Could click and Collect Save the High Street? By Russell Smither, Insight Director, Posterscope

Click and collect truly entered the mainstream in 2014 providing opportunities for retailers, customers and arguably OOH advertising.
Deloitte reported that click and collect had more than doubled in the UK between 2012 and 2014 with total revenues of £5.6bn and 140 million orders last year. And as we enter the Q4 Christmas period, when retail sales peak both online and in store, click and collect is even more significant. John Lewis is a great demonstration of this – in 2014 online shopping accounted for 36% of all John Lewis Christmas sales, but of this an astounding 56% of online shoppers collected their purchases in store.
Similarly, You Gov research amongst almost 2,500 consumers on 29th/30th December 2014 also found that 39% of consumers had used click and collect for Christmas shopping with 53% stating convenience as the driving factor. So clearly click and collect is a growing trend. The table below summarises the main benefits for both consumers and retailers driving its ever increasing popularity.

CONSUMERS RETAILERS
Collect at convenient time and place               e.g. In store or transport hubs like Doddle Home delivery at capacity
No delivery concerns Reduce delivery costs
Avoid shipping / delivery costs Drive in store footfall
Same day delivery Drive incremental spend
Face to face interaction in store Reignite physical store relationship
Easier Returns
Facilitates impulse / forgotten purchases in store

 
So you may ask why Posterscope believe click and collect provides such a great opportunity for OOH advertising?
CLICK AND COLLECTORS HAVE A STRONG AFFINITY WITH OOH
Firstly, the target audience benefitting most from click and collect are young, urban and mobile. Home delivery is not convenient for consumers with busy lives who by definition spend most of their time out of home. A 2014 report stated that almost half of 18-34 year olds experienced problems shopping online at Christmas 2014 largely due to missed or late delivery, which is double the figure for all adults. Click and collect is the ideal solution.
Posterscope’s own proprietary survey OCS (Out of Home consumer survey) which interviews over 5,500 consumers also identifies that consumers who use click & collect have a very strong relationship with OOH advertising. “Click & collectors” are 18% more likely than average to be heavy OOH consumers and 20% more likely to notice OOH adverts. They also have very positive attitudes towards Digital OOH, in particular relevant messaging such as a countdown clock to an event e.g. Christmas (Index 125), providing many tactical opportunities.
Click and collectors not only notice OOH advertising but respond to it. 4 in 10 have responded to an OOH advert in the last week (Index 136) with the most common actions being going online (28%, Index 167) and purchasing in store (11%, Index 142) – both linked to click and collect.
7 in 10 (72%) of click and collectors also search on their mobile devices when out of the home (Index 145) with over half (51%) researching products and services (Index 167).
OOH ADVERTISING DUAL ROLE IN CLICK AND COLLECT
Secondly, you could argue that OOH advertising has an important dual virtual and physical role regarding click and collect.
Virtually, OOH advertising’s initial role is to drive consumers online across multiple devices to research products and reserve them. But with the rise of click and collect, consumers are now making extra trips to physical stores to collect their reserved products. OOH advertising can therefore provide further inspiration and drive consumers onto their smartphones to research products, compare prices or find store locations during these extra trips to the high street or shopping malls. Deloitte research in 2014 demonstrated that 17% of all in store purchases are influenced by consumers using smartphones within the shopping journey and OOH advertising can therefore help drive this “Mobile Influence Factor.”
Physically, OOH advertising is well known for its use as a driver of store footfall, but as consumers are making extra trips to stores to collect their reserved purchases, OOH can again provide inspiration as a proximity medium acting as the last window of influence.
CLICK AND COLLECT – THE REDEEMER OF THE HIGH STREET
In fact, you could go as far as to say that click and collect could be the redeemer of the high street. Online has traditionally been a competitor to the high street, particularly at Christmas when gifting is prevalent. Yet click on collect counteracts that trend driving in store footfall and incremental spend. To put a figure on this, research from ebay and conlumino found that British shoppers make an average of 3 extra high street trips in the festive season in order to collect goods purchased online. On each individual trip, consumers spend an extra £27 on impulse, which equates to an additional £1.15bn spend nationally.
So Out of Home with its young, urban, mobile audience and dual virtual / physical retail role could be argued as the ideal medium to make the most of the growing click and collect trend which could define the retail landscape for many years to come.
Sources: IMRG UK Click and Collect Review 2015, IeBay / Conlumino Research, Telegraph, The Drum, Deloitte