Cummins-Allison Explains How Retailers Can Take Advantage Of Seasonal And Economic Coin Redemption Trends For Greater Profits

JUNE 28, 2011 — MT. PROSPECT, IL — Although self-service coin redemption is an intermittent activity, there are seasonal and economic trends that impact the timing of when customers cash in their coin. Cummins-Allison, the leading innovator and provider of coin and currency handling solutions, explains how an understanding of these patterns can lead to increased kiosk use and, in turn, greater profitability for retailers.

Cashing in Coin is Hot

Coin redemption is especially popular during the months of June, July and August when most customers are looking for ways to uncover additional disposable income to put toward summer vacation expenses. In fact, whether they’re hitting the road or planning an at-home staycation the fact remains that vacation travel is one of the top two uses of cash redeemed from self-service coin kiosks. The amount of cash redeemed for vacation spending also tends to be higher, ranging from $20-$1,2001. Annually, customers redeem an average of $260 specifically for travel expenses1.

Not surprisingly, coin-redemption also heats up during the cooler months of October, November and December as customers turn saved coin into cash for holiday related purchases. On average, customers redeem $305 per year for holiday gifts1.

Pain at the Pump

Extra money for general living expenses, such as groceries or gasoline, is the number one reason customers cash in saved coin. The value of this "found money" is even greater this summer as gas prices continue to hover around $4.00 per gallon (according to AAA the current national average is $3.60 a gallon). Annually, customers redeem an average of $185 for these types of general expenses1.

Turn Seasonal Peaks into Profit

With an understanding of how seasonal and economic patterns impact coin redemption, it's easy to forecast when your self-service coin kiosk will be in higher demand and adjust your marketing strategies accordingly. Kiosk promotion can be increased via circulars or your store website and custom graphics, signage and screen displays can be created and refreshed each season.

These spikes in demand can lead to greater profitability — kiosks owned and operated by the retail store can net seven percent or more on each transaction. And customers who cash in coins are more likely to spend this money while in the store. Leverage this opportunity by promoting seasonal items, such as travel accessories or road trip snacks.

Seasonality and economic conditions are external factors that impact coin redemption habits. But they can be used advantageously with customized marketing programs. To learn more about how your retail store can maximize these high redemption periods by owning a self-service coin kiosk, visit http://www.cumminsallison.com/retail/self_service_coin.htm.

1 Top Six Drivers of Consumer Use of Self-Service Coin Machines by Branmark Strategy Group (2010)

About Cummins-Allison

Cummins-Allison is a global leader in developing technologies which count, sort and authenticate currency. The U.S.-based company has a 100-year heritage of leadership in technology and product innovation and currently serves the majority of financial institutions worldwide, as well as leading organizations in retail, casinos, law enforcement and government. The company holds more than 350 U.S. patents and has ongoing research and development (R&D) investments double the industry average. Cummins-Allison is headquartered near Chicago, IL with R&D centers near San Diego, CA and Philadelphia, PA and wholly owned subsidiaries in Canada, the United Kingdom, Ireland, Germany and France. The company also has an extensive sales and service network with more than 50 offices in North America and is represented in more than 70 countries. For more information visit cumminsallison.com.

Contacts

Carol Moore – Vice President Marketing
Cummins Allison Corp.
Tel: 847.759.6403
moorec@cumminsallison.com

Suzy Watson
Outlook Marketing Services, Inc
Tel: 312.873.3423
sgwatson@outlookmarketingsrv.com