New research shows retailers must accelerate clicks and bricks convergence to improve the consumer’s shopping experience
New research shows retailers must accelerate clicks and bricks convergence to improve the consumer’s shopping experience
New research by NCR has found UK consumers are embracing click and collect, which enables them to place orders online and pick-up instore, because it is fast, free and familiar.
As a result, shopping using a convergence of online, mobile and physical stores is likely to grow at a faster rate than online shopping in the run-up to Christmas. By 2012 the multichannel shopping market is forecast to represent 38% of total retail sales and be valued at £707 billion according to Forrester Research.
Cost-consciousness and convenience were the primary drivers behind this trend. Over half (55%) of British consumers polled by NCR opted for click and collect because they didn’t want to pay for home deliveries. More than two fifths (44%) wanted the item as soon as possible or found shopping in bricks and mortar stores more convenient (43%). Almost a third (27%) found it was simply not convenient to get items delivered at work or home.
Upselling to captive audience
NCR said retailers can use click and collect to ‘lock in’ customers much earlier in the sales process with tactics like stock reservations and special promotions. These shoppers tend to be more profitable for retailers: over a quarter of shoppers (26%) said they want to shop for other things instore when they collect their online orders.
To make the most of this additional footfall, many retailers are rolling out instore kiosks that enable shoppers to order out-of-stock products. Retailers benefit from faster sell through, reducing markdowns of unsold products, which simply weren’t in the right place at the right time.
Keeping pace with consumer demand
Ben Gale, NCR’s vice president for Western Europe, commented: “Retailers need to be more innovative than ever before to stimulate sales and preserve margin in the face of relentless pressure to deep discount. Those which are most successful are embracing technology which enable them to converge the shoppers’ online, mobile and physical store shopping experience.
“It’s all about giving consumers the right choice of products and special offers at the locations they find most convenient and delivering a better service through a smart use of new technologies and staff.”
NCR also predicted Wi-Fi would be the next big retail trend in 2012. The use of wireless hotspots almost doubled in the last 12 months to 4.9 million users according to the Office for National Statistics. If consumers connect via a retailer's Wi-Fi service instore and opt into a data sharing agreement, the retailer can collect relevant data in order to help offer more targeted advertising and promotions straight to their mobiles.
New, innovative forms of "disruption" marketing will arise in this way, the company said. But consumers will insist on maintaining their privacy and want to indicate whether they want to receive offers at home, near-store or instore or a combination of all three, it added.
