The retail and restaurant industries are changing so quickly that it’s sometimes hard to know how to set the right course for your business. New revenue streams, new channels, and new customer experiences can help you stay competitive — but which changes should you make to your revenue strategy?
It’s always smart to make data-based decisions, so consider these facts about some of your options that could help you keep your business in the black.
- Gift cards. According to Statista, gift card sales have grown from $83 billion in 2006 to $160 billion in 2018, and North America is the largest gift card market in the world. The National Retail Federation points out that gift cards continue to be one of the most popular choices for holiday giving, with restaurant gift cards topping the list.
Other facts you need to know about gift cards is that, according to Blackhawks Networks, 59 percent of consumers spend more than the gift card’s value, and 69 percent of employees would like to receive a gift card from an employer as a reward.
- Customer-facing screens. Engaging customers with kiosks or customer-facing screens can also lead to a boost in revenues. QSR magazine reports that in addition to helping merchants reduce labor costs, customer-facing screens are an effective way to upsell. Your staff may get too busy or distracted to remember to upsell, but you can program upsell offers to automatically and consistently appear for each customer. Average checks can increase by as much as 20 percent.
- Self-checkout. A SOTI survey found that 77 percent of consumers are comfortable in retail settings where only self-checkout is offered. In addition to helping to keep lines short and create better shopping experiences, self-service and unattended payment solutions can also help merchants keep labor costs under control.
- Digital signage. A study by InfoTrends found that digital signage encourages shoppers to browse 30 percent longer, and ads on customer-facing screens at the point of sale can lead to an increase in sales for advertised brands by 30 percent.
- Online ordering. If you operate a purely brick-and-mortar business, consider that most consumers shop, order, and buy on multiple channels — in-store, online, mobile, social, etc. Marketing Week reports that consumers use an average of five or six touchpoints when interacting with a business, and half of all consumers regularly use more than four. Moreover, Aspect Software’s research found that businesses that adopt a multichannel model have 91 percent better customer retention.
- Smart merchandising. Putting the right merchandise in your window and in high-traffic areas throughout your store can help people more easily find what they want and increase revenues. Technology, including your point of sale system (POS system) and payment solution, can provide you with data on top-sellers and guide your merchandising decisions.
- Loyalty and rewards. An infographic from Invesp states that 58 percent of consumers shop from businesses whose loyalty programs they belong to, and 69 percent say their choice of retailers is influenced by whether they can earn loyalty points or rewards. The majority of retailers say their loyalty rewards program is the best way to connect with customers, and analysts have found that a 5 percent increase in customer loyalty can increase profit by at least 25 percent.
- Promotions. Special offers can increase food traffic and revenues. Use technology to ensure profitability when you entice shoppers with “BOGO” offers and deep discounts. Data can help you set price points that your customers can’t resist, but that still result in a healthy bottom line.
Is it time to take a look at your business’ revenue strategy and make some changes? The team at PlazSales can show you how your POS system or other solutions can help you reach your goals.