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Making Your Customer Loyalty Program Work For You

There’s no question that customer loyalty programs are a great way to build retail and restaurant business. But while the innate appeal of these programs plays some role in their success, the most effective programs are built on a more strategic framework.

In order for a customer loyalty program to be truly effective, it must be targeted to your best customers. Contrary to what you may assume, these shoppers aren’t necessarily the ones who frequent your store or restaurant most often.  For example, in many instances the most regular visitors to retail stores come primarily or almost entirely in search of “bargains”, seldom pay full price and often return their purchases.  These aren’t the “preferred” customers around whom loyalty programs should be geared. That honor goes to shoppers or diners who may come in less frequently, but spend more.  Rewards, too, must be geared toward these best customers. After identifying them by reviewing reports from your point of sale system, examine their buying habits and structure rewards accordingly. For added appeal, you may even want to customize rewards to jive with patrons’ preferences. For example, you might offer a customer who regularly purchases perfume from your store a “bounce-back” coupon redeemable for a discount on bath powder in the same fragrance. You’ll get better results by doing this than, say, making the coupon good for a discount on aftershave.

Just as importantly, ensure that your best customers—those to whom the loyalty program is targeted—can easily take advantage of it. Allow them the convenience of giving their telephone or cell phone number, rather than presenting a membership card, to avail themselves of such rewards as immediate discounts on selected items and “bounce-back” coupons, as well as to accrue points for their purchases on the spot. Remind customers of the “perks” that come with their rewards cards. Presenting them with a discount? Ask store associates or servers to describe the savings, even if that discount amount is indicated on a receipt. Notifying program members of points accrued as they pay for their purchases or settle the check? Instruct staff to mention how many additional points are needed to collect a reward. Quite possibly, a customer who’s close to the mark may decide to make another purchase or order extra food to collect that prize a bit earlier.

But that’s not all. Don’t just engage in a blitz to sign up loyalty program members, then sit back after the initial enrollment frenzy dies down. Continue to reward staff for attracting new participants. Hold occasional special events for members. Send mailings (email or traditional paper ones) to let members know when new merchandise has arrived or when you’re running special “members-only” sales and dining promotions.

If all of this seems like a lot of work, remember that it is far more costly to cultivate new customers than to retain old ones. To find out how best to structure a loyalty program for your store or restaurant—including ways to bring social networking into the mix—contact pcAmerica.

To Upgrade or Not To Upgrade?

Tick tock…is it time to upgrade your retail or restaurant point of sale system? While the answer is not always cut-and-dried, here are a few indicators that this is indeed the case.

  1. Your point of sale system comprises unsupportable software and hardware that costs more to maintain than to replace. Some retailers and restaurateurs make the mistake of assuming that it is in their best interest to keep a legacy system simply because that system is still running, fully depreciated, therefore, “free”. This isn’t really the case. Maintaining legacy hardware has its costs—real and hidden alike.
  2. If your point of sale system “broke “tomorrow, you would be unable to replace it without major disruption.
  3. Only one person within your operation understands the true workings of the system—and is the sole “go-to” staffer when problems arise.
  4. The vendor is either out of business or has merged with another company. Even if this hasn’t happened, the vendor may not support your version of the software.
  5. The original manufacturer no longer has components for your system, so you are forced to rely on hard-to-find third-party resources when parts are needed.

For more information on upgrading your point of sale system with Cash Register Express or Restaurant Pro Express and a range of hardware options, contact pcAmerica.

Picking and Choosing

Just as all retailers aren’t created equal, neither are point of sale vendors and the products they offer. Asking a few key questions when selecting a point of sale system is essential to making the right choice and maximizing your return on investment. These questions should include the following:

1.    Do we already have new computers and peripherals in place, or do we need those, too? If the former, ensure that the software you ultimately pick satisfies hardware and operating system requirements before committing to purchasing it. Most software requires a certain version of Windows, Unix or Linux, and not every program works with every type of printer, bar code scanner, cash drawer or credit/debit card reader.

2.    Does the software provider also carry hardware? Buying hardware and software from multiple vendors often leads to big headaches. For one thing, the more companies that are involved in the purchase of a point of sale system, the longer it will take to program it and to eliminate any glitches. For another, figuring out which vendor should handle a given problem isn’t always easy. That’s why pcAmerica offers, in addition to its Cash Register Express and Restaurant Pro Express software, a full array of hardware to complement operators’ retail or restaurant point of sale systems.

3.    Is the software feature-rich? For example, does it offer a touchscreen command for ringing up items that do not have bar codes? Does it automatically calculate sale and specialty pricing? Does it integrate easily with other programs, such as a loyalty or gift card component or accounting software, and can gift/loyalty card holders check their balances online? How’s the setup interface—i.e., how easy is it to change prices, items, employees, etc? Can changes be made in advance; for example, can you create a Thanksgiving menu in September and set it to automatically take effect in the system on Thanksgiving Day?

4.    Is the software customizable? Is it scaleable to suit multiple retail sectors? Retailers’ needs vary by vertical. An apparel store and an auto parts retailer, for instance, require very different inventory-tracking features, and many merchants now operate e-commerce sites with an entirely new set of “must-haves”.

5.    What about the “extras”? Some companies include training, support, updates/maintenance and the like in their fees. Others do not. It’s best to be prepared ahead of the game.

pcAmerica stands ready to help you investigate these and other important issues, and to make the point of sale software choice that’s right for you.

Doing It All With Data

Sure, you use data collected by your point of sale system to see what’s selling in your store or landing on customers’ plates in your restaurant. However, there’s so much more you can—and should—be doing with it.

Information amassed by a highly functional point of sale solution, such as pcAmerica’s Cash Register Express or Restaurant Pro Express, is truly some of the most potent marketing data you can possess, and it’s literally at your fingertips. For example, this data can be used to put together a list of every customer who has ever purchased something from your store or dined at your operation, along with what they purchased or ordered and how much they paid for it. Based on such information you can, when you add new inventory or introduce a new menu item, create targeted mailing lists (email or “snail mail”) of customers who almost certainly would want to hear the news. This is much better—and far less costly from a marketing standpoint—than generating a mass mailing to every shopper or diner that has patronized your establishment.

Point of sale information gathered by a good point of sale solution can also be used to identify and send custom-tailored messages to specific patrons when you are running a sale or promotion on items they have previously bought or consumed under your roof, based on the premise that they’ll likely be interested in similar or identical products or dishes. You can share such information as customers’ brand, color, size and style preferences with their spouses and friends to make the gift-buying process easier and increase the likelihood not only of making a sale, but of cultivating repeat business. You can send personalized greetings on birthdays and anniversaries. Should a customer want to return a gift or has lost a receipt, you can quickly verify the date and price of the purchase. All of these factors greatly increase customer satisfaction and promote customer loyalty.

As if that weren’t enough, you can utilize historical point of sale information to set minimum and maximum “stock-on-hand” levels. This will prevent overstocks and, in turn, minimize the need to ever tell a customer that you are “out” of a product or menu item.  As sales trends and/or vendor/supplier lead times change, the data can be employed as a logical basis for adjusting these minimum and maximum levels. You can then keep just enough inventory or ingredients on hand to meet your requirements, reducing your own costs.

For more information on leveraging point of sale data, contact pcAmerica.

pcAmerica Receives Multiple Awards at Annual RSPA Conference

Pearl River, NY – July 28, 2010 –  pcAmerica, a leading developer of retail and restaurant point of sale software, received awards in the Credit/Processing category and also won the Best of the Best award which recognizes one nomination as the most innovative solution at the RSPA’s annual 2010 RetailNow Conference in Las Vegas, Nevada.  These coveted awards set the industry benchmark for forward thinking companies that are implementing innovative point of sale solutions. Nominated for consideration by Mercury Payment Systems, pcAmerica won the award for their installation with low calorie frozen dessert chain Tasti D-Lite.  For this installation, pcAmerica and Tasti D-Lite collaborated to utilize Restaurant Pro Express POS software to integrate social marketing with their customer loyalty program.  As a result of this successful implementation, Tasti D-Lite became the first retailer to connect social networking activity with in-store purchasing activity.
In attendance to receive the award was David Gosman, Chief Executive Officer for pcAmerica.  “We are honored to be recognized as an industry pioneer for the integration of point of sale and social marketing.   It is truly rewarding to receive these prestigious awards for innovation from a renowned industry organization like the Retail Solutions Providers Association,” commented Gosman.

To learn more about this award winning installation visit: www.pcamerica.com/tasti-d.html

V is For VAR(Part 2 of 2)

As promised, we continue with a few more helpful tips for getting your business matched up with a VAR that fits your business needs. Some are truly worth doing business with, while others are little more than glorified retailers who seemingly disappear once customers have signed a purchase order on the dotted line. Following these tips can help you avoid falling into such a trap.

4.    Perform due diligence. Find out what your local Better Business Bureau has to say about the VAR. Tapping local trade and business groups for information is also a good idea; serious problems with a local VARs’ business practices, if any, frequently come to light in this manner.

5.    Consider partners’ recommendations. Hardware and software vendors, as well as ISVs, work closely with VARs and can provide the names of companies they have “vetted.”

6.    Remember, haste makes waste. Don’t be so eager to find a VAR partner that you overlook or discount negative information rather than thinking twice about whether the company is the right fit for your retail store or restaurant. It’s better to be without technology for a short time, than to be stuck in a relationship with the wrong VAR.

To learn more about how pcAmerica can help your business, please visit pcAmerica.

V is For VAR (Part 1 of 2)

Small- and medium-size retailers and restaurant operators alike rely largely on value-added resellers (VARs) to handle technology implementation of all types, as well as to provide such services as systems maintenance and even business consulting. However, not all VARs are created equal. Some are truly worth doing business with, while others are little more than glorified retailers who seemingly disappear once customers have signed a purchase order on the dotted line.

That’s why we at pcAmerica urge you to carefully evaluate any VAR before formally engaging that firm. Consider these tips:

1.    Establish and list your objectives, as well as your “vision” for how your point of sale or other store/restaurant system will work once it has been installed. Without a set list of goals, it will be difficult, if not impossible, to determine whether a VAR’s background, capabilities and/or menu of technology suits your needs. For example, say one of your objectives entails integrating your point of sale software with a loyalty application, as is possible with pcAmerica’s Cash Register Express and Restaurant Pro Express. You require a VAR with that integration skillset.

2.    Be a ruthless reference checker. It goes without saying that VARs without a proven track record of customer satisfaction should be avoided at all costs. However, “investigations” must go beyond this point. When checking references, don’t just ask contacts whether they liked the VAR in question and if it provided “good” customer service. Instead, delve deeply into issues that are indicative of a company’s “true colors” and whether it really offers value or just wants to sell you something. For example, how quickly does the VAR respond to telephone calls from the reference about problems with its point of sale system? How does it handle downtime issues? What type of training did it provide? Did its sales representatives try to “push” technology on the reference regardless of its needs, emphasizing bells and whistles? Or, did it take individual customer requirements into consideration and demonstrate how different solutions solve specific business problems? How skilled are the company’s technical personnel? You get the idea.

3.    Assess scope and longevity of business. The longer a VAR has been in business, the better. As for staff size and coverage region, these are good indicators of whether (and how well) a VAR can service your location. For example, a VAR with an office of five people in a suburb of Chicago will probably not be able to service a store in downtown Los Angeles as well as a VAR with 50 people across multiple offices in California. The smaller suburban Chicago VAR might execute a given project just as adeptly as a branch of the California firm, but local availability is generally the better option.

Contact pcAmerica to find out how they can help your retail store or restaurant.

Computer Programs You Shouldn’t Live Without: The Sequel

As promised, here’s a second list of are five more computer programs you would do well to obtain.

1.    Online data backup solution. Most people who back up their data do so to a location near their computer. If something happens to that computer—for example, it’s destroyed in a fire—chances are that the device that’s holding the backup data will be destroyed, too.  Even if you do transport a USB drive containing your data to another location, something may happen to it. This is why adding another layer of precaution with an online data backup solution that augments traditional backup methods is a good idea.

2.    Computer “doctor” program. Such a program lets you diagnose your computer for hardware problems—for example, bad memory or RAM, bad system board, USB ports not working, hard drive going bad, and the like. This way, minor problems can be addressed easily.

3.    RAM assessment program. This program, which comes free with all versions of Microsoft Windows, tells you if you have enough RAM or memory in your computer to run it properly.

4.    Remote log-in program. Once this type of program is installed, you can access your store, restaurant, or home computer from the software provider’s Web site by entering your user name and password. This type of software can be provided by pcAmerica. After taking this step, you can operate your computer from a remote site as if you were actually pushing the keys on it. For example, suppose your computer is in the back office of your store and you want to access a spreadsheet while at a trade show in another city. To view the spreadsheet, you would go to the vendor’s Web site, enter your user ID and password, and use your computer as if you were sitting in front of it at the store.

5.    Task management software that lets you see which programs are running on your computer and may be slowing it down. Many programs are unnecessary and can be deleted. Programs like What’s Running 3.0, the advanced version of the Task Manager program that comes with Microsoft Windows, allows you to identify which programs are running and disable or delete those you do not need.

To find out more about software offerings that can improve your point-of-sale system, contact pcAmerica.

Computer Programs You Shouldn’t Live Without (Part One of A Series)

Every retailer and foodservice operator needs point of sale software, but there are at least 10 other software programs that are important to have in hand. Here’s a list of five such programs; watch our next blog for the other five.

1.    Internet security solutions, including antivirus software, antispyware software, and firewall software. The antivirus piece ensures that your computer cannot be maliciously destroyed by outside hackers. With antispyware, unwanted ads will not pop up on your screen. Most importantly, firewalls prevent outsiders from stealing your data.

2.    “File synching” software. You can use such a program to synchronize your files and folders between two computers, or to synchronize your computer files with a flash drive or a USB drive.  The benefit of “file synching” software is convenience:  At the end of the day, the touch of a button sends all of the important files you’ve changed on your computer to your flash drive or USB drive. Alternatively, you can have all of your changed files automatically sent to another computer on your home or business network.

3.    Password management/form completion software. With software of this kind, you simply select a single master password. When you want to log on to any password-protected Web site—for example, the Web site of one of your merchandise or food vendors—you simply fire up the software and either entire the site information or click the appropriate site on a list of sites maintained by some programs. The software automatically fills in the user ID and password you have set up for that particular Web site. Beats scratching your head and repeatedly changing forgotten passwords and user IDs.

4.    Backup and recovery programs. Without fail, you must back up your data files, such as spreadsheets and inventory data, to an external hard drive, flash drive, or other computer. You must also back up your software programs—including Cash Register Express and Restaurant Pro Express, to one of those same three locations. Some programs allow you to create an entire image of your hard drive and copy it to an external USB hard drive you can use in case something happens to your computer. Other programs enable files to be backed up daily or for all data and programs to be constantly updated to an external hard drive.

5.    Malware removal program. A malware removal program eliminates malware—in plain English, viruses and spyware—from your computer. Some people question why a program of this kind is necessary if they also run an anti-malware program that prevents malware from entering a computer in the first place. The reason: Some malware is too smart to be defeated and will infiltrate your computer no matter what. You need a malware removal program to get rid of it.

For specific program recommendations, contact pcAmerica.

Digital Signage and Kiosks: A Perfect Marriage (Part Two of a Series)

It’s no secret that the key to any successful communication is reaching the right audience, at the right time, with the right message. For some retailers and restaurateurs, this means not only deploying “freestanding” digital signage applications, but running digital signage software on kiosks.

Whether you own a store or a restaurant, “marrying” digital signage and kiosks allows you to appeal to a very narrowly defined audience, when the time is ripe and with information that is pertinent to individual needs and wants. For example, an order-entry payment terminal at a convenience store may play content about coffee selections or breakfast “deals” as customers approach it during morning hours; content may be even more customized by programming the kiosk to suggestively sell complementary items (for example, specialty coffee to an individual who orders a breakfast sandwich). Shoppers using an in-store kiosk to place an online order for an out-of-stock item may be offered alternate suggestions based on items in the store.

While neither “freestanding” digital signage nor digital signage integrated with kiosks is “new”, many small- and medium-size retailers, as well as independent restaurant operators, have avoided installing the technology because of its high cost. However, such a barrier is dissipating. The cost of flat-panel screens and other hardware has declined significantly in recent years, as has that of Internet bandwidth. Advances in hardware (media players and support for all-in-one devices) and software (content and ad management) have also helped to bring down the price of digital signage to an acceptable level. Meanwhile, the availability of Internet speed and bandwidth is on the rise. All of these factors make digital signage and digital signage/kiosk “pairings” a viable option in the retail and hospitality spaces alike.

For more information on retail and restaurant point-of-sale systems, contact pcAmerica.