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Tech Guest Viewpoint: Click and Collect: Are U.S. Retailers Ready?

4/17/2015

By Gary Whittemore, Experian FootFall



The quest to offer greater levels of customer convenience has seen a growing number of U.S. retailers experiment with flexible fulfilment methods, including click and collect, which offers shoppers the opportunity to pick up online orders from a store.



Although click and collect has already taken European markets by storm, adoption in the U.S. has been somewhat slower. However, U.S. organizations are now beginning to see consumer appetite rise.



A recent Accenture poll found that one-in-five shoppers has already used click and collect services, while a separate UPS study revealed 44% of U.S. consumers would be more likely to use a retailer that offered in-store collection services.



As well as offering greater fulfillment flexibility, one of the major advantages click and collect offers is its upselling opportunities; unlike direct fulfillment methods, a visit to the store to pick up an order often results in consumers purchasing other goods.



However, click and collect will only work in a retailer’s favor if they’re prepared for the additional footfall this generates. To give an example, it’s likely that sales associates will have to balance processing customer collections with serving in-store customers.



Particularly during busy shopping periods, jumping between those who haven’t yet made a purchase and consumers who’ve already concerted can put an enormous strain on resources – so additional workforce may be required to maintain levels of customer service.



The key to managing this cross-channel influx is analyzing online data alongside information from the store, to forecast retail activity in all channels. The beauty of click and collect is that retailers set customer time frames for picking up their products. At the very least, this means store managers can predict traffic from click and collect customers over the upcoming seven days, if this data is shared with the store concerned.



Integrating online and offline information also gives retailers the capability to identify trends as click and collect activity grows. By processing when orders are fulfilled, it’s possible to calculate average pick up times or highlight peaks in cross-channel activity. Adding in store sales transactions can also establish correlations between collections and consumer spending, to unlock the true value of cross-channel collection services.



From here, retailers can make informed business decision, such as optimizing the staff to customer ratio. Using the customer insight, retailers can maximize conversion rates through store optimization. This creates a better store experience for all customers, and encourages click and collect shoppers to spend more in the store.



Gary Whittemore is global sales and marketing director at Experian FootFall.


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