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Improving the customer experience through click-and-collect technology
DeAnn Campbell, vice president, retail strategy and shopper insights at Harbor Ind., shares insight on how click and collect has done a lot to shake up the retail industry, but can do so much more for brands and consumers.
February 10, 2020 by DeAnn Campbell — Director of Retail Strategy and Development, Harbor Retail
"Click and collect" is one of the biggest retail shakeups of recent times. It started out as an option for customers who weren't going to be home during the day and didn't want packages left on their doorsteps, but retailers soon recognized the benefits of giving consumers the option.
Eighty-five percent of customers make an additional purchase when they come to collect their web orders, and the average click-and-collect basket at Walmart is twice the size of a standard in-store basket. It's no surprise that the chain planned to make it available in more than 3,000 of its 4,700 stores by the end of 2019.
Despite its rapid growth, however, click-and-collect technology remains a work in progress. The software focuses too much on individual transactions instead of creating a full picture of customers that could promote cross-selling and integrate with loyalty programs. Brands need to do more to reap the full benefits of click-and-collect technology.
Here are four steps to get started:
1. Build out your customer journey. Online shopping algorithms will show customers a range of options that go with the items they're viewing. If a user looks at a red sweater, she might see a skirt or a pair of shoes that go with it. But that digital experience often doesn't translate to the physical world.
Instead of getting click-and-collect customers in and out as quickly as possible, why not offer them the option to explore further? Set aside two or three complementary items in a fitting room and offer customers a beverage while they try stuff on. Bring the algorithm in-store.
Click and collect can also tie in with a customer's purchase history. If a shopper routinely buys everything in size 6 but adds a size 10 to her basket one day, the app could point out the difference and advise on how the garment fits. This kind of advice elevates the app from a seller to a partner.
2. Expand your click-and-collect service. Currently, click and collect is more of a function than a service. Even the best retail apps lack a seamless connection between app and in-store experience. Our client Target is rolling out a new loyalty program with its Circle app, but not all of the offers are available on click-and-collect purchases, and customers have to download the app to find out.
Click-and-collect technology needs to work for the consumer. One way to do this would be to introduce online reservations. If a customer wants to try something on, she can check store availability and click a button that gets the store to hold the item or transfer it from another store.
The customer shouldn't be limited to one store, either. Suppose a shopper asks for an item to be held at store X near his office but then decides to work from home, which is closer to store Y. The app should allow him to switch his collection point to reflect that. It's all about expanding and improving the service.
3. Respect the experience. Walmart's click-and-collect towers got a lot of attention for their gadget-like quality, but it's a very cold and machine-like experience. It's like buying from a vending machine, rather than a human, and brands need to give more thought to customer comfort.
Make click and collect as accessible as possible. I tried one store's click-and-collect service the other week. It took five employees to help me find the click-and-collect desk, and when I got there, my three items were in three separate boxes, two of which had been damaged. It felt like the store didn't value the goods it was selling and that click and collect was an afterthought.
Our client Nordstrom offers the opposite with its "buy online pick up in store" — or BOPIS — experience. There's a dedicated area with a fitting room so customers can try things on. They can even call ahead so everything's ready when they arrive. Returns are hassle-free, and refunds process immediately. The ease shows consumers the respect they deserve.
4. Offer convenience through partnerships. The next evolution for large retailers like Target, Walmart, and Nordstrom is to partner with other brands. If a customer orders shoes from Nike, she can have them shipped to Target and pick them up with her Target order.
Amazon is pioneering this approach to click-and-collect partnerships. It's teamed up with Kohl's to allow customers to pick up and return Amazon items in Kohl's stores, and Stein Mart now has Amazon pickup lockers for its click-and-collect program.
Convenience is paramount for the consumer. Nobody wants to drive to five different stores to collect all their web orders. Customers want to save energy and get everything at once. And offering that option isn't just good for the consumer. Partnerships will help retailers, too.
Click and collect has done a lot to shake up the retail industry, but it can do so much more for brands and consumers. Don't leave customers stumbling around the store in search of the collection point. Offer a seamless, respectful, and convenient service, and find ways to connect the click-and-collect and in-store experiences to delight customers.
DeAnn Campbell is vice president, retail strategy and shopper insights at Harbor Ind.
