How Businesses can Boost Brand Awareness and Revenue as a Parcel Locker Host

Online retailing is on the rise, but our survey results suggest installing parcel lockers is the way to keep the sector moving forward.

It’s no secret that businesses are feeling the squeeze of the cost-of-living crisis.

Consumers’ well-documented reduction in spending power over the last year means there’ll be plenty of organisations out there – in retail, leisure, property management, hospitality, and other community amenities – that have seen revenue hit as a result.

Forward-thinking retailers such as Primark have added new categories or services to draw customers in, while shopping centres such as Westfield continue to freshen up their offerings with pop-up events and live performances. Fast-growing gym chain PureGym has launched a national competition for over-50s to try and foster more relationships outside its traditional demographic. There are some great proactive ideas for encouraging new business and attracting footfall in tough economic times. But there’s another tactic that works on several levels – jumping on consumers’ continued love affair with online shopping.

Ride the e-commerce growth wave

Online accounts for a quarter of all retail sales in the UK, and for some retailers it’s much more than that. For instance, online accounted for 59% of all John Lewis sales in 2022-23. In addition to home delivery, its extensive click-and- collect network makes it convenient for shoppers to pick up orders in sister brand Waitrose’s stores or at other partner venues such as Dobbie’s garden centres. Covid pandemic aside, parcels are flying around the UK at a faster rate than ever – and businesses of all shapes and sizes battling those economic headwinds should be looking to piggyback on that for their own benefit. Like Waitrose and Dobbies receive footfall via their association with John Lewis, others could gain from aligning with online delivery.

Retail smart lockers are one way of doing that. Placing them on your premises can bring additional footfall and spend – and companies hosting them can boost brand awareness. We’ve crunched some numbers on this, and of the 2,000 consumers we surveyed, 54% said they would be likely to make an additional purchase when picking up a parcel from a large supermarket. Some 52% and 48% of respondents, respectively, said they would spend more money when picking up items from a small supermarket or newsagent. The incremental spend is significant, too, with 21% saying they would spend £20 or more at a large supermarket when picking up online orders. Local convenience stores in London are a hot spot for this activity, it would seem, with 48% of those in the capital we questioned saying they would visit a store more often if they had parcel lockers installed. It clearly makes financial sense to be a pick-up point.

Lockers are for everyone

But parcel lockers are not just for retailers to host. Any business can be a host for lockers, and feel the benefit of the uplift in footfall and brand awareness that comes with it. At least 34% would use businesses or amenities more frequently if they had parcel lockers on their premises. Our research also shows 40% have revisited or used businesses more regularly because they make it easy to drop off and pick up parcels.

If you’re a car park operator, a library, a petrol station, a property management company, a gym, or a local council considering ways to get people into town centres, then you should have lockers in your locker. We know competition for custom and marketing is fierce, but having online order pick-up lockers can be a differentiating factor – it gives people a reason to come and visit you, and notice you.

If that isn’t convincing enough, then our research also shows there are some real signs of discontent with the current online retailing status quo. Consumers are calling it too unreliable, not sustainable enough, and inconvenient. Over one-third (35%) of consumers are more worried about parcel theft than before the pandemic – it’s even more of a pressing concern in London, where 56% of respondents are more worried. Some 57% of consumers say buying products online and then having to return them is a frustrating experience, 45% say click & collect services in their current guise are too frustrating to use regularly, and 42% feel the number of delivery vehicles on the road is making their community less safe and pleasant. Our Open Locker Network alleviates these pain points, so host locations have the power to be a part of the solution. A way to keep greasing the wheels of the online retailing revolution.

Parcel Pending by Quadient smart lockers are designed to provide a seamless and secure delivery and return experience for customers. We offer flexible options to match any locker host business’s specific requirements. Our modern, sophisticated technology allows retailers to reduce packaging handling costs and provide a supreme experience for their customers, and for other locations, the lockers provide a chance to increase their prominence in the community and attract people to their premises.

Online retailing is ingrained in people’s habits but consumers are growingly increasingly frustrated with delivery service as its stands. Parcel lockers present the perfect opportunity to switch the narrative, and keep businesses and shoppers happy.

To learn more about how you can be a host, visit our dedicated Open Locker Network page, or to download the full report ‘Managing the Consequences of Growing E-Commerce’, submit your details below.

 

Submit your details below to download the full report