Internet Retailer: Cognizant’s Assistant Vice President of Retail Consulting Outlines Five Ways for Retailers to Improve In-Store Pickup

“This holiday season, shoppers are expected to flock to one of retail’s most popular new services: in-store pickup of online purchases,” writes Meena Patel. “While the service is a hit with consumers, many retailers fall short in execution. By taking a fresh look at the service and fine-tuning the supporting processes and systems, retailers can minimize problems during the high-volume shopping season—and convert the positive experience into lasting customer loyalty.” Excerpts:

“In-store pickup appeals to a wide range of shoppers, scoring favor among the thrifty, who want to avoid shipping charges, and the time-pressed, who prefer to sidestep shipping wait times.

The service also offers a surprising upside for stores. Not only is it popular—30% of respondents use in-store pickup at least once a month, and an enthusiastic six percent take advantage of it once a week or more—but it also drives incremental store sales. Our survey found a whopping 65% of users bought additional products in stores when they arrived to pick up their online purchases.

Smart IT investments are more efficiently getting the product to pick-up points. But many retailers continue to overlook the attendant investments in store processes, staffing, and associates’ tools and training. Following are steps retailers can take to fine-tune their in-store pickup service in time for the holiday rush.

Revisit how many customers will use the service. Make sure you can scale up, or down, quickly if your forecast is off-target.

Take a second look at the path of pickup. Separate the customer-service and in-store pickup functions. To maximize the incremental lift, consider placing in-store pickup next to an area that’s stocked with everyday and impulse items. Be sure pickup customers can also pay for their store purchases at the same time; don’t send them to another location for checkout.

Re-examine allocation of resources. In addition to proper staffing of in-store pickup, retailers need to plan carefully for the ripple effects that the service spreads throughout the supply chain. Be sure you fully understand the economics of different fulfillment methods, and trade that off against improved customer satisfaction and margin lift.

Set clear policies and procedures. Evaluate how your bricks-and-mortar procedures relate to the specific issues of in-store pickup. Be sure to determine processes for reselling returns. More cost-effective options include restocking fees, or charging shoppers the cost to ship returned items back to vendors. Be sure not to neglect issues regarding associate compensation. Servicing in-store pick-up and returns can take away from core selling time, which is anathema to associates on commission.

Be prepared to pivot quickly. A critical service like in-store pickup demands daily analysis and a close eye on the numbers. As the service’s volume grows, staffing needs and store locations will evolve, and processes will need to be continually reviewed. Shifts in merchandise mix can fundamentally alter the overall economics of fulfillment, requiring a delicate balance between delivery times and volume leverage.

A smooth, glitch-free process for in-store pickup can be store retailers’ greatest ally and cultivator of loyal customers.”

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