Self-Service Concepts: Smart, Scalable, Profitable

Concepts where customers compose their own mix in-store are both a convenient solution for consumers and a profitable business strategy. The trend report Greenfood Insights #4 highlights how companies that succeed in creating an individualized shopping experience can increase their revenues by as much as 40 percent.
–Self-service concepts are a way to future-proof retail, says David von Laskowski, CEO of Picadeli and Greenfood Group.

Consumers who get to choose and pick their own goods tend to buy more. Self-service concepts drive both sales and margins through reduced waste, more efficient store operations, and increased customer loyalty. The explanation lies in psychological aspects such as reduced social pressure and the feeling of taking control over one's purchase. Freedom of choice also promotes the desire to experiment, increasing the likelihood that customers will try new products.

These are some of the reasons why self-service concepts often generate higher revenues per sold unit in retail. This is while profit margins increase thanks to better control over the assortment and the possibility of dynamic pricing. Allowing customers to pick freely also reduces the need for manual labor in the store and provides more accurate data on what sells. Thus, it becomes easier to manage purchases while reducing waste.

–Self-service creates engagement and an interactive experience in the grocery store. A broad, flexible, and scalable range also attracts customers to try new flavors and makes it easier to optimize the assortment, introduce new products, and adapt to demand in real-time, says David von Laskowski.

He is supported by research. Tailored options are increasing in many industries, and consumers value being able to make their own choices more than ever, says Sara Rosengren, professor of marketing at the Stockholm School of Economics, in Greenfood Insights #4.

It also shows that 7 out of 10 consumers expect their individual preferences to be met, according to McKinsey. And companies that succeed in creating such a personalized customer experience generate up to 40% higher revenues. Forbes sees the same pattern – 8 out of 10 consumers prefer companies that offer a personalized shopping experience.

Self-service concepts also mean robustness in an uncertain market, thanks to their scalability. In an economic situation where consumers are looking for affordable solutions, self-service concepts make it possible to meet demand with a flexible offer to consumers.
–Self-service concepts are fundamentally a way to future-proof retail. It is a solution that combines higher margins, lower waste, and smarter operations while strengthening the relationship with the customer. This type of solution wins both in the short and long term, says David von Laskowski.

You can find the Greenfood Insights #4 report below.