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How do Brits love their in-store ATMs? New study counts the ways

Merchants love them, too: A good deal of the cash from their in-store ATM comes right back to them.

June 4, 2014 by Suzanne Cluckey — Owner, Suzanne Cluckey Communications

European ATMs 2014, co-sponsored by the ATM Industry Association Europe chapter and the London-based research firm RBR, wrapped up Wednesday in London after two days of keynote presentations, workshops, breakout sessions and exhibits.

Not surprisingly, cash was a focus. In fact, more than one-quarter of the conference’s 31 sessions directly addressed it.

Cash-centric sessions included “The changing role of cash in the UK economy”; “Consequences of reduced cash in circulation in the Netherlands”; “Reducing the costs of cash across multiple markets” (presented by this week’s guest commentary author Brendan Doyle); and “The value of cash,” presented by Jonathan Simpson-Dent, managing director of Cardtronics Europe.

Simpson-Dent answered the question, “How important is convenient cash access to the consumer’s decision about where to shop?,” drawing from results of a study carried out for Cardtronics UK by research and strategy consultancy Populus.

The study, which is based on firsthand market research from across the U.K., shows that nearly three-quarters (74 percent) of shoppers consider it important for a retailer to offer an in-store ATM.

In a recent news release introducing study results, Simpson-Dent commented on the findings:

We’ve always been given anecdotal evidence to suggest that a cash point is able to offer shop owners a boost to their business, but now for the first time, we’ve been able to prove and quantify it. …

It is perhaps not surprising that in an increasingly cash-rich and time-poor society, we want to achieve more than ever when we visit our local shop. By offering a diverse range of services to their customers, local shops remain a ‘one-shop’ hit for the local community, and cash access is a central part of that customer experience.

Other findings from the report:

Underscoring the critical nature of ATM uptime, more than half (53 percent) of shoppers said they wouldn’t come back to the location if the cash point were removed or broken. According to the study, this could mean, on average, a loss of 11.49 pounds ($19.23) per customer comprising the 53 percent.

Not surprisingly, shoppers who use in-store ATMs also make purchases from the merchant. More than three-quarters (77 percent) of survey respondents said they used the cash specifically to spend in-store.

They generally spend more than other customers, too, with an average outlay of 16.39 pounds ($27.43), which comes to an average of 68 pence ($1.14) more than their non-ATM using counterparts. The average ATM withdrawal comes to 48 pounds ($80.34).

In a key finding for local shopowners, the study revealed that ATMs are a primary driver of customer traffic. An eyebrow-raising 82 percent of cash machine users said they plan their visit to the store around the presence of the ATM (58 percent said it was the main reason for the trip).

What is more, access to cash vitally proved to be an additional draw for repeat visits, with more than half (52 percent) of customers using the shop’s ATM at least once a week. More than one-quarter of consumers (26 percent) said the cash machine in their local convenience store was the one they always used.

The report also showed that consumers consider it useful to have several services in the same place; that is, they can check their balance via the cash machine at the same time that they purchase products.

In yet another important finding, one-third of respondents (33 percent) said they would visit the shop more often if the cash machine dispensed discount coupons they could use in the store.

The following graphic provides a snapshot of the regional cash-spending habits of Brits:

cover photo: live4soccer

About Suzanne Cluckey

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Suzanne’s editorial career has spanned three decades and encompassed all B2B and B2C communications formats. Her award-winning work has appeared in trade and consumer media in the United States and internationally.

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ATM Industry Association (ATMIA)

The ATM Industry Association, founded in 1997, is a global non-profit trade association with over 10,500 members in 65 countries. The membership base covers the full range of this worldwide industry comprising over 2.2 million installed ATMs.

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