POS Systems: More Dollars At Play Than You Think
Maximize the Value of Your POS
Do you want to make more informed decisions when it comes to your marketing? Who are we kidding, of course you do! POS platforms like Square and Clover offer a variety of marketing services that you can leverage to better understand your customers.
When used properly, these tools can provide insights into dining preferences, purchase history, and, perhaps most importantly, contact information. Having a fuller, more robust understanding of your customers allows you to accomplish the following:
Segment your audience and create more focused and concise marketing campaigns.
Personalize the customer experience, provide tailored recommendations, and build stronger relationships with your patrons.
Increase customer lifetime value and long-term revenue.
Become a better marketer!
Making better informed decisions on your marketing spend and expenses requires reporting capabilities that only your POS system can offer. Over time you will learn your customer trends, preferences, and pain points. This information can inform strategic business decisions, such as menu optimization, pricing strategies, and identifying opportunities for growth or expansion.
We’ve done our research, folks. In this issue, you’ll find a synopsis of industry studies that prove the restaurants prioritizing POS-integrated marketing tools tend to experience tangible revenue increases compared to those that do not.
We’ll also provide an analysis of POS platforms to help you better understand the market and pick the right system for you.
Sound good? Let’s get started.
Numbers Don’t Lie!
The studies are in and the data makes it clear: Businesses that don’t prioritize their POS marketing tools are leaving money on the table.
NRA Restaurant Report
Restaurants using customer data tools saw a 5 - 10% increase in average customer spend compared to competitors that did not.
Harvard Business Case Study
A casual dining chain was able to increase revenue by 16% after personalizing their marketing efforts based on POS customer data.
Toast Technology Report
Restaurants using POS-integrated marketing tools saw a 24% increase in average order value and a 22% increase in customer frequency.
The Aberdeen Group Study
Businesses utilizing POS marketing tools saw a 47% year-over-year increase in customer retention rates, compared to just 33% for those who did not.
Hospitality Technology Study
77% of the surveyed restaurants experienced an increase in repeat business due to their POS-enabled loyalty initiatives.
Finding the POS That’s Right For You
While the precise revenue impact from these studies will of course vary, the consensus from industry research suggests that POS marketing tools can see significant improvements — often in the range of 15-25% higher revenue. But these results don’t magically happen overnight. You’ll need to put in the work to create the infrastructure and analyze the data. As consumer behavior continues to evolve, a fundamental understanding of your POS marketing tools will empower you to adapt and make better business decisions.
When it comes to POS systems with quality marketing tools, a few options stand out to us. Though their capabilities overlap at times, we’ll still cover each in detail so you can decide which is best for you.
Explanation of Features
Analyze Sales and Customer Data
There are robust reporting and analytics features. Utilize these capabilities to gain insights into your sales trends, popular menu items, peak hours, and customer behavior. By understanding these patterns, you can optimize your marketing strategies and tailor promotions to drive revenue.
Loyalty Programs
Implement a loyalty program through your POS system to reward and incentivize repeat customers. Some systems can track customer purchases and automatically assign loyalty points or discounts. This encourages customer retention and provides opportunities to engage with customers through targeted marketing communications.
Email Marketing Integration
Integrate your POS system with an email marketing platform (like MailChimp, a platform we’ve covered in a previous newsletter) to streamline your marketing efforts. By syncing customer data, you can automate email campaigns triggered by specific actions, such as sending a welcome email to new customers or offering personalized recommendations based on purchase history.
Upselling and Cross-Selling
Leverage your POS system to prompt upselling and cross-selling opportunities. The system can suggest items from your menu or offer upgrades and add-ons during the ordering process. This can increase average order values and boost sales.
Social Media Integration
Some POS systems allow integration with social media platforms, enabling you to easily share updates, promotions, or special events directly from your POS system to your social media accounts. This can help increase your online visibility, reach a wider audience, and engage with your customers.
How each POS Service Stacks up
SQUARE
Best For: Single-location food businesses
Pros: Affordable Strong analytics, instant customer profiles, and audience segmentation Easy Loyalty and Marketing platform
Cons: Free plan does not have robust capabilities, making this plan ideal for smaller food & bev vendors
Pricing: Free plan with no up-front costs for hardware $60 plan for established businesses
TOAST
Best For: Restaurants or bars with large inventories Food businesses serious about increasing profits
Pros: Point-based rewards to encourage repeat buying Wide range of customer-focused perks like accrual and redemption rates, sign-up bonuses, and birthday rewards
Cons: Only compatible with Android hardware Not compatible with iOS/Apple Free plan does not include marketing integration
Pricing: Free plan (no marketing integration) $69 monthly plan (includes marketing integration)
CLOVER
Best For: Businesses serious about retaining customers Businesses that want industry-leading hardware
Pros: Ability to build contact lists, share promos and rewards, and collect private feedback Simple to create offers and automate personalized perks for customers
Cons: No free plans and adding features can become expensive
Pricing: $165, $200, & $220 monthly plans Clover offers software features in bundles
LIGHTSPEED
Best For: Businesses looking to grow their customer base
Pros: SMS marketing and custom loyalty programs Emphasis on repeat buying Customer segmentation
Cons: Slightly more expensive than some rivals No free plan
Pricing: $69 plan is quite robust and should include enough features for most businesses
So who Wins?!
Well… it depends. If you’re looking to switch or get started with a new restaurant POS system, we’d recommend using Toast – especially if you manage a full-service restaurant with complex operations. Toast offers the best customer engagement and stock management features based on customer feedback, and its intuitive backend makes it a breeze for new users to get to grips with.
However, Toast is only compatible with Android devices. So, if you’re after iOS compatibility, we’d recommend Square. It’s the best POS for small businesses that require a basic iPad setup, such as cafes and food trucks, and its scalable packages are perfectly suited to growing operations.
A good POS system will help any business thrive and grow, providing accurate and important data to base decisions on. A restaurant will especially benefit from an industry-focused POS System.
Every business records its sales, but a restaurant must also be able to accept reservations and link an order to the table is was placed at. Every business tracks inventory, but a restaurant must track the amount and cost of the ingredients used in each dish, in addition to the amount and cost of the orders that are placed.
A good POS centralizes all the processes of a restaurant, bar, or cafe, allowing the manager to improve upon – and fix – its processes. It will pay for itself and then some.