Click & Collect can be a significant competitive advantage for retailers with a bricks and mortar presence. But only if there is a well thought out strategy behind it…
It’s not surprising that Click & Collect is the fastest-growing fulfilment method internationally, given the advantages it brings to retailers that do it well. It continues to gain popularity in Australia, with 42 percent of retailers currently offering the service.
Why has Collect & Click risen in popularity?
Shoppers are increasingly choosing the option for three main reasons:
To conserve cash on delivery costs
45 percent of shoppers choose Collect & Click to prevent home delivery fees; it provides them the immediate gratification of internet shopping without needing to pay extra. As shipping costs for regional areas are large, it especially makes more sense for clients to drive to their local store to pick up their products instead.
37 percent of shoppers select Click & Collect as they do not wish to await the merchandise to make their way to them through courier. While eCommerce players continue to increase fulfilment speed and same day delivery is becoming an increasingly more common option this usually comes at a premium fee. Waiting a couple of days for goods to arrive remains the standard for online orders. With Click & Collect, after a purchase is completed the merchandise should be available to pick up from their chosen store on the exact same day or by early the next day (if a merchant has optimized their procedures and systems).
For more reliability
Click & Collect gives customers the peace of mind that their arrangement is secure, since it’s in their hands rather than a courier. Additionally, it enables clients to dodge the dreaded’we missed you’ card, where a product is returned to the warehouse or an inconvenient set stage.
How can retailers benefit from Click & Collect?
In addition to having the ability to offer customers convenience, Click & Collect also allows retailers to drive more traffic to their physical store and capture customer behavioural information across both channels.
More chances for in-store purchases:Driving customers to bricks and mortar shops increases the chance for up-selling and cross-selling in-store. Research indicates that nearly 50 percent of consumers who visit a shop to pick up a Click & Collect buy will earn a second unplanned purchase.
Omni-channel existence: having the ability to meet clients needs across both online and in-store channels drives customer retention, overall confidence, and brand loyalty. Current research indicates that 60 percent of Australian consumers prefer brands that will serve them across multiple channels.
Click & Collect Strategy: Things To Consider
Unfortunately, almost 20 percent of customers experience problems when ordering online and picking up in-store. It’s important to take into account the factors involved in this kind of order fulfilment, to make sure the experience is a positive one (and can drive a return for the company!)
1. Where will orders be fulfilled ?
There are a few distinct Click & Collect fulfilment options that can be used (in combination) to ensure stock availability to shoppers, each having their pros and cons:
Choice A: Deciding from store inventory for immediate pick-up:
This involves store staff selecting the item from the present store stock, ready for clients to pick up straight away. It’s by far the most cost-effective method since it requires no transport of merchandise from store to store. It is also the fastest solution for customers to collect merchandise if shops would like to be aggressive with their pick-up moment.
However, choosing this procedure means retailers have to have an extensive range accessible across multiple shops, and be sure and accurate in what their stock in each store retains.
Option B: Moving from store to store:
This strategy is where if goods are not accessible at a chosen shop, they have the ability to be sent from the closest possible shop. This system involves shipping costs to transport products between places. But a pro of this procedure is that customers are possibly given a greater selection of items to select from if their preferred product is not available in the shop closest to them.
Choice C: Transport from a supply centre:
When an item is not available in the desired shop, this is another option — sending it from the distribution center. This option is helpful if new shops are still establishing their stock, yet need to provide Click & Collect as a means to stay competitive. However, the costs of transport may negatively affect a retailer, and it’s important to think about this.
Using a unified Omni-channel retail management system using a holistic, real-time perspective of information between online and store stations is vital for Click & Collect fulfilment to be effectively orchestrated. Without a proper system in place, you will end up frustrating clients, missing out on sales and processing plenty of refunds.
2. Pickup time-frame: how quickly is it done?
Retailers will need to communicate clearly to clients what stock they could make available, and if. Clients who journey to pick up products in-store need transparency, or they run the risk of creating unnecessary trips, wasting time and losing confidence in a merchant.
3. Staff training — such as cross-selling and up-selling
Staff has to be well-equipped to cope with Click & Collect orders, and well-versed on the protocols of things to do. Upskilling your staff to grow the basket size when clients come into shops for their Click & Collect orders is an essential.
4. Instructing the consumer on what to do
It’s important to be careful in choosing the perfect messages to ship out to the client at the different phases of their order. Customers don’t need to be bombarded with unnecessary emails — however they need to be kept in the loop about where their product is and what the next steps are.
5. What happens when orders are not collected?
Though this does not happen too often, it is still great to have a protocol in place for uncollected orders:
A) What’s the set time limit in which clients can collect their orders? It’s very good to make this clear, so clients know when they could come to collect them.
B) After this time limit expires, issuing a refund: this is a frequent practice for uncollected orders. Kindly allow the client know that if their order isn’t collected within the timeframe, they’ll be refunded.
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