How biometrics reduce your customers’ expenses and boost your revenue

How biometrics reduce your customers’ expenses and boost your revenue
Biometrics is one of the fast-growing sectors within the access control industry, as it solves many of the problems that come with access cards. Some experts even believe that this is the sector that systems integrators (SIs) should focus on to boost their revenue.

In this context, it is important to take a look at the key verticals where biometrics-based solutions can be ideal. Speaking to asmag.com, Larry Reed, CEO of ZK Teco USA, elaborated on the applications where SIs can use biometric technology to reduce their customers’ expenses and boost their businesses.

Health and membership clubs

“Proprietors charge members a fee for access to amenities such as the golf course, workout room, laundry room, swimming pool, spa, etc.,” Reed said. “But you know members have friends who they share their membership card with. That’s a potential loss of membership fees the proprietor could have normally collected.”

Having members use biometrics ensures only paying members are accessing amenities and this means more money for the proprietor.

Payroll/time & attendance clocks

These are often used in the management of employees who are paid based on the hours they put in. Employees who use cards/badges when punching in/out of a time clock can easily defraud their employer by not reporting to work while asking a co-worker to punch in for them.

“The unearned pay received by the absent employee is called ‘Buddy Punching’, Reed said. “Considering payroll often accounts for 10 percent of business operating expenses, preventing buddy punching is paramount when protecting a business’ bottom-line. Installing biometric time clocks can save employers thousands of dollars depending on how large a work staff they employ.”

Reduce retail shrink

“It’s hard enough for retailers to grow their business, but even more daunting to reduce ‘shrink’ attributed to both shoplifter and employee theft,” Reed noted. “With traditional key/card systems, employees can easily gain access to their managers’ keys and subsequently also to cash rooms and stock rooms.”

By placing biometric readers in front of these high-value rooms, businesses can limit the access and thereby reduce “shrink.”

Reduce liability/OSHA compliance

Retail stores may often operate dangerous equipment such as cardboard balers, forklift truck, freight elevators, etc. Not only can untrained people get hurt by incorrectly operating this equipment, OSHA also levies heavy fines when they discover unsatisfactory safeguards.

“I know a Loss Prevention manager fined by OSHA US$200,00 because someone left the key in the ignition switch of an electric cardboard baler,” Reed said. “Easy fix? Install a biometric in front of each piece of dangerous equipment so that only authorized employees can activate the equipment (and not get their beef/limb accidentally chopped off). The biometric can act as a ‘kill switch’ and prevent unauthorized start-up, thus protecting employees and customers. Place a biometric reader on any device which could cause injury if operated by unauthorized personnel.”

How can SIs make money?

As we discuss the various applications of biometrics, it is important to pay attention to where SIs can actually make money. Reed pointed out that SIs often prefer access cards is because they will have to be replaced each time they are lost or stolen. With biometrics, this ceases to become an issue. But that doesn’t mean that SIs don’t have a revenue stream.

“Although biometric credentials (i.e., fingerprint, face, finger/palm-vein, iris, etc.) cannot be lost, stolen or damaged, there still actually exists RMR opportunities with biometrics,” Reed said. “Biometric credentials need to be enrolled into the access control system, at times removed from the system, copied to multiple readers [etc.]. ‘Biometric management’ can easily be incorporated into the overall access control management services an integrator can bill customers monthly for. That means monthly beef in your pocket. You can easily host an access control system in your own office by purchasing a tiny affordable access control appliance.”
Share to:
Comments ( 0 )