Customers spend money differently when it feels newly gained rather than earned or budgeted. That is because unexpected cash often feels more available to spend than money in a checking or savings account. This is a shortened version of an excellent article from C Store Dive.
For C-stores, that creates a unique opportunity to boost incremental sales when they provide customers with an easy way to turn unused electronics into instant cash.
“Consumers want certainty, and when they get instant cash for recycling an electronic device, it creates certainty,” said Neil Fried, senior vice president of corporate development at ecoATM. “It also gives them control over how they spend it.”
Giving customers the opportunity to walk into the store with an unused phone and walk out with cash in hand creates purchasing power. That new purchasing power often translates into additional in-store purchases while creating a positive customer experience that builds loyalty and encourages repeat visits.
Turning “Found Money” Into In-Store Spending
Research has shown that people spend differently when money feels unexpected or instantly gained rather than planned or budgeted. When consumers can turn an unused electronic device into instant cash, it increases the likelihood that they will use at least a portion of that windfall within the location where they returned the device.
“When we ask customers in surveys, ‘How are you going to use this money today?’ Nearly 70% tell us that they want to spend it in store,” said Fried.
That spending often translates into impulse purchases of high-margin items. Snacks, beverages, candy and other grab-and-go purchases become easier decisions when customers have just received cash for something they no longer needed.
“Device recycling is a $100 billion market, and a device recycling kiosk can help them tap into that market,” Fried said. “Stores that host an ecoATM often see a five- to 10x incremental lift in sales in addition to the rental income generated by hosting a kiosk.”
For retailers, that creates value beyond the rental revenue that comes from hosting a kiosk. Instead of relying solely on existing customer traffic, C-stores have an opportunity to capture incremental spending generated by money customers didn’t expect to have before they walked through the door.
Full article The ‘found money’ effect: How immediate cash back drives in-store spending | C-Store Dive
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