Today’s shopper expects convenience. Brands that integrate sales channels for consumer research and purchasing will increase repeat purchase rates and achieve higher levels of customer satisfaction.
In any multi-channel retail consumer interaction, traffic or sales are being driven from one channel to the other. In these “web-to-store” or “store-to-web” situations, the limitations of one channel are mitigated by the strengths of the other.
In-store Pickup
In-store pickup is a process that allows your customers to order online and pickup in your physical store. During the process, communication with the customer primarily happens via email and instructs the shopper of the steps necessary to complete the transaction. In most cases, the order is fulfilled at the “brick and mortar” store the same business day the order is placed online, with best practices showing most orders filled within a 2 hour period.
The primary value to consumers is that they receive their items almost immediately after purchasing. By using in-store pickup, consumers pick up their merchandise at a special designated area, thereby avoiding heavy crowds at the checkout counter. This is a core reason why in-store pickup is so popular during the holiday season, when last-minute ordering is often done online.
The consumer also benefits from not having to pay shipping costs. Sometimes the $6 to $10 dollars associated with shipping a product can be a critical factor to cart abandonment, and in-store pickup reduces this risk.
The retail business also benefits from the incremental purchases that are made when a customer goes to the physical store to pick up online purchases. In an internal study, multi-channel retailer REI reports that 1/3 of all customers who buy online and pickup at the store make another purchase while there, with a spend average of $90.00 (Puget Sound Business Journal).
From a technology perspective, in-store pickup needs to have some level of inventory integration to work effectively. The integration of data is critical in being able to display to the consumer the availability of products at their closest geographic store.
After a user selects the “in-store pickup” option, and enters their zip code, the system needs to cross-reference available store-level inventory data to ensure that the product is available within an acceptable distance. This inventory accuracy is crucial to deliver a great shopping experience.
Integration does not have to work in real time, but needs to execute multiple data checks throughout the day. Work your in-store pickup product availability based upon thresholds. For example, once an inventory level reaches 3 in a store location, do not display as available for in-store pickup. In-store pickup should not be executed for all products. Focus on products with high shipping costs and products that a consumer would typically want immediately.
In-Store Returns
Returning a product purchased online can be an extremely frustrating experience. Between figuring out if the retailer will pay for the shipping, waiting in line at the post office, and finally playing the waiting game for a product refund, the returns process is known for giving consumers headaches.
Accepting online product returns in a physical store is a tactic to make the returns experience pleasant and easier for the customer. By messaging an in-store returns option within the homepage, product page, and potentially within the shopping cart, a retailer reduces consumer purchase hesitation and will likely drive conversion improvement. Again, the transaction is immediate with no waiting involved.
Similar to in-store pickup, in-store returns generate incremental in-store purchases. After receiving their refund, consumers frequently shop for and purchase additional items while in the store. These actions can lead to order values that are actually greater than the initial online purchase, and drive higher lifetime consumer value.
The key to executing in-store returns is to have order management from the web and the physical stores driven from the same database. By providing the in-store associate the ability to look up information based upon order numbers on the packing slip, the process can be verified and the transaction can be closed by the associate.
Emailed In-Store Coupons and Promotions
Email is predominantly used as a mechanism to drive webstore promotions. Recently however, multi-channel businesses are realizing the value of emailing “in-store” or hybrid type promotions to their house lists.
“In-store” email promotions allow the consumer to print an email promotion (say $25.00 off a $150.00 purchase) and have it accepted at the retail store. For businesses that want to further track multi-channel purchasing, consider generating unique barcodes for each email that provide added levels of insight and security.
Hybrid emails allow promotions to be leveraged in-store and online via a purchase code. Again, by giving the consumer the ability to choose how they want to utilize the promotion, a retailer builds a stronger service connection with the shopper.
Store Locator
Now standard among eCommerce stores, a store locator function must be able to find the closest stores based upon zip code, while providing door to door directions online. If you have a physical store network but do not provide store locator functionality, you are dramatically behind the innovation curve.
All of these initiatives are geared toward achieving one objective - communicating and service of customers in the manner for which the customer chooses.
CRAIG SMITH is the founder and managing director of Trinity Insight LLC, (http://www.trinityinsight.com), a consultancy dedicated to improving the ecommerce performance of multi-channel retailers. Trinity provides services in the areas of ecommerce strategic planning, interactive marketing, web analytics consulting and ecommerce user experience. Smith can be reached at 610-638-1047 or at csmith@trinityinsight.com
Tags: e commerce, ecommerce, ecommerce business, internet business, retail