Six slices of Apple’s strategy for restaurants to chew on
Tuesday, April 23, 2019
There are takeaways for dining establishments in Apple’s recent announcement. Apple’s strategy addresses several key industry trends that restaurant owners should pay attention to.
1. Payment should be frictionless
Apple seeks a permanent place in both our digital and physical wallets. Its new Apple Card can be used to process transactions with merchants that don’t yet accept digital payments. But it’s Apple Pay that the company covets most because it’s the preferred way to pay for millennials. The Apple Card completes a seamless, unified user experience around payments in-store, online and on the go. Takeaway: If your restaurant point of sale doesn’t yet process digital wallet transactions, you are missing out on sales as a result.
2. Rewarded customers return
The Apple Card appeals to our desire for instant gratification in the form of cash back rewards. Instantly seeing the rewards we’ve earned on purchases incents us to spend more. But, if you spend money at local businesses that don't take Apple Pay, you can’t maximize rewards Takeaway: Incent guests to dine with you through loyalty points and gift cards. Don’t give them reasons to not visit, such as not accepting all forms of payment and capturing the rewards that come with them.
3. Trust is transparent
There is no fee for an Apple Card, which will provide among the lowest interest rates in the industry. If a customer misses a payment, he/she will not be charged a penalty rate. This transparency creates a customer-friendly experience and loyalty. Takeaway: Relationships are built on full disclosure and trust, not surprise fees.
4. Business is increasingly services driven
Apple views services as vital to its future. While this is a natural extension of Apple’s hardware and software ecosystem empire, it’s also recognition that customers are increasingly willing to forego the ownership of physical goods for a subscription-based model. Takeaway: Restaurants can avoid capital investments in physical platforms, such as point of sale, by instead choosing a Platform as a Service model. With this approach, software is updated automatically so you always have the most current version.
5. Value is in the experience
Apple’s guiding principle for success is enriching people’s lives. It understands that unifying payment and services is a powerful way to do this, and thus is creating easy to use, secure and personalized experiences for its one billion users. Takeaway: Keep guests coming back by making it easy for them to safely and quickly purchase from you – at the table, counter, online and on-the-go.
6. Secure and private instills customers confidence
Apple is committed to credit card fraud protection and keeping your information away from third parties. Its physical card has no card number, no CVV, no expiration and no signature — just your name and a chip. The Apple Card also features a “one-time unique dynamic security code” that changes after each purchase you make, adding another layer of protection. Takeaway: Be sure you are securing customers’ data and are not vulnerable to breaches. For example, accepting EMV chip cards provides secure checkout and instills customer peace of mind.
Heartland provides entrepreneurs with software-driven technology to manage and grow their business. The company serves more than 400,000 merchants nationwide, and is the first company to provide businesses with a comprehensive breach warranty. Heartland delivers trusted solutions for payment, payroll and human resources, point of sale, customer engagement and lending. Heartland is a Global Payments Company (NYSE: GPN). heartland.us.