The Key to Grocery Pickup Program Success
The demand for pick-up and delivery services has skyrocketed since the pandemic. More shoppers are buying groceries online than ever before. The results of the Brick Meets Click / Mercatus grocery shopping survey for January 2021 show that total online grocery sales in the US reached $ 9.3 billion and that 76% of those sales were for pick-up and delivery services.
Despite this impressive growth, the survey found that overall customer satisfaction levels had declined significantly. The intent to repeat purchases with the same service decreased to 56% overall, with the pick-up segment having the lowest score compared to delivery and ship-to-home services. And while this can be partly explained by significant growth in first-time buyers, survey results show that loyal buyers also rated lower satisfaction.
What can grocers do to remedy this and build customer loyalty? The answer lies in Control of the entire shopping experience.
Why Grocers Should Own Their Roadside Pickup Program
With so many online shopping options available to consumers today, loyalty to a brand means delivering a valuable, differentiated experience. It is no longer enough to just offer a pick-up or delivery on the roadside and outsource the experience to a third party.
In 2020, Target saw a record jump of 20% in sales to $ 94 billion, with online pickup and delivery accounting for 18% of total sales. His secret of success? Owned his roadside pickup experience.
When grocers own the pickup experience, they benefit from increased profitability, control over the customer experience, increased customer loyalty, and the ability to tailor the program to meet demand.
- Increase profitability: Optimized picking technology to perform wave or zone picks with multiple orders enables grocers to fill more orders per hour with fewer employees. According to our study, retailers using this strategy have reduced labor costs by 30% and generated $ 10,000 profit per store per year (for stores with an average of 70+ online orders per week).
- Gain control: When retailers own the pickup program, they have full visibility into the customer experience to ensure that the service meets their branding standards. They also get access to key success metrics that they can use to continually improve the program.
- Increase customer loyalty: Grocers need to give shoppers a reason to choose grocery collection over their competitors. By owning the program, grocer not only can control the pickup experience, but they can also use geolocation and communication technology to make the delivery of that order seamless. Retailers using these technologies were able to place orders to shoppers within 2 minutes of arriving at the roadside.
- Scale your program: With the increased demand for roadside pick-up services, the availability of time slots for shoppers is critical. If retailers optimize the fulfillment of their pick-up program with the technologies and picking methods mentioned above, their stores can fulfill more orders per hour, giving customers coveted time windows.
With the right grocery ecommerce partner, grocers can leverage their pickup experience and leverage these key technologies to expand their pickup programs and build lasting customer loyalty. This is the way to stay one step ahead of the next steps in grocery e-commerce.