Is ‘free’ a big enough incentive to get consumers to try click and collect?
According to the survey from JDA, 80 percent of shoppers would give greater consideration to buy online/pick up in-store (BOPIS) services if discounts or incentives were offered.
The survey of 1,058 U.S.-based consumers found half used BOPIS in the last 12 months, a 44 percent increase since the “2015 JDA Voice of the Consumer” survey. Of those using BOPIS, 40 percent “sometimes” made additional purchases in-store.
Convenience was found again to be the primary reason shoppers use BOPIS. Of those who have used BOPIS, avoiding home delivery (39.6 percent) and wanting the product sooner (33.1 percent) remain the top reasons for selecting the fulfillment option, similar to findings in 2016 and 2015.
Said Jim Prewitt, VP of retail industry strategy at JDA, in a statement, “By offering incentives to shoppers to use BOPIS, like discounting, retailers are driving more foot traffic into stores, and potentially, buying more than they intended to, once they arrive at the store, boosting store sales.”
Walmart stands out as the only major retailer offering an incentive for in-store pickup, although its offered only for select items. Launched in May, its Pickup Discount program offers discounts on more than one million of Walmart’s “most popular” items. Discounts range from 25 cents for a Hanes t-shirt to $82.42 for a Greenworks chainsaw.
“We are removing one of the most expensive portions of e-commerce transaction, which is last mile delivery,” Marc Lore, president and CEO, Walmart e-commerce U.S., told Fortune at the time of the launch. “It costs us less to ship to stores, so our customers should share in those savings.”
At Macy’s, those using in-store pickup receive a “savings pass” to earn an extra 15 to 20 percent off their next in-store purchase. Other major stores only promise the advantage of “free” pickup although some use quick one or two-hour turnaround and curbside pickup as incentives. Many grocers charge for in-store pickup, as does Kroger at $4.95 per order.
- New JDA Survey Reveals the Cure for the Store – JDA
- Empowering Customers with More Ways to Save – Introducing Pickup Discount – Walmart
- Walmart Is Offering a New Web Discount in Challenge to Amazon – Fortune
DISCUSSION QUESTIONS: Do you see more benefits or drawbacks in using discounts to encourage in-store pickup? Would one or two-hour pickup window promises, curbside pickup or some other feature be most effective as an incentive?