Are You marketing In-store pickup?
Tuesday, April 3, 2018

Categories: Click & Collect

Are You Marketing In-Store Pickup?

Part of the Omni-1000 research published in October 2017, reviewed how well retailers were marketing in-store pickup (click & collect). After all, if a retailer will upgrade their system to offer BOPIS (buy online pickup in-store), modify their floorplans, set new procedures, train their staff, and make it operational – then it only makes sense to tell customers about it. Right?

We honestly thought the answer would be a resounding “YES”. While structuring the research, we even debated whether this was a necessary measure. Surely, EVERY retailer undertaking the effort would automatically advertise their newest customer service and offering. Well, it turns out that the answer is more of a ‘maybe’.

US Tanks at Omni-Channel Advertising

Among the countries reviewed, the big shocker in marketing in-store pickup is the US. The US is known for its marketing prowess. There, retailers are known to be among and perhaps the best marketers of any other industry. Yet curiously, US retailers were least likely to advertise their latest service offering to shoppers, on the front web page. The graph below shows a country by country comparison of the rate of retailers offering BOPIS – which advertised it on their front page.

Get Will the Real OMS Please Stand Up? WhitepaperBeing realistic, we did not expect to see large banner ads, popup ads, or anything particularly splashy. Ultimately, it is more of a feature and offering associated with the store, chain, and retail brand. Yes, this is important, but understandably it takes a seat behind the product offering – which is primary. In fact, the expected ad exposure on the first page was simply a small line mentioning that ‘in-store pickup’, or ‘click and collect’.

Most retailers offering free shipping on a minimum order, advertise this as a short text at the top of the website (first page). This is an important aspect to shoppers. However, this is a costly endeavor for retailers. Each time a shopper places an order that meets the criteria, that is a cost of shipping that the retailer absorbs. Whereas, each time a consumer makes a purchase they are willing to pickup in-store for themselves, that is a sale with no ‘shipping margin drain’.

Among retailers, US retailers were least likely to make mention of the service, with only 38.5% of BOPIS capable retailers advertising it. On the other hand, Australia outshone other retailing countries with 66.7% advertising their in-store pickup capabilities.

Why is Advertising BOPIS Important?

Buy Buy Baby Click and Collect first pageNormally, you might consider this a silly question. It seems obvious. The job of marketing, or advertising a particular service is to make sure your customers know you can do it, and consider your retail chain for their purchase. Given the hypercompetitive nature of retail, you would think this point would never be lost. Yet, clearly the figures show that we are not doing an effective job of telling consumers about the BOPIS offering, even among the retailer who have deployed the service.

Outside the European markets, in-store pickup, BOPIS, or click and collect – are relatively new to the market. In the US, Canadian and Australian markets, the vast majority of retailers simply do not offer the service and do not have the capabilities to do so, yet. That means, this is a differentiator, that consumers will consider while online shopping.

But They Will See it at Checkout!

If you are counting on the customer processing their order, and finally selecting your BOPIS offering at checkout… that’s fine but misses the point. Yes, having them select the in-store pickup option means your retail chain saves money on shipping. It is a hard cost that hits your margins. Although this is good, it completely misses the mark on capturing customers who are on the fence of whether to purchase from your chain.

Customer new to your online store are most likely to do some price comparison shopping. They hop from your site to your competitor’s site, and find the same or a similar they want to buy. If your site advertised in-store pickup, it might be the enticer that gets the shopper to purchase from you. After all, even if the same item is a little more expensive, the opportunity to come into the store, bypass the line, and see, touch, feel the product before leaving – could do the trick. This alone might push the shopper in your direction. After all it is a convenient service that your competitor is not offering.

So, let them know about it, and advertise your service offering on your front page. Put it right next to the free shipping line. Let them know that they could take you up on a delivery, or that they could pick it up right away, in-store.

Today, Marketing In-Store Pickup:

  • Is a differentiator
  • Save you the cost of shipping
  • Increases sales
  • Improves the shopping experience (more consumer options)

There is practically NO COST for advertising your new service on your front web-page. Add the line. It is easy, and there is only an upside to this suggestion.

 

Author:

Charles Dimov - Director Marketing OrderDynamicsCharles Dimov is Director of Marketing at OrderDynamics. Charles has 21+ years experience in Marketing, Sales and Management across various IT and Technology businesses. Previous roles include Chief of Staff, Director Product Marketing, and Director Sales. Charles has held roles in brand name firms like IBM, Ericsson, HP, ADP, and OrderDynamics

 

Related:

The Power of the Store in 2017 Omni-Channel Retail Get the Competitive Advantage with Click and Collect Do You Know About These Emerging Retail Trends?