The ‘click and collect’ service offers an increasingly important incentive to shoppers looking for convenience and reduced cost, with over 70% of shoppers making the choice to use click and collect. With 95% of shoppers claiming they would shop elsewhere if an online store did not offer a convenient delivery option, it is clear that when competing with the likes of Amazon and their extensive delivery options, 'click and collect' is an essential part of a retailers online offering. However, ultimately there is a cost to offering 'click and collect' as part of an omni-channel service and this cost must be borne by the retailer. The nature and extent of the service offered affects the bottom line to the extent that some major retailers, most notably Tesco, Sports Direct and John Lewis, have sought to reclaim some of these costs by adding a charge for 'click and collect'.
An efficient process with a smooth experience for customers is needed to keep control of the cost of 'click and collect' for the high street retailer whilst maximising the benefit from loyalty and up-selling. An ideal scenario would be having the available metrics on the cost of 'click and collect' to the retailer or the percentage of 'click and collect' customers making additional purchases. Both of these scenarios would provide a clear understanding of the value versus cost. However, these metrics may simply not be available or may be slow and difficult to collect that their value is much reduced. If brand loyalty through convenience and customer satisfaction is the primary goal for high street retailers offering click and collect then what useful metrics can be readily available?
1. Net promoter score
These days the often quoted benchmark of customer satisfaction, and by extension loyalty, is the net promoter score. Interacting with your customers through confirmation and follow up “thank you” emails are essential for a smooth 'click and collect' process and also offer the perfect opportunity to ask for feedback. Customers who score ≤6 are Detractors and those that score ≥9 are Promoters gives the Net Promoter score or NPS.
% Promoters - % Detractors
2. Percentage of satisfied customers
Any retailer operating an online store with 'click and collect' will also be providing a help desk to handle queries and complaints. Tracking the number of 'click and collect' help desk requests versus the total number of customers using 'click and collect' will provide a high level benchmark for the success of the service.
100* (total CAC sales - CAC complaints)/ total CAC sales
3. Percentage right first time
A more subtle indication of customer satisfaction is to track the number of help desk issues raised that were handled quickly and to the customers satisfaction. Many customers call the helpline seeking information or reassurance and their call can be a way to increase your customer loyalty by providing a helpful and efficient service. The right first time metric tracks the number of help desk issues that were handled successfully with a single customer interaction as a percentage of the total number of help desk requests.
(Total # of customers >95% satisfaction/Total # of overall tickets) x100
4. Percentage no collection
If your service includes a reserve and collect option then is it essential to track the percentage of customers that do not turn up to collect. Taking action to reduce this metric will keep unnecessary costs down but also increase the opportunity for up-selling to customers in store.
(Total # of collected items/Total # of reserved items) x 100
5. Cost per ‘Click and Collect’ customer
As mentioned above, a percentage of retailers are charging for ‘click and collect’. It is helpful to know the return of investment in every aspect of your business, and this includes service desk. By calculating the the overall cost of each 'click and collect' customer, we can work out the individual cost of each customer and compare this to the other services like delivery, giving us insight into what service to invest in.
Overall cost of CAC customers/Total # of CAC customers
If you wish to find out more about how KPI reporting can help your company, just get in touch!
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