6 Reasons Why Cloud-POS Systems Fail Marketing
Thanks to the continued innovation in cloud technologies and computing, merchants and sellers have many options to choose from when it comes to selecting a cloud-POS system to start, run and operate your retail, restaurant, taproom or coffee shop business.
As a customer engagement software platform, GoGoGuest remains agnostic to cloud-POS systems and payment system providers. What does this mean? Our firm belief in creating data-rich customer experiences positions us well to integrate and connect with ANY cloud POS system or payments platform with robust, well-documented APIs available to merchants and sellers.
Why Cloud-POS Systems Can't Do Automations And Marketing Well
If you're a merchant or seller with a retail, restaurant, taproom or coffee shop business, this guide will provide you with key information you need to determine if you should rely on your cloud-based POS system for marketing to your customers.
The bottomline: Brands that invest in data-rich, cross-channel customer experiences need more than the automation and marketing capabilities offered by a cloud-based POS system. Here is what you should know:
1. Do you sell in-store, online and through other apps?
Relying 100% on your cloud-based POS system for marketing means you are missing out on opportunities to learn more about consumer interests when they are browsing your website, placed an order online or in third-party applications.
Cloud-based POS systems’ marketing and automation capabilities limits your brand to basic in-store automation rules and promo offers. While also stifling opportunities to re-engage and win-back with creative offers that truly drive value.
Reasons to invest in a customer engagement software platform:
- Gather all your audience and customers in one place, yes that includes your website, online ordering and eCommerce too!
- Dive deeper in understanding customer groups and cohorts by behavior (when they buy, what they buy, how they buy, demographics and more) and engagement.
- Design multiple customer journeys that elevate your brand’s customer experience. Meaning, a welcome email is not a simple “hi, thanks for coming in you just earned a .” Personalize and craft each automation in your customer journey in ways that will add value to a customer’s experience.
- Powerful analytics, insights and histograms that go beyond the top 3 most purchased items. At GoGoGuest, we call this part of our platform Market Basket Analysis.
- Gain recommendations on your next best marketing action. With rich insights from your cloud-based POS system, WiFi system, eCommerce platform, website and other third-party applications retailers, restaurateurs, coffee shop connoisseurs and craft brewery owners and operators are able to plan and program marketing offers and promotions that excite their best customers and convert them into brand ambassadors.
- You’re not confined to a one template that does not differentiate your brand from “the other’ coffee shop or restaurant a block away, also using the same POS system.
2. The benefits of cross-channel, data-rich engagement
Consumers love to do their research online before visiting a coffee shop or restaurant before making a reservation. They like checking out your website, menu and read reviews before sliding in or making a reservation.
It a modern world fueled by technology changes and the pandemic, consumers are expecting more from their favorite brands. Brands must get the customer experience right, or risk losing a customer to other brands.
Reasons to understand customers using data, analytics and insights:
- Go deeper into your customer segmentations. A few examples include: who is local, customer groups by average purchase and frequency, customer groups with birthdays, phone numbers and more!
- Compare performance by customer group
- Align your menu and offerings to consumer trends and behavior
- See the best channels for engagement by customer group
- Compare your most successful campaigns and automations
See what is possible.
3. The power of smart segmentations
Smart segmentations are driven by rules that you set as a business owner. These segmentations can be shaped by in-store and online behavior and engagement activity.
A cloud-POS system’s marketing capabilities is limited to in-store purchase engagement. We encourage you to go deeper.
Deeper smart segmentations you gain with GoGoGuest:
- Purchase driven smart segmentations across channels
- Engagement driven smart segmentations – email or SMS
- Real-world driven segmentations
- Demographic driven segmentations – by location, by gender, by birthday, by interests
Unlike a cloud-based POS system’s limited personalization opportunities, smart segmentations can deeply personalize and humanize each customer touch point.
4. Get really personal with deeper automations
Now that you’ve organized your customer groups, it is time to get personal. Before you do, marketers and customer teams must design the customer experience.
What would you like each customer to feel when they receive your message? What type of content would matter to a new customer vs. a loyal customer? Does it make sense to send an online offer to someone who lives 2 blocks from your business? Or someone who lives 10 miles from your business?
Powerful automations you can create in GoGoGuest
- Birthday email series that is automated 7-days before a customer’s birthday, with a reminder shared 5-days before and on your actual birthday.
Why do this? As a restaurant, craft brewery or coffee shop, this is a great opportunity to remain top of mind as the birthday celebration spot. Chances are, you’ll play host to a group of 3 or more!
- Welcome email series that activates a few days after the first visit.
Why do this? Encouraging a customer to stay in touch and remain engaged is key to growing your subscriber list and maintaining high list performance. Meanwhile, automations is a great way to introduce your brand and product offerings.
5. Design analytics driven customer loyalty programs
A customer loyalty program is all about growing your brand’s share of wallet. If your answer is offering a free sandwich after 10 digital stamps or stars is a sign of customer loyalty — you are dead wrong.
You’re probably wondering, what the heck is share of wallet? Cloud-based POS systems’ loyalty programs poorly correlate with the customer loyalty data that matters most – a customer’s spending within a category that’s captured by a brand, or store.
For example, in the coffee shop category how much does a customer spend on a Starbucks vs an independent specialty store in the same neighborhood or street?
Your brand’s ranking in a customer’s mind highly correlates to your share of wallet. For instance, if your brand is ranked as secondary or tied in the category of coffee shop neighborhoods near me, chances are $0.50 you could be gaining from your customer is going to your competitor.
A customer loyalty program that drives profitability
- Not every customer is a loyal customer. Selecting specific cohorts using deep analytics is key. Personalizing your program to each persona and aligning rewards / incentives to be attainable and desirable for milestone based rewards programs.
- Status not points. The most successful loyalty rewards programs or clubs create cult brands. When a brand can motivate consumers to spend $2,500 a year on salads or when avid travelers (pre-pandemic) would book short trips to up-level their membership status — that is value driven loyalty.
- It’s all about incremental value. Special offers should drive incremental business value not drive business as usual. What does this mean? Offering a discount to guests who would otherwise have come in anyway without the offer is not going to contribute to your growth. Instead, target “Persuadable Customer Personas” who are new to your brand, and would be willing to try with an offer.
- Seamless customer engagement loop. Let your loyalty members know about milestones achieved and when they’re entitled to receive “boosters.” Communicate using cross-channel delivery methods (email, SMS or your own loyalty app).
6. Flex your growth marketing muscles
Cloud-based POS systems marketing and SMS tools are limited. As a business and brand, you don’t have room to flex and stretch your growth marketing muscles.
A comprehensive customer engagement platforms like GoGoGuest come with all the tools you need to understand, test, implement and iterate your marketing.
Every marketing tool you need to grow your business
- Customer data management
- Email marketing
- SMS marketing
- WiFi marketing
- Customer loyalty program design and management
- Basket analytics
- Recommendations for your next best marketing action
- Campaign insights and reporting
Don’t take our word for it. We encourage you to dive in and dig deeper. Have you read The Customer Engagement Playbook? Produced by the GoGoGuest team, it offers actionable next steps and best practices on how to implement these actionable customer engagement tools drive value and profitability.