Your POS system is the lifeline of all operations, and as mobility grows increasingly popular at retail establishments, it’s time to decide if investing in a new (or improved) mobile POS will provide a solid return on your investment. To yield a sense of ROI, restauranteurs can easily utilize the data-driven mPOS model to make the following assessments, as compared with old, pre-mobile figures.
With mobile, retailers may experience greater productivity due to ease of use, faster transaction speed and more powerful software, which can lead to staffing adjustments and payroll savings. Managing employees is critical to your success, but can also be a headache. A solid mPOS system gives you greater insight into your employees, helps to optimize staffing, and saves time on payroll. Here’s how:
- Time keeping – Automate clock-ins and clock-outs with fewer mistakes and greater accuracy.
- Labor optimization – Track labor as a percentage of sales to ensure proper staffing and higher profits. Additionally, with mobile POS, you can manage labor from anywhere.
- Employee tracking – Know who’s doing what on each terminal or mobile device. Identify errors quickly, before they become problems.
- Productivity – See who sells what. Reward your most productive employees and train up your least.
“Labor tracking features save me time and money, ensuring my workforce is optimized for business activity.” – Andrew Cash, Jubala Coffee
Restauranteurs should calculate costs for current legacy hardware, including terminals, printers, signature devices, barcode scanners, and handheld devices. For more accurate results, factor in failure rates, maintenance and repair/replacement costs, along with reduced access to essential legacy equipment due to increasingly popular mobile adoption. Tabulating the total cost of one mobile unit, its components (software, accessories), and MDM (mobile device management) per device enables retailers to evaluate legacy figures against new mobile solutions, which universally demonstrates savings over time. Most often, restaurant owners and management are the ones who have to bear the burden of a broken POS system. This is your most expensive staff time, so do not underestimate the cost of an outdated system.
It may be tough to quantitatively measure, but staff morale and attitude can also impact ROI. Mobile POS technology that helps front of house staff perform better can lead to greater appreciation and job satisfaction, along with better customer service and decreased turnover. The hospitality industry already suffers from a high turnover rate, so getting a leg up on local competition may prove an important part of your business plan. Keep your best employees around by arming them with technology that helps them do their job more seamlessly and improves tip percentages, cutting the costly expense of high turnover.
“The ability to directly engage the customer combined with ease of use has increased our tips by 400%.” – Lacey Reichwald, The Sweetspot
A recent BCG study shows us that rewards programs are traditionally considered an expensive burden, realizing an average ROI of only 10%. Nonetheless, the rewards segment of hospitality grew 107 percent from 2012 to 2014, after a subsequent 71 percent increase between 2010 and 2012. Why? The same BCG study tells us that a well-executed loyalty program can increase traffic up to 50% and spending up to 30% per loyalty customer. How? An mPOS system that’s doing its job will help you build a loyalty rewards program that is seamless for your customer and your staff, while collecting valuable data that helps you better market to repeat guests and realize increased traffic and spending. Remember that 80% of your future profits will likely come from only 20% of your current client base. Instore Rewards offers everyone from large, multi-location businesses to small one-shop spots, simple rewards technology that gives you information on every customer who walks through your door, and allows you to offer compelling rewards to bring them back.
With the right mPOS solution, you will realize a substantial ROI, as measured by increased productivity and staff morale, lower maintenance costs, and more repeat customers. Take a look at your current system, evaluate, and ask if your outdated POS system is performing for you.
Image Credit: Neil Kremer By CC BY-ND 2.0