{"id":10496,"date":"2021-04-21T20:48:31","date_gmt":"2021-04-21T20:48:31","guid":{"rendered":"https:\/\/www.parcelpending.com\/?p=10496"},"modified":"2023-03-29T16:29:47","modified_gmt":"2023-03-29T16:29:47","slug":"brick-mortar-remains-king-the-value-of-in-store-experiences","status":"publish","type":"post","link":"https:\/\/www.parcelpending.com\/en-us\/blog\/brick-mortar-remains-king-the-value-of-in-store-experiences\/","title":{"rendered":"Brick & Mortar Remains King: The Value of In-Store Experiences"},"content":{"rendered":"

Clearly, the year 2020 was the year of e-tailing, e-<\/span>shopping<\/span>, and <\/span>eCommerce<\/span> with Digital Commerce 360 reporting that US \u201c<\/span>retail<\/span> chains will end the year with a collective 76.8% growth in <\/span>eCommerce<\/span>\u201d<\/span>1<\/sup><\/span>. However, don\u2019t write off brick and <\/span>mortar<\/span> retail stores yet. Physical <\/span>retail<\/span> stores continue to play a powerful role in shaping the <\/span>shopping experience<\/span>. In this blog, we\u2019ll answer the question, “why are brick and mortar stores important?” and share a few ways to improve your in-store experience.<\/span><\/p>\n

Brick and Mortar Retail Stores: A Place to Try, Touch, & Taste<\/strong><\/h2>\n

Although <\/span>consumer<\/span> return rates normally hover between 25-30%, Narvar reports that they skyrocketed to 70% in 2020!<\/span>2<\/sup><\/span> Experts predict that with virtually all stores open again, return rates will plummet as shoppers have the chance to touch and try on the merchandise. As <\/span>Kate Reidel, Senior Vice President, Business Development at Parcel Pending, speculates, \u201cMaybe physical stores will be where people go to touch and feel and determine the right size, but then they\u2019ll order what they want so the <\/span>store<\/span> won\u2019t have to house all of the merchandise for every <\/span>shopper<\/span> in any given moment. Consumers will get the gratification that comes from in-<\/span>store<\/span> shopping<\/span>, and stores will have lower inventory and personnel requirements.\u201d<\/span><\/p>\n

Direct-to-Consumer Brands Embracing Physical Stores<\/strong><\/h2>\n

The value of seeing and touching the merchandise hasn\u2019t gone unnoticed by direct-to-<\/span>consumer<\/span> (DTC) brands. Innovative partnerships are emerging allowing once only online brands to now occupy mainstream <\/span>store<\/span> shelves.<\/span><\/p>\n

Harry\u2019s, Native, Function of Beauty, and Lively are digitally native brands now available to shoppers at Target. Its deal with toothbrush <\/span>brand<\/span> Quip is particularly unique in that the electric toothbrush is stocked in-<\/span>store<\/span> and online, but refills are fulfilled by Quip\u2019s own site drawing customers to the DTC site while scaling the company.<\/span><\/p>\n

Nordstrom also inked deals with Glossier, Away, Bonobos, and Skims and Crate & Barrel launched an exclusive deal with Parachute allowing for brick-and-<\/span>mortar<\/span> shopping<\/span>.<\/span><\/p>\n

\u201cShowrooming” used to be a derogatory term for browsing in a <\/span>brick-and-mortar store<\/span> and then buying the product elsewhere online as in browsing at Barnes & Noble and then purchasing at Amazon. Now, the concept has been turned on its head, as DTC brands are creating pop-ups and brick-and-<\/span>mortar<\/span> stores to incentivize consumers to purchase then and there. For example, Casper plans to open 200 physical stores across North America, and Adore Me announced similar plans to open 200-300 locations over the next five years.<\/span><\/p>\n

The Value of Omnichannel Shopping Experiences<\/strong><\/h2>\n

Omnichannel retail is about creating consistent experiences across apps, websites, <\/span>social media<\/span>, ads, and in-<\/span>store<\/span> visits to increase customer engagement. Put simply: customers want to purchase effortlessly and seamlessly across every platform. Shoppers also want to choose how they receive their merchandise whether it\u2019s shipping, curbside pick-up, in-<\/span>store<\/span> pick-up, or pick-up in lockers. Retailers who monitored <\/span>omnichannel trends<\/span><\/a> and embraced multichannel <\/span>shopping<\/span> pre-pandemic saw Buy Online, Pick-Up in <\/span>Store<\/span> (BOPIS) grow 28% year-over-year in February of 2020 compared with 18% in January<\/span>3<\/sup><\/span>.<\/span><\/p>\n

BOPIL Boosts Customer Satisfaction, Sales, & Loyalty<\/strong><\/h2>\n

While <\/span>BOPIS (Buy Online, Pick-Up in Store)<\/span><\/a> is now mainstream with 90% of stores expected to offer the service in 2021, it\u2019s the savvy retailers who are embracing Buy Online, Pick-up in Locker (BOPIL\u00ae).<\/span><\/p>\n

Before Lowe\u2019s installed smart Parcel Pending lockers, <\/span>customer<\/span> satisfaction rate averaged 49%. When <\/span>smart lockers<\/span><\/a> were installed in 1,700 brick and <\/span>mortar<\/span> stores, shopper satisfaction rates jumped to a whopping 81%!<\/span><\/p>\n

Since it only takes less than 30 seconds on average to retrieve a package via BOPIL, customers rate their <\/span>shopping experience<\/span> higher than with other channels. Further, research shows that if the perceived wait time is less than two minutes, customers are four times more likely to purchase again.<\/span><\/p>\n

The two-minute mark also remains magical when it comes to fast and easy returns management. Customers who collect their order from a smart locker and decide not to keep it, are able to communicate with the <\/span>retailer<\/span> and place it back into the locker for a no-hassle return.<\/span><\/p>\n

Of course, it\u2019s not simply <\/span>customer experience<\/span> and loyalty that matters in the retail space, but sales too. When a retailer helps a customer save time, that customer is significantly more likely to linger and make additional purchases while in the store. In fact,<\/span> 61% of all customers<\/span><\/a> make an additional purchase when retrieving their order via BOPIL<\/span>4<\/sup><\/span>.<\/span><\/p>\n

Leveraging the Power of BOPIL with Artificial Intelligence<\/strong><\/h2>\n

Personalization in marketing messages remains an enormous opportunity with the help of smart lockers. Brick and <\/span>mortar<\/span> retailers can:<\/span><\/p>\n