Posts

Before adopting restaurant self-service POS payment options, you should understand the pros and cons and make sure that you don’t damage the customer experience in the process.

Do Diners Really Want Restaurant Self-Service POS?

More and more restaurants are moving toward not only restaurant self-service POS but digital ordering options as a way to increase efficiency and match capabilities to the consumer’s ever-increasing love of all things tech. It may be inevitable that most – if not all – restaurants eventually offer customers the ability to process their own payments in the course of their dining experience.

Inevitable or not, it’s important for restaurant owners to understand how implementing a self-service POS could impact their customer’s experience for better and for worse, so they can make sure they don’t unwittingly damage the customer experience in the process. Data from a Panasonic white paper called ‘Self Service POS: Do Diners Really Want It’ published on QSRWeb.com earlier this year provides information that restaurant industry entrepreneurs might want to consider before they take the plunge.

Pros and Cons of Restaurant Self-Service POS

Pros and Cons of Restaurant Self-Service POS

Pro: Diners want the option – nine out of ten diners say they would prefer using a self-service option at the table (but not at a kiosk).

Con: Diners face a learning curve – navigating a menu (especially one they are not familiar with) and learning a new software environment takes time and doesn’t come easily to everyone. Wait staff who might have processed the payment in less than a minute might have to spend more time helping diners successfully use the platform, or fix the problems when they don’t.

Pro: Self-service options enable customization – 47% say they would use self-service options to customize their orders and tailor them to their preferences.

Pro: Self-service POS makes it easier to split the bill – 39% say they would want to use self-service POS to split the bill.

Con: Restaurants may incur higher merchant card processing fees when multiple payments are processed.

Pro: Millennials prefer it seven to one and Gen Y and Xers lean toward it (57%).

Cons: Polar opposites, 65% of Baby Boomers would rather not order for themselves and 40% of Gen Y and Gen X diners aren’t interested.

Cons: It’s a no-go with fine diners who are paying more (in part) for high-touch, hands on service, plus 13% of fast foodies aren’t interested either, since they’re worried about holding up the line behind them. Quick-service restaurants have the process down to a science; so much so that self-service ordering and payment POS systems are often slower than working with a live server.

Cons: The more self-service in the customer-experience, the less control and opportunities a brand has to exceed expectations and leave a lasting impression.

Restaurant Marketing: 3 Ways to Provide a Full-Service Experience in a Self-Service World

Repurpose the human element, don’t eliminate it.

Many people perceive implementation of kiosk and POS tech as an attempt to reduce payroll; however, the real goal should be to free up a restaurant’s employees to become true brand ambassadors whose role is to improve the customer experience, not automate it.

Make it an option, not a requirement.

A self-service POS is by no means a slam dunk with Baby Boomers, Gen X and Gen Y. As you introduce technology to enable digital ordering and self-service restaurant bill payment, you should view it as an option that can enhance the experience for some but detract from others. It should not replace the diners option of ordering from and having their payment processed by a real person, but be introduced as an option for those who are interested.

Use tech to boost up-sells and keep diners in your restaurant longer, instead of viewing it as a way to speed customers in and out the door.

Increasing the average order of diners can make a restaurant much more profitable. Instead of viewing restaurant self-service POS as a way to increase efficiency and move diners through more quickly, use its technology to make suggestions to diners about side dishes, beverages and special offers that can boost your bottom line revenues.

***

We may be able to help you reduce your restaurant merchant services fees and we also offer free service and setup for restaurant point of sale solutions:

Interested? Contact us at 888-580-2234 or complete the form below for a free, no-hassle quote on any of our salon business solutions.

Field is required!
Field is required!
Field is required!
Field is required!
Interested in (check all that apply)
Field is required!
Field is required!

Digital signs aren’t inexpensive, but the marketing benefits for retail stores and restaurants can be significant. Here are ten ways digital signs help retail marketing.

Invest in Digital Signs, Reap These 10 Benefits – Digital Signage Statistics Infographic

Some of the benefits of installing digital signs in your restaurant or retail store are readily apparent. Unlike non-digital signage, marketing messages can be changed more frequently and video-based marketing is a proven winner with today’s shoppers. Even so, the cost of using digital signs for marketing can seem prohibitive, since retail stores or restaurants may need to be prepared to pay for:

  • Screens (often LCD televisions) and mounts
  • Player hardware
  • Software purchase or subscription
  • Installation, on-boarding, setup and initial training
  • On-going support or maintenance

All of this, before the unit is even turned on. Given that this could mean an expense of a few to many thousands of dollars depending on the number of digital signs installed, it’s not a strategy to be implemented lightly. Fortunately, statistics seem to show that the investment is well-worth the cost. As you evaluate which marketing strategies you might use to grow your retail store or restaurant business more quickly this year, consider these ten marketing benefits enjoyed by businesses with digital signs.

Infographic: Digital Signs Statistics Shows 10 Retail Store and Restaurant Benefits

1. Improves Recall

Marketing displayed on digital signs have a recall rate of 83 percent. A Nielsen survey of travelers found that 82 percent recalled specific ad campaigns they had seen during the last month. Plus, since digital displays can be changed frequently and used to display multiple messages over the course of a given customer’s or diner’s visit, they capture 400 percent more views than static displays.

2. Increases Spending

Digital marketing displays bump up average purchase amount at the POS (point of sale) by nearly 30 percent. One big reason for this is how they “feed” the impulse-buy-friendly consumer’s brain. One in five consumers say they made unplanned, impulse buys of products they saw advertised digitally.  Additionally, businesses that use digital signage enjoy a 32 percent upswing in overall sales volume. Digital marketing signs provide the opportunity to make shoppers or diners aware of special or limited-time offers, closeouts, or to introduce them to previously-untried menu options or products. They can be employed at any point in the restaurant customer’s journey, from the entry way to the waiting area, table, bathroom and right up until the POS point of sale transaction.

In one experiment, two static signs went head to head with one digital display in an effort to prompt customers to go to the help desk to receive a free tote bag. Both locations had similar amounts of traffic during the experiment; however, only six people took advantage of the offer in the location where static signs were displayed, while 610 people grabbed the free tote bags in the location where the digital display conveyed the offer – over 100 times more.

3. Increases Retention

Not only do digital signs improve the customer’s ability to recall specific marketing messages, they also improve customer retention for the businesses that use them by 30 percent. Digital signage gives the retailer or restaurateur a uniquely powerful way to engage and interest patrons, which in turn, can help the shopper feel more personally connected to the business.

4. Improves Satisfaction

Using digital signage boosts customer satisfaction by 46 percent. Digital messaging can help patrons feel like they’re “in the know” and make them aware of anything from a flash-sale to in-store only offers, closeouts, and other sale-related data that makes them feel reassured they are getting a great value for the money they spend at a business. They can also be used to let customers know about how the business is participating in the community, charitable give-backs, brand story, company history, and other information that can make the consumer feel happy about choosing to do business there. Digital signage can also be used to help guide the shopper to the items they’re looking for more quickly, giving them additional time to browse before they need to leave or helping the consumer who doesn’t particularly like shopping expedite the process.

5. Generates New Traffic

Businesses that implement digital signage generate a 33 percent increase in the number of repeat buyers; moreover, they also increase in-store traffic by 33 percent. Improved brand and marketing message-awareness can lead to more word of mouth marketing and referrals occurring outside of the business. In fact, in one study of small businesses that had installed outdoor LED digital signage, an impressive 86 percent – nearly 9 out of 10 – believed the new signs had brought them new customers, and nearly as many (83) noticed an increase in sales after installing the digital signs.

6. Keeps Customers In-Store Longer

In retail, the longer a customer stays in the store to shop and browse, the more they’re likely to spend. Using digital signage in-store produces a 30 percent increase in the length of the shopper’s visit.

7. Reduces Perceived Wait Time

Digital displays with engaging content serve as an entertaining distraction, reducing the dissatisfaction that waiting engenders. Whether restaurant patrons are waiting to be seated, waiting for their food, waiting for a sales person, waiting to check out at the point of sale (POS), digital signs can be used to amuse, educate and interest. As a result, even if wait time is equivalent, consumers perceive wait-time to be as much as 35 percent less at businesses where digital signage is present vs. those without.

In addition, digital devices can be used to set expectations and display information about wait times, call customers forward, and let people know which cash registers or stations are available for whoever is next. Expediting the queuing process reduces wait time for everyone, and also helps to manage expectations and reduce customer anxiety (such as the anxiety that they might have been overlooked or forgotten).

8. Significantly Improves Brand Awareness

It should come as no surprise that digital signs are 47.7 percent effective when it comes to brand awareness. Another Nielsen study on “Awareness and Effectiveness of Digital Display Screens in Grocery Stores” found that patrons exposed to point-of-sale digital ads exhibited a 31 percent increase in brand awareness and recall.

9. Creates Intrigue

59 percent of people who saw digital signage wanted to learn more about the advertised topic. Digital displays can often be programmed to display many different messages, exposing the patron to many different brand and marketing impressions during a given visit to the retail store or restaurant. The more retailers and restaurateurs recognize and take advantage of the medium to entertain and engage, the more they can create interest and intrigue among customers.

In addition, digital signage can be used to display information about offers scheduled for the future, helping to spur repeat visits and to potentially increase the frequency at which the customer regularly visits the business.

10. Improves Employee Engagement, Productivity

Customers aren’t the only ones whose behavior is impacted in ways that benefit the retail store or restaurant. Businesses with digital signs had improvements of 20 to 25 percent in employee engagement, with a corresponding increase in employee productivity. Digital displays can also help employees remember to engage with patrons about specific special offers or new products, or motivate the customer to ask the salesperson for more information as a conversation starter.

The good news for retailers and restaurateurs who have been discouraged from installing digital signage due to cost concerns is that unlike the cost of most things – which only rises over time – the cost of this technology has decreased significantly. While the average cost of digital signage was $8500 in 2004, that number dropped to $3720 in 2010. Like similar technologies, it’s one whose highest cost is at the pioneering phase, that is reduced significantly and quickly as more companies enter the marketplace and volume as well as continued advancement decreases the cost of equipment, software, and infrastructure for everyone.

Digital Signs Statistics Infographic Shows 10 Retail Store and Restaurant Benefits

Restaurant loyalty programs that offer deep discounts, 2-for-1 offers or daily deal marketing programs take note: A recent survey revealed the overwhelming majority of restaurant-goers will frequent their regular, favorite restaurants, regardless of price or promotion.

Are restaurant specials or special restaurants the key to restaurant loyalty?

They say “The way to a man’s heart is through his stomach,” and apparently the same holds true when it comes to restaurant loyalty programs. When it comes to restaurant loyalty, it might be more effective restaurant marketing to offer customers a special restaurant, rather than reduce margins and profitability  through discounts and restaurant specials.

Since we provide restaurant POS (point of sale) terminals, software and mobile solutions, we hear about a variety of creative ideas from our customers. When small business owners come to us for restaurant POS equipment or software, it’s often to help fuel their growth. Putting effective restaurant marketing tactics into place is usually high on their list of priorities.

So we took note when a marketingcharts.com article pointed out that when it comes to customer loyalty to restaurants, only about one quarter of those surveyed in a new report from The NPD Group will switch restaurants because of a special promotion.  A wide majority of restaurant-goers said that regardless of promotions, they would continue to dine at their familiar, favorite restaurants, instead.

restaurant loyalty marketing - restaurant marketing ideas

Turns out, the best way to gain loyalty among restaurant customers isn’t by offering discounts and restaurant specials — it’s by making the restaurant special. So we came up with six ways you can make your restaurant more special in order to garner customer loyalty, repeat visits and referrals.

6 Ways to Improve Restaurant Loyalty Marketing

1. Train and empower staff to go the extra mile for customers in solving problems, righting wrongs or relieving dissatisfaction.

2. Infuse every customer visit with an unexpected, exclusive “gift;” be creative! This could be as simple and inexpensive as:

  • bringing a treat with the check that is different than delivered to adjacent tables
  • bringing a sample size of a new appetizer, entrée or drink and ask diners to taste and provide feedback (this might even spur new sales of that menu item!)
  • having hand-written thank you cards at the ready and asking wait staff to sign and deliver at the end of a customer’s visit

3.  Create a unique and impeccable atmosphere. Infuse elements of your brand identity into memory points throughout your restaurant. Install furnishings that reflect your brand and caters to customer comfort, privacy and other amenities.

4.  Solicit, act on and recognize customers who provide you with suggestions for improvements. People love to be recognized – why else would all those restaurants feature photo walls of sombrero-laden patrons?  Certainly not for the fashion statement!

5.  Be connected within your community in supporting causes and organizations that matter to your most valuable customers.  Host a local business networking group.  Support student car washes and fundraisers.  Recognize local community servants.

6.  Above all else, be known for the quality of experience that you deliver from end to end during the customer’s experience at your restaurant – especially, of course, the food!  Restaurants develop loyal patrons by delivering consistent quality of menu items and exceptional, unique levels of personalized service, time and time again.

The key to loyalty for restaurant customers must lie in delivering what the customer has come to expect – and want – over and over again. They want to know that they can count on their favorite restaurant, and their favorite menu item, when they’ve had a bad day, when they’re hosting an out of town guest, when they want to impress a boss or co-worker or they just want to relax with family or friends.

So forget restaurant specials!  Deliver quality of restaurant customer experience, and you will make your restaurant special – which produces a far greater return on restaurant loyalty.