In 2020, the home became the center of everything, and PICKUP helped this retailer answer the call. As COVID-19 relegated consumers to the confines of their homes, it also forced retailers to temporarily shutter or limit capacity in their physical storefronts. Both consumers and retailers found themselves at a crossroads.
Consumer demand for home essentials—including furniture, seasonal decorations, consumables and soft and hard home goods—soared as consumers sought to make their homes the new center of everything. Consequently, there was increased demand for home essential retailers to dramatically improve the delivery experience.
A nationwide discount retailer needed to find the best way to meet these new customer demands with a more convenient option to deliver its full product assortment, from furniture and mattresses, to home décor and consumables. The retailer wanted to offer its online shopper options such as same-day, next-day or scheduled deliveries. PICKUP provided the most advanced solution for a best-in-class, customer-friendly delivery experience.
Creating a curated delivery experience
Prior to the onset of the pandemic, the retailer utilized PICKUP’s delivery services on a limited basis in its physical stores through PICKUP’s referral program for preferred vendors. As customers made purchases of big and heavy items, they would receive a referral card to schedule their delivery directly with PICKUP of purchased items from the retailer’s store.
However, this was an additional step for the customer, rather than a direct extension of the retailer’s last-mile delivery and fulfillment offerings. As the pandemic continued, the company recognized the need to provide a seamless delivery experience to fulfill e-commerce orders of its full assortment of products.
Prior to working with PICKUP, the company did not have the capacity to directly provide customers a “buy online, deliver from store” same-day or scheduled delivery offering. The only option was to buy online and deliver from warehouse—a process that could take days or even weeks. To increase customer satisfaction and provide immediate gratification, the retailer expanded its relationship with PICKUP, just in time for the busy holiday season.
Optimizing delivery fulfillment
After an exhaustive review of potential fulfillment partners, the retailer selected PICKUP’s integrated API solution, Fusion Formula (formerly known as Enterprise), to offer same-day and scheduled delivery of its full assortment of goods to customers via its e-commerce website. The implementation took place in July 2020. Through this partnership, shoppers can now take advantage of the retailer’s “buy anywhere, deliver anywhere” (BADA) model to receive orders with convenience and consistency. As well, PICKUP’s Perfect Delivery algorithm helps the retailer optimize its delivery experience success with business intelligence, including delivery quality, tracking on-time performance and Net Promoter Score.
PICKUP Good Guy delivery network quickly fulfilled the retailer’s vision of creating a fast, flexible and friendly experience for shoppers. This fully vetted and trustworthy delivery team, along with live customer and field support teams, gives the retailer and its customers a high degree of confidence. PICKUP complements its Good Guy services through a partner network of providers that specialize in small parcel items.
Growth in e-commerce and basket size
Through its partnership with PICKUP, the retailer has seen a significant increase in its overall e-commerce growth and has gained the ability to ship from store and ensure two-day delivery to 90% of its customers across the country. These achievements contributed to the retailer’s No. 1 ranking in Total Retail’s 2020 Top Omnichannel Retailers Report.
Overall, the retailer reported:
- 130% growth in e-commerce and omnichannel sales during Q4 2020 compared to Q4 2019, contributing close to 300 basis points to the company’s YoY comps.
- Strong KPIs across the business in Q4, with site traffic up close to 40% and conversions more than doubling. § Improved delivery times through two-day shipping, same-day delivery and curbside pickup.
What’s next for 2021
Looking ahead to the 2021 holiday sales season and beyond, the retailer plans to build on the success it witnessed within its e-commerce category in 2020 by expanding its partnership with PICKUP and the areas served by its enhanced fulfillment options. PICKUP Fusion Formula will allow the retailer to serve more rural and tertiary markets, in addition to every major city in the United States, where PICKUP is already located.
