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5 Proven Ways to Reduce Customer Acquisition Costs

Whether you are running a QSR, full-service, or fast casual restaurant, there is always one goal in mind – gain more customers for sustainable growth. When you are on the path to growth, a big chunk of your budget will go toward marketing and advertising to reach new diners/customers. However, to know how effective your marketing campaigns are, you have to determine the customer acquisition costs. When customer acquisition costs are high and customer lifetime value is low, it ultimately breaks down your bottom line. Therefore, it is vital to strike the right balance and keep your expenses in check. This blog aims to help you make your marketing efforts count by sharing the proven tactics to reduce your CAC. What Is Customer Acquisition Cost & How to Calculate It Customer acquisition cost or CAC is the total amount you spend to acquire new customers. It is one of the important business metrics that lets you know whether the total amount you spend on acquiring new customers outweighs the money you make. In simple terms, customer acquisition cost is designed to measure and maintain the profitability of your business. Calculating your customer acquisition cost can be challenging, but there are online tools, such as the Restaurant Marketing Calculator, to help you calculate it properly. How to Reduce Customer Acquisition Cost Almost all businesses depend on customer acquisition. However, the cost associated with CAC can significantly impact your business profitability. As a result, business owners need to explore more ways to minimize the cost involved with acquiring customers. Here are 5 proven ways that can help you to reduce customer acquisition costs. 1. Test Your Options The first step towards reducing customer acquisition costs is to know which method works for you. The best way to find out is by testing your options. You need to find out which option appeals to your target audience and turns more customers in. However, when testing marketing options, don’t try all the options at once. For instance, if you want to test Google Ads, Facebook (Meta) ads, or consider going with billboard advertising make sure to try one by one and then compare all the results with each other to know which method works. This is one of the smartest moves to determine which channel gives you better results and will ultimately reduce your customer acquisition cost.   2. Try Referral Programs Did you know having a referral program can significantly reduce customer acquisition costs?  Having a robust referral program in place allows you to get warmer leads and helps you obtain prospects who are already familiar with your business. This minimizes the cost you spend on acquiring new customers. To increase recurring sales, you can introduce a loyalty reward system that can help you create loyalty campaigns and entice your customers to come back for more. 3. Push Organic Social Media Growth Organic social media growth is the key to reducing your customer acquisition cost. Businesses can leverage user-generated content (UGC), share and create valuable content that resonates with the audience, and easily convert viewers into customers. To achieve this, you need to align topics, channels, and formats with your target market. Once you start increasing your organic followers, you’ll soon be able to convert them into a target audience. Remember to keep checking your organic social media growth by monitoring and analyzing which type of posts are working for you.   4. Track Your New Customers Keeping track of your new customers is essential to know the progress of your marketing. However, it can be difficult for you to know your new customers when using a paper-based order-taking system. Therefore, to make sure that you can easily track your new customers you need to adopt either of the two solutions given below. Credit Card Tracking: A smart POS system integrated with credit card processing can help you make a database of your customers. You’ll easily track your new customers, as well as those who make repeat purchases. Online Signups: By using a custom website and app you can easily know new signups. This can help you to get an estimate of the new customers that order from your restaurant. It’s a smart way to track your new customers and know exactly how many customers you gain. 5. Invest In SEO & Digital Marketing To reduce your customer acquisition cost it is important to find new and cost-effective ways to acquire fresh customers. Digital marketing and SEO can help you reduce your costs. By simply claiming your page through Google My Business, and pushing for reviews, you can gain customers through Google. Meanwhile, by practicing SEO you can rank on certain keywords your customers are typing to search restaurants and grab more audience. Make Informed Decisions by Using the Best CAC Practices Your business is dependent on new customers. However, acquiring customers by spending more money without knowing where it’s going, won’t help you to drive business growth. By using the right tools and following the above strategy you can drastically decrease your customer acquisition cost. FAQs What is a Good Customer Acquisition Cost? There is no one-size-fits-all answer for good customer acquisition cost. It varies depending on the type of business you own. However, a general way to know whether your customer acquisition cost is good or not is to compare it with the Customer Value. Your CAC should be lower than your CV.   What is The Difference Between Cost Per Acquisition & Customer Acquisition Cost? CPA or cost per acquisition is related to the campaign or channel metric that helps you to assess what it costs to generate contact with your target audience who are still not converted into your customers. Whereas customer acquisition cost is defined as the business-wide metric aimed to calculate your overall marketing spending on acquiring new customers. Why Is It Important to Calculate CAC? Knowing how much you need to spend to bring in new customers will help you optimize your marketing strategy for

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Tips for Meeting Seasonal Sales Goals

Did you know that at least 50% of your prospective clients are not a good match for your products or services? Yes, it’s true and this should have significant implications on your sales strategy.    Sales is very much an art form. Getting creative is not only encouraged, but can be exactly what you need to meet your seasonal sales goals.    With the fall season coming up, it’s time to think about the best approaches to meet end-of-the-year goals.  Understand Your Target Audience If you want your target audience to notice your company and purchase your products, then you have to make the effort to engage with them. Understand your target audience inside and out.    If you are targeting teenagers or young adults, market on platforms that they care about. TikTok, Instagram, and Snapchat should be your friends. Do not be intimidated by how many companies use these platforms. The only thing that matters is how you use them.    On the other hand, if you are trying to target older adults, platforms like Facebook or television advertising may be more appealing. Using such platforms can be helpful in increasing online sales and retail sales.   How to market and advertise is more general advice. The main point to grasp here is that to meet sales goals you need to understand your audience and communicate with them effectively. Email Marketing Is Not Dead For a Reason Bulk email marketing has been around for a long time. Popularized in the early 2000s, email marketing was one of the first marketing tactics used in the digital age.    As more companies have used email marketing, the more “spam” potential customers have thrown away. From a customer’s perspective, most email advertisements are annoying and a waste of time and space.    However, email marketing is far from dead. When an email campaign is planned carefully, it can reap amazing rewards.    But how do you make your campaign stick out?   Write engaging emails that encourage interaction and offer incentivization. Be clever and creative. Make the reader want to read more! Incentivize, Incentivize, Incentivize If you want to meet your sales goals, you have to encourage your target audience to learn about your company.    When marketing your product or service, of course, it is important to demonstrate to potential clients the value that it provides.   A key part of sales is to customize your pitch. Sales is not about you, but how you can help your client. When you put the focus on your client, they will be more invested in what you have to say.    An important step to further your commitment to the client is to incentivize. Make learning about your product or service worth their while. Offer a slight discount, a rewards program, or something that would be attractive to the potential client.  Exceed Your Seasonal Sales Goals Today The above three tips are just a starting point to meeting your seasonal sales goals. As you get to know your audience, create exciting content, and offer meaningful incentives, there’s potential to not only meet your goals but to exceed them!    At Modisoft, we love helping take companies to the next level. We offer state-of-the-art POS systems and other tools that will boost a company’s productivity. We have learned throughout our experience that the more organized a company is, the more it will succeed!    To learn more about our products and to try a demo, please sign up today. 

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8 Steps To Creating Your Small Business

  Starting a small business can be challenging, especially in today’s global economy. Nearly 20% of businesses fail within their first year, and only half make it to five years. With adequate research and a willingness to understand the nuances of running a business, there is room for success in your business idea. In this guide, you will learn 8 simple steps to get your business started. With the right steps in place, you can grow your business idea and find success.   1. Conduct Market Research Conducting market research helps you understand the competitive landscape you are entering into. Whether you have a physical location or are strictly an eCommerce store, there are always competitors who are similar to your business idea. Learn what those competitors are doing to understand the industry you are entering into better. What companies inspire you? What would you do differently than other stores? Keep an accurate record of your findings and write a summary of your research. If you ever feel stuck in honing in ideas, your market research can help you make a plan moving forward.   2. Write a Comprehensive Business Plan A comprehensive business plan can take a lot of time and careful consideration. A business plan summarizes everything about your business and what it needs financially to operate at its best. Aspects to include in a business plan include, Executive summary Mission statement Environment considerations Market analysis Competitive analysis Management plan Financial plan Product lists Potential investors By knowing exactly what your business needs in your plan, you can keep on track for a successful start to your small business.   3. Consider Accounting Options The type of business you start can affect how you pay taxes, raise money, and the personal liability involved. Many small business owners talk with an accountant or attorney first to understand better how opening a small business affects their finances.   Types of Businesses Sole Proprietorship: A sole proprietorship gives you complete control of your business. This type is not considered to be a separate business entity, which means your business assets and liabilities are connected to your personal assets and liabilities. Partnership: A partnership involves two or more people who own a business together. This can be a limited partnership (LP) or a limited liability partnership (LLP). An LLP helps protect a partner from potential debt that the other partner may accrue. Limited Liability Company (LLC): An LLC combines the aspects of corporation and partnership structures. This type protects personal assets such as vehicles, houses, and savings accounts. Keep in mind LLC is still considered to be self-employment, which means you have to pay self-employment tax. C Corp: C corp means a corporation and is a legal entity that is entirely it’s own. Corporations are able to make a profit, pay taxes, and can be held legally liable. It is the strongest type to protect personal assets, but also requires more acute reporting. S Corp: S corp is a subchapter corporation that is created to avoid taxation complexities. S corps are allowed to gain profits, experience some loss, and be passed to a business owner’s personal income.   4. Register Your Business After deciding what type of business works best for you, then it is time to register your business. Registering your business creates a tax ID number, otherwise known as an employer identification number (EIN). This helps track your business for tax reasons, but keep in mind that if you are not a corporation or partnership, you will not have to register for an EIN. Make sure to register your business in the state you are in, as income and employment taxes differ per state. Talk with your attorney or accountant to further understand what is required to fully register your business.   5. Consider Payment Options Setting up payment options for future customers can seem like a daunting task, but it can be made very simple with a POS system, merchant account, or payment gateway account. More customers are utilizing debit or credit cards, which makes it a key aspect that is needed when starting a small business. Choose a credit card machine or point of sale (POS) system that works best for your business model. More advanced POS systems like Modisoft are able to offer inventory management, as well as manage schedules and regular reports, which can help you increase profits. There is also the option to set up a merchant account or create a payment gateway account. In the US, eCommerce represents 10% of retail sales, which means online sales are becoming even more crucial for businesses to adapt to. With a payment gateway, there is the ability to encrypt data and ensure that the information is secure for customer payments. However you choose to collect payments, make sure to check for any hidden fees or transaction minimums before signing up for a service.   6. Apply for Licenses or Permits There are regional, state, and federal licenses and permits to consider before you can open your business. Depending on the type of business you plan to open, the type of permit will differ. If you are opening a restaurant, you will have to consider a food handler’s permit, as well as a liquor license. For retail, the licenses may differ depending on what state your business is located in.   7. Define Your Business Concept Define your business concept down to every detail before you consider opening the doors to your business. Consult your original business plan and make sure you are on track with your financial plan, product line, or menu items that should be considered beforehand. The more you can define your business, the more customers will be able to identify with your brand. In turn, you can create a loyal base of customers who believe in your business and continually want to purchase more from you.   8. Open The Doors Once you have everything in place, you can open the doors. Ask

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Ready to Maximize Your Email Marketing Campaign? Follow These 5 Steps

  Email marketing is one of the top ways businesses are able to connect with their target audience. Statistically, email marketing is 40 times more effective in acquiring new customers than social media. However, there is a science and art to gaining new customers through email marketing. While some emails can feel too intrusive from companies, there is a method that can give customers an inside look into your business while also offering exclusive deals and information about upcoming products or events. Utilizing a customer engagement tool can help automate the process of what customers are opening up your emails and what ones are choosing to ignore them. By targeting those who are more interested in what you have to offer, you can channel emails to be more effective to customers who are more likely to make a purchase. Here are five tips to consider when marketing through email.   1. Send Relevant Content Creating an email marketing campaign is not just about conversions, it is also about creating relevant content that entices your customers to pay attention. Each email should include a call to action that the customer can engage with. Whether the call to action is looking at a particular product, or an invitation to an event, make sure that the content within the email reflects the call to action. Creating a call to action may take some experimentation, but once you find what your target audience responds to, you can create stronger email marketing campaigns moving forward.   2. Channel Emails Away From Spam It can be easy to fall into the spam filter where customers never get a chance to read what you have to offer. Avoid flashy subject lines or phrases that offer free items. This can trigger the email software to place the email in spam. There are also FTC spam laws that are important to consider before reaching out and making marketing efforts. Emails should always avoid all-caps lines or exposed HTML content, as those elements tend to move the email into the spam folder.   3. Know What Times to Send There are general times to consider sending emails, and it greatly depends on the industry you are in. A customer engagement tool can help you understand the open rate of your emails and how to adjust for a higher click rate. The time of the year, the day in the week, and what time it is can all impact how well your marketing campaign performs. Consider when you are most likely to open and read your own email. Statistically, customers are more likely to open emails between 7 and 9 am on Tuesdays, Wednesdays, and Thursdays with some email click rates spiking on Sunday evenings. Make sure to optimize your emails to ensure your campaign reaches your customers at the right time in their day.   4. Don’t Send Emails Too Often Emails can quickly add up in anyone’s inbox. You want to show the same respect to your customers that you look for in your inbox, which means not sending emails too often. Find the right rhythm for your emails, whether that is once a week, once a month, or every couple of months to share promotions and deals. Only send emails out when you are confident it is an engaging read that customers will enjoy and can participate in a call to action.   5. Use Subject Lines That Work Subject lines can make or break whether a customer opens your email. A customer engagement tool can help you refine subject lines to reach customers better. In general, keep subject lines short and to the point. You want to create an enticing opening without giving everything away in the main subject line. If you can speak simply and direct, you are more likely to have a higher open rate. Email marketing can help you grow your customer base, as well as maintain a positive connection with returning customers. By offering quality content with straightforward subject lines, you can create higher conversion rates across multiple channels of your business.    

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Customer Reviews May Be the Leverage You Need

  Studies have shown that customers are more inclined to trust other customers more than leading professionals. Although nearly half of consumers would agree that customer reviews are trustworthy, there are a few that do not fully trust customer reviews. In a survey asking over 1,800 consumers from the United States about how they find and choose businesses, only 12% believed in expert reviews, as opposed to customer reviews. For small business owners, connections and reviews are a strong asset when it comes to customers who are looking at reviews and recommendations from peers. With pride in their connections, businesses encourage top customers to write positive reviews in order to be seen as a trusted brand to potential future customers. While consumers can speculate about reviews, there are a few things that make a review more reliable. In a survey, nearly 77% found it important for a review to have specific details about the product or service, while only 46% needed photos for proof. 46% also found that a reviewer was seen as more reliable if they had purchased from the business more than once. Only 44% states that the review had to appear more neutral, meaning it should not sound overly positive. The main trouble with reviews for a business is the inability to control how a person responds to products or services, but there are a few ways businesses can influence responses and how other customers may perceive a review.   Monitor By Responding Most customers read the most recent reviews, which is why it is important to ensure the first review reflects a positive response. When possible, make sure to respond to reviews to show greater customer satisfaction and higher engagement with new and loyal customers. If the review is more lengthy and positive, you can ask the customer for photos or more details to showcase the positive aspects of your product or service. Nearly 20% of customers look for negative reviews first, which is why you need to monitor and respond quickly to any negative feedback in the reviews. Keep in mind, the customer who left a negative review may not be lost yet, it may just take more positive communication or a remedy to the situation that could solve the issue quickly. If you need to offer an apology, let the customer know that their response is valuable. If the review is past the point of no return, try reaching out through a private message in order to offer a refund or discount.   Be Proactive With Customer Reviews  The key part of having positive reviews is to make sure your customers are happy with their choices in product or experience with the services provided. Studies show that customers are more likely to write negative reviews if a store seems neglected or if the staff come across as rude. To avoid those types of reviews, be careful in your hiring practices to ensure you have great employees who hold the expectations of your company and how they should conduct themselves around customers. By putting guidelines in place, you are able to manage your storefront better with the right people. Positive reviews often come from the above and beyond experience for customers. For food service, this may look like a free appetizer or visit from the head chef. In retail, this could look like flexibility in return policies or a free gift. Take time to review your business practices and customer service techniques to look for ways to ensure a positive experience for all customers. Whether it is utilizing a referral program or developing rapport with loyal customers who generate more positive reviews, there are multiple ways to reward customers for more reviews that can grow your business.

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How To Improve Customer Analytics and Service With Technology

Improving restaurant customer engagement and satisfaction starts with the ability to utilize technology for more quality customer service. In turn, it attracts new customers and develops a higher chance of customers wanting to return again. Restaurant technology is rooted in customer analytics, which provides greater insight into purchasing decisions and interactions within the restaurant. By knowing your customer base better, the analytics helps inform restaurant decisions and how to adjust services accordingly. Customer Analytics For Improving Services Customer analytics software serves as a vertical business intelligence platform, where siloed data is consolidated and directed to flow through the organization to improve services across the board. With the data in hand, restaurant owners and managers can understand the analytics better in order to turn data into real-world action to improve upon their business model. The data is automatically collected and shows intelligent analyses on trends, anomalies, and customers insights. From there, business owners can increase profits, adjust services, and resolve issues quickly from anywhere. Top Three Ways to Improve Customer Service Collecting restaurant data helps determine the needs of customers and employees to improve the organization and flow of the business. By recognizing the top three ways to improve upon customer service based on data, you can be more informed on how to manage decisions for a higher return of sales and customer loyalty. Improve Customer Engagement Customer engagement is how restaurants are able to establish a connection with customers for the long or short term. The goal for any restaurant is to improve upon relations in order to cultivate customer loyalty and ensure services are up to a high standard. An engaged customer often has an emotional connection to the restaurant, whether that is through the enjoyment of the food offered, or the friendship with the staff. Highly engaged customers also are more likely to buy more and make recommendations to their friends or family. According to Gallup, engaged customers are 56% more likely to go to a casual dining restaurant every month, where only 28% are more likely to visit their favorite fast food restaurant. By knowing the trends, your business is able to understand customer satisfaction software better in order to create deals or customer loyalty programs. Customer satisfaction software is able to, Identify top-selling items Recognize underperforming items and how to improve sales Understand the perception of customer experience in each restaurant location Show slow and peak hours to improve special offers, discounts, and happy hours Launch marketing outreach programs to establish a customer base and reach the right target market The information collected within the software shows a clear picture of how to create strategies for customer engagement and retention. The information also provides an avenue for marketing and outreach efforts that are more informed for a higher return rate of investment. Utilizing platforms is also an important part of customer engagement that can sometimes be overlooked without the right software. Tactics include, Web push notifications Email marketing Online reservations POS systems across multiple devices Reward and loyalty programs Discounts, sales, and promotions CRM communication across restaurants When not using digital systems to connect with customers, there is also the important aspect of connecting with customers in person. This includes talking with customers at the host stand, at the table, receiving the bill, or signing the final receipt. Each interaction is important for customer satisfaction and can make a difference in customer reviews and perception of their experience. The customer should feel like they matter, and that includes training employees to meet a certain standard within the restaurant. Know Your Marketing Channels Restaurant technology has increased significantly, which means the marketing technology has advanced enough for owners to recognize digital trends and what their main marketing channels should be. Owners and managers often use social media, blogs, SEO, and email marketing to reach new customers and retain loyal ones by communicating with a clear brand voice across all channels. The most commonly used method is through social media, which is a readily available market that can be set locationally to where a restaurant is. Nearly 50% of consumers engage with a restaurant on social media and is a great place to access positive reviews. Digital marketing approaches include, Posting updates Sharing photos and videos of food Using a consistent voice to convey an experience Increase brand awareness with targeted posts Use SEO (search engine optimization) for more website traffic Encouraging reviews SEM (search engine marketing) for Google Ads and other ad placement Digital marketing approaches look different for each restaurant, but by using automation tools, you can better define what approaches work best for your restaurant. Use Customer Relations Management Tools Customer relations management, also known as CRM, is a vital piece for maintaining positive customer relations. Restaurant management software is easily integrated with CRM tools, which gives a whole view of analyzed customer data for more acute decision making. The ability to export data systems also helps you or a manager access the information when needed. A CRM system helps with customer engagement and can show when loyal customers spend more, repeat orders, and provide recommendations to their community. One aspect of a CRM system includes loyalty management software, where you can create a loyalty rewards program based on the data provided by the customer engagement metrics. This can include greetings, special offers, regular updates, and customer feedback. Run A Smarter Restaurant Utilizing software helps you build a smarter and more informed restaurant. Technology has advanced in tracking data, informing decisions with analytics, and creating a smoother process for operations and customer relations. With an increased online presence and a CRM system, you’ll be ready to expand to new and loyal customers with ease.

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5 Proven Ways to Reduce Customer Acquisition Costs

Whether you are running a QSR, full-service, or fast casual restaurant, there is always one goal in mind – gain more customers for sustainable growth. When you are on the path to growth, a big chunk of your budget will go toward marketing and advertising to reach new diners/customers. However, to know how effective your marketing campaigns are, you have to determine the customer acquisition costs. When customer acquisition costs are high and customer lifetime value is low, it ultimately breaks down your bottom line. Therefore, it is vital to strike the right balance and keep your expenses in check. This blog aims to help you make your marketing efforts count by sharing the proven tactics to reduce your CAC. What Is Customer Acquisition Cost & How to Calculate It Customer acquisition cost or CAC is the total amount you spend to acquire new customers. It is one of the important business metrics that lets you know whether the total amount you spend on acquiring new customers outweighs the money you make. In simple terms, customer acquisition cost is designed to measure and maintain the profitability of your business. Calculating your customer acquisition cost can be challenging, but there are online tools, such as the Restaurant Marketing Calculator, to help you calculate it properly. How to Reduce Customer Acquisition Cost Almost all businesses depend on customer acquisition. However, the cost associated with CAC can significantly impact your business profitability. As a result, business owners need to explore more ways to minimize the cost involved with acquiring customers. Here are 5 proven ways that can help you to reduce customer acquisition costs. 1. Test Your Options The first step towards reducing customer acquisition costs is to know which method works for you. The best way to find out is by testing your options. You need to find out which option appeals to your target audience and turns more customers in. However, when testing marketing options, don’t try all the options at once. For instance, if you want to test Google Ads, Facebook (Meta) ads, or consider going with billboard advertising make sure to try one by one and then compare all the results with each other to know which method works. This is one of the smartest moves to determine which channel gives you better results and will ultimately reduce your customer acquisition cost.   2. Try Referral Programs Did you know having a referral program can significantly reduce customer acquisition costs?  Having a robust referral program in place allows you to get warmer leads and helps you obtain prospects who are already familiar with your business. This minimizes the cost you spend on acquiring new customers. To increase recurring sales, you can introduce a loyalty reward system that can help you create loyalty campaigns and entice your customers to come back for more. 3. Push Organic Social Media Growth Organic social media growth is the key to reducing your customer acquisition cost. Businesses can leverage user-generated content (UGC), share and create valuable content that resonates with the audience, and easily convert viewers into customers. To achieve this, you need to align topics, channels, and formats with your target market. Once you start increasing your organic followers, you’ll soon be able to convert them into a target audience. Remember to keep checking your organic social media growth by monitoring and analyzing which type of posts are working for you.   4. Track Your New Customers Keeping track of your new customers is essential to know the progress of your marketing. However, it can be difficult for you to know your new customers when using a paper-based order-taking system. Therefore, to make sure that you can easily track your new customers you need to adopt either of the two solutions given below. Credit Card Tracking: A smart POS system integrated with credit card processing can help you make a database of your customers. You’ll easily track your new customers, as well as those who make repeat purchases. Online Signups: By using a custom website and app you can easily know new signups. This can help you to get an estimate of the new customers that order from your restaurant. It’s a smart way to track your new customers and know exactly how many customers you gain. 5. Invest In SEO & Digital Marketing To reduce your customer acquisition cost it is important to find new and cost-effective ways to acquire fresh customers. Digital marketing and SEO can help you reduce your costs. By simply claiming your page through Google My Business, and pushing for reviews, you can gain customers through Google. Meanwhile, by practicing SEO you can rank on certain keywords your customers are typing to search restaurants and grab more audience. Make Informed Decisions by Using the Best CAC Practices Your business is dependent on new customers. However, acquiring customers by spending more money without knowing where it’s going, won’t help you to drive business growth. By using the right tools and following the above strategy you can drastically decrease your customer acquisition cost. FAQs What is a Good Customer Acquisition Cost? There is no one-size-fits-all answer for good customer acquisition cost. It varies depending on the type of business you own. However, a general way to know whether your customer acquisition cost is good or not is to compare it with the Customer Value. Your CAC should be lower than your CV.   What is The Difference Between Cost Per Acquisition & Customer Acquisition Cost? CPA or cost per acquisition is related to the campaign or channel metric that helps you to assess what it costs to generate contact with your target audience who are still not converted into your customers. Whereas customer acquisition cost is defined as the business-wide metric aimed to calculate your overall marketing spending on acquiring new customers. Why Is It Important to Calculate CAC? Knowing how much you need to spend to bring in new customers will help you optimize your marketing strategy for

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Tips for Meeting Seasonal Sales Goals

Did you know that at least 50% of your prospective clients are not a good match for your products or services? Yes, it’s true and this should have significant implications on your sales strategy.    Sales is very much an art form. Getting creative is not only encouraged, but can be exactly what you need to meet your seasonal sales goals.    With the fall season coming up, it’s time to think about the best approaches to meet end-of-the-year goals.  Understand Your Target Audience If you want your target audience to notice your company and purchase your products, then you have to make the effort to engage with them. Understand your target audience inside and out.    If you are targeting teenagers or young adults, market on platforms that they care about. TikTok, Instagram, and Snapchat should be your friends. Do not be intimidated by how many companies use these platforms. The only thing that matters is how you use them.    On the other hand, if you are trying to target older adults, platforms like Facebook or television advertising may be more appealing. Using such platforms can be helpful in increasing online sales and retail sales.   How to market and advertise is more general advice. The main point to grasp here is that to meet sales goals you need to understand your audience and communicate with them effectively. Email Marketing Is Not Dead For a Reason Bulk email marketing has been around for a long time. Popularized in the early 2000s, email marketing was one of the first marketing tactics used in the digital age.    As more companies have used email marketing, the more “spam” potential customers have thrown away. From a customer’s perspective, most email advertisements are annoying and a waste of time and space.    However, email marketing is far from dead. When an email campaign is planned carefully, it can reap amazing rewards.    But how do you make your campaign stick out?   Write engaging emails that encourage interaction and offer incentivization. Be clever and creative. Make the reader want to read more! Incentivize, Incentivize, Incentivize If you want to meet your sales goals, you have to encourage your target audience to learn about your company.    When marketing your product or service, of course, it is important to demonstrate to potential clients the value that it provides.   A key part of sales is to customize your pitch. Sales is not about you, but how you can help your client. When you put the focus on your client, they will be more invested in what you have to say.    An important step to further your commitment to the client is to incentivize. Make learning about your product or service worth their while. Offer a slight discount, a rewards program, or something that would be attractive to the potential client.  Exceed Your Seasonal Sales Goals Today The above three tips are just a starting point to meeting your seasonal sales goals. As you get to know your audience, create exciting content, and offer meaningful incentives, there’s potential to not only meet your goals but to exceed them!    At Modisoft, we love helping take companies to the next level. We offer state-of-the-art POS systems and other tools that will boost a company’s productivity. We have learned throughout our experience that the more organized a company is, the more it will succeed!    To learn more about our products and to try a demo, please sign up today. 

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8 Steps To Creating Your Small Business

  Starting a small business can be challenging, especially in today’s global economy. Nearly 20% of businesses fail within their first year, and only half make it to five years. With adequate research and a willingness to understand the nuances of running a business, there is room for success in your business idea. In this guide, you will learn 8 simple steps to get your business started. With the right steps in place, you can grow your business idea and find success.   1. Conduct Market Research Conducting market research helps you understand the competitive landscape you are entering into. Whether you have a physical location or are strictly an eCommerce store, there are always competitors who are similar to your business idea. Learn what those competitors are doing to understand the industry you are entering into better. What companies inspire you? What would you do differently than other stores? Keep an accurate record of your findings and write a summary of your research. If you ever feel stuck in honing in ideas, your market research can help you make a plan moving forward.   2. Write a Comprehensive Business Plan A comprehensive business plan can take a lot of time and careful consideration. A business plan summarizes everything about your business and what it needs financially to operate at its best. Aspects to include in a business plan include, Executive summary Mission statement Environment considerations Market analysis Competitive analysis Management plan Financial plan Product lists Potential investors By knowing exactly what your business needs in your plan, you can keep on track for a successful start to your small business.   3. Consider Accounting Options The type of business you start can affect how you pay taxes, raise money, and the personal liability involved. Many small business owners talk with an accountant or attorney first to understand better how opening a small business affects their finances.   Types of Businesses Sole Proprietorship: A sole proprietorship gives you complete control of your business. This type is not considered to be a separate business entity, which means your business assets and liabilities are connected to your personal assets and liabilities. Partnership: A partnership involves two or more people who own a business together. This can be a limited partnership (LP) or a limited liability partnership (LLP). An LLP helps protect a partner from potential debt that the other partner may accrue. Limited Liability Company (LLC): An LLC combines the aspects of corporation and partnership structures. This type protects personal assets such as vehicles, houses, and savings accounts. Keep in mind LLC is still considered to be self-employment, which means you have to pay self-employment tax. C Corp: C corp means a corporation and is a legal entity that is entirely it’s own. Corporations are able to make a profit, pay taxes, and can be held legally liable. It is the strongest type to protect personal assets, but also requires more acute reporting. S Corp: S corp is a subchapter corporation that is created to avoid taxation complexities. S corps are allowed to gain profits, experience some loss, and be passed to a business owner’s personal income.   4. Register Your Business After deciding what type of business works best for you, then it is time to register your business. Registering your business creates a tax ID number, otherwise known as an employer identification number (EIN). This helps track your business for tax reasons, but keep in mind that if you are not a corporation or partnership, you will not have to register for an EIN. Make sure to register your business in the state you are in, as income and employment taxes differ per state. Talk with your attorney or accountant to further understand what is required to fully register your business.   5. Consider Payment Options Setting up payment options for future customers can seem like a daunting task, but it can be made very simple with a POS system, merchant account, or payment gateway account. More customers are utilizing debit or credit cards, which makes it a key aspect that is needed when starting a small business. Choose a credit card machine or point of sale (POS) system that works best for your business model. More advanced POS systems like Modisoft are able to offer inventory management, as well as manage schedules and regular reports, which can help you increase profits. There is also the option to set up a merchant account or create a payment gateway account. In the US, eCommerce represents 10% of retail sales, which means online sales are becoming even more crucial for businesses to adapt to. With a payment gateway, there is the ability to encrypt data and ensure that the information is secure for customer payments. However you choose to collect payments, make sure to check for any hidden fees or transaction minimums before signing up for a service.   6. Apply for Licenses or Permits There are regional, state, and federal licenses and permits to consider before you can open your business. Depending on the type of business you plan to open, the type of permit will differ. If you are opening a restaurant, you will have to consider a food handler’s permit, as well as a liquor license. For retail, the licenses may differ depending on what state your business is located in.   7. Define Your Business Concept Define your business concept down to every detail before you consider opening the doors to your business. Consult your original business plan and make sure you are on track with your financial plan, product line, or menu items that should be considered beforehand. The more you can define your business, the more customers will be able to identify with your brand. In turn, you can create a loyal base of customers who believe in your business and continually want to purchase more from you.   8. Open The Doors Once you have everything in place, you can open the doors. Ask

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Ready to Maximize Your Email Marketing Campaign? Follow These 5 Steps

  Email marketing is one of the top ways businesses are able to connect with their target audience. Statistically, email marketing is 40 times more effective in acquiring new customers than social media. However, there is a science and art to gaining new customers through email marketing. While some emails can feel too intrusive from companies, there is a method that can give customers an inside look into your business while also offering exclusive deals and information about upcoming products or events. Utilizing a customer engagement tool can help automate the process of what customers are opening up your emails and what ones are choosing to ignore them. By targeting those who are more interested in what you have to offer, you can channel emails to be more effective to customers who are more likely to make a purchase. Here are five tips to consider when marketing through email.   1. Send Relevant Content Creating an email marketing campaign is not just about conversions, it is also about creating relevant content that entices your customers to pay attention. Each email should include a call to action that the customer can engage with. Whether the call to action is looking at a particular product, or an invitation to an event, make sure that the content within the email reflects the call to action. Creating a call to action may take some experimentation, but once you find what your target audience responds to, you can create stronger email marketing campaigns moving forward.   2. Channel Emails Away From Spam It can be easy to fall into the spam filter where customers never get a chance to read what you have to offer. Avoid flashy subject lines or phrases that offer free items. This can trigger the email software to place the email in spam. There are also FTC spam laws that are important to consider before reaching out and making marketing efforts. Emails should always avoid all-caps lines or exposed HTML content, as those elements tend to move the email into the spam folder.   3. Know What Times to Send There are general times to consider sending emails, and it greatly depends on the industry you are in. A customer engagement tool can help you understand the open rate of your emails and how to adjust for a higher click rate. The time of the year, the day in the week, and what time it is can all impact how well your marketing campaign performs. Consider when you are most likely to open and read your own email. Statistically, customers are more likely to open emails between 7 and 9 am on Tuesdays, Wednesdays, and Thursdays with some email click rates spiking on Sunday evenings. Make sure to optimize your emails to ensure your campaign reaches your customers at the right time in their day.   4. Don’t Send Emails Too Often Emails can quickly add up in anyone’s inbox. You want to show the same respect to your customers that you look for in your inbox, which means not sending emails too often. Find the right rhythm for your emails, whether that is once a week, once a month, or every couple of months to share promotions and deals. Only send emails out when you are confident it is an engaging read that customers will enjoy and can participate in a call to action.   5. Use Subject Lines That Work Subject lines can make or break whether a customer opens your email. A customer engagement tool can help you refine subject lines to reach customers better. In general, keep subject lines short and to the point. You want to create an enticing opening without giving everything away in the main subject line. If you can speak simply and direct, you are more likely to have a higher open rate. Email marketing can help you grow your customer base, as well as maintain a positive connection with returning customers. By offering quality content with straightforward subject lines, you can create higher conversion rates across multiple channels of your business.    

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Customer Reviews May Be the Leverage You Need

  Studies have shown that customers are more inclined to trust other customers more than leading professionals. Although nearly half of consumers would agree that customer reviews are trustworthy, there are a few that do not fully trust customer reviews. In a survey asking over 1,800 consumers from the United States about how they find and choose businesses, only 12% believed in expert reviews, as opposed to customer reviews. For small business owners, connections and reviews are a strong asset when it comes to customers who are looking at reviews and recommendations from peers. With pride in their connections, businesses encourage top customers to write positive reviews in order to be seen as a trusted brand to potential future customers. While consumers can speculate about reviews, there are a few things that make a review more reliable. In a survey, nearly 77% found it important for a review to have specific details about the product or service, while only 46% needed photos for proof. 46% also found that a reviewer was seen as more reliable if they had purchased from the business more than once. Only 44% states that the review had to appear more neutral, meaning it should not sound overly positive. The main trouble with reviews for a business is the inability to control how a person responds to products or services, but there are a few ways businesses can influence responses and how other customers may perceive a review.   Monitor By Responding Most customers read the most recent reviews, which is why it is important to ensure the first review reflects a positive response. When possible, make sure to respond to reviews to show greater customer satisfaction and higher engagement with new and loyal customers. If the review is more lengthy and positive, you can ask the customer for photos or more details to showcase the positive aspects of your product or service. Nearly 20% of customers look for negative reviews first, which is why you need to monitor and respond quickly to any negative feedback in the reviews. Keep in mind, the customer who left a negative review may not be lost yet, it may just take more positive communication or a remedy to the situation that could solve the issue quickly. If you need to offer an apology, let the customer know that their response is valuable. If the review is past the point of no return, try reaching out through a private message in order to offer a refund or discount.   Be Proactive With Customer Reviews  The key part of having positive reviews is to make sure your customers are happy with their choices in product or experience with the services provided. Studies show that customers are more likely to write negative reviews if a store seems neglected or if the staff come across as rude. To avoid those types of reviews, be careful in your hiring practices to ensure you have great employees who hold the expectations of your company and how they should conduct themselves around customers. By putting guidelines in place, you are able to manage your storefront better with the right people. Positive reviews often come from the above and beyond experience for customers. For food service, this may look like a free appetizer or visit from the head chef. In retail, this could look like flexibility in return policies or a free gift. Take time to review your business practices and customer service techniques to look for ways to ensure a positive experience for all customers. Whether it is utilizing a referral program or developing rapport with loyal customers who generate more positive reviews, there are multiple ways to reward customers for more reviews that can grow your business.

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How To Improve Customer Analytics and Service With Technology

Improving restaurant customer engagement and satisfaction starts with the ability to utilize technology for more quality customer service. In turn, it attracts new customers and develops a higher chance of customers wanting to return again. Restaurant technology is rooted in customer analytics, which provides greater insight into purchasing decisions and interactions within the restaurant. By knowing your customer base better, the analytics helps inform restaurant decisions and how to adjust services accordingly. Customer Analytics For Improving Services Customer analytics software serves as a vertical business intelligence platform, where siloed data is consolidated and directed to flow through the organization to improve services across the board. With the data in hand, restaurant owners and managers can understand the analytics better in order to turn data into real-world action to improve upon their business model. The data is automatically collected and shows intelligent analyses on trends, anomalies, and customers insights. From there, business owners can increase profits, adjust services, and resolve issues quickly from anywhere. Top Three Ways to Improve Customer Service Collecting restaurant data helps determine the needs of customers and employees to improve the organization and flow of the business. By recognizing the top three ways to improve upon customer service based on data, you can be more informed on how to manage decisions for a higher return of sales and customer loyalty. Improve Customer Engagement Customer engagement is how restaurants are able to establish a connection with customers for the long or short term. The goal for any restaurant is to improve upon relations in order to cultivate customer loyalty and ensure services are up to a high standard. An engaged customer often has an emotional connection to the restaurant, whether that is through the enjoyment of the food offered, or the friendship with the staff. Highly engaged customers also are more likely to buy more and make recommendations to their friends or family. According to Gallup, engaged customers are 56% more likely to go to a casual dining restaurant every month, where only 28% are more likely to visit their favorite fast food restaurant. By knowing the trends, your business is able to understand customer satisfaction software better in order to create deals or customer loyalty programs. Customer satisfaction software is able to, Identify top-selling items Recognize underperforming items and how to improve sales Understand the perception of customer experience in each restaurant location Show slow and peak hours to improve special offers, discounts, and happy hours Launch marketing outreach programs to establish a customer base and reach the right target market The information collected within the software shows a clear picture of how to create strategies for customer engagement and retention. The information also provides an avenue for marketing and outreach efforts that are more informed for a higher return rate of investment. Utilizing platforms is also an important part of customer engagement that can sometimes be overlooked without the right software. Tactics include, Web push notifications Email marketing Online reservations POS systems across multiple devices Reward and loyalty programs Discounts, sales, and promotions CRM communication across restaurants When not using digital systems to connect with customers, there is also the important aspect of connecting with customers in person. This includes talking with customers at the host stand, at the table, receiving the bill, or signing the final receipt. Each interaction is important for customer satisfaction and can make a difference in customer reviews and perception of their experience. The customer should feel like they matter, and that includes training employees to meet a certain standard within the restaurant. Know Your Marketing Channels Restaurant technology has increased significantly, which means the marketing technology has advanced enough for owners to recognize digital trends and what their main marketing channels should be. Owners and managers often use social media, blogs, SEO, and email marketing to reach new customers and retain loyal ones by communicating with a clear brand voice across all channels. The most commonly used method is through social media, which is a readily available market that can be set locationally to where a restaurant is. Nearly 50% of consumers engage with a restaurant on social media and is a great place to access positive reviews. Digital marketing approaches include, Posting updates Sharing photos and videos of food Using a consistent voice to convey an experience Increase brand awareness with targeted posts Use SEO (search engine optimization) for more website traffic Encouraging reviews SEM (search engine marketing) for Google Ads and other ad placement Digital marketing approaches look different for each restaurant, but by using automation tools, you can better define what approaches work best for your restaurant. Use Customer Relations Management Tools Customer relations management, also known as CRM, is a vital piece for maintaining positive customer relations. Restaurant management software is easily integrated with CRM tools, which gives a whole view of analyzed customer data for more acute decision making. The ability to export data systems also helps you or a manager access the information when needed. A CRM system helps with customer engagement and can show when loyal customers spend more, repeat orders, and provide recommendations to their community. One aspect of a CRM system includes loyalty management software, where you can create a loyalty rewards program based on the data provided by the customer engagement metrics. This can include greetings, special offers, regular updates, and customer feedback. Run A Smarter Restaurant Utilizing software helps you build a smarter and more informed restaurant. Technology has advanced in tracking data, informing decisions with analytics, and creating a smoother process for operations and customer relations. With an increased online presence and a CRM system, you’ll be ready to expand to new and loyal customers with ease.

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FAQ

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About Altria

Altria Group, Inc. is one of the world’s largest producers and marketers of tobacco and related products. They have been the undisputed market leaders in the U.S. tobacco industry for decades.

Altria Group is known for owning the most enduring names in American business including but not limited to Philip Morris USA, John Middleton, and U.S. Smokeless Tobacco Company.

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Benefits

  • Monitor and track all promotional efforts by directly integrating deals into insights
  • Receive Altria rebates smoothly by sharing scan data reports
  • Generate Altria scan data report program at a click

Pricing

Included in Advanced Plan

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About Cartzie

Cartzie is a loyalty application designed by Modisoft, with you in mind. It is a one-stop loyalty and online ordering solution that is fully equipped with all the tools needed to make your business grow.

With Cartzie, you can do curbside pickups, delivery, and drive-thru ordering. Cartzie has revolutionized the way businesses interact with customers.

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Benefits

  • Add delivery options for your customers
  • Boost your marketing efforts through targeted campaigns
  • Take your business online in a few clicks
  • Receive payments online for your orders

Pricing

+$59 per month with Retail Plans

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About Comdata

COMDATA has been serving businesses for over 45 years and is recognized as a leading provider of commercial payment solutions. They specialize in serving the trucking industry and are known as an issuer of fleet fuel cards, trucking permits, corporate spend cards, and paperless payroll cards.

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Benefits

  • Automatically transfer sales data from the Comdata POS into Modisoft back-office software
  • Get an all-in-one solution to monitor and track your sales separately
  • Easy accessibility to manage all your fuel sales

Pricing

Included in Advanced Plan

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About DoorDash

DoorDash, Inc. is a food ordering and delivery platform based in San Francisco. It is the largest food delivery company in the United States with more than 50% of the market share in the convenience delivery category. It provides an on-demand food delivery service to restaurants and stores. Their services help businesses innovate, grow, and reach more customers.

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Benefits

  • Receive order directly into your POS System
  • Manage your online DoorDash menu
  • Enable DoorDash orders for your customers

Pricing

+$69 per month for Third-Party Order Management

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About Fintech

Fintech has been dedicated to serving the beverage alcohol industry for the last 30+ years. Established in 1991, Fintech operates from its headquarters based in Tampa, Florida. Supported by TA Associates and General Atlantic, Fintech automates alcohol invoice payment, streamlines payment collections, and facilitates comprehensive data capture for 1 million B2B business relationships.

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Benefits

  • Import vendor invoices directly into your back office
  • Optimize purchase order management
  • Improve your alcohol vendor management

Pricing

+$5 per month

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About Gilbarco Veeder-Root

Gilbarco Inc. is a supplier of fueling equipment including fuel dispensers, payment systems, point-of-sales systems, and support services. The company operates from Greensboro, North Carolina.

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Benefits

  • Effortlessly connect your POS data from the Gilbarco system to Modisoft Insights

Pricing

Included in Advanced Plan

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About Instacart

Instacart is a delivery company that operates a grocery delivery and pick-up service in Canada, and the United States. It is one of the largest grocery marketplaces in North America. Instacart makes the delivery process easy for store owners.

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Benefits

  • Monitor and manage your Instacart inventory levels from Modisoft Insights
  • Updated Instacart inventory levels in real-time
  • Avoid stockouts by ensuring accurate inventory levels

Pricing

+$15 per month

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About Retalix

Retalix Ltd was established in 1982 and is now owned by NCR Corporations. It develops licensed and supported software applications for retailers, wholesalers, and distributors of fast-moving consumer goods.

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Benefits

  • Easily Import sales data for reports and analytics from the Retalix POS system
  • Monitor sales in real-time

Pricing

Included in Advanced Plan

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About Paycue

Paycue is Modisoft’s preferred payment processing provider. It helps businesses to streamline their setup process to be faster and more efficient. Paycue assists businesses with faster payments and smoother customer interaction.

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Benefits

  • Enjoy minimal fees on transactions
  • Seamless integration
  • Speedy transactions
  • Secure payments

Pricing

No monthly fee. Only pay when you sell.

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