while on the job is key to an improved customer experience, staying competitive in a crowded marketplace and increased profits.
- Retailers can save 50-80 percent of the cost of cash through labor savings at store level.
Learn more about how Cash Process Automation can lower the cost of accepting cash, redeploying valuable labor to delivering a better customer experience.