Many experts say the Covid-19 pandemic demonstrates the importance of business flexibility. After all, the willingness to adapt quickly was central to the mid- and post-pandemic success of innovative market leaders such as Guzman Y Gomez, Coles, and Woolworths. These companies, along with others, managed to thrive by implementing futuristic strategies that streamlined their operations while also increasing service quality. The already promising click-and-collect model is a perfect example
le of a strategy that absolutely exploded in popularity over the course of 2020. This omnichannel model encourages customers to research, order, and pay online before physically coming into the store to collect a product. While this strategy was already gaining traction between 2015 and 2019, the pandemic resulted in click-and-collect sales more than doubling, year on year, between 2019 and 2020. While this is obviously not sustainable, research does point to annualised growth in sales of about 18 per cent between 2021 and 2025. This continual growth will be the result of greater adoption across a wider range of industries. While the model is already prevalent in the QSR and supermarket sectors, it can benefit almost any product-based company. Even automotive retailers have started to use variants of the click-and-collect model, with industry leaders such as Toyota, Hyundai, and Ford giving customers the opportunity to order a vehicle online before collecting it in person. Here’s why your business should be next to adopt the click-and-collect framework. Productivity improvements Nowadays, most major product-oriented companies invest large amounts of money and time into perfecting their delivery offerings. Unfortunately, research suggests that consumers are wary of delivery options, with roughly 20 per cent stating that they do not trust the delivery systems of major companies. With this in mind, it should come as no surprise that 35 per cent of consumers prefer to use in-store pick-up services. Businesses that use such a strategy could reduce home deliveries and maximise in-store productivity. Cost reductions If a company can reduce home deliveries, it can cope with demand while using fewer staff. This way, companies can minimise costs while using a proven method that will increase profits. Increase in spending per consumer A multitude of research focusing on the click-and-collect model suggests that consumers, more often than not, will purchase extra products when picking up their items. While numbers vary across different studies, there is a general consensus that at least half of shoppers will make an additional order when collecting something they ordered online. Increase in loyal customers Customers will receive superior service quality when they use click-and-collect. In-store pickup is convenient, reliable, and cheaper than home delivery. In monopolistic markets, such as the supermarket or fast-food sectors, service quality can often be the deciding factor as to whether a customer remains loyal or goes to a competitor. Businesses in these spaces should be hyper-focused on creating competitive advantages through streamlined customer-focused offerings. Click-and-collect has the potential to create clear differentiation points that can increase the probability of a one-off customer becoming a loyal buyer. While the click-and-collect model was already a market disruptor prior to the pandemic, an exceptional set of circumstances has caused this strategy to explode in popularity over the past 18 months. Dubbed the ultimate link between digital and physical retail, the research suggests in-store pickup services will help businesses that continue to offer it consistently outperform competitors that are yet to jump on the trend.