CHAPEL HILL, NC – “I believe that for some operators, offering mobile payments is imperative,” wrote Dunn Bros Coffee CMO Laura Radewald, in QSR Magazine earlier this week.
The 80-unit chain recently launched a mobile payment and loyalty app, and Radewald was sharing her company’s mobile payments experience.
Incorporating input from several QSR executives, Radewald offered a checklist to help retailers determine whether mobile payments makes sense for their store.
(1) High purchase frequency: For stores that offer something their customers consume on a daily basis, like coffee, making your brand part of their daily routine is essential. “With several competing restaurants in every square mile, quick serves have to give consumers a reason to visit,” Radewald said. “While a mobile-payment program itself might not motivate a visit, a loyalty program seamlessly integrated into a mobile payments app will.”
(2) Your category is commoditizing: The greater the degree of commoditization, the more important it is to differentiate. Mobile payments can help make that point of differentiation, helping you develop a deeper relationship with customers.
(3) You want to appeal to a younger crowd: Millennials are natural adopters of the latest tech trends, and they expect the stores and restaurants they visit to accommodate that interest. For QSRs looking to appeal to a younger crowd, mobile payments are a strategic imperative for remaining relevant with them.
(4) Your customers want quick in-and-out: When convenience matters to your customers, mobile payments enhance the customer experience. “Paying with a mobile app is faster than paying with credit cards or cash, so when a customer is deciding between your location and one closer in proximity, a faster payment method, especially one that rewards loyalty, will likely be the deciding factor,” Radewald said.
“If your quick serve meets all, or even some, of these qualifications, I believe it’s imperative you develop a mobile payment strategy now,” Radewald concluded. “Many will wait for a winning mobile payment solution to emerge, but for some, doing so may jeopardize the future of their business.”