Insights
Driving retail success: The strategic imperative of BOPIS and curbside pickup
Jonathan Colehower Global Supply Chain Strategy Practice Lead
BOPIS and curbside pickup have become indispensable for retailers aiming to stay competitive.
Jonathan Colehower Global Supply Chain Strategy Practice Lead
As the retail landscape undergoes a seismic shift, particularly with the rapid adoption of BOPIS (Buy Online Pickup In-Store) and curbside pickup, I've seen firsthand how these innovations reshape the industry. BOPIS, which goes by different names like curbside pickup, Buy Online Collect in Store (BOCIS), click and collect, store pickup, amongst others, has been transforming the retail landscape with almost two-thirds of retailers currently offering or planning to offer BOPIS (NRF). In this ever-evolving marketplace, the challenge remains: how can we keep pace with what customers expect from us— whether it's personalization, price, or service delivery?
Drawing on my experience in retail strategy, I can clearly see that these services are no longer just conveniences but critical components of a robust omnichannel fulfillment strategy. Embracing these changes is crucial to meeting the rising demands of today's consumers and driving resilience and growth in today's competitive environment.
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The importance of BOPIS and curbside pickup services
BOPIS and curbside pickup have become indispensable for retailers aiming to stay competitive. These services offer significant advantages, such as avoiding shipping fees, immediate product availability, and easier returns. Their integration into retail strategies is vital as they align with growing consumer expectations for convenience and speed. For instance, worldwide, 10.74% of e-commerce revenue comes from BOPIS purchases (source captial one shopping).
Retailers offering these services have seen substantial benefits, including increased store visits and additional in-store purchases. The convenience and efficiency provided by BOPIS and curbside pickup are not just meeting but exceeding customer expectations, making them essential for future growth and resilience in the retail sector.
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Challenges of implementing BOPIS/curbside pickup inventory management
Maintaining accurate and real-time inventory visibility across online and physical stores presents substantial challenges for retailers, but is essential for providing curbside pickup services. This synchronization is critical for both order fulfillment as well as to prevent customer dissatisfaction due to order cancellations arising from inventory discrepancies. Optimizing inventory management for BOPIS necessitates integrating the different inventory systems.
Retailers face significant challenges in accurately forecasting the demand for BOPIS/curbside pickup versus traditional in-store purchases, primarily due to rapid shifts in shopping patterns and customer preferences. This variability underscores the necessity for sophisticated inventory management solutions. These systems must incorporate advanced predictive analytics to dynamically adjust to changing consumer behaviors, ensuring streamlined operations across all sales channels.
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Order management
Integrating online orders with in-store fulfillment systems is crucial for effectively managing BOPIS and curbside services. This requires a well-orchestrated alignment of the store's daily workflow with the digital ordering process. Technology solutions for BOPIS/curbside fulfillment help streamline every step from order placement to pick up, significantly enhancing the customer experience.
Managing BOPIS orders can be quite time-consuming, especially when an associate is tasked with picking items throughout the store. This process often requires significant time and effort, highlighting the need for efficient order management systems.
Achieving this efficiency demands seamless technical integration, such as real-time inventory updates and comprehensive staff training to handle online orders effectively. Ensuring that each step is seamless, from the digital cart to the customer's car, is key to maintaining customer satisfaction and optimizing the speed and accuracy of service delivery.
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Store operations
Efficiently allocating staff and resources to manage BOPIS and curbside pickup orders is fundamental to smooth store operations. Thoroughly training staff in the skills of picking, packing, and fulfilling online orders ensures that the service meets customer expectations for speed and accuracy. Designating specific areas and dedicated staff for BOPIS and curbside services streamlines the process and enhances the overall customer experience by minimizing wait times and preventing service mishaps. These strategic, operational adjustments are crucial for maintaining high customer satisfaction and operational efficiency.
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Technology
The deployment of a robust Order Management System (OMS) for BOPIS is critical for effectively managing the workflows. This sophisticated technology must integrate seamlessly with existing inventory management and point-of-sale systems to enhance operational efficiency. An integrated BOPIS platform facilitates precise order management and real-time inventory updates. It provides customers accurate and timely updates on their order status, ensuring a smooth and responsive shopping experience.
To optimize BOPIS efficiency, organizing orders that follow a consistent picking path within the store is crucial. Understanding the store layout is essential for this strategy. However, the challenge lies in that store layouts can vary significantly, making it difficult for staff to locate items consistently across different locations.
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Customer experience
Setting clear expectations for pickup times and maintaining open lines of communication are crucial. Retailers should ensure that customers receive regular updates about their order status and have a clear understanding of the pickup process. This transparency is critical to ensuring a seamless pickup experience and can significantly enhance customer satisfaction.
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Overcoming the challenges
Setting clear communication and expectations for BOPIS/curbside pickup turnaround times is essential. Retailers should convey precise timelines for ready orders, enhancing customer understanding and satisfaction. This step is crucial in managing customer expectations and minimizing potential frustrations related to wait times or order mix-ups.
The success of BOPIS and curbside services hinges on ensuring a seamless pickup experience, which is vital for maintaining customer trust and satisfaction. Retailers must focus on operational efficiency, particularly around designated pickup areas. These zones should be well-marked and staffed by knowledgeable personnel to assist customers swiftly. By refining these processes, businesses improve customer satisfaction and boost the likelihood of repeat business, turning BOPIS and curbside pickup into strategic advantages in the competitive retail landscape.
Leveraging AI and advanced analytics can significantly enhance the efficiency of BOPIS operations. Artificial Intelligence will greatly improve our ability to predict consumer preferences. Currently, we're developing solutions that will simplify the BOPIS order process, making it more efficient for retailers. This technology can analyze shopper data to identify trends and optimize order-picking and staging processes.
By analyzing 12 months of shopper data, we can identify trends such as frequently bought together items or popular purchase times. This allows us to set up efficient kitting operations, reducing the time needed to fulfill orders. Such advancements improve efficiency and enhance the customer experience by ensuring faster and more accurate order fulfillment.
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Conclusion
Navigating the complexities of BOPIS and curbside pickup is essential as these services become integral to retail operations. By addressing the operational challenges and embracing these fulfillment methods, retailers can meet heightened customer expectations and maintain competitiveness in the evolving market. Mastering these services will be crucial for future growth and resilience as the retail landscape shifts.
Explore how our retail solutions can enhance your BOPIS and curbside pickup strategies. Learn more about our retail services here.
RESOURCES
https://www.ust.com/en/insights/navigating-retail-returns-during-the-busy-holiday-season
https://www.ust.com/en/insights/modernizing-retail-embracing-ai-and-composable-strategies