How and Why Retailers Should Optimize Customer Pickups
A lot of trends that gained steam during the pandemic have receded into the background in the last couple of years—but there are others that are still making their presence felt. Unfortunately, one of those trends that has stuck with us is QR code menus at restaurants. On the other hand, fulfillment channel trends like the rise of “buy online, pickup in store” (BOPIS) have also had staying power, presenting intriguing opportunities for modern retailers.
By giving customers greater flexibility in the way their orders are fulfilled, retailers who offer customer pickup options can boost customer loyalty and improve the overall quality of the experience you offer to customers. But not all pickup options are created equal—it’s all too easy to wind up in a position where you’re creating traffic jams at your pickup sites and customers are wishing they had simply waited for delivery.?
In this post, we’ll cover the ins and outs of BOPIS/customer pickup options, show you how efficient pickup logistics can reduce costs and improve customer experience, and give a step-by-step guide to implementing such a process within your own operations.?
What Is BOPIS?
Like we noted above, BOPIS stands for “buy online, pickup in store.” You might hear the same process referred to by other names: click-and-collect , in-store pickup, etc.?
In that sense, it’s a pretty straightforward concept. The fulfillment process is more or less the same up until the point where items would be loaded into trucks and delivered to the end customers—instead, they’re routed to the pickup location (whether that’s a storefront or a warehouse) and the customers come to get them themselves.
For customers that don’t want to wait for a last mile delivery, or who simply don’t want to deal with the delivery process, this can be a great option. As an added bonus, you don’t have to use up delivery capacity or fuel to get the order to the customer’s location.?
That being said, the fact that you’re cutting out the complexity of the last mile delivery process doesn’t mean that smooth sailing is guaranteed. It’s all too common to see pickup sites that are crowded with customers and overworked associates who can’t keep up with demand. When it happens, it’s typically because businesses are treating BOPIS as an afterthought.?
Instead, retailers and anyone else who leverage customer pickups as part of their fulfillment strategy should treat BOPIS more like last mile deliveries.?
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Why You Should Treat Pickups Like Last Mile Deliveries
In order to gain the benefits that come from enabling customer pickups, you need to take the same approach to optimization that you use for last mile deliveries.?
Obviously, there’s no routes to optimize—but the processes are broadly similar when you zoom out beyond that fact. Customers need to know when their orders are going to be ready for pickup. Store and warehouse associates need to know when they should start picking orders and getting them ready for pickup—and they need to know when the customer has arrived and is ready for their order to be brought out.?
And after the transaction is completed and the customer has left the premises, it all looks the same in your analytics. You need proof of which orders were completed and at what time so you can send out receipts to customers and keep your internal records up to date.
If you approach BOPIS orders with that mindset, you can put yourself in a position to ensure a smooth, seamless experience for both your customers and your own store/warehouse teams. You can deliver on your promise of offering a quick and painless experience to customers, and you can do it without causing chaos for your team.?
Without that mindset, the picture is less rosy. Customers may get annoyed at long wait times at your store or warehouse—they might even find that there’s nowhere for them to park. (This is going to bug someone picking up an end table for a home redecorating project—but it’s really going to cause problems for a contractor picking up a pallet of lumber to keep their job site running smoothly.) At the same time, associates might simply not be able to keep up. The result is that it’s going to harm your brand and potentially increase your fulfillment costs due to the lack of efficiency.?
To learn how to optimize pickup logistics, read the rest of the article here: https://www.dispatchtrack.com/blog/bopis