Buy online pickup in-store (BOPIS) is nothing new, but just recently Walmart announced it would be changing the face of its offering by running exclusive discounts for customers who collect their items. ‘Pickup Discount’ will be available on more than a million items by the end of June, offering savings of around $50 on a $1,700 4K TV, for example.
Walmart clearly understands the benefit BOPIS can bring for both retailer and customer and is taking steps to encourage consumers towards the fulfillment option. With this in mind, we take a look at why BOPIS is such an important fulfillment option.
BOPIS increases customer satisfaction
With time in increasingly short supply for most of us, the more convenient a retail experience, the better. Having multiple fulfillment options in retail is a convenience customers have come to expect. They want to be able to choose how to receive their goods based on their plans that week, cost and how soon they need the item. Choice is so important that 66% of people surveyed for Kibo’s Consumer Trends Report said multiple fulfillment options influences them to complete a purchase.
Get it right and consumers will come back for more – almost half (49%) of the respondent’s from the Consumer Trends Report said they will remain loyal to a retailer if BOPIS is available.
Increase your sales with BOPIS
Although a huge part of implementing a BOPIS function is to provide customers with the most convenient buying cycle possible, it also provides additional revenue opportunities.
Walmart’s new ‘Pickup Discount’ capability drives traffic instore, making the physical store the hub for its entire retail operation. But it’s not as easy just implementing BOPIS and sitting back, the entire user journey must be considered. This includes considering the store layout and empowering staff to make it as easy and as tempting as possible for consumers to purchase additional products.
To ensure you get the most out of this revenue opportunity, equip your sales associates with a mobile point of sale (mPOS). Implementing mPOS technology encourages your staff to go that extra mile as they can offer details on additional products and a tailored service based on the particular customer. We found that 84% of consumers were influenced to make a purchase when store associates were equipped this, and nearly three quarters (74%) expect store associates to have access to their customer history when visiting in store. When customer satisfaction is a key differentiator in the retail space, this is one improvement that can make a big difference to the bottom line of the store.
Save delivery costs for you and your customers
The ‘last mile’ is one of the biggest and most costly challenges in retail. BOPIS makes the ‘last mile challenge’ obsolete and saves businesses 28% of overall delivery costs, according to DynamicAction.
Consumers recognise there is a clear benefit too. In addition to the discounts applied to goods by Walmart, consumers have the opportunity to save on shipping costs when they choose BOPIS. This is a big factor for many consumers and it seems they don’t mind going that ‘last mile’ to the store if it means saving on shipping costs. In a recent Kibo study of 3,000 consumers, low shipping cost was actually the number one reason for using BOPIS.
In addition to these benefits for both parties, on a wider scale BOPIS is proven to reduce the number of vehicles on the roads, especially within cities where people get products delivered to their office. Consumers do of course still have to go to the store, but if this is on the way home or tied in with another trip, it reduces the number of vehicles overall.
There are many advantages to implementing, or improving on your BOPIS function. Not only is it incredibly convenient as it allows customers to order their items and receive them that same day. It creates upsell opportunities by bringing customers in-store, and provides a solution for the ‘last mile’ challenge. But largely, it is a differentiator in what is a very competitive market. Walmart has clearly recognized these benefits and is taking steps to ensure BOPIS becomes its customers’ fulfillment option of choice. The big question is, will other retailers follow in their footsteps or get left behind?