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Report details the meteoric rise of mobile commerce

According to a new report from Business Intelligence, mobile generated spending is quickly gaining a foothold.  By the end of 2013, mobile commerce could account for more than 15 percent of all e-commerce, up from a mere 3 percent late in 2010.

The report details three main reasons for the uptick in mobile spending:

  1. The proliferation of mobile and tablet users.  Already mobile and tablet users account for a disproportionate amount of e-commerce spending, compared to their desk-bound counterparts.
  2. Mobile marketing efforts like catalogs and coupons are succeeding.  Mobile coupon redemption rates are ten times those of their paper counterparts.  Between driving foot traffic and gathering useful data, mobile commerce is a boon for businesses.
  3. Demographics paint a bright picture for the future of mobile commerce.  Smartphone sales are through the roof, but teens today do most of their internet surfing on a mobile device.  Smartphones are still an option or a novelty for some people today, but the next generation of consumers will look to mobile devices as their primary source of media and information.

Now is the perfect time for restaurants to get in on the mobile action.  Today’s consumers have expressed their desire for mobile and online food ordering.  Here’s to hoping restaurants catch up to the demand.

Eight components a restaurant app can’t do without

Folks these days are going gaga for smartphones.  A 2012 Pew Research poll revealed that 46 percent of American adults own a smartphone, a 25 percent increase over the previous year.  Smartphones make life easier and more convenient when it comes to communication, navigation, gaming and even shopping.  One type of smartphone use that is poised to see a big uptick is food ordering.

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Missing cogs in your mobile and online ordering machine could make the whole thing go haywire.

Big chain restaurants are realizing the potential of mobile and online ordering and taking advantage by offering slick new apps to their customers.  Smaller and medium sized restaurant groups also have access to mobile and online ordering apps.  With options available ranging from skeletal programming codes to add to an existing site to turnkey solutions to developing an app in-house, a restaurant management team might wonder which bells and whistles are essential and which they can kick to the curb.  Here are eight features no ordering app should ever lack.

  1. Cross-platform integration  The war between Android vs. iPhone is well-documented, including legions of passionate brand evangelists on both sides.  Whichever device they prefer, all of these users have the potential to become avid mobile food orderers.  Plus there are tons of people that might want to order via the mobile web or computer.  Why choose one platform or another?  Your app needs versions for all three media (Android, iPhone and web) and the consistent testing, updating and troubleshooting to go with them.
  2. Secure credit card processing  There is much ado among tech bloggers and journalists about which version of the “mobile wallet” will someday reign supreme.  So far no one system has made enough noise to grab a dominating portion of the market share.  Until someone finds that mobile payment holy grail, why not stick to what digital customers know and are comfortable with:  paying with cards?  Food ordering apps that offer secure credit card information storage and processing allow for the least amount of hassle for customers and merchants alike.
  3. Saved favorites  Regular and return customers often know what they want to order before they see a menu.  Since some the most appealing aspects of mobile and online ordering are convenience and speed, the ability to save favorite menu items for quick ordering is essential.
  4. Customer feedback  People that shop online or through mobile apps are accustomed to open, easy to access customer support and feedback.  Don’t disappoint them.  A good app will let customers share their feelings at the touch of a button, be it to the restaurant, app developer or sharing thoughts via social media.
  5. Charitable giving  Mobile and online ordering customers are just as generous as everyone else, so provide them a chance to give a little when they purchase through the app.
  6. Loyalty programs  Like so many other things, loyalty and rewards programs are migrating from wallets and purses into mobile phones.  Punch and swipe cards are making way for easier to manage counterparts that link to user accounts.  Mobile and online food ordering systems that make these rewards easy to track and redeem are that much more appealing to potential customers.
  7. Push marketing  Consumers these days are becoming experts at avoiding “intrusive” marketing.  On the other hand, many of the same people are more than willing to sign up to receive special offers they know they are interested in.  The best mobile apps allow restaurants to send push notifications, which are messages the app delivers to users based on criteria like location and previous ordering habits.  The old days of inundating the public with signs, billboards and flyers in hopes that a few customers might bite are in the past.  Connecting with the customers that want to hear about your special offers makes each marketing dollar that much more effective.
  8. Powerful merchant tools  Of course great apps offer tricked out experiences for customers, but they can offer useful tools for restaurants to take advantage of also.  One of the best aspects of the mobile and online economy is the prospect of pinpoint accurate customer data.  Restaurant managers should be able to track orders and payment, update menus and hours and prices from a tablet, smartphone or computer.  Another nice feature is access rich data including weekly transaction reports or the ability to monitor data from multiple locations from one portal.

If you are going to implement mobile and online ordering, don’t make the mistake of only going half way.  Be sure your app has all of the shiny new features that offer a top notch experience to customer and restaurant alike.

Image courtesy of Mr Lightman / FreeDigitalPhotos .net

Mobile integration is in the eye of the beholder

Bestselling authors Chip and Dan Heath recently released a book detailing their study of executive decision-making.  In Decisive, the Heaths discuss the biases and other built-in flaws that prevent people from making the best choices.  The authors contend that when a leader faces a difficult decision that seems to present a choice between two options, the first question to ask is:  How can I have both?

A restaurant, and its customers, can have their cake and eat it too

This brilliant turn of logic even applies to mobile and online ordering for restaurants.  A common question from restauranteurs considering a mobile and online ordering solution is, “Sure an app would be great for our customers, but don’t I need to integrate with my POS system?”

The answer is, “yes and no.”  First of all the word “integration” can have a lot of meanings.  One might be the implication that the mobile ordering app will work directly with the software on the POS system.  This is often difficult, expensive and in a lot of cases ultimately unneccessary.  Technical integration is filled with unexpected hurdles.  If integrating a mobile and online ordering system with a POS system results in any extra effort during regular business operations, integration could actually hamper a restaurant’s production process and drag down workflow.

The word “integration” can have a broader meaning, however.  Whether or not a mobile or online order and payment integrates with your POS system, the true mark of a robust mobile and online ordering system is one that integrates tightly into a restaurant’s work flow, and even improves it.  Mobile and online ordering should help a restaurant be more time efficient, increase throughput and ultimately lead to scores of happy customers. To that end, there are two questions a restauranteur should ask him or herself before deciding the best way to receive mobile and online orders:

  1. What is the work flow for my restaurant staff and customers, including ordering, preparation and payment?
  2. What services or devices have we already implemented that the staff is trained and accustomed to using?

With this information one can figure out a working solution for the needs of a particular restaurant, or even solutions if the needs vary from location to location.  For example, Splick-it offers six ways to present mobile and online orders to a restaurant.  Based on how a restaurant operates and the responses to the above questions, we are able to combine one or more order presentation methods to best suit the process and their budget.  If getting a phone notification and an email works better than a paper printout of the order, the system abides.

The point of sale marketplace is rapidly evolving.  The advent of the tablet computer and other more affordable payment systems have given greater influence to a niche of high-tech small business customers.  With new, cheaper, more versatile POS options springing up left and right, it is unwise to make too permanent a commitment.  Every integration of a software system or any other tool to a POS system represents another tether one has to sever before moving on to a better and/or cheaper POS solution.  No doubt POS providers envision a permanent marriage to their customers, but it better suits a restaurant to remain in a position to pivot with the technological winds.

When you think of mobile and online ordering integration, think not in the simple terms of working with this or that POS software.  Integration is really about mobile and online ordering fitting well into a restaurant’s work flow.  Creating hassle by adding extra steps or making a process more cumbersome doesn’t help the staff or the customers.  A well-integrated solution will streamline the process and be practically invisible.

Power up restaurant marketing with a mobile app

The restaurant industry is as cutthroat and competitive as they come.  When the marketplace shifts, successful restaurateurs have the ability to pivot quickly and put their business in the right position to succeed.  Right now, opportunity is knocking but the sound you hear is a mobile ringtone.

Obstacles become a little less intimidating for restaurants that harness the power of a mobile app.

People are adopting mobile phones en masse.  Device sales in 2012 pushed $358 billion, a 27 percent increase over the previous year.  Mobile users look to for ways to integrate the new gadgets into everyday life wherever they can.  Naturally people that want to save time waiting for their favorite food will look for a way to order via mobile.

But a mobile ordering app is so much more than an attractive convenience for customers.  It also opens a line of communication from a restaurant to loyal customers.

For apps, the best marketing is utility.  An easy to use app that makes life more convenient will drive its own downloads.  But there are ways to use mobile ordering apps for communication even after people download them.

  • Wave the banner for new products and services.  Unlike some marketing channels, mobile app users signed up to receive updates and offers.  This means a restaurant gets more mileage on its marketing dollars because mobile outreach efforts are less likely to reach uninterested people.
  • Encourage people to stop by.  Using GPS geolocation, mobile apps can detect when users are in the area and send them a friendly reminder to stop in.  Likewise, data might show that a once regular customer hasn’t been by in weeks.  Send her an enticing special offer to reawaken her appetite.

There are a lot of ways to get a hold of a mobile user, but three of them are best suited to a restaurant’s needs.  The key here is that the customer has to go through as little hassle as possible to redeem the offer.  Ask them to click too many links, fill out too many forms, scan too many codes and jump through too many hoops and customers are likely to say, “Thanks, but no thanks.”

  • SMS messages.  Otherwise known as text messages, an app user can opt in to receive these.  People tend to put this type of communication pretty high on their priority list, so an SMS is less likely to get lost in the shuffle than an email.
  • Push notifications.  This type of message goes directly to the app.  Much like an SMS, users will usually get a sound alert when the notification arrives.  The main difference is they go straight to the app to read the message.  Conveniently, the user has already opened the app to get the message so they are that much more ready to use the app and take advantage of the offer.
  • Promo codes.  Customers can enter special promotional codes in the checkout screens of mobile ordering apps to redeem special offers.  These codes are well suited to holistic marketing programs because the same offer can go out over multiple channels.  A person could find the code in an email, paper flyer, SMS or push notification.  No matter where it comes from, it is simple to enter it into the app and take advantage of the deal.

Obviously mobile ordering apps are the best way for 21st century diners to connect with their favorite restaurants.  But don’t forget, they provide a two-way avenue for communication that can take restaurant marketing to a whole new level.

Next gen diners are all about apps

Like it or not, every person belongs to a generation.  For the sake of convenience every generation gets a snappy name.  Members of the Greatest Generation, the Baby Boomers or Generation X can all find comfort in the herd of a compartmentalized age group.  The latest batch of people to come of age are the Millennials.  Calling them “Generation Y” would be lazy and uninspiring, even by Gen. X standards.

Talk to the (thing in my) hand

Currently aged (approximately) 18-34, the Millennial demographic is poised to shape the restaurant industry for decades to come.  Their footprint in the economy will be bigger than any previous generation.  Estimates indicate that there are up to 95 million of these individuals in the United States, 17 million more than the second largest generation of Baby Boomers.

Yet after decades of faithful patronage, recent years have witnessed an unusual decline in the Millennials’ portion of restaurant traffic.  They are dining out about once a week less than people that age did in 2007.  Millennials bore much of the brunt of the recent economic recession, limiting how much some had to spend on dining out.  But that cannot be the only reason for the decline in Millennial restaurant patronage.  Restaurants need to reconnect with their Millennial customer base, and the key to their heart is through their mobile devices.

Growing up in an era of quickly and constantly evolving technology, Millennials are extremely tech savvy and happy to adapt.  Many Millennials view their mobile devices as an extension of their identity and a tool to accompany them through every aspect of their lives.  Millennials spend 14 percent more time engaged with mobile devices.  Millennials are more likely to do most of their browsing on a mobile device, making access to a regular computer unnecessary.  Two thirds of Millennials would rather give up their cars than their smartphones.  Forty percent of them have at least 20 apps on their device.

Nearly a third of Millennials use smartphones to connect with restaurants.  Around one fourth of Millennial smartphone users say they have ordered ahead using a tablet or smartphone, and six out of ten of them were satisfied with the experience.

Every generation has at least one thing in common:  they have to eat.  Fast casual and quick service restaurants have always catered to young people.  These days Millennials expect to be able to do any and everything on a smartphone.  Most millennials seem to have a rare knack for crossing traffic, carrying on conversations and navigating a crowded room without looking up from their smartphones.  No doubt the best way for restaurants to engage the current crop of kids is through a mobile ordering app.

 

Image courtesy of FreeDigitalPhotos .net

Time is money: putting a price on convenience

Conventional wisdom says that competition in business comes down to a simple law of nature:  the place that offers the best price for a product will attract the most customers.  Like most everything in life, business is just not that simple.  There are many types of customers.  They make decisions based on combinations of different factors including price, quality and personal ethics.  When it comes to mobile phone users, it is all about convenience.

A 2012 study by the Interactive Advertising Bureau revealed that the ease of using a mobile device was most frequent reason people took part in a mobile commerce interaction.  Customers rave about the ease and convenience of mobile banking.  Another recent study by Compuware revealed that 55 percent of users preferred apps over the mobile web because of convenience.  Speed and ease of use were the next most common reasons that made apps attractive to consumers.

Mobile users treasure their waking hours, so convenience is at a premium.

When designing and implementing an app, it is important to keep the potential user in mind.  A good restaurant app provides convenience by eliminating time spent waiting in line, looking over the menu and reciting the order to a person at the register.  There are other factors to consider when creating a convenient mobile customer experience.

As hungry as mobile users are for a swift and accommodating app, they have little tolerance for apps that don’t work.  The same Compuware study also indicated that four out of five users would quit using an app forever if it didn’t work well on the first or second try.  Skimping on app development will likely lead to an application no one wants to use gathering dust on a virtual shelf somewhere.  Providing portals for feedback and measuring customer satisfaction through data monitoring help maintain and improve upon the quality of user experiences.

Convenience is also about personalization.  Mobile apps can measure impactful data of all kinds, from the user’s location to their spending habits to the way they share on social media.  A restaurant can leverage this data and use it to create a more personalized experience for the customer.   Targeted promotions,reminder messages and features like saved favorites will be much more relevant and useful to customers, whereas traditional mass marketing can alienate people by making them feel like faces in a massive crowd.

Building brand loyalty among mobile customers comes down to convenience.  Restaurants that want to attract mobile-savvy diners should make it a priority to offer a convenient, well-designed app.

Study: users prefer apps over mobile web

The smartphone has become a must-have pocket item, unseating classic mainstays like rabbits’ feet and Swiss Army knives.  These days it seems that smart navigation, text messaging and real-time weather forecasting come in handy a lot more often than a nail file and a leather punch.  Smartphone users are eager to employ their technology whenever it makes a task quicker or more convenient, including finding something to eat.

Since half of America’s 267 million mobile phone users spend time on the mobile internet, a restaurant owner might think that having a web site oronline ordering platform is enough to engage mobile customers.  But a new study by Compuware indicates that people prefer using apps to the mobile web.  When customers whip out handheld devices to find a quick bite to eat, they would rather use an application to order than the mobile web or (gasp) calling it in on a voice line.

Mobile users prefer apps hands down.

The study found that 85 percent of mobile users prefer apps over mobile internet.  Respondents found apps to be easier to use, faster and more convenient.  They also expect apps to outperform mobile web counterparts and indicated a low tolerance for apps that don’t work well.  It is vital to produce a well-designed app with a quick, easy user interface.  But it is equally important to monitor performance and feedback after the app launches in order to continually improve the experience.

Apps are extra-appealing to repeat customers.  They can order up their favorite dishes with the flick of a few buttons.  The old adage is that it is cheaper to keep a loyal customer than to woo a new one.  This is likley true, but repeat customers can also provide valuable feedback and act as brand evangelists by spreading the word about an establishment in their own circles of influence.

No one wants a tool box without a hammer or a Swiss Army knife without a blade.  Just like menus and cash registers, mobile apps are a vital tool designed to make it easier for restaurants to do what they do best:  feed customers.

 

Never stop hacking

The term “hacking” has an inherently negative connotation.  It brings to mind images of ruthless technical experts in darkened basements crashing online networks and reaping vital personal information from innocent web users.  There is a lighter side to hacking, namely the practice of “lifehacking.”  The advent of technology like the internet and mobile phones came a promise of increased efficiency and more free time.  Yet the result is the opposite:  people today are even busier and work longer hours.  In response, lifehackers look for novel and innovative ways to increase productivity and save time in their everyday lives.

It can be easy and inexpensive to convert a regular desk to a standing desk.

Not surprisingly an office full of application developers, software engineers and other technophiles is rife with lifehacking.  One of the latest trends to grip the Splick-it headquarters is the stand-up desk.

The idea is that concentration, productivity, energy levels and physical well-being all improve when a person spends more time standing up and less time slouching in a chair.  It makes sense but it still seems unusual because sitting at a desk all day has become standard operating procedure in our culture for people who “work hard.”  What took so long for people to break out and ask, “Is sitting the best and only way to get work done?”

The same could be said for point of sale processes at quick service restaurants.  Ever since fast casual and quick service spots gained a foothold in the restaurant scene, people have been willing to partake in an arduous process:  enter the restaurant, stand in line at the counter, place their order and wait to pick it up.  This concept is so ingrained in our dining culture that it seems out of the ordinary to imagine doing it any other way.  Maybe it is about time for restaurants to lifehack their point of sale process.

Infographics rule, including one that HighTable.com released last week.  Their data points to a restaurant industry that is struggling to keep up with customers’ needs.  Customers increasingly want to use mobile and online ordering, but the restaurants that serve them too often lag behind when it comes to offering high-tech ordering options.

Notice any changes over the last eight years?

The writing is on the wall.  More than half of all Americans now own a smartphone.  There are now more mobile phones with access to the internet than PCs.  Nine out of ten smartphone owners use their device to look for local businesses, and 89 percent of those say they take action by either buying online or visiting the location they found on their phone.

A whopping 40 percent of users say they have used an app or website to order food.  Restaurant owners reported an increase in volume and service quality as a result of mobile and online ordering.  The two sectors of the restaurant industry that benefit the most from mobile and online ordering are fast food and fast casual.

Yet only 16 percent of restaurants even have a mobile app, and only one third of those apps offer ordering capabilities.

In this era of lifehacking, casual diners have an appetite for convenience and flexibility as well as yummy food.  It is time to do a little restaurant-hacking and incorporate mobile and online ordering.

Give the gift of convenience

Now and then a door here at the Splick-it world headquarters flings open and one of our engineers emerges shouting, “Eureka!”  You get used to it.   But one of the latest such outbursts signaled the arrival of a great new feature:  gifting.

In this hectic digital heyday, sometimes it is pretty hard to find time to meet up with friends and loved ones for an old-fashioned, sit-down meal.  The next best thing is to buy them a meal.  What better way to share some culinary comfort than with a digital gift card?

One drawback of traditional gift cards, gift certificates and other physical tokens of redemption is that they can waste away, unused, in the back of junk drawers.  The giver pays in advance for the gift even if the recipient never gets around to using it.

The beauty of Splick-it’s gifting feature is that we don’t charge the giver’s credit card until the recipient actually redeems the gift.  Moreover, each gift is limited to a one time use worth less than or equal to the gift amount.  So there won’t be any unused cash wasting away on a forgotten gift card.

How do I bestow a little Splick-itude?

  1. Go to https://splickit.com/gifting and login to your account.
  2. Enter the email address of the recipient, the maximum amount of the gift and how many days the person has before the gift expires.  You will also have a chance to enter a personal note.
  3. Recipients get an email notification with details about how to access the gift via their Splick-it account and a link to get them started in case they don’t have an account yet.

Yay!  Someone gave me a gift!

  1. If you already have a Splick-it account, log in and enter the promo code “usegift” during checkout on any order before the expiration date.  Again, any amount of the gift you don’t use is gone so no need to be parsimonious.
  2. People that don’t have a Splick-it account can use a personalized link from the notification email to create an account and use the gift.

This web-only feature is available for all restaurants.  To manage past gifts, login to Splick-it, click on the “settings” tab and there is a button where you can look over previous gifts under “My Account.”

Sharing a meal is a time honored way for friends and loved ones to commune.  If you don’t have time to get together and dine in person, giving with Splick-it is the perfect way to show your love.

Google Glass might revolutionize the restaurant industry

Get ready for wearable technology like Google’s Glass

Google’s latest baby recently graduated from the ultra-secret sounding “Project Glass” to a more official “Google Glass” nomenclature.  With this matriculation came Google’s own crowdsourcing effort, designed to elicit some out of the box thinking on uses for the new device.  Those responsible for the best ideas will get to test drive early models of the augmented reality head mounted display, albeit with a $1,500 price tag and a trip to a special event in one of three cities to pick them up.

Whether or not you have enough spare cash to enter the contest, you can still let the imagination run wild with ideas for applying this kind of technology.

“Captain… we’ve finally encountered futuristic eyewear.”

In short, Google Glass is a pair of glasses with small, lightweight wireless computing, imaging and image projection hardware built into the frame.  This hardware would align with a mobile device like an iPhone or Android smartphone and display information, geolocation and other data in the corner of the lens.  Google Glass also promises to allow for easy photo and video capture, from a unique first-person viewpoint.

It might be a little hasty to assume that technology like this will make smartphones and tablets obsolete.  But in the restaurant industry alone, the possibilities Google Glass offers could change the game completely.  Here are just a few of the ways restaurants and their customers could take advantage of this innovation.

Restaurants

  • Breaking in new staff would be easier if training programs and other new hire information were available on Google Glass.  There would be a unique way to combine instruction and hands-on learning processes without the trainee having to break concentration.  Does your place have a special technique for rolling sushi?  Let your new staff practice with instructional materials in the corner of their eye to guide them.
  • Broadcast order information from the point of sale to any staff member that might need it.  A quick message could alert a server that someone needs a drink refill, or let a manager know there is a customer service issue to resolve at the front of the house.
  • Cooks could use this technology to access incoming orders on the fly.  Color coded special orders would stand out, reducing the probability of mistakes.  It would be quick and convenient to display the details of a certain recipe without turning away from the stovetop.
  • Wait staff could keep detailed track of each table.  The glasses could display notes such as which order goes to which seat, how much time has passed since a table finished dessert or which customer was there for a birthday.
  • From “Top Chef” to “Kitchen Nightmares,” people love to get a glimpse of the action backstage.  With Google Glass a restaurant could bring customers behind the scenes by creating first-person videos, or even offer live look-ins during preparation.

Customers

  • Google Glass combines resources from the web, geolocation services and image recognition software.  Restaurant-goers could access a “heads up display” of local eateries.  As the customer turns his or her head, the restaurant names would pop up and align with their location on the real landscape.  More detailed information including price, distance and user ratings or reviews.
  • Looking over a menu would be as easy as blinking an eye.  Enhanced and individualized menus including nutritional information, dietary restrictions, favorite items and other personal touches would be easy to offer.
  • By integrating with social networks, these glasses could show someone if their friends were gathering at a particular spot.  A simple voice command could send out an invitation or reserve a table, taking all of the hassle out of arranging such a gathering.
  • International travelers or patrons of foreign language restaurants could use translation software to better understand menus.

Check out this video for more on Google Goggles.

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