June 30, 2011, Mt. Prospect, IL – Although self-service coin redemption is an intermittent activity, Cummins-Allison has identified seasonal and economic trends that impact the timing of when customers cash in their coin.
Understanding these patterns can lead to increased kiosk use and, in turn, greater profitability for retailers, the company said in a press release.
Cashing in coin is hot
Coin redemption is especially popular during the months of June, July and August when most customers are looking for ways to uncover additional disposable income to put toward summer vacation expenses.
In fact, whether they’re hitting the road or planning an at-home staycation, the fact remains that vacation travel is one of the top two uses of cash redeemed from self-service coin kiosks.
In the United States, the amount of cash redeemed for vacation spending also tends to be higher, ranging from $20 to $1,200. Annually, Americans redeem an average of $260 specifically for travel expenses.
Coin-redemption also heats up during the cooler months of October, November and December, as customers turn saved coin into cash for holiday-related purchases. On average, Americans redeem $305 per year for holiday gifts.
Pain at the pumps
Extra money for general living expenses, such as groceries or gasoline, is the number one reason customers cash in saved coin. The value of this “found money” is even greater this summer as gas prices continue to hover above $1.20 per litre in many parts of Canada.
In the United States, customers annually redeem an average of $185 for these types of general expenses.
Turn seasonal peaks into profit
With an understanding of how seasonal and economic patterns impact coin redemption, it’s easy to forecast when your self-service coin kiosk will be in higher demand and adjust your marketing strategies accordingly. Kiosk promotion can be increased via circulars or store websites, and custom graphics, signage and screen displays can be created and refreshed each season.
These spikes in demand can lead to greater profitability. According to Cummins-Allison, kiosks owned and operated by the retail store can net seven per cent or more on each transaction. Customers who cash in coins are more likely to spend this money while in the store, creating opportunities for retailers to leverage sales by promoting seasonal items, such as travel accessories or road trip snacks.
Seasonality and economic conditions are external factors that impact coin redemption habits. But they can be used advantageously with customized marketing programs.
For more information about seasonal and economic coin redemption trends, or to learn more about Cummins-Allison products, visit www.cumminsallison.com.