Author : Erik Tversland

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How Mobile Text Coupons Improve Customer Loyalty and Boosts Sales

This blog post is by our guest blogger, Ken Rhie, CEO of Trumpia. It’s a great article on using digital coupons to build customer loyalty and boost sales.

How Mobile Text Coupons Improve Customer Loyalty and Boosts Sales

More and more companies are realizing that sending coupons to your customer’s mobile phones is a game changer. Digital coupons are easier to create and a lot simpler for customers to remember than traditional printed coupons. Clipping coupons is quickly becoming a thing of the past, as mobile coupons are redeemed 10x more often than print, and they can be generated instantly.

Here are 5 reasons that texting customer mobile coupons will see help drive sales and increase your bottom line:

Higher Redemption Rates

Of course, the point of your coupons is to boost sales. Text coupons are more likely to get opened and clicked than emails. Mobile coupons were 14% more likely to be opened and 34% more likely to generate click-throughs to websites. People prefer immediate offers and want coupons that are personalized for their shopping habits. Because of their high open rate, text messages lead to more sales.

Fewer Costs

Digital ads and text coupons are great because they require very little from you. While you might want to have a professional design a graphic for your coupon, you don’t have to worry about printing or paper costs. You can save on a lot of time, effort and material expenses by shifting over to mobile text coupons. They can be generated and sent instantly, so if your store is having a slow day you can send out a coupon for 10% off a product you are promoting.

Better Timing

If you schedule your coupons in advance, then those posts can even be made in advanced. You do not need to be available when you want to engage your audience. Better yet, you can plan ahead and create coupons that coincide with important events or holidays that impact your brand or your customers. Planning ahead means less chaos in formatting and sending out those messages the day of your big sales.

Better Tracking

Paper coupons are almost impossible to track – leaving holes in your analytics and no contact information for future content. Text messages are opened 98% of the time and read within 3 seconds. Once a customer has seen your coupon, you can follow up with them and see if they want to offer you more information so that you can give them more personalized deals. For example, if you send them a coupon for a meat lovers pizza and they redeem it, you can then follow up and see if they would be interested in future meaty pizzas! The more information you have on a customer, the better you can keep them satisfied and coming back for more.

Increased Value

Tracking isn’t just good for your strategy efforts, it increases the value your brand can offer the customer. Mobile Marketing Watch found that 26% of their mobile users increased the amount of items in their carts when coupons targeted their favorite products. And, 65% of their audience redeemed their targeted coupons within 5 minutes. People are willing to spend more time and even shift to mobile payment methods if they see that their favorite products are featured in coupons. In a world where comparable competitor products are literally a click away, savings and convenience matter.

Mobile coupons should be part of your mobile strategy. For more information on how to improve your customer satisfaction, loyalty and conversion rates with a good mobile coupon texting campaign, click here!

 

Author Biography:

Ken Rhie
Ken Rhie is the CEO of Trumpia, which earned a reputation as the most complete SMS solution including user-friendly user interface and API for mobile engagement, Smart Targeting, advanced automation, enterprise, and cross-channel features for both mass texting and landline texting use cases. Mr. Rhie holds an MBA degree from Harvard Business School. He has over 30 years of experience in the software, internet, and mobile communications industries.

Filling out vs. Completing Checklists (there’s a big difference)

Pretty much everyone that we speak to tell us that they do checklists daily, every shift, in order to get their restaurants ready to serve guests. About 80% are doing them on paper. Of those 80%, 94% believe that they are getting pencil whipped. Meaning that they can tell someone simply filled out the checklist quickly with the desired information because it’s required. They did not provide any real insight.

There’s a huge difference between filling out a checklist and completing a checklist.

Filling out = Pencil Whipped. No thought put into any of the tasks or answers. Simply going through the motions because it’s a requirement of the job. Usually filled out right next to where the clipboards are hanging on the wall with the checklist on it. This adds zero value. It may as well not be done because it’s a waste of time, although only about 30 seconds up to a couple minutes, but still why bother? If a task isn’t going to add value then don’t do it. Restaurant operators, managers, and employees are busy enough as it is so adding busy work makes no sense.

Completing = applying due diligence and due care to the task-list. Walking to each station/area and giving each task/item the attention it deserves. Some items will require more time than others, but if you have implemented systems and checks that you deem important to the success of your operations you should expect that they are being checked diligently. An added, but very valuable benefit to completing vs. filling out a checklist is that by simply walking the restaurant checking items the “inspector” will undoubtedly notice other things, not necessarily on the checklist, that may be out of whack and attend to them before it becomes an issue. This is huge and often gets overlooked.

Most everyone that we talk to tell us that they use checklists to ensure that every location, every day, every shift is operating consistently, staying compliant with brand and safety standards, and to ultimately run better restaurant operations. That is absolutely the largest benefit of checklists in general, but the assumption is that they are being completed not filled out. Our research shows that most of the time, 94%, that is not the case. Restaurant operators are frustrated with the lack of daily operations visibility, especially if they aren’t able to be in every location every day. They tell us  that sales and profitability suffer when there’s a lack of operations compliance and consistency.

Our clients have implemented a system that is just as easy to use as a pen and paper which gives them the peace of mind knowing that their procedures are being followed every shift. They know which checklists have been completed, which haven’t, who completed them, which have been pencil whipped, what time they were completed, and where they were completed in real-time through the management dashboard on their tablet, phone, or laptop. They enjoy complete operations visibility all the while driving system compliance and consistency.

The Task-list Scheduler tells each location exactly which checklists need to completed and by what time. OpsAnalitica clients are able to identify trends and focus areas through our robust tagging, dynamic scoring, and reporting engine that offers easy to digest chain-wide reporting.  Again all in real-time on any device.

If you are frustrated with not knowing exactly how each of your restaurants are operating on a shift by shift basis click here to learn more about the OpsAnalitica Platform and see how simple it is to use. We might be able to help you run better operations as well.

From a Tent to the Shark Tank

In this episode of the OrderUp Show Erik interviews Co-founder and COO of Tom and Chee, Corey Ward. Corey shares his story about how he first got into the restaurant industry as a kid. His first job out of college coloring comic books. To draining his bank account and spending his rent money to setup a tent on Fountain Square in Cincinnati to sell grilled cheese and tomato soup to ice skaters. This of course led to the successful restaurant concept, Tom and Chee.

Check out the interview below:

Podcast – Ari Weinzweig visits the OrderUp Podcast

Ari Weinzweig fell into the restaurant industry in the early 80’s because he didn’t want to move home after college and wasn’t particularly fond of driving a cab.

His business started out with a deli and has now grown to a community of 15 businesses under the Zingerman’s brand including a mail order service, creamery, a farm, business training, a publishing company, and even an annual bacon camp. All these unique businesses reside in Ann Arbor, MI.

Ari is a very interesting guy with an interesting belief system that affects every aspect of his life, professional and non-professional. Check out his visit to the OrderUp Podcast last week below.

Podcast – Interview with Adam Frager, Restaurateur/Entrepreneur

In this episode of, OrderUp – The Restaurant Ops Podcast, Erik sits down with Adam Frager a St. Louis restaurateur and entrepreneur.

Adam is one of the founders/owners of Blood & Sand and Death In The Afternoon, both amazing restaurants here in St. Louis. He is also a founder of Brigade Society POS that was born out of his own frustrations with the available solutions at the time. He brings a great perspective on the industry including craft cocktails and make sure you stick around until the end for the great story about ODB’s (Old Dirty Bastard) last performance ever. It’s very funny!

The Value of Operations Data at Your Fingertips

Operations data are the data points that are generated every meal period in a restaurant that directly affect sales and profitability.  Let’s break it down:

  • Marketing activities remind your customers that you still exist. 
  • People come in to eat at your restaurant. 
  • You serve them food (operations)
  • They pay and leave either happy or sad, eager to share their experience with their friends or trash you on Yelp. 
Your restaurant’s operations: the food, service, speed, perceived value, cleanliness, and safety standards all determine how your guests will feel when they walk out of your establishment. 

Remember we are restaurant operators and operations are our business. Operations data points are the measurement of our operations. Until this time in the restaurant industry it has been next to impossible to capture, organize, and analyze operations data for even a single restaurant location never mind a national chain.

There are two main reasons for this, the first is that we aren’t a completely automated business. We are predominantly a human business where people, not automated machines are the means of production. Number two the technology didn’t exist or it was too expensive to capture the data.

With the invention of tablets and smart phones we now have powerful handheld devices that can be used to capture operations data. A smartphone used every day to consistently capture operations data can feed a data analysis initiative that can drive down waste and increase profitability.

In the spirit of ops data and running better operations we are giving away our ebook, SMART Inspections, Drive Big Data. Click here to get it delivered to your inbox.

I will leave you with this thought. As technology becomes more prevalent in the industry, the companies that can identify, test, and implement new solutions more quickly will have a distinct competitive advantage in the marketplace.

Don’t Neglect the FOH

I’m sure you have experienced this a million times….

I’m going to share a story from my days at bartending in a very busy mountain town.

Spring break was one of the busiest times of the year. Two-hour waits for dinner and up to an hour wait for lunch. No real break between the shifts because we got the apres ski crowd after a busy day on the mountain.

During March, there would be a lot of cash just burning a hole in our pockets, like most ski town residents we would need to unwind at the end of the night. It could sometimes turn into a 4 or 5-hour process and would inevitably make the next lunch shift pretty rough.

It was always a bad idea when all of us would go out together because now instead of 1 or 2 of the staff operating at 75%, we would have 90% of the staff operating at 50%.

Never failed, every time that happened we’d get an early lunch rush. Side work was half-assed, tables weren’t set, outside heaters weren’t on, umbrellas were down, snow on the front patio. You get the picture.

We’d ingest as much coffee as we could stand and GO TO WAR!

The service was horrible because you are trying to complete side work while serving guests. Drinks took forever because there weren’t enough glasses at the soft drink stations, not enough lemons cut, it was a disaster. It hurt our tips and certainly hurt lunch sales.

Anyone who has ever managed a restaurant has worked a shift like this. You walk in the door and your staff looks like the slept in their uniforms and don’t get me started about the smell, like a damp cellar.

Instead of proactively managing your shift, you start your day putting out FIRES.

Instead of walking your dining room and checking it for readiness you are herding CATS.

In the spirit of this story, we’d like to share our FOH Readiness Checklist. Click here to download it for free!

Even if you have a FOH Checklist, you should take a minute and check out ours.

We hope you find it helpful.

If you are interested in learning more about how OpsAnalitica is helping restaurant operators run safer, more profitable restaurants, click here, to watch a quick 14 minute demo video.

Pencil Whipping Happens

Let’s talk about the art of Pencil Whipping. Here’s the “official” definition from Wiktionary:

Verb
pencil whip ‎(third-person singular simple present pencil whips, present participle pencil whipping, simple past and past participle pencil whipped)

(idiomatic) To approve a document without actually knowing or reviewing what it is that is being approved.
(idiomatic) To complete a form, record, or document without having performed the implied work or without supporting data or evidence.Knowing the auditors were coming in just a week, we chose to pencil whip the quarterly inventory forms for the last year.

Synonyms
rubber stamp

I suspect that most of you know this is happening in your restaurants whether it be line checks, temp logs, pre-shifts, restaurant audits, safety inspections, or any of the other checklists that you may be performing on a regular basis. There are several excuses for pencil whipping any of these, some more plausible than others, but when it comes to food safety none of them are acceptable.

Running late for example. Tommy was recently talking to a buddy of his and he admitted that when he was a chef he would wind up in a situation where he was running behind and would just quickly initial everything on his line check because it was required to be filled out. Note that I didn’t say that he completed his line check, he simply did the minimum required to be compliant with the rules. This is a classic Pencil Whip. All well and good until someone in your restaurant gets sick because you served food that wasn’t the right temp.

Another very common Pencil Whip stems from the mindset of “Nobody looks at these anyway so why should I invest any time in it I’ve got better things to do. I know everything is fine.” This is very dangerous, but it also makes sense. If every day you fill out a checklist and then file it in a drawer in the office, knowing that nobody ever looks at it. Then twice a year the paper shredding truck arrives to make room for more. You might feel the same way. Make sure you are following up on your checklists.

Then there’s the “I forgot so I’ll just fill it out later” pencil whip. This is going to happen from time to time, but if you are tracking them you will know that it wasn’t completed on time. This can now be a coaching moment on how important line checks are to the overall success of the operations.

If you are doing line checks, inspections, checklists, etc. without follow up I will guarantee you that some of them are being pencil whipped. This is putting your business at risk.

It’s very easy to put off food safety improvement until tomorrow, until tomorrow is the day you get someone sick. Look at Chipotle, I just read today that they have been subpoenaed to produce documentation about practices, chain-wide, for the last 3 years. We already know how much their sales have suffered recently, but there are huge costs associated to these types of things as well. It’s a big deal.

Make sure that you are doing everything that you can to minimize food-borne illness. Start by ensuring that your line checks are being completed diligently and not pencil whipped. Click here to download our free guide, 7 Tips to Faster Better Line Checks

Keep on Inspecting!

Food Safety Concerns Among Consumers Increase

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Just this week I came across the above graphic and an article out of QSR Mazazine citing a national study that showed 74% of consumers expect better food safety. The same study also found “that while a slight majority (53 percent) of U.S. consumers say that their level of concern about food safety has stayed about the same in the past few years, 46 percent of consumers say their level of concern has increased and only 1 percent report it has decreased”. Click here to read the full article.

Now more than ever, thanks in part to the Chipotle situation, there’s  a lot of scrutiny on the restaurant industry. When such a great, popular, well trusted brand can have issues the sentiment is that it can happen to anyone. And it can.

Multi-unit operators need to be able to know that every location is running safely, every shift. For a single unit operator it’s easier because they are at their location, in person, every day, for the most part. When you have 15 locations spread out across town or 100 across a region of the country or thousands throughout the world you can’t possibly be at every location every day. Therefore, you need to rely on a very well trained staff to execute in the manner they were trained. The easiest, most efficient manner to manage these expectations is through checklists with follow up. You need to inspect what you expect.

Every restaurant chain in the world has access to their register and customer service data for every location at all times, but very few have access to their daily operations data such as temp logs or know for sure that every location completed a full line check before each meal period including staff/FOH readiness, refrigeration temps, holding temps, quality tasting, checking for FIFO, and any other chain specific items related to food safety and guest experience. That is ridiculous, that is very, very important data which when monitored correctly will reduce foodborne illness outbreaks.

In the franchise system world it’s even more important. Consumers, for the most part, don’t understand that it’s Tommy that owns these 10 McDonald’s if they get sick at McDonald’s their are going to go after corporate. Tommy will be in trouble too, but the news story is the large chain got someone sick. It doesn’t matter where it happens either. If someone gets sick in Seattle the brand will suffer in Florida as well. Food safety is important stuff which we all know, but in today’s world information travels at light speeds and spreads like wild fire. Food safety has to be a priority and needs to be managed constantly.

The number in the above graphic isn’t exactly chump change. This is going to draw attention to consumers and thus government officials to try to get this number down. Stay ahead of the curve and start managing by checklists now. It’s not a decision you will ever regret.

Click here to get our list of 8 Daily Must Do Checklists for Restaurants delivered to your inbox for free.

Keep on Inspecting!