Internet Retailer - Strategies For Multi-Channel Retailing


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News Stories Tuesday, April 17, 2007   
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How stores use buy online/pick up in store options as a marketing tool


Buy online/pick-up in the store programs have grown since Circuit City Stores Inc. pioneered the concept in 1999. And while the option has proven popular with customers, it has created challenges for retailers in the game who must find ways to keep the programs fresh as well as different from those of competitors. “This is a service we will continually refine to meet customer expectations,” says Al Hurlebaus, senior director of e-commerce at CompUSA.

Making a buy online/pick-up in store program work means providing shoppers the highest level of convenience. The most common strategy is to guarantee the order will be ready for pick-up in 30 minutes or less. CompUSA promises that online orders will be ready for in-store pick-up within 15 minutes. CompUSA says customers using the service spend up to 40% more than store-only shoppers.

Offering a fast turnaround caters to the needs of multi-channel shoppers because they are often shopping under time constraints—a problem cited by 40% of multi-channel shoppers in a recent report by research and advisory firm Forrester Research Inc. As a result, they tend to favor self-service sales channels, Forrester says.

“Consumers that shop online and pick up in-store tend to be short on time,” says Tamara Mendelsohn, senior analyst at Forrester Research, “and any service that saves them time or shipping costs is a huge plus.”

CompUSA is No. 39 in the Internet Retailer Top 500 Guide.

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