IRI: Click & Collect Is Immediate Opportunity for Retailers

CHICAGO — To better serve their customers, more and more retailers are testing out click-and-collect programs, which allow shoppers to place orders online and pick up the items at a local store. A new IRI survey indicates that these programs are proving to be a core driver of consumer packaged goods (CPG) e-commerce purchase growth.

Click-and-collect will become a bigger part of retailers’ bottom lines in the coming years, according to IRI's survey. Although e-commerce isn’t necessarily making waves in CPG purchasing today, it’s predicted to make up approximately 11 percent of CPG sales by 2022. That 11 percent will amount to an estimated $88 billion in revenue, with $6.6 billion coming from click-and-collect programs.

In the meantime, improving the performance of click-and-collect programs comes down to getting consumers to give it a try. From there, there's a solid chance of conversion. IRI’s study found that while only 8 percent of U.S. shoppers have tried a click-and-collect program, 82 percent of those who have given it a go would "definitely" or "probably" use it again.

IRI’s study also found that 69 percent of shoppers who try click-and-collect do so to save money on shipping, while half do it to save time.

"IRI’s survey proves that the click-and-collect service offers shoppers exactly what they are looking for — the ability to shop online, while saving time and money associated with shipping," said Robert I. Tomei, president of consumer and shopper marketing for IRI. "While some retailers are rapidly expanding their click-and-collect offering, many have yet to make the service available to the majority of their shoppers. IRI’s survey results represent an immediate opportunity for retailers to appeal to the hearts of many shoppers who are demanding and embracing convenient shopping options and seeking out retailers that provide the best opportunities."

In addition to making shopping easier for consumers, click-and-collect programs have the potential to grow sales for retailers, according to IRI.  By providing the service, businesses not only have the opportunity to benefit from impulse purchases made inside the store when a customer is picking up an order, but also from online impulse purchases — made more likely by targeted digital marketing.

"It is still possible to encourage impulse purchasing in an online environment, but the mechanism is shifting from in-store endcap and register displays, to suggested-purchase options as shoppers fill their online carts," noted Sam Gagliardi, e-commerce practice leader for IRI. "Developing and implementing highly targeted digital campaigns based on real customer shopping data will be the key to driving those unplanned purchases."

Chicago-based IRI is a provider of big data, predictive analytics, and forward-looking insights that help CPG companies, retailers and others grow their businesses.