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Financial Solutions
23 Nov 2017

Click and collect shows what’s in store for retailers

You have to offer your customers more than one option

Like most Swedes, I can’t live without my coffee. And since getting a Nespresso machine a couple of years ago, not any old coffee will do in the same way. But here’s the problem: in central Stockholm, you can only buy the Nespresso coffee capsules at one store.

Too often I wake up, or come home, only to find out I’m down to my last capsule. And while you can order online anytime, the delivery options aren’t always that convenient – or inexpensive. At around 4 kr a cup and minimum order of 50 capsules, it can leave a not so sweet taste in your mouth when you have to wait 1-3 days to collect your order at the nearest pick-up point – and pay 49 kr for the privilege.

Until now, local pick-up points for the postal service have been the most popular form of click and collect in Sweden. But retailers are beginning to realise that their business, and their many of their customers, might be better served in-store. Recent studies show why, along with Nespresso, Scandinavian retailers are starting to wake up and smell the coffee. Home-furnishing giant Jysk, fashion chain KappAhl and consumer electronics retailer Elgiganten have announced that they are focusing on click-and-collect services at stores across the Nordics.

The move follows a recent report by JDA and Centiro into consumer shopping behaviours and expectations in France, Germany, UK and Sweden. The report shows that click and collect is an increasingly important fulfilment method, with 43% of those surveyed using it to avoid delivery costs. While 36% (and 49% in the UK) say it is more convenient than home delivery.

Since discovering the Nespresso Boutique Pick-Up service I haven’t looked back. One hour after placing and paying for my order online, I can collect my order free of charge. No fuss, no bother – just instant and great coffee.

But even sweeter, perhaps, not only has Nespresso got me to take over its delivery costs – and avoid any potential mishaps such as late delivery or damaged goods – they are also more likely to sell me something else. The same report found that 24% of shoppers made additional in-store purchases when picking up click and collect orders. Returns can also be dealt with straight away if I change my mind, or see something else I want.

With retailers facing increasing price pressure online, and the cost of finding new customers making loyalty an ever-more precious commodity, click-and-collect is a great way for them to connect with their customers and get them back in stores.

But it’s just one fulfilment method. People still want a range of delivery options and flexibility at checkout. And in much the same way they expect to pay how and when it suits them. With our pay-after-delivery solution AfterPay you can remove another obstacle to conversion by offering them flexibility and convenience when paying for the order.

Find out more about how you can use changing consumer behaviours to strengthen your customer relationships in our e-book.

Christer Pettersson,

– Head of Ecommerce, Arvato Financial Solutions Sweden

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