Optimising Click & Collect Without Affecting Sales

Client Story: Wickes
Good Growth - Wickes

The Challenge

Wickes, one of the UK’s largest home improvement retailers, has long been a destination for traders and DIYers alike. Wickes tasked Good Growth with growing the number of customers utilising its Click & Collect proposition – the reasoning for this was to reduce fulfilment costs, whilst also driving footfall back into stores.

This activity presented several initial questions:

  • High adoption of the home delivery proposition is typically limiting to the bottom line due to the high cost to serve. How can Wickes respond to this high cost to serve for home delivery whilst maintaining conversion?
  • To what extent is the fulfilment proposition a cause of customer failure, and how does this impact adoption of home delivery vs. Click & Collect?
  • How does adoption of different fulfilment options influence customer value? is there a role for home delivery for a specific segment of customers, and how does Wickes ensure that fulfilment is used to maximise lifetime value?
  • Are particular customer segments or product types more or less likely to be associated with home delivery, and how many orders are suitable to be migrated from home delivery to Click & Collect?
  • Why do different customer segments prefer home delivery or Click & Collect? To what degree is there an appetite for Click & Collect over home delivery and what are the barriers to adoption?

Our Approach

To fully understand the issues at hand, Good Growth embarked upon a strategic programme of activity that began with establishing a rich understanding of the data, modelling of value opportunities, and identification of orders viable to move from home delivery to Click & Collect, blended with customer insight. This helped to build the business case and inform our ongoing programme of innovation.

Actionable Data: Collaborating with Wickes’ internal teams, we formulated a range of metrics to assess current performance. This was achieved through an extensive analysis of customer journeys, surveying, and thorough auditing of analytics.

Customer Insight: We integrated quantitative and qualitative data to create detailed, practical insights into the reasons why customers may fail to engage with the Wickes Click & Collect proposition, which led us to develop several strategic themes regarding reasons for failure: Priority, Availability, Urgency and Practicality.

Test & Learn: By engaging in iterative cycles of testing after building and interrogating robust data sets, we were able to implement new onsite experiences quickly and efficiently, allowing us to measure commercial impact at pace.

Actions and Findings

  • Our initial efforts were concentrated on optimising the checkout process. However, the most impactful results emerged when we expanded our scope to include the earlier stages of the customer journey such as Navigation Menus, PLPs and PDPs – flagging Click & Collect options sooner.
  • Encouraging consumers to modify their purchasing behaviours proved to be challenging due to a myriad of variables. Nonetheless, we managed to incorporate several significant factors into our modelling, including item size, volume, weight, distance to the store, and stock availability. Clearly, not everyone or every product is suitable for Click and Collect, and therefore our model needed to reflect this.
  • Overall, we were able to successfully implement a series of 15 tests across the Wickes site. Testing was eventually migrated from Google Optimise 360 to Good Growth Technology, allowing for quicker and more complex tests, and the option to mainstream experiences directly across the Wickes site.

The Results

  • As seen in the latest Wickes Trading Statement, they have seen a 5.6% increase in Click and Collect Sales, directly contributing to Wickes’ strong overall performance in Q2 2023 [1].
  • 5 of the tests have been mainstreamed onto the Wickes site due to their strong commercial performance.
  • Wickes have seen a Revenue ROI of 800% from the insight, testing activity and innovation delivered by Good Growth.

 

Conclusion

The optimisation work completed by Good Growth, alongside a move to a 30-min Collection promise, successfully enhanced the Click & Collect proposition, driving customer behaviour change and leading to a 5.6% sales increase in Q2 2023. Our strategic, data-driven approach — focusing on early customer journey stages and rigorous testing — has so far allowed us to capture 45% of the projected opportunity and achieved an impressive 800% ROI. This showcases the effectiveness of our methods in promoting cost-effective fulfilment options, driving in-store footfall, and leveraging continual innovation in creating robust, customer-centric digital solutions.

[1] https://www.londonstockexchange.com/news-article/WIX/trading-statement/16054100