Omni-channel retail has opened new sales channels for consumers to explore. Many use the given advantages especially in their pursuit for the ultimate Christmas present for their loved one. What role could Click & Collect and RFID play in all this?
It's coming again - Christmas. It means large sales volumes for
retailers, a buzzing number of online orders and masses of people
wandering in brick-and-mortar stores. Thanks to the Omni-channel
trend, Click & Collect has gained a foothold in retail
shopping, and retailers see great marketing possibilities here. In
perfect implementation, the retailer manages to serve both online
and brick-and-mortar shoppers and deliver the goods on time.
JDA/YouGov research, 39% of online shoppers used Click &
Collect services in Christmas 2014.
Moreover, Christmas 2014 was a success for retailers applying
Omni-channel strategy. For example Tesco, John Lewis and Argos were
all triumphant selecting their product mixes to match perfectly
both their online and brick and mortar business. 56% of John
Lewis's online customers chose to use their Click & Collect
service instead of home delivery. The common denominator for all
three companies above is that they utilize RFID. Could that explain
these new shopping trends?
Road to success
Christmas is a crucial time for retailers to achieve a sales
uplift and to sell even more than before. New records of selling
are acquired through optimized fill and competitive pricing.
Macy's states that Click & Collect compiles to 125% of intended
purchases. For customers, the reasons to choose the Click &
Collect service instead of walking into a traditional store are to
avoid queues and the hassle related to physical shopping, but also
to guarantee the product's availability. When you click the product
online, you get an estimation of your product's arrival time at the
store of your choice, and when the product has arrived you get a
notice. This works vice versa too for the retailer. The retailer
does not experience out-of-stock situations but instead keeps the
stock up-to-date. Better product availability results in sales
RFID gives Omni-channel retailers a boost
- Inventory accuracy: Omni-channel retailers
using RFID succeed due to increased inventory accuracy. RFID
provides real-time data of the stock situation, whether there is
only one centralized stock in one location or several smaller ones
in multiple locations.
- Delivery accuracy: As one reason to choose
Click & Collect was to guarantee the product's availability,
RFID can boost delivery accuracy from 40% up to 90%.
- On-demand inventory visibility: RFID enables
locating individual SKU's all around the world. Searching for a
specific item is quick as RFID enables performing the item search
by one click.
- And if Santa Claus fails - Returns: Time spent
on returns handling decreases by 85%.
In the Omni-channel business, sometimes the online order is
filled from selected stores. This can cause challenges in keeping
stock balances up-to-date in individual stores - when the stores
receive an online order to fill, the system thinks there is stock
in those stores. A UK-based retailer experienced an issue with this
procedure when 30% of their online orders were rejected as
according to their inventory they did not have the expected items
in stock. Two days after the RFID implementation, the stock
accuracy had improved dramatically.
As can be seen, RFID lifts Christmas sales in Omni-channel to
the next level. With RFID, the retailer generates more sales than
last year. Happy customer, happy retailer - and a happy Santa!