CHICAGO--(BUSINESS WIRE)--IRI today announced that a new survey revealed click-and-collect shopping programs, where shoppers can place orders online and pick up their items at a nearby retail location, are a core driver of growth in e-commerce purchases of consumer packaged goods (CPG). Survey responses showed an overwhelmingly positive customer response and adoption as well as the successes of major retailers with click-and-collect programs.
While e-commerce currently represents only a small portion of total CPG purchasing, it is expected to make up approximately 11 percent of CPG sales by 2022, hitting nearly $88 billion in revenue — $6.6 billion of which IRI expects to be from click-and-collect programs. Click-and-collect combines the convenience of shopping online without the fees or delays of delivery and integrates a retailer’s e-commerce and brick-and-mortar platforms into one shopping experience. While only 8 percent of U.S. shoppers have purchased products using a click-and-collect program, 82 percent of shoppers who have used the service would “definitely” or “probably” use it again.
“IRI’s survey proves that the click-and-collect service offers shoppers exactly what they are looking for — the ability to shop online, while saving time and money associated with shipping,” said Robert I. Tomei, president of Consumer and Shopper Marketing for IRI. “While some retailers are rapidly expanding their click-and-collect offering, many have yet to make the service available to the majority of their shoppers. IRI’s survey results represent an immediate opportunity for retailers to appeal to the hearts of many shoppers who are demanding and embracing convenient shopping options and seeking out retailers that provide the best opportunities.”
Some of the key insights include:
- High Satisfaction: Sixty-eight percent of click-and-collect shoppers said they would “definitely” use the service again, while 23 percent would “probably” use the service again for everyday items.
- Meeting Shopper Needs: Nearly seven in 10 shoppers (69 percent) use click-and-collect services to avoid charges for shipping, the most frequently cited reason for using the service. Furthermore, half of all users cite the time savings click-and-collect affords as a motivation to use the service.
- Cross-Selling Opportunities: Sixty-nine percent of shoppers who went in-store to pick up their orders ended up buying additional items. This was an important finding uncovered in the IRI research, because many retailers and manufacturers need to understand the impact and opportunities of impulse purchasing when shoppers leverage click-and-collect.
- Significant Sales Opportunity: IRI expects that click-and-collect will total more than $6.6 billion in sales in 2020.
Personalization is Key as E-commerce Services Expand
As click-and-collect and broader e-commerce purchasing becomes more critical, retailers and manufacturers are concerned about a negative effect on impulse purchase behaviors and the loss of value created by the in-store experience, but the inverse relationship between the value of impulse purchases and targeted digital marketing, explained Sam Gagliardi, e-commerce practice leader for IRI.
“It is still possible to encourage impulse purchasing in an online environment, but the mechanism is shifting from in-store endcap and register displays to suggested-purchase options as shoppers fill their online carts,” said Gagliardi. “Developing and implementing highly targeted digital campaigns based on real customer shopping data will be the key to driving those unplanned purchases.”
IRI’s expertise in targeting and personalization tools for manufacturers and retailers will help manage the seismic shift from in-store to e-commerce shopping. The high demand for click-and-collect among early adopters is symptomatic of larger industry trends that are keeping shoppers from browsing the aisles.
For more information on how to improve your e-commerce strategy, contact IRI expert Sam Gagliardi at Sam.Gagliardi@IRIworldwide.com.
About the IRI Partner Ecosystem
IRI fundamentally believes that delivering differentiated growth for clients requires deep, highly integrated partnering with a variety of best-of-breed companies. As such, IRI works closely with a broad range of industry leaders to create innovative joint solutions, services and access to capabilities to help its clients more effectively compete in their various markets and exceed their growth objectives. IRI is committed to its partnership philosophy and continues to actively enhance its ecosystem of partners through alliances, joint ventures, acquisitions and affiliations. The IRI Partner Ecosystem includes such companies as Adobe, The Boston Consulting Group, comScore, Experian, GfK, Gigwalk, Ipsos, Kantar Shopcom, MasterCard Advisors, MaxPoint, Millward Brown Digital, Mu Sigma, Neustar, Oracle, Place IQ, Simulmedia, SPINS, Survey Sampling International, Univision and others.
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