Top 5 Benefits of ATM Placement in Retail

An ATM placement can make a world of 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’ performance in terms of sales, customers, competition, and profit.

1. Customers like sweaters like a magnet

Merchants are bound to attract potential customers like a magnet with ATMs placed in retail stores and properly advertised. Currently, many customers prefer cash transactions to credit cards, mainly due to the increasing number of cybercrime cases. However, carrying cash around all the time is often not feasible. Therefore, many buyers prefer to withdraw money through the 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 in the same store where the ATM is located. This means that the placement of ATMs will not only increase foot traffic, but also increase sales.

2. More income and profit

Another great benefit of installing an ATM in a retail store is that it acts as a revenue generator. Not only through sales, but also through many other ways. For example, a merchant would already know the fees a customer must pay for credit or debit card purchases. This fee is variable in the total purchase price. Although it is small, it adds up. However, cash-only transactions with an ATM installed would eliminate card fees, thus 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. Gain a competitive advantage

The retail industry is booming and getting too competitive. To stay ahead of the competition, retail must offer great shopping experiences and services to customers. With the placement of an ATM, the retailer can serve more customers as some may want to use the ATM as they may not have cash available to make the purchase. So 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 robberies is alarming. However, at an ATM inside 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 transact with cash and shop without worry, stress or risk. They have the peace of mind that they are not going to be robbed. And that’s what customers want. They want a stress-free shopping experience that gives them the flexibility, power, and convenience to select the payment method they prefer.

5. Happy customers mean more business.

By having an ATM installed at retail, businesses give customers the convenience of selecting their preferred mode of payment. This comfort translates into satisfied customers. And statistics show that, on average, happy customers tell about 9 people about their experiences with a business. This helps to find new customers and sell more to existing customers.

A good customer experience further 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.