Mobile is the most effective way to serve the millennial segment.
October 20, 2015 by Judy Mottl — Editor, RetailCustomerExperience.com & DigitalSignageToday.com
It is no longer a matter of if and when it comes to adopting mobile technology for customer interaction and payment options. Retailers must understand that customers with the most expendible income are usually mobile-oriented. That often includes Millennial customers, who are often retailers' main target.
As Rene Prats, CEO of fast casual restaurant Giraffa’s, said Monday during the Fast Casual Executive Summit, mobile is the most effective way to serve the millennial segment.
"It’s all about the ease of ordering for the guest," he told the audience attending the "Impact of Mobile," session. The summit, run by Networld Media Group, is celebrating its 10th year and drew nearly 500 attendees to Miami from Sunday through Tuesday, eager to learn from distinguished panelists involved in over two dozen seminars. On the panel with Prats were Phil Hendrix, Ph.D, an expert in mobile technology trends, Sam Gorenstein of MyCeviche and LevelUp Chief Operations/Strategy Officer Michael Hagan, who served as moderator.
Gorenstein said the data he’s able to cull and collect via mobile technology is helping his new concept drive repeat visits and understand customer dining trends and expectations.
"Our delivery business skyrocketed," once mobile ordering was put into place, he said. Prats noted mobile interactions are letting his concept interact with over 50 percent of users and that he’s seen a 25 percent increase in ticket average.
""This [mobile tech] was the third stream [in customer engagement] and has become the first stream. Mobile handsets and phone are the most personal device we use, and is the most precious real estate for the fast casual operator," said Hendrix.
The panel concurred with Hendrix’ view. Prats noted he "spends more time with his phone than with his significant other."
"And believe me I hear the complaints about it all the time," he shared, drawing laughter from the audience. "Everything we do happens here," he added holding up his smartphone.
Gorenstein explained that via mobile he’s able to get insight from customers quicker and faster, and feedback he’d never be able to grab from a customer at a register. Hendrix said mobile pay and mobile customer interaction is serving as an "amplifier."
"It’s letting you get feedback on food, on the customer experience," said Hendrix.
This year Prats said about 45 percent of his corporate marketing budget was spent on mobile, and he’s planning on nearly doubling the investment next year.
"Millennials want to be talked to, not talked at, and that’s a key benefit of the mobile experience. People want what’s relevant to them and the ability to customize the experience is key as millennials have a different way of looking at life."
In terms of whether fast casual operators should build their own apps or outsource, the panelists were unified in their viewpoint.
"Building an app yourself is silly," said Hagan.
"Outsource all you can to the experts," said Prats, so "you can focus on what you do and do it well."