How Do You Increase the Value of a Pickup Order?
Buy online, pick up in store (BOPIS) orders have doubled over the past year as consumers looked to avoid in-person shopping. For instance, Target’s 2020 earnings report announced that order pickup grew more than 70 percent last year. What’s more, it revealed that multichannel customers spend, on average, nearly 4x more than store-only customers and 10x more than digital-only customers. Meanwhile, Best Buy’s Q4 results stated that online sales grew almost 90 percent in 2020, and almost two-thirds of online orders were picked up at a store. With such a big bump in pickup orders, here are three tactics you can use to bump up your average order value (AOV).
1. Sell more through your product detail page (PDP).
Consumers visiting a PDP are already in a buying mindset. Take advantage of this by offering relevant upsells. But first, revisit your recommendation engine logic. What if the items you promoted were driven by product availability? That is, you recommend items that are in stock at the same location as the primary item. That way, a customer can pick it up at the same time, from the same store, so they’re more likely to complete the transaction. Better yet, promote the fact. Add a note stating which items are available at the same store. Make it easy for the customer. This becomes especially important as the shopper's journey continues.
2. Upsell on the order confirmation page.
No matter what you sell, from apparel to sporting goods to homewares, the perfect time to upsell is right after your customer has placed a pickup order. After all, the customer is already coming to your store.
Think about that customer who bought a new kitchen appliance. Can you help style their entire cooking and dining experience? From handy cooking accessories to serving ware, the upsell opportunities are only limited by the stock you carry. However, this moment in the shopping journey needs its own strategy.
What if the recommended items shown on the order confirmation page can be picked up at the same store? Imagine the potential uplift if you displayed an "Add to my pickup order" button under each item. You might also want to show heavy items that customers don’t want to lift for curbside orders. Think about a case of water, pet food, birdseed, household goods, etc. It lets you turn your order confirmation page into a valuable merchandising space.
3. Use your order status notifications to promote impulse items.
At checkout, you display impulse buys — i.e., items to tempt your customer to spend more. Can your order notifications do the same? Can you show items that are in stock at the store, as well as easy to pick and add to an order? Given order status notifications tend to have high open rates, it’s another great opportunity to increase sales. And get creative. While you might promote accessories that complement the customer's primary item, don’t rule out other impulse buys. Now might be the time to recommend snacks or beverages if you offer them or other seasonal items.
Many consumers who once preferred to spend their time and money in physical stores now shop mostly online. It feels convenient and safe. What’s more, it has become habitual. The new normal. This means retailers and brands need to find new ways to optimize product placement, both while shopping and during the post-purchase experience. Smart product recommendations based on store stock can help you increase upsells and boost your average order value.
Nicola Kinsella is vice president of marketing at Fluent, a cloud-based platform that lets retailers and brands provide a premium omnichannel experience, profitably.