February 28, 2006, 12:00 AM

In-store pickup of online orders drives up average order value at Best Buy

20% of BestBuy.com customers who pick up their orders in stores make additional purchases in those stores, raising average order values by 40%. 65% of online shoppers who pick up their orders in stores are new to BestBuy.com.

 

20% of BestBuy.com customers who pick up their orders in stores make additional purchases while there, raising average order values by 40%, Sam Taylor, Best Buy Co. Inc.’s senior vice president of online stores and marketing, said at the eTail show last week. “They’re twice as profitable as store-only customers,” Taylor said.

Taylor will speak at the Internet Retailer 2006 Conference in Chicago in June on the topic “Delivering Web Content That`s Focused on Customer Needs.”

In addition, the store pick-up service has led to an increase in the number of multi-channel shoppers. Taylor noted that 65% of online shoppers who pick up their orders in stores are new to BestBuy.com.

The store pick-up service has addressed the two major concerns Best Buy customers have about shopping online: not wanting to wait for delivery and not wanting to pay for shipping, Taylor said.

Best Buy, No. 10 in the Internet Retailer Top 400 Guide to Retail Web Sites, has improved on the store pick-up program by following the lead of some of its more innovative store managers, he added. To increase awareness as well as incremental sales, one manager in the New York area set up a special display in the front of the store to both promote the pick-up service and merchandise accessories for digital cameras-a popular item ordered online for in-store pick-up.

“We’re taking that as a best practice to other stores,” Taylor said.

 

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