Retailers of all types are seeing the value of integrating online and in-store shopping. These businesses save money by encouraging their customers to buy online first and pick up later, also known as ‘click & collect’.
Since the beginning of the Covid-19 pandemic in March 2020, customer behaviour has shifted. This shift has seen a reduction of shopping centre visits to help reduce the spread of the virus. Even though many countries’ major shopping centres and high streets are now open, people still spend less time in stores and more time shopping online. Businesses have quickly adopted new ways to ensure the customer experience is easy.
The rise of “click & collect,” where people order goods online and visit in-store to collect the pre-bagged and pre-paid items, is one such reaction. It reduces the number of in-store shoppers and relieves retailers of the task of assisting customers in maintaining social distance and keeping businesses clean.
What exactly is Click & Collect?
“Click & collect” is a term used to describe the practice of ordering online and having the ordered items ready for collection within a defined timeframe, and at a time that is convenient to the customer. Customers can often receive their items as soon as 1 hour from the time of order and the service is usually free.
Click & Collect Advantages
- It’s efficient – as a business owner you set the minimum time for collection allowing you time to receive and prepare the order. For the consumer, they know their item is available before visiting the store and quickly visit and collect without the need to wait.
- It provides consumer choice – although home delivery is still an option, waiting for the courier or delivery driver to deliver the consumers’ goods can be disruptive. Providing choice is a differentiator for a business and a better customer experience.
It's a win-win for businesses and consumers
- It drives revenue growth – providing click & collect to your customers reduces the need for courier fees or expensive delivery commissions. Business owners often embed these costs within the price of the goods and disguise it as “free shipping” or they are managing two different product catalogues or dining menus – one for in-shop or in-restaurant purchasing and one for delivery apps. Providing this option ensures you maintain margin while growing your business revenue and the consumers are also paying less for the same thing.
- Increased footfall and in-store spending – Click & Collect helps bring customers back to your store. As customers pick up their orders, they have the potential to buy that unexpected additional item a.k.a. the impulse purchase.
- Enhances brand and creates loyalty — providing choice to consumers and how they engage with your business enhances your brand and drives consumer loyalty. If consumers can order online and collect from you, directly and within a set timeframe they will order from you more often, according to a Commbank report, Choice is extremely or somewhat important to 67% of consumers (refer Page 7).
Click & Collect is changing the eCommerce game.
The increase of click and collect sales is surpassing that of eCommerce. It’s also consuming a growing portion of the overall eCommerce market. According to a 2017 article by SmartCompany, 42% of Australian retailers were offering “click & collect”.
Since 2017, eCommerce-related technology has developed exponentially. These days click and collect is more accessible to businesses of all sizes and doesn’t require expensive or complex eCommerce-based solutions to set up and manage ongoing, nor does it require a website. That’s right! No website required…you can “bounce-off” your existing social presence! E.g., IG, Facebook & even TikTok.
Click & collect works very well for bricks-and-mortar stores that have been pushed to compete with 100% online retailers, such as Amazon. It also works very well for small fast-food businesses who may choose a “hole-in-the-wall” type operation with little seating capacity.
Increasing Impulse Purchases in Store
Click and collect, it turns out, is also improving sales in another way. When consumers visit to collect their orders, they frequently make impulse purchases, increasing sales.
In 2019, it was reported that 67% of buyers were making impulse purchases in-store while picking up their goods. Plus, 60% were buying items from other nearby stores – a great knock-on effect for the economy.
Is your business prepared for Click & Collect?
Which of the click & collect benefits has impressed you? Shouldn’t you be considering putting it into practice?
Make sure you’re up to be speed with the options available across the high street retail and fast-food sector by providing more choice to your prospective customers.
As we come out of Covid-19 and life returns to a “new normal”, click & collect is here to stay. Businesses will flourish with a continued rise in online purchasing but reducing the associated costs of delivery or commissions, while increasing their revenues and profit and enhancing their own brand and loyal customer base.
At Dovetail Group, we provide simple, yet effective click & collect solutions and the skills required to make it all work well. Over the past six-plus months, we have achieved excellent statistics for our clients and saved them thousands of dollars in delivery app commissions.
Interested in learning more? Contact us. We have a great offer available until 31 May 2022.