One of the purchasing strategies that saw substantial growth during the lockdowns of 2020 was click and collect. And for good reason: it eliminates the need for delivery services for customers and simplifies logistics for businesses. There are disadvantages to this strategy, though. Click and collect causes businesses to miss out on important touchpoints, widening the gap between consumers and brands. The only sensible course of action for retailers is to figure out how to customise the shopping experience and create loyalty in other ways because it’s impossible to convince customers to abandon a trend they like.
What Does Click and Collect Mean, and What Are the Advantages?
Click and collect, also referred to as “buy online, pick up in-store (BOPUS),” is a hybrid purchasing model where customers order a product online and pick it up in person at a physical place, such as a store, a specified pickup spot, or a locker.
According to a 2019 poll by iVend Retail, click and collect has been gradually embraced by customers to the point where 40% of customers believe BOPUS to be the most valuable component of the retail buying experience.
It’s simple to understand why:
Customers can reduce their shipping costs.
While visiting the pickup place is still quicker than shopping in-store, buying online is more convenient.
Compared to standard distribution, the procedure is more dependable and secure.
You don’t need to wait for the delivery person.
Customers could avoid direct interaction with people during the lockout by retrieving their packages from lockers, such as the Amazon Hub Locker+.
From the Retailer’s Perspective: Click and Collect in 2021
Since traditional shipping is no longer a concern, many eCommerce businesses opt to rely on click and collect. This technique of purchasing is advantageous for omnichannel shops as well because they may turn vacant space into collecting points. Others could designate a section of their business as pickup locations and train their employees to upsell BOPUS customers on additional goods.
But there are a number of underlying problems with click and collect. First off, not every firm can benefit from it. Groceries & supermarkets, electronics retailers, and rapid fashion boutiques are where the system performs best. Buying pre-assembled furniture or a refrigerator on your own is less likely, though enthusiasts of high-end clothing might find this technique appealing.
Additionally, click and collect essentially destroys customer involvement in-store. Only well-known, established eCommerce companies like Amazon and IKEA, with their easily movable, flat-pack furniture, can use pickup points and lockers. Customers won’t enter your property anymore if the collecting point is outside the store. Upselling to such impatient clients is a major issue even if the pickup point is inside your store because customers are likely to enter, get their package, and depart without looking around.
However, click and collect has drawbacks that are not limited to traditional brick and mortar retailers. Retaining BOPUS customers is a big issue, even for eCommerce firms, as they no longer focus their purchasing decisions on brand loyalty but rather on the accessibility of the pickup locations. This is worse than discounts since setting up more drop-off locations and hiring new workers takes much more time and money than just offering a markdown.
Click and Collect Balanced Out With a Loyalty Program
Similar to the Instagram Shopping phenomena, click and collect forgoes direct client interaction in favour of a more easy shopping experience.
Loyalty programmes are one approach to compensate for the missed touchpoints and encourage customers to interact with your company more frequently. You can engage clients outside of the buying cycle to stay at the top of their minds and to persuade them to purchase from your business even if your pickup point isn’t the most convenient by using a loyalty programme.
Last but not least, loyalty programmes give tonnes of additional value in addition to offsetting the drawbacks of click and collect because they are capable of driving other business KPIs and may be geared towards the unique characteristics of eCommerce or multichannel firms.
Improve Today’s Click and Collect
The click and collect trend isn’t necessarily a bad one, but you should consider methods to make it better so you don’t lose out on important chances to engage customers. A loyalty programme is the perfect instrument for you to use to develop additional touchpoints.
Our experts are more than willing to assist you if you’re interested in starting a conversation about next-generation reward systems. Feel free to involve us in the RFP process for your loyalty programme or schedule a demo to learn more about what we have to offer.
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