We often mention the power of website personalization as a powerful tool to increase conversion rates. Click & collect option is an additional option to be used for multi-channel sellers.
What is click & collect?
Click & Collect is a delivery option where the shopper orders the items online and picks them up at a location instead of having them delivered.
The most common and favorable pickup location is the retailer’s local store. In this article, we will focus on and refer to this location only. However, pure-play companies or ones who want to offer more choice to customers can offer other locations. Options include lockers (e.g. Amazon lockers), stores of other retailers, local post office (i.e. the Royal Mail service) and other third party locations (e.g. Doodle stores).
Retailers can offer click & collect according to items’ availability in-store (the quicker-collect option) or items can be delivered to the store according to orders (the always-in-stock option).
Popularity and statistics of click & collect
The service has become the third most popular service in the UK.
The proportion of customers who use this service has increased. In the UK it increased from 63% in 2014 to 73% in 2015 and to 76% in 2017. In the U.S. in 2015, 49% of shoppers used it for the first time.
According to IMRG, the global share of orders that were click & collect has steadily increased each year. Overall, it increased by 155% between 2011 (8.8%) and 2015 (22.5%).
Statista shows the popularity of the implementation of this service by retailers.
Customer order fulfillment options that retail executives worldwide offer or plan to offer in the next 12 months in 2016 and 2017:
The classic click & collect option is already offered by 47% of retailers in 2016, while 51% are planning to offer it in the next 12 months. This means 98% of retailers surveyed (if all follow through) will offer this service by 2018.
The other variations of click & collect are also pretty popular, such as “buy online, ship to store”, using third party retailers for collection, same day click & collect and a drive-thru option.
Why is it popular?
Shoppers use this service as it provides them with the choice and convenience of online shopping (finding the product more easily than in-store) while eliminating any delivery issues (high costs, unexpected costs, waiting for delivery, late deliveries and wrong deliveries). Customers are more in control of the time they obtain their order and can save costs by cutting delivery.
This service is particularly popular during holiday seasons. Since late deliveries are more probable (due to the higher order volume of overall orders) and punctual deliveries are more crucial. Customers prefer to take control over the timing. This way, they also spend less time in physical shops than they would’ve if they shopped in-store (as they are often packed with shoppers in such seasons).
Why is it beneficial for retailers?
Click & collect creates a solution for customers who enjoy shopping online but don’t like the delivery aspect of it. Delivery aversion or concerns may result in cart abandonment. Therefore click & collect tackles this issue and reduces cart abandonment.
It also prevents the heavy consequences of bad deliveries (late or wrong). According to Barclaycard, a failed delivery costs on average £150 and a late delivery results in 59% of customers not shopping again with the retailer.
Another issue it reduces is the high product returns that are prevalent in online deliveries. Since customers collect items in the store, they can touch, see and try on the product there. If they need to return the item, they can do so immediately and therefore it happens faster and more efficiently.
More than that, it can increase your offline sales!
How click & collect increases online to offline sales
Click & collect drives your in-store traffic. Being in-store often encourages customers to buy more items. So, click & collect can result in cross-selling in-store and thereby a higher final order value. Indeed, 60%-75% of click & collect shoppers purchase more products during item collection.
Another reason click & collect drives offline sales is because sometimes customers don’t go through with the purchase. Once shoppers see the item is available in-store and the store is nearby, some prefer to go to the store and buy the item there, after they can physically examine it.
Considerations for implementing a click & collect service
– The location of stores should be convenient (close to population with nearby parking).
– The service should be free.
– Consider the costs of moving stock around, implementing digital systems and training staff vs. the higher online and offline sales.
– The inventory update system should be the most up-to-date.
– The website data should be connected to and include your brick & mortar data, to make the decision easier by presenting all of the relevant information.
Integrating offline and online data
Due to the nature of click & collect being a combination of online and offline channels, it is important to improve your omni-channel capabilities to properly provide this service.
With Barilliance’s omnichannel capabilities, you can integrate a shopper’s data from all channels. You will create the most relevant, accurate and up-to-date personalization of your site, product recommendations and post-purchase emails.
Furthermore, including brick and mortar information (using geo-location feature) can effectively drive offline sales. Information provided includes product inventory in a nearby store, nearby store’s opening times and click & collect information. Customers will have complete knowledge over all of your company’s channels and so will be able to make better purchasing decisions.