Automatic Merchandiser serves the business management, marketing, technology and product information needs of its readers including vending operators, coffee service operators, product brokers, and product and equipment distributors in print.
Issue link: http://automaticmerchandiser.epubxp.com/i/738240
are getting elsewhere? Hopefully with out of the box thinking, you can offer services that keep the relation- ship going, but also show the location a savings that gets them to say "yes". Calculate out coffee breaks If reorganizing services doesn't per- suade the company, don't be afraid to show the costs of offering no coffee, or what employees consider 'bad cof- fee' at work. It's argued that locations lose $100 a month when employees leave the office for coffee (double that if employees take more than one coffee break). It can add up fast to thousands of dollars each year per employee. At 50 employees, taking one break a day, that is $60,000 per year, roughly $5,000 a month. What kind of coffee service could that location buy for that amount? And with all of today's OCS solutions, how much of that could the OCS provider save them? In addition to time away from the office and their project, there is the physical and perceived benefits of good quality coffee. Research shows people view coffee as assisting with their mental focus, a way to get more done, increase wakefulness and drive up productivity. Substandard coffee or no coffee at all will only serve to drive employees out of the building. Set up for the long play Working with a lower ticket now might reduce your bottom line, but it's better than losing a customer. If the operator shows a willingness to be flexible and tailor services, that will cement the relationship for when times are better. Plus, losing a customer arguably costs a great deal. Aaron Pedersen, founder of Pedanco. com, a cloud-based customer feed- back manager for the hospitality industry, urges service-based busi- ness owners to analyze a customer's lifetime value. Not only should that include the amount of money that a customer will spend over their life- time with your company, but also the percentage of business driven by the customer. According to Gartner Group, loyal customers, even if they only represent about 20 percent of your total customer base, drive an additional 80 percent of business. There are social implications as well. An unhappy customer complains to others — 16 people according to Ped - ersen. That's 17 people who won't use your company and thousands of dollars lost. Even with a focus on generating new business, it can be more cost effective to get a little less from current customers in an effort to retain them. OCS providers are in the ideal position to educate customers. They know workplace coffee inside and out, and can share a broader perspec- tive of both what is happening in the area and what is trending with con- sumers. There are a number of solu- tions that should help operators meet the needs of employers who want to reduce OCS costs (at least in the short term). And if they do, then when eco- nomic times are better, the location will again turn to you for alluring breakroom beverage options. '' Loyal customers, even if they only represent about 20 percent of your total customer base, drive an addi- tional 80 percent of business. '' Gartner Group iStock October/November 2016 VendingMarketWatch.com Automatic Merchandiser 15 O C S U P D A T E