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Shopatron seeks to help retailers drive
online buyers into stores
From June 2008
By Fiona Soltes
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Sponsored by
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In these days when every second counts,
it’s no surprise |
| that consumers would
want to break up the shopping experience
into smaller segments that fit more
easily into their overbooked lives. |
Consider, for example, being able to shop online
during a free moment, and then head to the store
to pick up that purchase when it is most
convenient. This is a reality offered by
Shopatron, which until recently was seen more as
a non-competitive way for retailers to be the
fulfillment partner for their suppliers. As
times have changed, however, the organization
now presents itself as the solution for the
instant-gratification customer.
“The main driver behind all of this is
convenience,” says Shopatron CEO Ed Stevens.
“Life is busy, and people want what they want
when they want it.”
The way Stevens sees it, Shopatron isn’t merely
a good concept; it’s one that’s been proven
effective. Surveys, he says, show that in some
cases 55 percent of consumers use in-store
pick-up when it’s available. In addition, once
inside the store, 25 percent of online buyers
increase the size of the order.
Such a system “improves foot traffic, and
there’s a good likelihood that they’ll see what
else that store has to offer,” Stevens says.
“That’s a big advantage over just shipping
something to that consumer’s front door.”
Steve Doviak, Internet manager for car rack
manufacturer Thule, has seen this in action.
Until recently, his company’s e-commerce
presence was “primarily replacement parts,” and
when consumers came to the website they’d be
pushed offline to a retailer. Now, however, the
company offers its line for direct sale with
in-store pick-up through Shopatron; the move has
allowed Thule to build better relationships with
retailers, as well as save customers an average
of $100 to $120 on shipping for luggage boxes,
truck racks and other large items.
“The program is really starting to bloom for
us,” Doviak says. “The response has been very,
very good.” But there’s another part to the
story: The Shopatron element allows Thule to
promote retailers that offer great levels of
service, and it also allows those retailers to
better allocate employee resources during
seasons “when their time may not be best spent
packing boxes,” he says. “It’s good all the way
around.”
Pervasive utility
Stevens, who launched Shopatron in 2001, says he
can easily see a day when this process will be a
“pervasive utility.” At this point, however, it
still takes elements of technology and
operations, and Shopatron can help with both.
“Companies must have the operational knowledge
to manage complex transactions with staff spread
out over multiple locations,” he says. “Staff
training is a large issue for retailers, but we
offer 100 percent operations support.”
Initially, Shopatron worked primarily with
manufacturers. But with a greater understanding
of the potential consumer benefits, it realized
“there were a whole slew of retailers out there
that couldn’t provide this solution for
themselves.” It doesn’t matter how many stores a
retailer has; it’s more important that the
retailer have a viable online presence.
And those retailers that don’t view the option
of in-store pick-up as another way to care for
customers’ needs may well be missing the boat,
Stevens says.
“For any retailer that does an elementary
analysis of the next few years — anyone that
looks at customer behavior — it should be
patently obvious that consumers really, really
want to order online and pick up in a store,” he
says.
“The numbers are huge, especially considering
it’s not so pervasive yet. For those with
Shopatron in place, conversion rates have
improved by double-digit percents [and] we’re
seeing 30 to 50 percent participation from
consumers.
“Any time something has that kind of consumer
interest behind it, it’s strategically essential
to put it into process,” Stevens says. |
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