The number of UK shoppers using click & collect is poised to more than double by 2017. Currently, 35 percent of online shoppers in the UK buy online and self-collect, compared to 13 percent in the U.S. and 5 percent in Germany, according to research from Planet Retail[i].
However, are retailers prepared for the potential impact on their brand experience combined with the added logistical complexity click & collect brings?
Logistical Complexity
As the bricks & mortar and online worlds become increasingly intertwined, driven largely by consumer demand for choice and convenience, and the ability to shop and take delivery where-ever, & whenever they choose, the rise of click & collect is becoming the latest retail battleground.
However, the logistical complexity surrounding click & collect must not be underestimated, especially as third party collection points come into play.
Pure-play online retailers have long been used to dealing with the ‘last mile’ of logistics; that crucial hand-off between the brand and the consumer. How well-executed that key consumer touch-point is, can make the difference between a loyal consumer and a social media tirade publicly impugning the brand.
The last mile of logistics is tough enough, but when you add the difficulty of trying to tie the in-store collection of click & collect into the supply chain logistics to give a closed loop view of the journey of the goods to the consumer and to optimise the resultant experience, then the picture gets altogether more challenging.
Managing the Consumer Experience
The key consideration in retail logistics is the quality of the consumer journey – whether the consumer is shopping in store, online, accepting a delivery, or collecting an order, what the consumer will remember is the overall experience.
The consumer spends very little of the ‘browser to received goods’ journey online and the majority of that time awaiting delivery or collection of the goods. Keeping them involved with the brand on this delivery journey is an ideal opportunity for the brand to really add to the overall experience, reinforcing brand messages along the way.
It is in this new delivery environment that the brand has the potential to engage with the consumer for an additional 24/48 hours and leverage an area of marketing that few brands have got right to date. Thinking about this in terms of just providing ‘status’ updates of the order is to be missing a trick in engaging with a consumer already committed to your brand.
Accepting the Inevitable
Despite these challenges, consumer demand will prevail. Click & collect is not only a necessity for those bricks & mortar, and pure-play online retailers wanting to succeed in the omni-channel world, but it offers significant benefits to retailers who get it right.
So how can retailers address these challenges?
The answer lies in automating the hand-offs within the supply chain. By utilising mobile technology and leveraging the quality of the wireless infrastructure available, retailers can validate information throughout the delivery process, achieve an irrefutable chain of custody, and flag up errors and problems for early remediation and proactively manage the consumer experience.
Conclusion
The numbers of consumers shopping online and collecting in store or from a 3rd party location are clearly set to increase.
By treating the delivery phase of the consumer journey with the same level of importance as the consumer acquisition and purchase phases, brands can maximize additional opportunities to interact with their consumers and extend the reach of their marketing. Get this delivery phase wrong, and the risk is the disenfranchisement of potential repeat purchasers and the erosion of consumer loyalty.
Pol Sweeney
Managing Director Europe & CTO
Airclic
www.airclic.com
