January 1 is rapidly approaching. There is no better time to go over a list of things that will help you maximize the benefit of your NetWaiter online ordering system. 

1. One Click Access from your Homepage.  Attention spans on websites are measured in nanoseconds.  Don’t make your customer look – have at least one link clearly visible, at the top of your homepage.  Have at least one more button, shown consistently in the same place, on every page of your website.

2. Don’t Post a Link to Any Portal Listing.  Portals bring in the occasional new customer who might not have found your restaurant otherwise.  The costs, however, can be up to four times, or more, than NetWaiter.  Let portals send you new customers, not the other way around.  Remember, almost half of customers visiting a portal site (47.1%) said they clicked over to the restaurant’s own website to order their food once they found a restaurant they liked.  Capturing those customers is critical to save money.

3. Menu Priority.  Your online menu needs to be well crafted, just like your table menu.  The most profitable dishes, or those most popular with your customers, should have prominent positioning towards the top of each category.

4. Updated Menus.  Keep your online menu updated.  It only takes a second through your NetWaiter Management Console.  This is a big one: 68% of people are not likely to visit a restaurant, café, or bar after encountering incorrect online information about the business.

5. Don’t Forget About… Appetizers, desserts, and drinks are categories most frequently overlooked in takeout orders.  Make sure the hierarchy of your up-selling categories gives preference to these types of items. 

6. Market, Market, Market.  Use the database from your NetWaiter Management Console to promote off-hours business, special offers, and other incentives to make sure your favorite customers are well informed and come back often.

7. Seeing is Believing.  Photos sell product.  Are you making maximum use of photos on your NetWaiter site?  Click here for some tips and to learn more about the impact of photos with online ordering. 

8. Encourage New Customers.  Do you have an incentive for a first-time online customer?  The long-term value of an online customer is huge (considerably more than a phone-in customer), and the best part is – you can track it.  Consider offering an ongoing discount for first-time online customers (maybe 15% off, or more).

9. Take Advantage of Online Payments.  68% of customers pay online with NetWaiter, and the figure is even higher for delivery orders.  This saves time for both you and your customers.  In addition, the funds are deposited directly into your bank account. 

In past articles, we’ve discussed the benefits of using photos on your NetWaiter menu.  Now there is another reason to show photos, and this is especially pertinent for tablet and mobile users.

As reported in the Journal of Consumer Psychology, if you touch something you like, you’ll want it more. It might also explain, in terms of dollars, why online orders tend to be larger than phone-in orders.

When a customer holds something in their hands, they imagine themselves in control.  They get a sense of ownership.  Research has found this to be true even on touchscreen devices, where the viewer has some control.  Customers don’t handle the food in your restaurant before deciding to order, but the ability to touch an image or menu item on a handheld device or tablet gives them a sense of ownership and control.  It precipitates that thought of, “Yeah, I want to order this.”

All the more reason to drop in as many photos as you can of your menu items.  Customers will feel as if they are holding and touching the actual item.  Pay attention to the quality of the photography, too. Other studies show that the sense of ownership is enhanced when the photography is particularly vivid.

NetWaiter and Photos: a winning combination for larger orders and a healthy bottom line.

A recent industry white paper cites ten percent of online purchases come from a smartphone or tablet computer.  The same source predicts that by 2017, that percentage will be up to 50 percent.

There is no doubt that online and mobile commerce is getting more pervasive.

Some may refer to this as the beginning of Web 3.0, the convergence of social and commercial media, or what is becoming known as social commerce, wherein smart marketers use the power of social media to drive word-of-mouth information and then offer customers a way to make an immediate purchase.

As we look towards the future, we see social commerce as a turning point for online businesses.  It gives users the power to make direct purchases of products recommended by friends.  Their credit card, address and personal information may even be eventually synced with their social media accounts.  The act of making purchases will be easier.

NetWaiter has provided restaurants an early avenue into social commerce for several years in the form of our Facebook integration.  When a customer places an online order through NetWaiter, they have the opportunity to use their Facebook account to login, which also provides the option to post a message about their order to their Facebook page.  Not only does the post give restaurants immediate promotion, but there is also a link back to the restaurant’s NetWaiter site for others to view the menu and place their own orders.

The truth is - customers have always had the power of word-of-mouth advertising.  For the most part, it was simply passed on in personal conversations.  Because much more is on the web now, word-of-mouth advertising provides restaurant owners significantly more leverage and the ability to capture additional sales.

Customers resort to online searches, especially through their smartphones, to find restaurant information more and more these days.  Bad online information, however, can hurt you.  A recent industry study revealed that 68% of people are not likely to visit a restaurant, café, or bar after encountering incorrect online information about the business.

Here are a few tips about managing your restaurant’s online presence:

Know Where You Are Listed - The numerous online outlets—Yelp, Foursquare and others—enable customers to identify, rate, and comment on the restaurants they patronize.  Be sure to regularly search for your restaurant online.  If you find a place where you are not listed, check into what it takes to get listed.  More importantly, if you see incorrect information, have it fixed ASAP.

Know What Counts - The aforementioned study also said that 60% of consumers say the menu is the most important factor in selecting a restaurant online.  For all of your online listings, you can link customers to your custom NetWaiter menu.  It will be available to consumers online and via mobile.  Photos are good, too – a few pictures of your restaurant (inside and out) are helpful selling tools.

Keep Online Information Updated - Remember, nobody likes a restaurant with bad or outdated online information.  Check and update your information regularly.  And most importantly:

Make sure your restaurant’s online ordering capabilities via NetWaiter are prominent - The quicker you can get customers to your online ordering site and placing their order, the better your bottom line will be. 

Pre-paid orders are one of the best benefits for restaurants using online ordering.  The question is: how many of your customers take advantage of this option? Recent internet reports cite less than 19% of customers choose to pre-pay online.

Our figures are substantially different. With NetWaiter, we see 68% of customers choosing to pre-pay for their online order, if given the chance.  For delivery orders, that number jumps to 77%.

Pre-paying for an online order is just one of the ways NetWaiter streamlines the takeout business.  A customer who pre-pays can quickly pick up their order.  There is no fumbling with money or credit cards at the cash register.  It’s a time saver, especially during those peak hours, for both restaurant and customer.

Some NetWaiter restaurants report frequent instances of twenty or thirty online customers during their lunch rush.  Imagine the logjam that would be caused if they didn’t pre-pay online for their order.

Another major advantage NetWaiter provides restaurants is immediate access to their funds.  Some online services charge customers and do not transfer the payments to the restaurant for as long as a month.  NetWaiter allows restaurants to charge their customers directly and the money is immediately deposited into their merchant account.

“Allowing a third-party to take control of your receivables and then hold your money for up to 30 days is never a good business move,” said Jared Shimoff, Senior Director at NetWaiter. “Then again, if less than 19% of customers chose to pre-pay with that service, you’re probably not missing much!” 

Why does NetWaiter have higher rates for pre-payment?  A significant reason is that we are constantly evolving the NetWaiter system, making changes to increase convenience and improve the customer experience.  Cleary, the results show – producing 3 to 4 times the number of pre-paid customers.

According to the Pew Research Center, as of 2013, 56% of all adults living in the U.S. have a smartphone.  Even more notable, within the important demographic range of 18 to 49 years of age (a sweet spot for online ordering customers), the number of smartphone owners jumps to 74.5%.

That works out to about 137 million people with smartphones.  It is still too early to say and be taken seriously, but we, at NetWaiter, believe online and mobile ordering is to restaurants what drive-thru windows were to fast-food places in the '60s - a game changer for how the public gets their takeout food.

Online ordering, however, offers enhanced accessibility from a customer's mobile device.  That's why NetWaiter places so much emphasis on mobile ordering and provides each client their own branded mobile site for easy menu navigation and ordering.   Consider these recent statistics from Google:

•    95% of smartphone users conduct restaurant searches.
•    64% of those searches convert to purchases in one hour; 90% convert within one day.
•    77% of those using NetWaiter for a delivery order prefer to prepay online rather than pay in person.
•    30%: The average industry increase in ticket size seen from mobile and online orders.

One of the things we like to do at NetWaiter is provide restaurants as much information as possible about the benefits of adding online ordering to your business plan.  A version of the following article recently appeared in Restaurant Hospitality Magazine.

A 30% boost in your takeout business within a matter of weeks.  What restaurant owner would not want that?

Those are the kinds of success stories we hear over and over from restaurateurs who have made online ordering part of their marketing plan.

Every day, restaurant owners are confronted with the costs of doing business.  The fixed expenses and staples are no brainers – rent, utilities, payroll for a great staff, the cost of quality food, etc.  The more difficult expenditures are discretionary ones like marketing. Where can a restaurant spend to get the best ROI?  Owners are bombarded with choices daily.

When asked, many successful restaurant owners have a similar response: “Online ordering has been one of our most profitable investments.  NetWaiter should be at the top of every restaurant’s to-do list if they don’t already have it.”

Companies such as NetWaiter offer a fully branded online ordering service through a restaurant’s website (a NetWaiter site can be customized with the look and brand the restaurant).  Customers order in seconds from an online menu.  They can make special requests, indicate future delivery or pickup times, and even make payments (NetWaiter electronically deposits the money to the restaurant immediately).  Custom delivery zones can be set by the restaurant (if they offer delivery), or customers can come in and pick up their order.  

The benefit to customers is convenience. They can order from anywhere (desktop, iPad, Smartphone, etc.). Imagine a mother getting off work. While still in the parking lot, she can order dinner from a restaurant and pick it up on her way home.  There is also the control given to the customer. Since they placed the order, there is less chance of error.  Customers who use online ordering typically use it again and again, quickly becoming regular customers.

Customized online ordering is a game changer for restaurants.  Using a restaurant portal that promotes online ordering for a variety of restaurants is very expensive (10-20%+).  Online ordering via a custom ordering site, such as NetWaiter, creates more business and is significantly more cost effective.  In addition, restaurants get a great tool that builds loyalty and extends and strengthens their brand.  Some NetWaiter clients even have ROIs in excess of 7,800% (the average is closer to 2,000%).

Where can a restaurant get a better ROI with their marketing dollar than online ordering?  There are many marketing options available, but none can come close to the ROI of a custom online ordering site.

When they first came out, daily deals like Groupon swept across the industry.  Smart restaurateurs, however, realized them for what they were—a trap.  An article in The New York Times more than two years ago addressed the pitfalls of these services:  "The consumers were being told: You will never pay full price again.  The merchants were hearing: You are going to get new customers who will stick around and pay full price.  Disappointment was inevitable."

Years ago, a newspaper advertisement might have been a restaurant’s ‘go-to’ way to bring in business.  Readership has dropped significantly, though, and even when newspapers were widely read, buying an ad didn’t provide a very good ROI.  It’s very hard to measure the success of such an advertisement unless you offer a redeemable discount.  Those discounts, however, significantly impact the ROI of the advertisement. 

Even more modern and effective marketing and advertising opportunities, such as email, loyalty programs, text marketing, social media marketing, etc. (which are all certainly worthwhile to deploy) would have a hard time beating the ROI of online ordering.

According to a study and paper done by The School for Hospitality Leadership at Cornell University, one of the things that draws customers to online ordering is convenience.  Once they experience it, they use it again and again.  Plus, because NetWaiter is integrated with Facebook, it allows people to share their ordering experience with their friends.  The more people ordering online, the more people learn about the restaurant’s online ordering site.

The Bottom Line – Why would you not offer online ordering?  There is no replacement for a well-run online ordering system such as NetWaiter, which gives customers the control and convenience of ordering takeout and delivery online.  Other marketing opportunities can’t come close to the ROI an online ordering site can produce.  Just as our clients say – online ordering should be at the top of the list for every restaurant.

Google's Think Insights recently published statistics that reminded us that not only is it important to have a mobile website, but it is also important to have a mobile website that delivers users quickly to what is important.

First, the broad view:

• When they visited a mobile website, 74% of people say they're more likely to return to that site in the future.
• 67% of mobile users say that when they visit a mobile website, they're more likely to buy a site's product or service.
• 48% said that if a site didn't work well on their smartphones, it made them feel like the company didn't care about their business.

Then there is the importance of a functional mobile website.

• 61% of users said that if they didn't find what they were looking for right away on a mobile website, they'd quickly move on to another site.
• 79% of people who don't like what they find on one site will go back and search for another site.
• 50% of people said that even if they like a business, they will use them less often if the website isn't mobile-friendly.

Think in terms of what an online ordering customer is looking for. Menu is at the top of the list. On the mobile website pages NetWaiter makes available for client restaurants, we design them so that the prospective customer is taken directly to the menu.

When designing a mobile  website, make sure a link to the menu is clearly visible on the first screen. 

With the capability of internet access on most mobile phones, ordering online from a mobile device quickly became a natural fit for restaurants.  Each day, we see more and more feedback from restaurants and published information that reinforces how and why restaurants benefit from mobile ordering.

Recently, we came across information from a study by the Interactive Advertising Bureau and Viggle, an interactive media platform.  Take a look at their findings:

•    69% of those polled have ordered food via the mobile internet at least once, and use mobile devices for information/research even more frequently.
•    44% of those surveyed use a smartphone or tablet regularly to find a phone number.
•    39% use their smartphone or tablet to see a menu, 38% to find location, and 35% to check hours.
•    72% of respondents say they order pizza via the mobile internet, making it the dominant online-ordered cuisine.
•    78% of respondents said discounts would make them more likely to order.

Convenience is the largest benefit cited by customers ordering online.  Make sure your customers know about the added convenience your mobile site brings to their smartphones.

Recent articles in respected business publications reveal that restaurants are seriously questioning the business sense of portal sites that offer online ordering.  An article in Bloomberg BusinessWeek relates how Pedro Munoz, owner of Luz, a Latin American restaurant in Brooklyn, NY, has decided to drop his portal service with Seamless.

The good news is that Munoz has been sending out information with his takeout and delivery orders, directing customers to use his custom online ordering site – powered by NetWaiter.

In the articles, Munoz cites the factors that make portals an untenable situation for his restaurant, and others:

High fees.  Munoz paid Seamless a 14% commission on all orders, plus additional charges for advertising and credit-card transactions.  Considering that some restaurants don't realize a high profit margin on some dishes, this doesn’t leave much profit.

Turnaround time for payment.  Munoz and other restaurant owners had to wait up to 30 days for payments that were processed through Seamless to reach his account.  He says that Seamless was holding as much as $20,000 at some points.

Similar complaints have been made by other restaurants against other online portals.  “It’s awesome if you’re a customer.  It’s great,” Munoz told Bloomberg. “But in all aspects, it’s killing the restaurants.  It’s a model that cannot be sustained.”