In this blog, we will delve into a popular type of omnichannel shopping, also known as Click and Collect (C&C) which has been on the rise after the pandemic. The blog will give you some insights into consumer motivations for using this shopping method and predict possible future behaviours for omnichannel shopping.
What is Click and Collect?
‘Click and Collect allows consumers to buy products online and then collect them in person at a designated pick-up point.’
Click and Collect or Buy online and Pick up in-store is a retail service that allows customers to purchase products online and then collect them in person at a preferred location, typically a physical store or a pickup warehouse. Click and Collect rose to the occasion during the COVID-19 pandemic when consumers had no choice but to make their purchases online and go to the collecting points to take their items without leaving their cars. BBC Worklife refers to Click and Collect as a lifesaver amidst the pandemic in terms of safety and necessity.
Thanks to the development of technology and the situation of each retailer, Click and Collect has been employed under 3 different formats: drive-out, drive-in, and in-store.
- Drive-out C&C: customers order online and then drive to designated warehouses or pick-up locations to collect their purchases. These locations are typically warehouses so they do not offer customer service or sales support. It is preferred by those who like a quick and straightforward collection process.
- Drive-in C&C: Customers order online and select specific fulfilment centres to collect their orders. They then drive to these locations and retrieve their purchases within a short timeframe, often within a couple of hours. These fulfilment centres are usually situated near physical stores and primarily serve as distribution hubs.
- In-store C&C: Customers place orders online for items available at specific physical stores. They then visit these stores to collect their purchases at their convenience. In-store staff may provide customer service and assistance during the collection process.
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Demographics of Click-and-collect Shoppers
Young and Tech-savvy
Without a doubt, young and tech-savvy shoppers, such as millennials and Gen Z, are more likely to use the Click and Collect service. These shoppers have grown up in a digital era and are highly proficient in using new technology for various online tasks, including shopping. In other words, they are early adopters of new digital lifestyles. A survey by Statista in 2023 shows that 43% of millennials in the UK frequently visit clothing stores that provide click-and-collect/returns services.
Besides, Millennials and Gen Z are typical groups of shoppers who value omnichannel experiences that provide a seamless transition between online and offline shopping channels. Thus, Click and Collect allows them to enjoy the convenience of online shopping while still having the option to interact with physical stores and products.
Low-to-middle-class individuals
C&C allows shoppers to save on delivery fees which are typically associated with home delivery options. For low-to-middle-income shoppers such as Gen Z and many millennials suffering from the cost of living crisis, avoiding delivery fees can make online shopping more affordable.
In another survey by Statista (2024) on Gen Z’s shopping habits, young people are believed to be mindful of their financial security and likely to search for affordable shopping options. Click-and-collect services appear appealing to these consumers as many retailers nowadays offer exclusive discounts and promotions for C&C orders to persuade shoppers to utilise this fulfilment option.
Consumer Motivations For Using Click And Collect
1. Geographical Convenience and Pick-up Flexibility
Geographical proximity or the distance between shoppers and the nearest physical stores affects the visit frequency. In other words, when consumers live closer to a store, they tend to visit it more frequently. Research on the proximity of convenience stores shows that shoppers can become loyal to brands that are physically close to their locations.
At the same time, consumers always want to keep their shopping time at a minimum, which means that physically visiting the store every time they need to make a purchase may not always be practical, especially for busy individuals or those with limited time.
Click and Collect becomes an optimal solution for these buyers since they can shop online and pick up their orders at a nearby location at their convenience. By using Click and Collect, people can reduce the time and effort spent on traditional shopping trips to the store.
Also, the Click and Collect service is more flexible than Home delivery in terms of pick-up time. Instead of requiring customers to be available during a specific time for the delivery to be made, C&C allows shoppers to select a pick-up time that best suits their schedule. This reduces the need to wait at home for a delivery and possible delays in transportation. For instance, Walmart allows its customers to change pick-up times and even store locations while their orders are being prepared.
2. Broader Selections and Digital Convenience
A study on the convenience of click-and-collect figures out that this type of shopping has a superior performance and functionality compared to home delivery and other omnichannel options, especially in terms of assortment availability and possession convenience.
Firstly, C&C services often provide consumers with a broader assortment of products as shoppers can collect their orders from any location with diverse inventories, from warehouses and fulfilment hubs to the closest physical stores. This allows for greater flexibility in product selection and access to items that may not be available for home delivery due to logistical constraints.
Secondly, digital convenience in Click and Collect (C&C) services is another key driver that motivates shoppers to adopt them as C&C can compensate for the absence of physical touch in online shopping.
By offering features such as 3D view and augmented reality (AR) technology, brands enhance the online shopping experience by providing consumers with detailed views and interactive demonstrations of products, thereby reducing the perceived risk of buying unseen items. After arriving at the pick-up store, customers have another chance to physically touch and inspect their orders to reconfirm the quality. They can decide whether or not the items suit their needs at the point of sale, which makes the return process more efficient and time-saving.
3. From transactional to relational approach
Click-and-collect shopping marks the transition from a transactional to a more relational buying experience, driven by consumers’ desire for enhanced support and human interaction in the context of online shopping. No matter how digital technology has transformed how people buy things nowadays, over 50% of shoppers still prefer to get more human support and interaction, especially when it comes to buying highly-perceived risky products such as fresh produce, electrical appliances, etc.
C&C emphasises the interaction and relationship between e-shoppers and sales assistants at the collecting points. As in-store sales assistants are trained to provide information about the orders, return process, and personal inquiries, they will provide consumers with reassurance and guidance, reducing the perceived risks associated with online purchases such as delivery timeliness, order accuracy, and product conditions.
A study on online shopping for everyday consumer goods discovers that this direct relationship fosters feelings of trust and attachment between consumers and the brand, which results in higher loyalty and repeat purchases.
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The Future of Click and Collect in Omnichannel Marketing
As an integral component of omnichannel marketing, the future of Click and Collect (C&C) looks positive for marketers and business leaders. With consumers increasingly searching for convenience, affordability, and good value for money in their shopping experiences, Click and Collect will keep growing in the long run. For instance, British shoppers who remain insecure about their finances due to the cost of living crisis will continue to adopt budget-friendly buying habits.
The omnichannel buying journey has become a key competitive advantage for many leading retailers to compete on a global scale. In 2023, omnichannel shopping contributed to £52 billion of total online sales in the UK retail industry, with over 61% of consumers prioritising in-store shopping with digital product discovery.
Yet, as the digital customer buying journey is becoming more and more complicated, there will be a huge challenge for marketers to adapt and convert the click-and-collect model to their advantage. For instance, PwC (2024) reports that consumers are now using nearly 10 channels just for product discovery, ranging from in-store support, word-of-mouth, online marketplaces, search engines, social media, etc.
What should marketers do?
To address this complex issue, marketers should focus on enhancing the click-and-collect experience by leveraging technology to personalise further and streamline the process. This includes investing in user-friendly digital platforms for online ordering and reservation, implementing advanced inventory management systems to ensure product availability, and optimizing logistics for seamless order fulfilment.
Moreover, marketers should prioritise customer engagement and satisfaction by offering incentives such as exclusive discounts or loyalty rewards for C&C orders. Additionally, fostering strong relationships with consumers through personalised communication and responsive customer service can further enhance the appeal of C&C offerings.
Academic sources for this blog:
Vyt, D., Jara, M., Mevel, O., Morvan, T., and Morvan, N. (2022) The impact of convenience in a click and collect retail setting: A consumer-based approach. International Journal of Production Economics. 248, p.108491.
Sy Chu
As an analytical and creative marketing enthusiast skilled in customer analysis, content research and brand management, my passion is help businesses gain insights into their brand and marketing strategies to drive impactful outcome to their success.