"Clicks and Mortar" Hybrid Model Appealing to Canadian Shoppers Study Finds
TORONTO, Dec. 17, 2014 /CNW/ - Nearly seven in 10 Canadians, (67 per cent) are willing to forego home delivery of products they have purchased online if it helps their pocketbook, a recent study has found. Nearly the same amount, 64 per cent said they would be willing to pick up the purchase in-store for a discount on that product. On average, a discount of between 10 to 15 per cent on online orders was seen as a sufficient trade-off to entice Canadians in-store. The survey of 1,000 Canadian respondents undertaken by LoyaltyOne – a leading provider of loyalty and marketing solutions and operator of the AIR MILES Reward Program - points to the growing popularity of the hybrid approach to online and in-store shopping, dubbed 'clicks and mortar'.
"Having a strong omni-channel strategy is a must for today's retailers, particularly as our research indicates Canadians are ready and willing to go in-store to pick up their purchases for the right price," commented Jeff Berry, Senior Director of Research and Development at LoyaltyOne. "Incentivized in-store pickup can be the ultimate win-win for retailers and customers alike. Shoppers purchase at their own leisure for lower prices and retailers get to maintain a full brand experience for customers with a chance of in-store incidental purchases."
Receiving additional loyalty program points was also a driving factor, influencing half of Canadians (49 per cent) to go in-store. On the other hand, receiving discounts on future purchases or additional purchases made in-store ranked among the lowest motivators, but would still incent over one quarter (26 per cent) of Canadians.
While avoiding shipping costs is among the highest motivators for in-store pickup, paying for shipping is unthinkable to 42 per cent of Canadians, with only 14 per cent saying it is always worth the convenience.
Increasingly, grocery retailers are capitalizing on shoppers that prioritize convenience by offering a 'reoccurring subscription' service that allows customers the flexibility of having the products they regularly purchase to be available for pickup in-store upon their arrival. Of the Canadian respondents, one in five (22 per cent) say they would be interested in setting up such a service, which essentially gives retailers the opportunity to eliminate competitive shopping.
LoyaltyOne also surveyed 1,000 American respondents and found several compelling insights based on age and gender segmentations.
"When looking more broadly at the North American results, we found stark generational and gender differences. Those over 40 are much more price conscious than their millennial counterparts, who are over twice as likely to say yes to same-day shipping fees to get their hands on their purchases as soon as possible. Also, when comparing genders, men are twice more likely than women to pay for a same-day delivery service," added Berry.
Other North American findings:
- One in four men described paying a fee for same day delivery as 'worth the convenience', compared to only one in 10 women
- Those under the age of 40 are also significantly more likely to pay for a reoccurring subscription service to have their commonly purchased goods waiting for pickup at the grocery store. Just shy of 40 per cent of those aged 18-24 and 25-39 are willing to subscribe, compared to 16 per cent of those 40-54 and only eight per cent of those over 55.
- Men are 50 per cent more likely to opt into this kind of subscription service than females.
LoyaltyOne is a global leader in the design and implementation of coalition loyalty programs, customer analytics and loyalty services for Fortune 1000 clients around the world. LoyaltyOne's unparalleled track record delivering sustained business performance improvement for clients stems from its unique combination of hands-on practitioner experience and continuous thought leadership. LoyaltyOne has over 20 years history leveraging data-driven insights to develop and operate some of the world's most effective loyalty programs and customer-centric solutions. These include the AIR MILES Reward Program, North America's premier coalition loyalty program; a majority stake in European-based BrandLoyalty, one of the largest and most successful campaign-driven loyalty marketers outside of the Americas; and a working partnership with Latin America's leading coalition program, dotz. LoyaltyOne is also the owner of COLLOQUY, a group dedicated to research, publishing and education for the global loyalty industry.
LoyaltyOne is an Alliance Data company. For more information, visit www.loyalty.com.