How Select & Collect maximize ROI with natural upselling
November 15, 2017
Investing in an automated sales system such as Select & Collect, is not only a great way to keep up with the market getting digitised. When implemented correctly, it also becomes a way of increasing sales. Here are some tips on how you can make the most out of your Select & Collect solution.
With Select & Collect, sales are increased due to more natural upselling opportunities. When customers purchase a Select & Collect product, by the touch screens or at the self-checkouts, a product recommendation can appear as a promotion banner. Customers are encouraged to make an extra purchase with suggestions like “customers who bought candy also bought chips”.
This kind of upselling is not possible with traditional checkouts. Cashiers can only make upselling suggestions that are within reach from the checkout, since the customer is already on the way out. With Select & Collect it only takes a click to add an extra item from the dispenser to the basket.
If only a few percent of Select & Collect customers choose to pick an extra item based on the product recommendation, it won’t take long until the increase in sales is enough for the system to pay itself off.
When it comes to self-checkouts, the demand for them is increasing. It’s even becoming common with stores that only have self-checkouts. Getting a Select & Collect solution that integrates with self-checkouts is thus a good investment for the future. In an average supermarket, that serves between 7 000-10 000 self-checkout customers per week, upselling with Select & Collect can generate up to 23 000 EUR additional profits per year.
Read more about the Select & Collect concept here.
Implementation is key
When purchasing a Select & Collect solution, it’s important to see it as a long-term investment. It requires proper implementation and change in behaviour, from both customers and staff. Done right, the system will help optimise sales and maximise ROI, just as we mentioned earlier.
The first step of implementation is to analyse the store. You need to set a clear goal for the system before installing it. What are the Key Performance Indicators for your store? What are the most popular items and how well would they do as product recommendations?
You also want to be aware of the frequency of purchases to know just how many items to put in the dispenser at once to optimise refills. What size is your store? Maybe you need more than one dispenser. Some stores have five or more.
Staff and customers need to be educated on using the system. Staff members should learn how to handle dispensers with refills and how to promote the system to customers. Customers on the other hand, are educated by being encouraged to use the system by staff.
After a few weeks, the actual use of the system should be evaluated against the previously determined Key Performance Indicators. Is everything working the way it should? Is the purpose for the store fulfilled? Some minor adjustments may have to be made along the way, particularly in the beginning. That is perfectly normal. After all, it’s a long-term investment. And behaviours are changed step by step.
Do you want to learn more about Select & Collect? Download our guide “Zero shrinkage and optimised tobacco compliance with Select & Collect”.
Make sure to always stay updated on the latest StrongPoint news and retail trends