The BOPIS EFFECT

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3

What’s Your BOP You are a freshman on the BOPIS campus...

You are a junio

feeling like the Covid-19 pandemic thrusted

“the” year for you. The

you into a senior-level series on market insights, business operations, customer experience, retail innovation and business economics. You’re ready for the challenge, but it’s a scramble and you can’t quite figure out how everyone else seems to be hitting this ease.

figured out and you’re

(without the stress f as a freshman, proving

or having to leave a

but the pandemic

“BOPIS plan” h

if not gone o

No matter your BOPIS grade level, Harbor is yo

70+ years of retail innovation and a consistent p

actionable insights and future-forward approaches to a

Read on, Reach Out & 4

PIS Grade Level?

or and 2020 was

e year where you have it about to work your plan

from figuring it all out

You are a BIG. BAD. SENIOR. You know what you want, you know how to get it (even if you have to adapt and hustle).

The Covid-19 pandemic has only provided

yourself as a sophomore

a legacy as a senior)...

c hit and now your

the much anticipated SAT test to stress your systems, logic, emotion and relationships –and you like the way

has accelerated,

the pressure feels.

of course a bit.

our guidance counselor for your path forward.

pulse on the industry at large gives you access to

apply NOW to out rank your fellow retailer classmates.

& Rev Up Your BOPIS 5

chapter 1

BIG on BOPIS BOPIS - a literal link between digital and physical worlds.

A trend already growing pre-pandemic, BOPIS catapulted forward, shoving 5 years of gradual growth into one month: April, 2020.

Although BOPIS and curbside use during the Covid-19 pandemic spiked by necessity, it will continue to represent a growing portion of sales for the foreseeable future.

62%

39%

19%

20%

vid Tra Pre-Co

2021

2022

23%

11% 2016

6

2017

2018

2019

2020 APRIL

e

ck Lin

36%

BOPIS usage at Best Buy, Costco, Home Depot, Kohl’s, Macy’s, Nordstrom, Old Navy, Target, Walmart 2017-2019 Rakuten Intelligence March-April 2020 - Adobe Digital Economy Index Forecast 2021-22 - Forrester Retail Forecast

chapter 2

BOPIS is the Golden Goose The power of BOPIS begins with the money it puts back into brand and retailer pockets.

Reducing fulfillment costs, increasing margin and growing revenue are only the start of what this Golden Goose can do:

85% of shoppers buy additional items when picking up in store.1 Average gross profit margins jump from 25% to 33% on cost savings over delivery fulfillment.2 90% of fulfillment costs go away with BOPIS, 40% with curbside pick-up.3 I n addition to the perks of purchase pick-up an even larger, but less talked about, bottom line boost is the 60% reduction in average return rates with frequent BOPIS users.4 f the $692B in 2019 holiday sales, 13% was lost to returns.

O That’s a $90B hit to the corporate wallet.5 65% of delivery order returns are because of retailer error.6

1

Doddle-2019, 2 Harvard Business Review-2018, 3-RIS-2020, 4 OrderDynamics-2018, 5 Optoro-2019, 6 Returnlogic-2020

7

chapter 3

From Advantageous to Imperative Implementing BOPIS is about more than just matching the competition, but while we’re on the subject, 90% of brands and retailers plan to implement BOPIS by 20211...And because we love stats: we’ll point out 68% of shoppers choose where to buy online based on the availability of BOPIS.2 BOPIS is officially a star player in the majors. Speed and agility matter with this century’s pace of upheaval. But most things in life work best when built on a good foundation, and BOPIS is no exception.

Roadblocks to best in class BOPIS that we see most often include: Brand experience is the most overlooked aspect of BOPIS. Create visual and experiential “handshakes” between your digital and physical platforms that evoke what customers love about your brand.

Without accurate real time inventory tracking, BOPIS won’t work.

66% of retailers admitted inventory inaccuracies that impacted customer satisfaction.3 This is bad news since 50% of those customers will switch retailers after one negative experience.4

80% of shoppers want pick-up in under 10 minutes of store entry.5 Placement must offer choice: from quick in/out, to a leisurely browse around the store. And going back to Point 1, every choice must reflect the brand.

Don’t just hand the shopper a box.

Make them feel good about their purchase. Allow them to inspect or test purchases before leaving, with instant refunds if wrong.

Often missed - give them a convenient way to carry it.

I ncorporate impulse buying and recommend product pairings.

It works for Amazon, who sees a 29% sales increase per quarter from ”Recommended for You”.

8

Zebra-2020, 2Forbes-2019, 3HRC Retail Advisory-2019, 4Gartner-2019, 5RIS-2019

1

chapter 4

Let’s Get Physical...

BOPIS Physical Dedicated BOPIS areas should fit with the rest of the store’s design.

Layering on added services like fitting rooms, Reserve Online Try in Store, concierge services and more will squeeze even more return out of the same BOPIS investment.

Nordstrom

Partnerships are golden opportunities. A 3rd party BOPIS provider, or partnering with neighborhood C-stores can put you closer to your customers, while saving costs, time and resources.

PenguinPickUp

The many forms of BOPIS are only limited by imagination.

Kiosks, curbside, shop-in-shops and more all offer the same benefits, but the same fundamentals still apply.

Walmart 9

chapter 5

The Sum of its Parts All physical and digital purchase journeys include a series of actions that shoppers most often experience in parts.

When linked together, however, these actions form the backbone of a powerfully effective best in class BOPIS experience.

Brand Experience

SHOP

NOTIFY

Clear usage instructions

Well timed Notifications

Convenient pick-up locations

Pick-up Location Map links

Accuracy of item availability Same day and next day pick-up options

Adherence to promised timing, or immediate notification of any delay Ability for shopper to change pick-up location

PICK-UP Self check-in to reduce perceived wait time Pick-up in sight of entry

Options for instant refund

Clear return instructions

Convenient drop points for future returns

An on-brand “thank you�

Choice of quick in/out, or store browsing

Portability convenience

Impulse offerings Pairing

RETURN

Loyalty incentives

Test/try-on options

Inventory Tracking 10

GRATIFY

Order cancellation for uncollected BOPIS pick-ups

How Do You Add Up? The more boxes you check, the further along you are toward achieving the benefits of a successful BOPIS experience.

Can you currently track all of your inventory in real time?

Does your eCommerce offer clear instructions on BOPIS options?

Do you have the ability to estimate and communicate accurate pick-up timing for BOPIS orders?

Do you have the ability to send real time notifications to customers if pick-up timing changes?

Are you currently able to fill online orders from both stores and distribution centers?

Does your in-store staff currently have bandwidth to take on BOPIS order packing and customer services?

Do you currently have a dedicated area in store for BOPIS and/or returns?

7= 4-6 =

0-3 =

You are a BOPIS Rockstar!

You’re on the way, we have some tips for accelerated success.

Give us a call for a quick start.

11

Mike Chou Business Development Director 214-763-7898 Mike_Chou@HarborRetail.com

www.HarborRetail.com