If you’re an Aussie or Kiwi retailer wondering if Click & Collect is a good idea for your retail stores — or how you set it up, then this blog is for you.
We’ll tell you why Click & Collect is a winning strategy for retailers to keep the cash (increasingly) flowing, how to launch — and the 5 questions you should ask yourself first.
Click & Collect is now a Big Deal in Australia. Currently, 49% prefer Click & Collect as their primary means of fulfilment for food and medicine, with 41% preferring it across more impulse categories, according to Inside Retailer.
Giving our customers what they want is vital to ensure you keep improving that all-important customer experience. But there’s also a bundle of profit-building bonuses that make Click & Collect fantastic for retailers. Check out these stats on increased basket size:
- Inside Retailer reports that 58% of customers made additional purchases when collecting an online order in-store, according to a UK Click & Collect provider.
- Power Retail reports that almost 50% of Aussie shoppers will buy additional items, according to a study from Cleveron.
What is Click & Collect?
Click & Collect is a retail fulfilment method that allowscustomers to purchase products online and pick them up in person, usually fromthe store or a central collection point like a warehouse. Also known as local pickup or BOPIS (Buy Online; Pickup In-Store), it’s fast becoming a preferred collection method for a growing number of Aussie and Kiwi shoppers. Why so? It’s convenience on a stick.
But Click & Collect can only seamlessly work if you operate as an omnichannel retail business. This means you’ll need to switch to software that integrates your eCommerce store with your brick and mortar stores to offer the necessary visibility across the business.
How does Click & Collect work?-
Click & Collect is straightforward for both shoppers and retailers. With omnichannel POS software installed, retailers can feed in real-time inventory levels from each physical store. This means live stock levels will be available online, so that:
- Customers have a clear view of available products at various locations
- They have the confidence of knowing when their goods will be available to be picked up
- Retailers can sell more of their in-store stock through multiple channels
Retail Express makes the Click & Collect process simple-
Suppose you have a Shopify website. Once live stock levels are displaying product levels at each location, you’re ready to start.
- Your customer places an order online and chooses Click & Collect as their fulfilment option.
- Next, they’ll get an automatic order confirmation email.
- Your staff will also get a message alerting them to the order through the POS (point of sale).
- Staff at the appropriate store will pick and pack the order, then click a button, sending a message to the customer that the goods are ready for collection. Simple.
Why is Click & Collect so popular with customers?
Shoppers love Click & Collect because it gives them more options and control. And they benefit in 3 hard-to-beat ways:
Save on delivery costs
45% of shoppers choose Click & Collect to avoid home delivery charges. It gives them the instant gratification of online shopping without paying extra for delivery. Instead, they pick up the goods at a time convenient to them. What’s not to love?
Faster fulfilment
37% of shoppers choose Click & Collect, so they don’t have to wait for their goods to arrive. While eCommerce players continue to hasten fulfilment speed and offer same-day delivery, waiting a few days for goods to arrive is still the norm for online orders.
Click & Collect lets hasty shoppers pick up their goods from their selected store on the same day or early the next day.
Reliability
Click & Collect gives customers the peace of mind that their order is safe. They know it’s being kept safely in the store and not bouncing around town on a courier. They can also dodge the dreaded ‘we missed you’ card, which only adds to the inconvenience and wasted time.
How do retailers benefit from Click & Collect?{How does Click & Collect benefit retailers?}
Retailers benefit bucketloads from Click & Collect.
More opportunities for in-store purchases
Driving customers to brick and mortar stores also does something you’ll love: it increases up-selling and cross-selling opportunities for in-store staff.
When customers visit a store to collect a purchase, they’re statistically more likely to purchase additional items. And, they’re more likely to revisit and buy more with the same company.
Omnichannel presence
Meeting customers' online and in-store needs drives customer retention, overall trust, and brand loyalty. We know that today’s customers like to look at multiple buying channels before purchasing, so it makes sense that they prefer brands that will give them this option.
Almost 20% of consumers experience problems when ordering online and picking up in-store. So before you launch your profitable Click & Click strategy, let’s look at the factors involved to ensure the experience is a positive one.
How to set up a Click & Collect strategy {How to set up a Click & Collect strategy & 5 questions to ask first}
Before you launch, run through these 5 questions about your retail business.
1. Where will you fulfil the orders?
There are a few different fulfilment options to ensure there’s stock available for shoppers, each with its pros and cons. Choose what works for your retail business.
A) Picking from store inventory for instant pick-up
Once an order comes in, staff select the product from the existing store inventory and have it ready immediately for customers to pick up.
PROS: This is the quickest and most cost-effective method, as it requires no shipping products between stores.
CONS: Retailers must have an extensive range available across all stores and have accurate inventory management to ensure what each store holds.
B)Transferring from store to store
If products aren’t available at a chosen store, retailers can quickly ship them from the nearest store.
PROS: It gives customers a greater range of products to choose from if they aren’t available in the store closest to them.
CONS: It slaps the retailer with shipping costs to transfer products between locations.
C) Shipping from a distribution centre
If an item isn’t available in any store, retailers can ship it from the distribution centre.
PROS: It’s helpful if new stores are still establishing their inventory yet want to offer Click & Collect to remain competitive.
CONS: You need to factor in the shipping costs of this option.
2. How fast will your order pick-up time frame be?
Retailers need to communicate to customers what inventory will be available and when.
Customers need to know where the stock is available and when it’ll be ready to pick up. Otherwise, the retailer defeats the purpose. Customers risk making unnecessary trips, wasting time and losing trust in a retailer.
3. What about staff training?
Staff must be well-equipped to deal with Click & Collect orders and well-versed in the protocols. Upskilling your staff on how to up-sell and cross-sell to boost basket size is essential for increasing your average sales amount and overall revenue.
4. Are your instructions to your customers clear?
Ensure you choose the right messages to send to the retail customer throughout their order journey. Customers don’t want to be flooded with annoying emails, but they need to be kept in the loop. Tell them what happens next, and when they can collect their purchase. Map out your communications strategy before going live.
5. What happens when orders aren’t collected?
Though it doesn’t happen too often, it’s still good to have a protocol in place for uncollected orders. Decide on an acceptable time limit for customers to collect their orders and make this clear to customers ASAP. (Also, include this info on your website in your delivery info terms and conditions.) If this time limit expires, plan to issue a refund and communicate this to customers.
Choosing POS software for Click & Collect
Click & Collect is showing no sign of slowing down. Ignore it, and it’s likely you’re leaving money on the table. Retail Express’ powerful omnichannel software will give your business a mass of competitive advantage and loads of profitable benefits:
Click & Collect benefits:
- Get more opportunities through Click & Collect for additional in-store purchases when customers pick up goods
- Increase customer satisfaction and give shoppers the options and control they crave
- Allow customers to save on delivery cost, enjoy faster fulfilment and more reliability
Omnichannel benefits:
- Enjoy the fruits of omnichannel retail (increase visibility across all stores, loads of functionality to sell and do more, streamline supply chain and fulfilment, improve the customer experience, get actionable reports across the entire business, increase foot traffic, start personalised marketing and much more)
Click & Collect: FAQs-
Are shops doing Click & Collect?
In 2017, 42% of Aussie retailers were offering Click & Collect, according to Smart Company. However, the number continues to grow each year.
Although Australian retailers have been lagging behind our international counterparts, major retailers (Bunnings, eBay Wittner, Target, Kmart, David Jones) have successfully embraced this fulfilment strategy. The main obstacle for many smaller retailers has been a lack of a real-time view of their inventory. But now that on the channel POS software is readily available, smaller retailers are quickly embracing the strategy.
How do I set up and offer Click & Collect?
Click & Collect requires cloud-based omnichannel software to integrate all stock levels and provide visibility across all stores. Additionally, you will need to clarify certain protocols for your business (staff training on pick and pack, fulfilment options and appropriate timeframes for collection, customer service, etc). We recommend you run through the 5 questions outlined in our article above.
Is Click & Collect better than delivery?
Click & Collect allows customers to pick up the goods in-store at (usually) faster than they would if waiting for the goods to be delivered to their door. They can also avoid the delivery charge. Retailers can also benefit by potentially saving on freight and profiting from larger basket sizes due to impulse purchases when customers collect the goods.
Is Click & Collect the future?
At this date, retail stores look like they are here to stay. However, Click & Collect is fast becoming a popular fulfilment option — that looks like it’s here to stay. Currently over 48% of retailers, globally, prefer Click & Collect as a fulfilment option, according to research by Inside Retailer.
How popular is Click & Collect internationally?
In the UK, 72 % of shoppers use Click & Collect, and 21 % use it for more than half of their online purchases. In 2019, 68 % of customers in the US had ordered an item online and picked it up in-store. During the Black Friday sales in 2018, US Click & Collect orders grew 73 %. And according to power retail (where these stats were taken) it shows no signs of stopping.
Next steps-
Learn how Retail Express can enable a profitable Click & Collect strategy for your retail business. Get a free 1-hour demo from a retail expert today.
