Use coin counters to attract frugal holiday shoppers
November 11, 2011, Mt. Prospect, IL – Thrifty customers are saving their pennies – and that’s a good thing for owners of self-service coin counters.
Years of reduced discretionary income have changed the shopping habits of today’s consumers. Appealing to the new “forever frugal” customer while also making a profit can be especially challenging during the competitive holiday shopping season.
Eighty percent of U.S. households report someone in the home saves loose change, according to data collected by BranMark Strategy Group. The value of this found money is even greater in November and December as customers turn their saved coin into cash for holiday-related purchases. On average, customers redeem $305 in collected coins per year for holiday gifts.
BranMark reports that retailers see coin counter volumes typically increase by 16 per cent in November and eight per cent in December.
"By understanding this seasonal coin redemption pattern, retailers can adjust their marketing strategies to help ensure redeemed cash is spent in their store," Cummins-Allison explained in a press release. "Plus, coin counters owned and operated by the retail store can net seven per cent or more on each transaction, meaning retailers have an opportunity to profit from both the customer’s counted coin and his or her in-store purchases."
There are multiple ways to increase coin counter promotion – via circulars, receipt slip reminders or on your store website. In addition, custom graphics, signage and screen displays can be created and refreshed for the holidays to attract attention and machine use.
"Cash in hand is the top motivator for customers to convert loose change into spendable dollars," the release from Cummins-Allison said. "Self-service coin counters that dispense a cash payout at the machine improve the customer experience – no waiting in line at the service counter during busy holiday hours – and encourage them to start shopping immediately."
According to a survey by BranMark, customers who cash in coins are more likely to spend this money while in the store. This holiday season retailers can take the opportunity to promote seasonal items, such as stocking stuffers or décor, and high margin gift items through on-screen advertising on the coin counter. Customers will appreciate the convenience of redeeming coin and shopping in one trip.