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Customer Loyalty on a Social Scale

People across the country are on social media sites, “liking” photos, updating their statuses and reporting to their friends what restaurants they have been to and what products they are buying. Patrons who choose to install a company or store’s app may be rewarded with special discounts, early bird access to sales or get first dibs on tickets for an event.

Social media sites like Facebook, Four Square, Twitter, and Pinterest have opened up a new medium businesses can use to reach consumers, most of whom are already engaged and interested in your brand or products. Companies may communicate directly with their customers about sales, promotions and other information, and since people are on social networks every hour of the day, it’s a unique 24-hour advertising opportunity.

These sites can also help companies monitor complaints and issues and remedy a situation instantly. For example, a designer had a much-anticipated online sale and the heavy traffic crashed her website. Many people were locked out of the sale and took to Facebook to complain. A customer service representative was able to work with each person who posted so they had access to the site as quickly as possible.

It pays to pay monitor social networking sites, use them to interact with your customers and respond to their feedback. Customers who feel like they are getting a higher level of customer service are more likely to return to your store or restaurant again.

Google Adds new functionalities, ready to go head-to-head with PayPal

Restaurant Pro Express™ and Cash Register Express™ accept payment through Google Wallet, a mobile payment system that stores credit cards, loyalty information and gift cards. Currently, there are more than 300,000 merchant locations that accept Google Wallet, including Bloomingdales, Subway, McDonald’s, The Home Depot and 7-Eleven, among other major retail and restaurant chains.

Recently, Google unveiled several new payment-related functionalities, including a one-click purchase function for Google Wallet, an “instant buy” feature for Android and payments integration with Gmail.

Google Wallet’s new one-click purchase functionality is designed to fight shopping cart abandonment, which happens when people get frustrated by the amount of steps it takes to complete a transaction. One click too many can be the difference between an abandoned cart or a sale. Industry observers believe that the new, easy purchasing option will be direct competition for PayPal.

Created for Android devices, the Instant Buy feature allows users to store payments information in their mobile device to speed up the checkout process.

Similar to PayPal, the Gmail integration allows users to send money to others via email, even if the recipients don’t have a Gmail account. Transfers are free if they are completed with a linked Google Wallet account and offer competitive rates–2.9 percent per transaction, with a minimum of $0.30–if users link a credit or debit card.

pcAmerica’s software also integrates with Paydiant, a software-only, cloud-based solution that gives restaurants and retail stores the ability to accept mobile payments and offers using their existing POS infrastructure. The company’s packages also work with ISIS Mobile Wallet, an ultra-secure mobile payment functionality that includes several safeguards against theft or fraud.

For more information about how you can begin accepting Google Wallet or another mobile payments provider, please call your account manager at 1-800-722-6374.

Panera Bread Finds Creative Solutions for Shrinking Dining Out Budgets

Americans may find their wallets look a little skinnier after paying their bills, taxes and for other essentials, like food and gas. A report from Wells Fargo & Co. noted that disposable incomes fell 5.2% since the first quarter of 2013, after rising last year. And although the country is slowly climbing out of the recession, some harder-hit areas are taking longer to recover.

Overall, fewer people are splurging and everyone is feeling the pinch—a May news release from the U.S. Census Bureau showed that manufacturers have seen a drop in orders, with a decline of $19.5 billion in March.

Although shoppers are still wary, people are starting to venture into restaurants more often. This is a welcome change to the dismal start of 2013, which the National Restaurant Association attributes to the impact of the payroll tax hike. One restaurant, Panera Bread, was able to weather the storm—and do some good deeds—in its 48 locations in St. Louis, Missouri, by offering a new “pay what you can” option for its turkey chili. Other items remained regular price, but the receipt would show how much the diner would pay if he or she were to buy the chili at full price. People had the option to leave what they could pay (or nothing at all) in a donation box or via credit card.

Panera also operates several “Panera Cares Cafes,” the first of which opened in Clayton, MO in 2010. These cafes do not have prices, but operate solely on donations. It’s up to the consumer to pay what they can and if they cannot pay at all, they may volunteer an hour of their time in exchange for a meal. The cafes take in about 70 to 75 percent of the retail value of their food, so the stores make enough to cover their costs.

Panera estimates that of the people who visit the Panera Cares Cafes, 60 percent leave the suggested donation, 15 to 20 percent leave more and 15 to 20 percent leave less or nothing at all. The cafes have the same look and feel of other Panera stores, including the free WiFi.

Who are the Showroomers? You might be surprised.

The competition between brick and mortar stores and online-only retailers is at fever pitch. Much has been written about showrooming: what it is, how retailers are fighting back and the shopping dollars at stake.

We know what it is and we know why people do it. But who are the showroomers, exactly? According to STORES Magazine, in a survey of 3,752 consumers, 19 percent of shoppers showroom regularly, while 43 percent had done it “a handful of times.”

While showrooming is a serious problem in the industry, it’s believed that many shoppers feel guilty about doing it, hence the low number of people who do it on a regular basis versus those who have tried it.

However, showrooming happens most frequently when people with brand preferences are looking for high value items, like electronics or upscale clothing, handbags or shoes. There’s a certain stigma attached to showrooming, so if you’re looking for someone with their Smartphone blatantly scanning barcodes or taking notes in your store, you’ll need to look a little harder—only five percent of people say they have used their Smartphone to compare prices in a store.

John Dick, CEO of CivicScience, a polling and data mining company, noted that most showroomers are between the ages of 30 and 34. Although it seems counterintuitive, showroomers are typically high income earners, with nearly one in three people earning $150,000 or more saying they showroom “frequently.” The people who fall into the $25,000 to $35,000 a year income bracket are the least likely to showroom.

Use Mobility to Increase Customer Loyalty

Customer loyalty can be hard to earn and even harder to hang on to, especially when consumers are still leery about the economy. Loyalty programs, special promotions and other offers help you communicate with customers on a more direct level, but instituting mobile payments may be a key factor in getting patrons to come back again and again.

“When businesses make mobile payments easy for their customers, they’ll be able to accept payment at any time, from anyone who wants to buy,” said Henry Helgeson, CEO of Merchant Warehouse.

Given people’s payment preferences, Mr. Helgeson is correct. One survey reports that 44 percent of payments are completed via credit cards, but 20 percent of people believe that digital payments will become their first choice in the next three years.

Using mobile payments and a solid CRM or loyalty program, stores and restaurants can offer customized discounts and special promotions tailored for their patrons’ habits.  If a customer comes in every day for a salad, offering them a digital coupon for a dessert or beverage will boost your bottom line and keep patrons coming back to try new things.

Likewise, a sophisticated loyalty program can help build repeat business. If a customer comes into your store and buys two bottles of shampoo and earns points in your loyalty program, you could run a special where that person has the opportunity to earn more points when they buy extra bottles or a combination of products. These extra earning opportunities will help drive traffic back to your store when it’s time to restock.

For more information about how you can use mobile payments or a loyalty program to build repeat business, please contact your pcAmerica sales representative at 1-800-722-6374.

bPay Mobile Payments Draws New Customers, Higher Profits

Moxie Boutique is a contemporary clothing store located on the University of Delaware campus in Newark, Delaware. The boutique’s owner, Cari Rogers, was looking for a new, innovative way to attract shoppers to the store. She was drawn to pcAmerica’s Cash Register Express point-of-sale system because it offered enhanced marketing and payment capabilities through a partnership with bPay, a new mobile payment system offered by Barclaycard, in conjunction with Paydiant.

bPay utilizes a phone’s camera to scan QR codes to complete and track purchases. Unlike many other mobile payment methods, it requires no additional hardware, making it a cost effective choice for Moxie Boutique. As an added bonus, bPay users have access to offers they can only receive and redeem via the bPay app.

The bPay sales transactions are tallied separately from regular ones so it’s easy to track and evaluate the success of the program. An email notification is sent to Ms. Rogers when the application is used and an email is sent when the funds are batched into her account at the end of the night.

“Mobile payments and programs like bPay are going to shape people’s shopping preferences in the future,” said David Gosman, CEO of pcAmerica. “People are looking for a retail experience that’s personalized for them, and the coupons and special offers from these new applications are a good reason for shoppers to keep coming back.”

Since enrolling in the program, Moxie Boutique has become more visible, gained loyal customers and enhanced its relationship with established clientele. Ms. Rogers has seen an uptick in business since she began using bPay and estimates she will see a 15% increase in sales next year.

For more information about how you can get involved in accepting mobile payments, please contact your pcAmerica representative at 1-800-722-6374.

There’s No Such Thing as a Free POS

Free point of sale systems seem like attractive option for business owners who are considering purchasing a system for their business. And why not? It’s free! The only problem is….it’s not actually free. In fact, a “free” POS system may actually cost more money than a POS setup from a more established vendor.

If you agree to a free POS that is tied to a payment-processing contract, make sure you read all of the documentation so you understand the terms. Yes, you may be sent a POS system with no upfront cost, but you will be tied to the same payment processor and fee structure, usually for years. It seems like no big deal, but this agreement means you can’t shop around for the best rates, a decision that could cost you some serious cash in the long term. The amount of money you end up paying out to the processor over the life of your contract can actually pay for your system—several times over.

The truth is, while parts of the system are free, the rest of it you’ll pay for, in addition to the payment processor agreement. It varies from vendor to vendor, but you could have to pay for the installation, software upgrades and tech support. Basic functions may be free, but some companies require you to pay for enhanced features, programs or reporting capabilities.

Some free POS systems are not industry-specific, so if you’re in a sensitive industry that needs a lot of customized features, a free POS may not be the best choice.

Sure, it sounds like a fantastic opportunity. But a free POS is only as free as the fine print. To talk to POS experts that can get your business set up with the right point of sale system, contact pcAmerica today!

POS Systems: It’s not just about you

Point of sale systems make every business’ day-to-day activities run more smoothly, so maintaining these systems and keeping them secure important.

It’s not just your business that relies on your system, your customers’ personal information is sent across POS networks every time they complete a transaction at the terminal.

The same is true for every business that has a point of sale system. Every time a patron has their credit card swiped, they open themselves up to the possibility of credit card fraud and identity theft. These types of security breaches are front-page news that has serious and far-reaching consequences for businesses, including negative publicity and a subsequent loss of clientele; and liability of ancillary costs associated with the breach, including forensic investigations, fines and card reissuance costs.

How can you protect your customer base? It’s not as difficult as you may think.

  • Every business is a target. Identity and credit card thieves want your data, they don’t care if you have one system with a large amount of data or multiple terminals with small amounts of data. Either way, the end result is the same: a stolen credit card number is still stolen.
  • Make sure your credit card processor adheres to PCI-DSS standards. PCI compliance is practically a non-negotiable these days. For an additional layer of security, only purchase systems from companies that have been certified by the Retail Solutions Providers Association. pcAmerica is an RSPA Certified vendor.
  • For mobile solutions, secure your iPads and tablet devices. An iPad is a tempting target–especially in a busy restaurant or store, so it’s best to secure them with a casing like those manufactured by Archelon Enclosures so they don’t grow legs and walk out the door.

For more information about how you can keep your POS system more secure, please visit www.pcamerica.com or call our sales team at 1-800-722-6374.

Discounts and Coupons: Are they good for business or hurting your brand?

It seems counterintuitive to think that frequent discounts and coupons that bring customers in the door could actually be hurting your brand or store. Some elite brands never offer discounts or have sales but for most of us, sales are a great way to boost profits. In fact, discounts are an effective way to attract new customers, but will a sale turn a first time customer into a repeat one?

The short answer is no. Coupons and discounts tend to attract customers with less brand loyalty, according to Loyalty Management Magazine. One just has to look at some of the many Groupon disaster stories to see that deep discounts don’t always pay off long-term. Even worse, when coupons are so readily available (ie: 20% off any item)  shoppers become averse to paying full price and will not make a purchase without a coupon in hand.

There are times when discounts can work for you. Evaluate your customer base to determine which ones you want to reward for their business with special deals, freebies and coupons. For example, customers enrolled in loyalty programs may come in more to take advantage of these specialized offers, while potential first timers may receive a less attractive coupon to gauge their interest in your brand. These “litmus tests” can help you categorize your customers and determine how to issue coupons and deals more effectively.

Upgrade your POS for more efficiency, Newest Features

Upgrading your point of sale system can save you time and money.  Are you still having employees punch in and out? Processing payroll manually? Running a slower version of point of sale software because the upgrade is expensive?

The reality is, not investing in keeping your point of sale system current can actually cost you money and time. When it comes time to complete the check-out process, shoppers expect to see up-to-the minute technology that enhances their shopping experience, allowing them to pay any way they like, send them coupons  and track their purchase history for loyalty program purposes.

Many point of sale systems include functionalities that make day to day business activities more efficient for business owners, allowing them to streamline payroll processes, eCommerce functions, industry-specific mandated reporting  and more.

Don’t end up with a bunch of functions you don’t need, or with a rigid system that doesn’t give you flexibility for the future. Please call your pcAmerica sales representative at 1-800-722-6374 or visit www.pcamerica.com.