In an ever-evolving retail landscape, companies must continually adapt their strategies to meet customer expectations and remain competitive. A trend that has gained popularity in recent years is Buy Online, Pickup in Store (BOPUS), also known as Click-and-Collect. This omnichannel retail strategy allows customers to buy items online and pick them up at a physical store or designated collection point. This hybrid model harnesses the power of both the digital and physical worlds of commerce and offers numerous benefits for businesses and consumers alike. This article discusses six key benefits that offering BOPUS services can bring to retailers.
WHAT ARE BUY ONLINE PICKUP IN STORE (BOPUS) SERVICES?
BOPUS is a unique business model that combines online and offline shopping experiences. It allows customers to shop online at their convenience, while reducing the typical wait time for delivery by picking up their orders in-store or at a designated pickup location. From the customer's perspective, this model combines the convenience of online shopping with the immediacy of in-store shopping. For companies, BOPUS is not just about offering an extra service. It is a strategic approach aimed at improving sales, reducing costs and increasing customer satisfaction. Essentially, BOPUS brings together the best of e-commerce and brick-and-mortar environments to deliver a unique, integrated shopping experience that caters to today's convenience consumers.
Retail giants such as Walmart, Target and Best Buy have successfully implemented BOPUS and reaped the rewards. However, it's not just the big players who can take advantage of this service; Small and medium-sized retailers can also use BOPUS effectively to improve their business performance and the shopping experience of customers. The potential impact on customer behaviour, sales and operational efficiency makes BOPUS an attractive option for companies across the retail spectrum. The operation of BOPUS may differ per retailer, but the basic principle remains the same: customers order online, the order is prepared in the store and the customer collects it at an agreed time. This functionality requires seamless integration between a retailer's online and offline systems, ensuring inventory visibility, order fulfillment efficiency, and a smooth customer experience.
WHAT ARE THE BENEFITS OF BUY ONLINE PICKUP IN STORE (BOPUS) SERVICES?
Offering Buy Online Pickup In Store (BOPUS) services can be very beneficial for both retailers and customers. It offers several benefits that meet the changing needs and preferences of modern customers. Some of the benefits of BOPUS services are:
More visitors to physical stores
Adopting a BOPUS model can help drive more traffic to physical stores. When customers come in to pick up their online orders, they are more likely to view other products and possibly make additional purchases. This approach uses the convenience of online shopping to entice customers to physical stores, opening up new opportunities for engagement and sales. A study by the International Council of Shopping Centers (ICSC) found that more than half of shoppers using BOPUS made additional in-store purchases when picking up their items. This highlights the significant upsell and cross-sell potential that BOPUS brings. Essentially, it turns any online order into a potential store visit.
Furthermore, the convenience of BOPUS can also attract new customers who want to avoid shipping costs or wait for delivery. This strategy opens doors to market segments that may not have considered shopping in a physical store before. By offering BOPUS, retailers can appeal to a wider audience, boosting traffic from both new and existing customers. In particular, increasing the number of visitors to physical stores is not just about more sales. It is also an opportunity for retailers to build stronger relationships with customers. Providing a seamless pick-up experience and superior customer service during these visits can leave a lasting impression, foster customer loyalty and encourage repeat business.
Improved customer convenience and flexibility
BOPUS significantly increases customer convenience. By allowing customers to pick up their purchases at their convenience, businesses offer flexibility suitable for modern, busy lifestyles. BOPUS eliminates the need for customers to wait for home delivery, giving them control over where and when to pick up their goods. In addition to saving time waiting for deliveries, customers also appreciate the freedom BOPUS offers in avoiding potential delivery issues such as missed deliveries or stolen packages. Also, if customers have questions or comments about their order, they can have it addressed directly at the pick-up location. This convenience enhances the overall shopping experience, effectively blending the line between digital and physical retail.
In addition, the flexibility of BOPUS stimulates impulse purchases. Once customers are in store to pick up their online orders, they can browse other items and make additional purchases. This combination of convenience and impulse buying can significantly boost sales for businesses. Finally, BOPUS enables customers to immediately inspect their ordered items. If they are not satisfied with their purchase, they can return or exchange it on the spot, eliminating the inconvenience of return shipping. This instant gratification and reassurance further enhance customer convenience and contribute to a more satisfying shopping experience.
Reduced shipping and delivery costs
Implementing BOPUS services can significantly reduce shipping and delivery costs. By enabling customers to pick up their purchases in store, businesses can bypass shipping costs and avoiding complexities related to order fulfillment and last-mile delivery. These savings can be significant, especially for businesses with high online orders. In addition, BOPUS may also minimize costs associated with returning orders. When customers collect their order from the store, they have the opportunity to check the goods immediately. If problems do arise, they can be corrected on the spot, eliminating the need for a return. As e-commerce continues to grow, return rates are increasing, making this a significant cost saving benefit for retailers.
In addition, by reducing dependence on delivery services, companies can avoid potential delays or complications during the delivery process. This not only reduces costs, but also improves customer satisfaction by ensuring that orders are fulfilled as expected. Combining BOPUS with traditional delivery options provides companies with a cost-effective and efficient method of balancing customer convenience and operational logistics. Whether reducing shipping costs, minimizing return costs or streamlining the fulfillment process, companies can realize significant savings with BOPUS.
Faster processing and shorter waiting times
BOPUS enables faster order fulfillment, reducing the wait times associated with online shopping. When customers place an order online, they usually have to wait for the package to be delivered, which can take several days or even weeks. With BOPUS, customers can often pick up their purchases the same day or even within a few hours of ordering. BOPUS ensures faster order processing and greatly improves the customer experience. It not only satisfies the desire for instant gratification, but also appeals to customers who may be quick to get one product need and cannot wait for delivery.
In addition, BOPUS allows customers to schedule their collection at a time that suits them, eliminating the frustration of missed deliveries. This is especially beneficial for customers who are not at home during normal delivery hours, as they can receive their orders when it suits them. Faster execution times don't just benefit customers. They also enable retailers to turn inventory faster, reducing the amount of time items spend on shelves or in warehouses.
Cross-selling and upselling opportunities
BOPUS opens up significant opportunities for cross selling and up selling. When customers come in to pick up their order, they often browse other products, leading to additional sales. As mentioned earlier, the ICSC survey found that more than half of BOPUS customers make additional purchases when picking up. By placing related items or promotional products near the collection points, retailers can entice customers to add something to their first order. This strategic positioning of products can significantly increase basket size and overall sales.
BOPUS also provides opportunities for staff interaction with customers, which can lead to valuable service and sales opportunities. Trained staff can suggest additional products or services, turning a simple pick-up into a significant sales opportunity. In addition, understanding customer online purchases can provide sales associates with valuable insights into their preferences and purchasing habits. This data can be used for personalized cross-selling or up-selling, offering products that truly match customer needs or interests.
Improved customer satisfaction and loyalty
Offering BOPUS services can significantly increase customer satisfaction and loyalty. By providing a seamless, easy and convenient shopping experience, businesses can win over customers and drive repeat business. A survey by Bell and Howell found that 70% of US consumers have used BOPUS and 50% cited convenience as the top reason for doing so. Greater customer satisfaction comes from being able to shop with ease, avoid shipping costs and receive their orders quickly. These factors together can lead to higher customer satisfaction, which is critical in building loyalty.
Importantly, improving customer satisfaction is not just about eliciting a single, satisfying interaction. It's about creating a series of positive experiences that build trust and loyalty over time. This is where BOPUS excels. By continually meeting or exceeding expectations, BOPUS can play a vital role in changing one-offs customers into loyal, repeat buyers. In addition, loyalty programs can be effectively integrated with BOPUS services. By offering rewards or incentives for using BOPUS, companies can further entrench loyalty and encourage repeat use of the service. This strategy not only increases the appeal of BOPUS, but also helps to keep customers engaged with the brand.
CONCLUSION
Offering BOPUS services not only meets the modern consumer's need for convenience, speed and flexibility, but also brings multiple benefits for retailers. By driving more foot traffic to physical stores, improving customer satisfaction, reducing shipping and delivery costs, speeding up order processing and providing lucrative upsell opportunities, BOPUS can significantly improve retail performance. As the technologie advances and consumer preferences continue to evolve, the retailers that best adapt to these shifts will be the most successful. Offering BOPUS services is one way retailers can take advantage of these trends to drive growth and profitability in an increasingly competitive retail environment.
