SMS Ordering, QSR Media interviews Harold Dimpel re his Q-Jumper solution and what he has been doing with Subway
Harold Dimpel talks about Mobile Payments for Quick Serves, Q-Jumper and what it does to improve businesses.
1/. Mobile Payments for Quick Serves - why does this make sense?
The mobile phone is the obvious choice for payment and ordering as it is a highly personal communication tool, social networking device, MP3/video player, calendar and personal organiser. Adding payment is the natural next step. Its as personal to the individual as their wallet.
Secondly, and speaking of wallets, people will now days often go out without taking their wallet with them but WILL take their mobile phone - giving some indication as to the priority of the mobile device in people's lives.
Thirdly, unlike credit card or debit card payment methods which are basically a dumb piece of plastic, a mobile phone has a screen, buttons, and built in communications capability. This combination allows information to be sent such as order information.
Note - not all mobile payment systems are the same! The key to a successful mobile payment system is what we call "ubiquity" in other words it has to be able to work on all mobile phones and on every mobile network. mHITs uses simple SMS to make a payment which means it works with all mobile phones. No downloads, internet connection, data plans, or app downloads are needed. Mobile payment solutions that require an app to function have a restricted addressable market size (apps will only work on compatible mobile phones).
No matter what the current hype is about smart phones, many people still do not have smart phones and do not understand apps or mobile internet - but they DO understand SMS.
So-far, no other mobile payment system has the simplicity of mHITs. Other systems have come and gone and failed - mainly because their focus was onthe technology (e.g. an app) rather than providing a solution to business
problem.
2/. Tell us about what you are doing with Subway?
Subway, like many franchises which have a make-to-order model as part of their process, can have the unwanted side-effect of people queuing to place and order and then wait again while to order is made. Excessive queuing, particularly during busy periods, not only is annoying for customers, but ultimately can result in "walk-offs" and revenue loss.
The mHITs Q-Jumper service addresses this issue by automating the ordering and payment process. It means customers can can SMS their order ahead and just pick up their order. Longer-term, the venue can potentially provide a "pickup point" for Q-Jumper orders.
In-store, the wireless mPOS terminal prints a paper receipt with the full order details. The paper receipt then becomes the "make docket" for the order. Transaction data is available and can be imported into the Point Of Sale system for statistical reporting purposes.
3/. What's consumer reaction been so far?
Very positive. People love the simplicity of just using SMS.
The trial at Subway Rouse Hill is still ongoing. The response rate to our initial redemption at launch was nearly 20% which is unheard of for direct marketing promotions.
It takes time to build up a regular community of ongoing users which the process we are going through at the moment.
4/. How important is franchisee involvement in the process?
It is essential. What we have learnt is that while we can provide the technical solution, training, merchandising, promotion assistance and even give away free money when people register with mHITs, active participation and support from the venue owner/operator/management and staff is greatest factor determining whether mHITs will succeed at a given venue.
5/. What has been your experience so far with the industry?
Generally positive. We are still relatively new to the industry and are learning quickly about how different franchises operate and are structured. We also understand that the individual needs of some franchises differ -
even within the same brand!
Our initial venues have been individual non-franchise outlets such as independent coffee shops. This proved to be a valuable testing market through which we were able to learn and fine-tune our product.
6/. How will it improve their business?
Taking and receiving an order and payment can one of the most time consuming and costly processes in a franchise. Q-Jumper by mHITs can potentially combine the ordering and payment process in a single step therefore saving time and money plus at the same time providing convenience to the customer.
Q-Jumper is designed to reduce queuing and waiting and as mentioned previously, excessive queuing, particularly during busy periods, not only is annoying for customers, but ultimately can result in "walk-offs" and revenue loss. In busy food courts, where the franchise is often surrounded by competition, customers will often go to a competitor to purchase their meal rather than wait in line.
Finally, unlike some other text and phone ordering systems which are subject to "no shows" (customer does not turn up to collect and pay for their order), Q-Jumper includes the payment with the order. This compels the customer to turn up and collect their order, meaning their is not financial exposure to the franchise operator from the so called "no shows".
