For a retail store, users are frequently complaining about long queues during check out. What strategy would you use to improve the experience in the short term and long term?

Core Problem: Long queues during checkout

Clarifying Questions (CQ):

1. Are the long queues occurring at specific times of the day or throughout the opening hours?
2. Can I propose increasing resources or optimizing the use of existing ones? (Increasing resources is acceptable.)

Analyzing the Core Problem: To address the long queues, we need to understand the root causes. When demand exceeds supply, it creates delays and inefficiencies. Let's examine both the demand and supply aspects:

Demand:

• Customer Surge

Supply Issues:

1. Number of checkout lanes
2. Availability of self-checkout lanes
3. Limited or inefficient staff
4. Register network issues or slow processing

User Groups:

1. Customers: a. Less than 5 items b. More than 10 items or bulk purchases c. Cash payments only d. Card payments only (Severity and Reach) 
2. Senior Citizens and customers with accessibility issues. (Underserved)
3. Staff

For this exercise, we will focus on the scenario where long queues occur during peak hours (4 to 7 pm) due to limited lanes and not using the self-checkout kiosks efficiently and I am choosing 1 and 2 user groups above.

Pain Points: Using 

1. Customers with less than 5 items have to wait with those purchasing more than 10 items. 
2. Delays occur when the customer in front takes time to tender change ( specifically elders and customer requires assistance)
3. There are too few self-checkout kiosks.
4. The POS system experiences delays during peak hours.

Short Term:

1. Toll Booth Strategy: Implement card or wallet-only lanes.
2. Prioritize Kiosks: Designate some kiosks for quick checkouts (5 items or less, card only).
3. Reserve Kiosks: Allocate 1 or 2 kiosks for cash or card-only transactions (5 items or less).
4. Staff Allocation: Assign staff to direct customers to the appropriate lanes based on their purchases and payment methods.
5. Lanes and Kiosks are reserved for senior citizens and customers with accessibility issues.

Long Term:

1. Smart Carts: Introduce smart carts that facilitate quicker checkouts.
2. Online Apps: Develop apps for curbside pickup to reduce in-store traffic.
3. Increase Card-Only Lanes: Encourage card payments by increasing card-only lanes and offering incentives, such as loyalty points or store credit.
4. Upgrade POS Systems: Implement a new POS system to improve processing times and enhance the checkout experience.

Metrics to Measure Success:

1. Number of Quick Checkouts: Track the number of quick checkouts per hour for cash vs. card lanes (should increase).
2. Average Number of Customers in Lane: Monitor the average number of customers waiting in each lane.
3. Customer Satisfaction Score: Use an emoticon feedback machine at the exit to gauge customer satisfaction.

By implementing these strategies, we can significantly improve the checkout experience, reduce waiting times, and enhance overall customer satisfaction.

Clarify:

• What's the size of the retail store? (Big retail store, is a chain)
• What's the footfall during weekend/weekdays? (Footfall is higher during weekends)
• Do we observe queues at all times or at specific times? (Queues happen during peak hours)
• Let's assume Indian geography for this scenario (OK)
• Budget and Time constraints (There are none)
• Objective: Reduce wait times at the checkout and provide a seamless checkout experience. (Ok)

• There is one check-out floor for the entire retail store
• The retail store spans multiple stories and aisles
• The retail store has all sorts of items available, big to small (by size)
• Users buy items worth 2-4 weeks, generally, they don't have cart sizes beyond one single cart.
• It's a generic retail store hence families, young professionals come here to shop

• What is the cart size per individual?
• Is there a cart analysis that can suggest whether the purchase is for a family or individual or other types of purchase?
• Also, what's the payment mode distribution?

• Young professionals who live alone, have a relatively lower cart size, these people tend to use cards more often and don't shop for the entire month.
• Family purchases tend to have a higher number of items per cart, generally prefer card or cash equally, and shop for the entire month.

Let's understand the problem clearly and then brainstorm solutions in the short and long term. 

1) What kind of store is this?

2) The problem statement is long queues, but it is not clear what the issue is here. One can be complaining about a long line or long wait.

The problem statement also needs to be defined better; is it a long wait at all counters or erratic flow movement at different counters. Once people are committed to a counter, they see the other queues moving faster and get frustrated. 

3) Are the counters active, and still, a long wait is experienced?

Typical PM interview answers go with persona, problems/solutions, prioritization, etc. I firmly believe you should go down that path only if you cannot solve the problem on hand in a broader approach. 

Let's answer the above questions :

1) Assume any large department or grocery store in America, as I am familiar with this marketplace. 

2) Long wait, not long queue, people do not mind long line if it moves faster with a long wait in a shorter line. In most stores, the problem is that long delays in some lines frustrate more. 

3) All counters are active.

Main reasons for such issues :

1) The processing at counters is not even; if someone gets stuck behind a person with many items, they will have a bad experience compared to other lines. Other reasons for this situation include slow scanner personnel and payout issues by one customer.

Short term:

1) Arrange a single long line and fan out the customers to checkout counters. It will address the issue with a counter moving slowly, large basket, payment issues, etc. 

Medium to the Long term :

Given the current technical availability, it is more of medium time solution but addresses all the issues (assuming human and capital to adopt this solution is not a pressing issue)

1) Arrange to integrate portable scanners with payment options (Card only) on them. Let the store hire temporary staff for peak hours to scan items for customers in line, get payment & get them checked out.

2) For people who want to pay by cash, print out the item list and let them stay in the line, walk up to the cashier, pay it by showing the prescanned list & move on. 

Note: There are ways to handle the bagging even when they do this on the move.

Let's understand the problem clearly and then brainstorm solutions in the short and long term. 

1) What kind of store is this?

2) The problem statement is long queues, but it is not clear what the issue is here. One can be complaining about a long line or long wait.

The problem statement also needs to be defined better; is it a long wait at all counters or erratic flow movement at different counters. Once people are committed to a counter, they see the other queues moving faster and get frustrated. 

3) Are the counters active, and still, a long wait is experienced?

Typical PM interview answers go with persona, problems/solutions, prioritization, etc. I firmly believe you should go down that path only if you cannot solve the problem on hand in a broader approach. 

Let's answer the above questions :

1) Assume any large department or grocery store in America, as I am familiar with this marketplace. 

2) Long wait, not long queue, people do not mind long line if it moves faster with a long wait in a shorter line. In most stores, the problem is that long delays in some lines frustrate more. 

3) All counters are active.

Main reasons for such issues :

1) The processing at counters is not even; if someone gets stuck behind a person with many items, they will have a bad experience compared to other lines. Other reasons for this situation include slow scanner personnel and payout issues by one customer.

Short term:

1) Arrange a single long line and fan out the customers to checkout counters. It will address the issue with a counter moving slowly, large basket, payment issues, etc. 

Medium to the Long term :

Given the current technical availability, it is more of medium time solution but addresses all the issues (assuming human and capital to adopt this solution is not a pressing issue)

1) Arrange to integrate portable scanners with payment options (Card only) on them. Let the store hire temporary staff for peak hours to scan items for customers in line, get payment & get them checked out.

2) For people who want to pay by cash, print out the item list and let them stay in the line, walk up to the cashier, pay it by showing the prescanned list & move on. 

Note: There are ways to handle the bagging even when they do this on the move.

Clarifications

1. Is it a big chain outlet with large number of retail stories

• Yes like walmart

2. Geography?

• India as the population is large enough and mostly in urban people prefer to visit retail outlet

3. Does problem persist all the days or only on weekends and peak hours

• Mostly festive seasons, weekends, month ends. Magnitude of problem is high during evening and morning hours and little better in noon time.

Goal of the app

1. Operational effectiveness with ease in check out process to increase customer adoption and revenue

User segment

1. Business like small medium restaurents
2. Households, individuals and families 

Pain Point

1. Long queues even if I bought very few items
2.  I need to wait event after payment if I make cash payment and expecting change after making the payment
3. Payment machine owner goes off work for certain reasons causing the long waiting up queues
4. Shortage of staff
5. Scanner machine does not works properly and hence the staff member needs to add the details manually most of the time

Solution

1. Segregate the queues based on the number of items like more than 5 items can queue in express way
2. Keeping the advance money in store wallet and then just purchase the items. The self scanner machine will auto deduct the money from wallet
3. Do an online booking of items (based on availability in the respective store) and payment before even going to the store. Once user reaches the stores then he can just pick the items. Scan the QR code tag of the items which should match with the receipt generated at home during online booking and check out.
4.  Self weighing of the purchased items through the machines and scanning them. At the time of weight and scan the money can be deducted from the store wallet
5. Personal banking cards, UPIs can also be used to integrate the auto payment system
6. Insert cash in the counter and pick the items with receipt
7. Swipe the cards in each counter and pick the item equal to the value of that item
8. If the queue is too large then allow the customer to drop the baggage with the selected items and deliver the baggage at home once the user makes the payment online at home. The delivery time should not be more 15-30 mins based on the distance

Prioritization- Business Impact, Cost, User Experience, Complexity to implement

1. M, L, M,L - P1
2. H, M,H,M- P2
3. H, M.H,M- P1
4. H, H, M, M- P2
5. H, M, M,M- P2
6. M, H, L,L- P3
7. H,M,H,M- P1
8. H,L,M,L- P2

Drilling down the problem statement of queue, why queue happens? The answer would be very simple! It's because demand is very high(items that need to be billed) and supply(POS machines) are limited. So the probable solution could be : 

1. The store would need more POS machines 

• Either stationary or mobile, POS machines will consume more space, human resource and financial burden

2. What if we enable each customer to self checkout

• Build a platform(preferably an app) that has in-build POS machine
• Once someone scan the barcode, it should give all the latest offers on that product
• The customer pays online via net banking or wallets and an e-bill is generated
• The customer can easily checkout without any queue 

3. Depending on the proportion of digital vs non-digital payment users,  solving issues for digital users(or any one set) can lead to decrease in overall queue.