Restaurants can succeed by balancing profitability and occupancy.

Restaurants can succeed by balancing profitability and occupancy.

DISCLAIMER – This content is intended for informational purposes only. It is not intended to be legal, accounting, tax or HR advice. It is your responsibility to ensure compliance with all laws and regulations. For advice specific to your situation, you should consult your attorney or another relevant advisor.

New challenges are continuing to impact the restaurant industry after a turbulent two-year period for operators.

Managing food inflation and Continuing restaurant labor shortages have operators constantly putting out fires — but that’s only metaphorically.

Operators must contend with a dense tech ecosystem that includes apps, tools and services competing for their attention.

In an already Seated allows restaurants to manage their daily occupancy.

Restaurant operators now need to consider the new key metric of occupancy

Once you realize that you have complete control over increasing the restaurant’s occupancy, and maximising your current occupancy, this simple metric will become more important.

Your main asset is your tables. It is important to turn as many tables and serve as many guests as possible because of the high cost of opening your restaurant every day.

It can make a huge difference to increase occupancy by filling just one more empty seat each night.

RESOURCE

Restaurant Marketing Plan

This interactive calendar and customizable marketing playbook template will help you create a marketing plan that will drive repeat business.

DOWNLOAD

 

Seated operators can fill empty seats every day.

How can you get more from each seat and less butts?

How to maximize your restaurant’s occupancy

For decades, the restaurant industry relied on the same marketing strategies. Many of these strategies are neither practical nor efficient for most operators.

  • Paid Ads: Hard to track and requires substantial financial investment
  • Email marketing It is time-intensive and requires a large number of subscribers
  • Happy Hours: focuses on slow times, but doesn’t target new customers.

How can you get more people to your doors if you don’t have dedicated marketing staff with large budget?

Restaurant owners can use modern strategies to increase their seats in slower times.

1. Use an Occupancy Management tool like Seated

Seated is an Occupancy Management tool that allows operators to target empty tables and fill them with no operational changes, staff training or new technology.

These tools allow restaurant owners to quickly identify slow times and market empty tables to diners in the area.

To see the potential profits you are missing by not filling up your tables with food, use a tool such as the Restaurant Occupancy calculator. Then fill those empty tables with food and grow your profits using a tool such as Seated.

2. Remarketing: Capture guest data

It’s much easier to get someone back to dine with your restaurant than to gain a new customer. Therefore, it is crucial that you capture basic information such as email address and name for each guest who comes through your doors.

One of the most important developments in restaurant marketing is to know your customers and be able to market dynamically to them after they have left.

  • QR codes can be used for contactless ordering and menus. Guests can order from your menu and place orders. They can also opt in to receive marketing emails.
  • To collect emails from customers who did not opt in, use QR codes to pay at the end of your meal to collect more email addresses
  • You should ensure that your online ordering and reservations systems allow you to opt in for email notifications
  • To manage all guest email addresses in one place, you can use a simple CRM such as Toast.

3. Invest in a loyalty platform to market creatively

After you have started gathering guest data, use a simple marketing tool such as Toast Loyalty for automated email marketing campaigns that engage and reward customers.

Loyalty programs for restaurant customers are in high demand by all ages. It is therefore essential to create your.

  • To encourage people to book on slower days, schedule automated emails each week.
  • Targeted emails with incentives for online customers to dine-in at your restaurant will encourage them to do so.
  • Offer special deals (e.g., discounts, free menu items). Existing customers who return to dine with you on slower days will be eligible for special offers

4. Incentives to increase occupancy in slower times

Inflation is making it harder for consumers to eat out, so it is important to offer them an incentive to go out on those days.

  • For guests who are visiting on slow days, focus on time-specific deals like free drinks and special menus. These should be promoted heavily via social media and email.
  • Offer limited-time menus that can only be available on slower days (Toast Menus allows you to easily create time-specific menus. This could include anything from a vegetarian-focused menu to a high-margin prix fixede menu
  • Hosting special events that are entertaining enough to get people outside their homes on weekdays (live music, etc.

 

Revenue can be increased by using simple tools such as Toast and Seated to fill empty seats.

Here’s how you can maximize the value of each seat once you have filled all your tables.

How to optimize your restaurant’s occupancy

Two ways restaurant operators can maximize the value of each guest are available to them:

1. Each occupant earns more revenue

2. Reduce the cost of serving each occupant

You can increase your revenue by raising the menu price, increasing the average item per ticket and serving more customers.

Lowering your food and labor costs is the first step to reducing your costs. These are your prime costs, which are highly variable and easily controllable costs.

Let’s dive deeper into the strategies and systems that can be used to increase revenue and lower costs in restaurants.

Revenue boosting guest-driven experiences

Smartphones are everywhere. Restaurant workers aren’t…

This is why it would be a good idea for restaurant owners to:

1. Some staffing challenges can be overcome

2. Increase sales by giving guests more control over their dining experience and giving them more control.

It sounds too good to be true, until you get into Toast’s NEW STEPS of SERVICE. The New Steps of Service are simple in concept. Old steps of service don’t cut it.

It’s not necessary to make a server-centric experience too burdensome. A server must be physically present at every table, and each order or tab that is placed or tabs paid.

It’s archaic. It is difficult to staff. It may also be difficult to maximize revenue from each occupant.

The New Steps of Services allows guests to control their dining experience via:

  • QR codes to mobile ordering and payment
  • Kiosks available for self-service customizations and ordering (modifier upsells)
  • The power of a terminal in your pocket! Handhelds allow you to send orders, complete payments and take them wherever you are.

The New Steps of Service from a hospitality perspective can increase guest interaction.

Instead of trying to remember the orders, they are chatting about the specials and menu. Because they are on the ground, they can touch each table as many times as necessary without having to hustle back and forth to a computer terminal.

The guest can choose to pace their order, order more drinks, or close the door immediately. They have access to the entire menu, as well as the add-ons and modifiers that allow them to personalize their order and raise the bill.

Our new video course teaches you how to take a deeper dive into Toast’s New Steps of Service. Our New steps of Service ROI Calculator will help you quantify the potential impact on your labor costs as well as operational efficiency.

Increase margins by implementing consistent, data-driven cost control

Profits can be boosted by increasing overall revenue. But that’s only half the story. Nina Quincy is the director of operations at Underbelly Hospitality.

“Revenue buys forgiveness. A $6 million restaurant is a lot of forgiveness. But if you’re now $1.8 million, all your flaws will be glaring em>

Cost control is another lever that you have to increase your profits. We are primarily concerned with restaurant prime costs or food and labor cost. Here are some ways to control food costs.

Make sure you are precise and intentional about what’s on your plate

How do you determine the price of your menu items? What menu items drive the most profit?

Restaurant operators can zoom in on the cost and profit margins of individual menu items using Plate Cost Calculations . The plate costs are often the result of multiple recipe costing exercise, which provides a breakdown of each item on the plate. This makes it easier for restaurant operators to reach profit targets by balancing ingredients and portion.

Make the tough decisions to optimize your menu

Restaurant operators may face some difficult decisions as they continue to navigate the ongoing food inflation.

Underbelly Hotel was a huge success with their wings. They offer traditional buffalo wings as well as PB&J, tiger and nuoc cham chicken wings. Famous!

The wings became unsustainable due to rising food prices. Nina Quincy and UBH saw chicken prices fluctuate between 30-40 percent. The UBH team decided to remove the wings from the menu, rather than sacrificing wing size or quality.

We initially increased the price to $20 per dozen. The prices rose again and for a dozen we were charging upwards of $20.

Although it is possible to drill down into individual ingredient prices, this can be a time-consuming process that must be done manually and costly to outsource to bookkeepers. Restaurant invoice automation will cut down on manual data entry and reduce processing costs.

Invoice automation is an automated tool that digitizes important invoice line-item information . Restaurants can easily scan, snap, upload ingredient pricing data to enable actionable analysis via COGS, price fluctuations and ongoing restaurant costs breakdowns.

There are other similar actions and technologies that you can use to control labor costs:

Schedule more efficiently

It doesn’t necessarily mean that you will receive better service if there are more employees.

Complacency can be caused by too many team members and too little work. This is dangerous for everyone: staff, their tips and employee engagement all go. Customers also lose great experiences and the labor costs are rising.

Restaurant scheduling software can be integrated with payroll software to help you manage your staff and associated costs.

Use granular reporting in your payroll software

A simple-to-use payroll software and team management program gives you visibility and transparency into fluctuations in weekly labor costs, tip pooling breakdowns and payroll taxes.

Your managers and you don’t have the time or patience to manually calculate payrolls. You also don’t know how to add it all up to figure your labor costs. This is an essential step to reducing your labor costs.

source https://pos.toasttab.com/blog/on-the-line/boost-restaurant-occupancy

How to make a professional invoice: Expert tips and a step-by-step guide

How to make a professional invoice: Expert tips and a step-by-step guide

Now that you have sold a product or rendered a service through your online shop, it is time to get paid. This is great news! This is great news!

What is an invoice? How do you make one? And what information should you include? This step-by-step guide will help you create an invoice.

What’s an invoice?

An invoice (also known as a sales invoice) is a document that bills a customer for your services or products. An invoice is an account receivable, which obligates the buyer to pay. It is a written agreement between you, the seller, and your client or customer (the buyer).

Invoices can also be a great way for your business to track its earnings. Written invoices are a great way to keep your finances organized. They also simplify accounting for tax season.

What is the difference between a bill or an invoice?

Technically, nothing. Bill and invoice are both terms used to inform customers or clients how much they owe on a product or service. The main difference is in who refers to the document.

Let’s first define each word:

Invoice definition

An invoice will be issued by your business to the purchaser detailing the sale of products and services, as well as the amount owed. An invoice is used to:

  • Document a business transaction that involves payment from a customer
  • You must request payment from the customer within a specified time frame
  • Maintains a list of products and services sold to assist with bookkeeping

Bill definition

A document is sent to your customer by you that details the amount of money due in exchange for goods or services. A bill

  • Let a customer know how much they must pay.
  • Provide a detailed record of your customer’s expenses for use in bookkeeping

The document is often referred to by the business as an “invoice”, while buyers get “a bill” which details the amount they owe. This is how it works:

Step 1 – Your company sends an invoicing to your customer

Step 2 The bill is delivered to the customer

Step 3 The customer repays the amount owing

Step 4 – Your business will issue an invoice receipt to prove that payment has been made.

What are some of the most important legal requirements for invoicing?

If you want to create a professional invoice, there are many details that you should include. These are the essential details that your invoice should contain:

  • Your company name: This is your official business name and tax ID number. To make your business look more professional, include your logo.
  • Name of your customer: Identify your customers, including their name or business name and tax ID number.
  • Contact details Enter your address, phone number and customer contact information. This information is particularly useful in the event that either party needs to contact you.
  • Invoice number An invoicing number is a way to keep track of your invoices so they don’t get mixed up. Pro tip Track your invoices easily with an abbreviated version your customer’s name followed by a dash and the month/year. For example: Invoice WIX-0520)
  • A list of costs and services: Invoices generally include the items purchased, whether they are products or services. Prices and quantities can also be included. To avoid confusion, enter as much detail as you can. If you offer a service by the hour, describe the time it took to complete the task. If applicable, include a separate line to account for wire transfer fees or VAT.
  • Dates Your invoice should include all relevant dates such as the date the invoice was issued, when the sale or service occurred, and the time that the invoice covers (for periodic bills).
  • Total amount Draw a line showing all the amounts your customer owes to you. All products and services should be included in the total amount. Before you calculate your total, don’t forget about any additional fees.
  • Payment information Provide your bank information to help your customers pay you. Third-party payment processors like PayPal and Transferwise are also used by many customers. They only need an email address and not sensitive information such as your bank details.
  • Terms & Conditions: On every invoice, write the terms and conditions that you and your customer have agreed to. These could include your rates, return/refund policy, product warranties, shipping information, and privacy policies.
  • Due Date: Avoid confusion later by clearly stating when you expect payment. Write “May 31, 2021” and not “Due within 30 days.”

Tip: Set a time frame for all invoices so that you know when to expect your payment. Your customer should pay you within 30 business days of the invoice’s date. However, it is possible to make this shorter or longer depending upon the nature of your business and how much you owe.

5 tips to keep an invoice looking professional

An invoice is another aspect of your business. Invoices are a professional way of building brand trust and letting customers know that they must pay on time. These are 5 tips to keep in mind.

01. Include branding

To keep your branding consistent, add your logo to your invoice. You don’t yet have one? Use a Logo Maker to create a logo for your company.

02. Use an invoice template to create or modify

You can either create your own template, or you can use one already created. Keep your invoices consistent in appearance and structure so that your clients or customers can recognize them easily and find the information they need. An invoice generator can also achieve the same result.

03. Make sure to check spellings and find any mistakes

Although it may seem obvious, you’d be amazed at how many businesses fail to do this. Customers can see through your business if you have to correct or resend invoices. Before you send your invoices, double- and triple-check them for errors.

04. Multiple payment options available

It can be helpful to offer customers a range of secure payment options such as digital wallet, credit card, or wire transfer if you want to ensure that they pay promptly and on time.

05. Thank you

It is a good idea to say “Thanks for your business” at the end of your invoice. You can be genuine and let your customers know what you mean to them. This can increase the probability of payment by 5%.

How can I create an invoice?

Invoice generator

It’s now easier than ever to create an invoicing. You can actually create a professional invoice within minutes with a HTML3_ free invoice generator HTML3_. These are the steps to follow:

Step 1 – Add your information

Include key details that will benefit both you and your customer/client.

  • Name of the business
  • Website for businesses
  • Contact information, such as email or phone number
  • Mailing address

Step 2 – Describe the services or products you are charging

Invoice settings will include the invoice number, issue date and due date. Include a description and a line for each product. Then add:

  • Hourly rate or price
  • Quantity (or the number of hours worked)
  • Discount (if applicable).
  • Total
  • Additional terms or notes

Step 3 – Finalize and Send!

Wix’s Invoice Generator will calculate your total automatically. Make sure you have all of the necessary information before you send. You can either email it directly to your client, or download it.

Step 4 – Issue an invoice receipt

After your customer has paid, you can send an invoice receipt to follow up. This will help you keep track all payments received.

Invoice from Scratch

These steps will help you create an invoice directly from scratch if you don’t have a generator.

Step 1 – Open a blank sheet

Use a program such as Google SheetsMicrosoft Excel to open a blank spreadsheet.

Step 2 – Create a branded invoice head

Invoices should include a header with the brand details and billing information.

  • Your logo
  • Contact information for businesses
  • Invoice date
  • Invoice number

Step 3 – Add the information of your client

Include the contact information of your client, such as company name, address, phone number, and name of relevant contact. You can use this example:

The Bill To:

Name of the Company

Address Rd.

State 55555, City

Step 4 – Add the due date

At the top of your invoice, write the date, month, and year due.

Step 5 – Add an itemized sales list

You can then create a table by adding columns that detail the services and/or goods provided, date of order and the cost per unit. Be sure to indicate the currency. Example:

Step 6 – Calculate the total

To calculate the total amount due on the invoice, add a last column. Excel’s SUM function and many other spreadsheets can do the math. Remember to include any applicable discounts, fees, or tax rates in your total.

Step 7: Add payment details

Include relevant payment information such as your PayPal ID. Include your name, account number and SWIFT code, bank and address, as well as the bank wire transfer information. Add a personal note at the bottom such as “Thanks for doing business with me!”

source https://www.wix.com/blog/ecommerce/2020/08/what-is-an-invoice

What is recurring revenue and why does it matter?

We will share everything you need about recurring income and how to cash in — literally.

While acquiring new customers via the virtual door will always be a priority for eCommerce businesses, it is only half of the battle. Businesses are constantly looking for innovative, scalable ways of increasing sales with rising acquisition costs.

We’ve noticed a significant rise in advertising costs in recent months, thanks to iOS 15. But maybe this was the push that we needed to start considering retention as a key component of our marketing strategies.

While recurring revenue business models are not new, more DTC brands are realizing how stable and predictable they can be. It is important to understand what recurring revenues are, their benefits, and why you might consider adding one to your business.

What is recurring income?

What is recurring revenue, you ask? We’d love to answer your question. Recurring revenue, in its simplest form is the percentage of revenue expected to continue for months. Recurring revenue, unlike one-time sales is predictable and stable. It can be counted upon to occur at regular intervals with high levels of certainty.

All industries can see examples of recurring income. It is often seen in membership programs, subscriptions, and service agreements. We saw a massive shift towards online shopping after the pandemic. Businesses across industries started to adapt to the recurring revenue model. However, there are many types of businesses that can do this best.

  • Content-based – Content-based businesses offering access to content digitally and physically have had great success with recurring revenue models. It is evident in magazine subscriptions, audiobooks and digital books, as well as news outlets, photo libraries, streaming services, and news outlets.
  • Service-based – Instead of having to make a single transaction to buy a service, service-based companies will allow access on a regular basis to their platform. This is starting to appear all over the place in the form educational courses and language learning applications.
  • Product-based – This is the most popular of all three. These recurring revenue models, which are product-based, are becoming more and more common. Customers can subscribe to many products, including clothing and cleaning supplies, and have them delivered on a regular basis to their homes.

What does recurring revenue in eCommerce mean?

Stability. Stability. Stability.

An eCommerce business can establish a monthly revenue stream that is predictable. This allows them to plan for future growth. There are many ways that brands can benefit from structuring their recurring revenue streams using subscriptions.

Predictability

Predictability is the most important benefit. While subscriptions provide a predictable, recurring revenue stream, they can also help to predict inventory needs. Merchants can manage their inventory better because they are subscription-based. This allows them to satisfy consumer demand and reduce the risk of overstocking.

Potential investors and stakeholders can find predictability attractive. Brands that can generate regular revenue are more stable investments.

Cash flow

Cash flow, or the money that flows in and out of a business on a daily basis, is the second benefit. Cash flows in whenever consumers make purchases and when investors add funds. When the brand spends money such as on marketing and employees, cash flows out.

Subscription models can help brands keep a positive cash flow since they are recurring. With predictable revenue, brands have the freedom to invest in product development, marketing and testing. Positive cash flow allows brands to pay off debts and return money back to shareholders.

Acquisition costs

Marketing in today’s economy is focused on lowering acquisition costs. It’s not only the economy that brands need to be concerned about. It’s five times more costly to acquire a new customer than it is to retain an existing one. This alone should motivate marketers to focus on their retention strategy. Brands who focus on existing customers increase their customer lifetime or CLTV, which in turn will increase their return on customer acquisition.

Insights

You will gain valuable insights from your customers, which is the final benefit. It is impossible to underestimate the power of having a conversation with your customers. Subscriptions offer brands the unique opportunity to understand their customers and to provide them with relevant information.

You might consider adding a recurring revenue stream to your business.

According to Frederick Reichheld, Bain & Company’s research, increasing customer retention by 5% increases profits in the range of 25% to 95%. Subscriptions can be a great way of increasing your retention and cashing in on those profits increases literally.

Today’s tech solutions make it much easier to add a subscription channel to increase your recurring revenues than you might think. Subscriptions are easy to set up without the need for a web development team or deep pockets. This means that you can focus on customer retention and increase your profits today.

Yotpo Subscribes is an example of this easy-to-use app that merchants can use to get up and running in as little as 8 minutes. You can be sure that your customers will have a seamless experience with Shopify’s native integration.

Subscriptions can be a great way to build strong relationships with your customers. But subscriptions don’t just make money. It all boils down to the customer experience. We cannot create engagement as a brand; customers will choose when, where and how they interact with us. However, we can focus on the experience that leads into engagement.

Subscriptions are a recurring revenue source that allows you to offer a unique experience for your customers. When customers and brands optimize their subscription experience, then both win.

source https://www.yotpo.com/blog/what-is-recurring-revenue-and-why-does-it-matter/

WooCommerce Product blocks allow you to integrate content and commerce

WooCommerce and WordPress have long offered the benefit of combining content and commerce. WooCommerce 3.6 introduces eight new product blocks, which allow you to insert products on any page or post in your store.

This means that store owners no longer have to show products only in the product archive or on product pages. They can seamlessly integrate commerce and content across all their stores, on any page.

Note: WooCommerce 3.6’s new product blocks require store owners to have WordPress 5.0 installed.

There are eight new product blocks to choose from

Gutenberg introduced a new user interface in WordPress 5.0 that allows store owners to choose from a variety of predetermined groups and create a custom list with hand-picked products for display on any page or post.

img alt=”There’s eight new product blocks.” src=”https://woocommerce.com/wp-content/uploads/2019/04/woocommerce-blocks.png?w=650″/>

This interface provides a preview of the selection once it is published. Store owners can adjust the order and layout to fine-tune the appearance.

The store owner can organize the layout in a certain number of columns and rows, and order products by newness or price.

The first WooCommerce products blocks was released as a feature plug to allow extensive test, but with 3.6 it will be integrated into WooCommerce core. Here is a breakdown of all eight new product blocks:

  • Featured Products: Choose and display one product in a new, high-impact format. You can adjust the text alignment, hide/show the price and description, add color overlays, change the button call to action, set a custom height and override product photographs.
  • Hand-picked, individual products: Display products of your choosing in a grid.
  • Bestsellers/top-rated: Display a grid of your best-selling products, filterable by category.
  • Latest products: Show a grid with your newest products. Filterable by category.
  • Products on Sale: Display a grid of products for sale, filterable by product category.
  • Products that have specific terms or attributes: Show any products which have been given a particular term or multiple attribute terms.

Or Add all your products to any page, or post in the store!

Learn more:

Theme authors can customize

Customization is key with WordPress and WooCommerce. The product blocks allow theme authors to customize the display and number of rows and columns.

The Featured Products Block allows theme authors to control product description, price and height as well as overlay color for the background image, button colour, link color, and other details.

Everything you need to know about cloud ERP and Ecommerce

One wise (and unidentified) man is quoted as saying that “I won’t be impressed by technology until I can download foods from the internet.”

Maybe that day will come, but for now we can order almost everything online.

However, businesses that hadn’t made the decision to do so were forced to reconsider their decision after the COVID-19 crisis. Ecommerce is not a future option, but a necessity for survival.

Statista estimates that retail ecommerce revenues reached 431 billion U.S. Dollars in 2020, according to Statista . The revenue is expected to rise to more than 563 billion U.S. Dollars by 2025. How can ecommerce companies manage the extraordinary growth and meet higher-than-ever customer demands?

IDC is a leading global market intelligence company. It has released a white paper, Best Together: SaaS Digital Commerce Platforms & ERP Help Organizations Move Past Legacy Limitations. This whitepaper states that the solution lies in a combination team effort and the right technology.

The IDC analysts wrote that meeting customer expectations requires team effort. This is dependent on all areas of the organization (e.g. commerce, customer service and financials, supply chain).

The analysts recommend that businesses invest in a cloud ERP and digital commerce system, such as the native Acumatica BigCommerce Connector, to ensure they grow and mature into enterprise-level companies.

Before we get into the details of this seamless solution, let’s first talk about what cloud ERP software actually is.

What is Cloud ERP?

Understanding cloud computing is key to understanding cloud ERP solutions. An Microsoft Azure article gives a clear definition.

Cloud computing simply means that computing services are delivered over the internet (or “the cloud”), including servers, storage, databases and software. This allows for faster innovation and flexible resources as well as economies of scale. Cloud services are typically only charged for what you use. This helps you to lower operating costs, scale your infrastructure more efficiently, and reduce your overheads.

Cloud ERP software, then, is software-as-a-service (SaaS) that allows users to access Enterprise Resource Planning (ERP) software over an internet connection. A cloud-based ERP system acts as an organizational system of record. Data from financial, distribution, CRM, etc. The ERP synchronizes data from all systems in real time. The ERP is a central repository for all business data. It integrates business processes and serves as an “unique source of truth” for employees. Users can also access the ERP from any device with a browser, and at any time.

A general rule of thumb is that if a company is still using a legacy system or multiple disconnected, poorly integrated systems to manage complex inventory, warehouses and financial obligations, it is time to move to a cloud-based ERP solution.

Learn more: 

Magento Pos

Shopify Pos

Bigcommerce Pos

Woocommerce Pos

Netsuite pos

MSI

Cloud ERP vs Private Cloud ERP

Understanding private cloud ERP is essential to fully comprehend cloud ERP solutions. Let’s take a look at both options.

1. Cloud ERP.

As we know, cloud ERP options allow users to access their business applications via the internet. They run on shared computing resources. Cloud ERP options allow users to easily integrate with third-party apps while still providing the flexibility and scalability that businesses require in a dynamic economy. Cloud ERP vendors are responsible for security, updates, as well as upgrades. Businesses pay a monthly subscription fee depending on how many users or resources they use.

2. Private Cloud ERP.

The only difference between private and cloud ERP systems is the location of the software. The software is installed and maintained at the business’s own facilities. Only the IT department of an organization is responsible for software deployment and the maintenance and security of software and hardware. The initial costs of software licenses and hardware may be prohibitive. Remote access is possible but not always an integrated function. It may be necessary to use a third-party app and device.

Private Cloud ERP: Challenges

All ERP options have their unique challenges, but private cloud ERP challenges are something businesses, particularly small-to-medium-sized businesses (SMBs), should pay attention to.

Private cloud ERP solutions may be more expensive to implement and maintain, with a higher capital investment upfront. Businesses must have a full-time IT staff. Private cloud solutions can take longer to deploy, may require more hardware to accommodate additional users, and may not be mobile-friendly.

Private cloud ERP solutions often have legacy systems that are not modernly integrated. Customers suffer as a consequence.

What makes cloud ERP business sense for an online store?

We now have a better understanding of the differences and challenges in the various ERP solutions, it is time to bring ecommerce into the picture.

Ecommerce platforms are essential for putting their products/services before customers. An ecommerce portal allows online businesses to manage sales, marketing and operations.

According to IDC’s Whitepaper, whichever ecommerce platform businesses choose, it must combine seamlessly and natively with an ERP solution–preferably, a cloud ERP solution.

Analysts at IDC write that the most successful digital businesses have an overarching strategy for digital transformation and select ERP and digital commerce systems that can be tightly integrated or combined. A future-proof digital platform must use modern SaaS systems designed for the cloud.

An online store that uses cloud ERP solutions makes business sense is always a good idea.

Cloud ERP for Ecommerce: Benefits

Cloud ERP solutions are often faster to implement, have lower upfront costs and allow for real-time communication with ecommerce platforms. Businesses can also benefit from cloud ERP solutions that include an ecommerce vertical such as Acumatica’s retail-commerce edition.

1. Flexibility and adaptability.

Flexibility in the face of market fluctuations is a key indicator of a company’s success. Businesses can easily make required customizations with the right cloud ERP system, without having to hire IT staff. They can adapt their back-office processes and workflows as well as their customer-facing apps to change circumstances.

Each merchant also operates in a unique way. Each merchant operates in a unique way. The right cloud ERP solution can be configured and used without code to adapt to merchant’s unique requirements, instead of forcing them to use the ERP software.

2. 2. Improved security

Cloud-based ERP software can be hosted in data centers such as Amazon Web Services and Microsoft Azure. They have the resources that SMBs might not have, including top-notch security. A cloud hosting service offers many benefits:

  • Physical access to the equipment can be controlled.
  • Environmental protection.
  • Protection against unforeseen disasters.
  • Network intrusion detection and prevention.
  • Regular maintenance of your system.

3. Business growth can be sustained

Businesses expect their business management software to grow along with them as they grow. However, this is not always possible. It is difficult for legacy solutions to keep up with technological innovations that are constantly changing.

Cloud-based solutions receive regular updates and upgrades. These updates allow ecommerce businesses remain competitive and provide the opportunity for continued growth.

4. Compatible with many tools

No matter what business offers or what services it sells, integration with key business applications is essential. Acumatica has the technology partner to help a business expand Acumatica’s platform.

BigCommerce allows Acumatica businesses to process orders, manage inventory and set prices. It also facilitates inbound logistics.

Steps to Cloud ERP Implementation

Connecting an ERP cloud solution to an ecommerce platform may sound like a smart decision. There are few steps you need to follow when choosing or implementing a cloud ERP system. While cloud ERP providers might differ in the number of steps and the names of the steps, the end result is the exact same: ecommerce success.

1. 1.

Ecommerce businesses need to take the time and research all options. While it may take time to compare and contrast the various cloud ERP systems available today, rushing this step could result in making a bad decision.

A checklist such as Acumatica’s Business Management System Evaluator Checklist is a great way to evaluate and research options. It allows businesses to compare features and benefits between vendors based upon five categories: Productivity (functionality), Technology (value), and risk.

This checklist, or any similar one, will help businesses to find the right cloud ERP system.

2. Installation.

The second step is to install the software. To complete the installation, you will need to first gather an internal team. This team often includes an Executive Sponsor, a Project Leader (or Project Manager), a technical Lead and Subject Matter Experts.

This step requires you to identify your requirements. Acumatica customers classify requirements as necessary, desirable, not an urgent need, and nice-to-have. This results in a list with features and functions that is affordable and fits the project’s timeline.

3. Migration.

Migration of data from an old system to a new one is complex. However, a checklist can make it easier and more manageable. Acumatica’s data migration checklist is an example.

  • Verify that all customer contact information is current and accurate
  • Correct or remove redundant data (discontinued vendors and contacts not longer associated with the company).
  • Correct or out-of date company data (old part numbers and discontinued products) should be removed
  • Set up your Acumatica database
  • Your legacy ERP data can be mapped to Acumatica’s new fields
  • Transfer the data to your new system
  • To verify that all data from the past has been transferred and is still accessible, test the new system
  • Verify that new data can be added (new product information or inventory item location, customer information).

4. Test.

It is important to test and approve any new product before it is sold to customers. While cloud ERP vendors may have their own procedures and methods for creating a test plan to test the system, most test plans will be able to test every requirement.

These are some guidelines that may be followed during testing:

  • Scope: The purpose of the test
  • Requirement: The specific requirement that is being tested
  • Configuration: System configurations required to conduct the test
  • Step-by-step procedure to perform the test
  • Test Data: An SME can provide this if needed. The test data should be representative of real-world situations
  • Expected Results: The results that are expected to be produced when the system performs according to specifications
  • Pass or fail: This determines whether the test was passed.
  • Comment: Additional observations, system behavior and partial successes
  • Training

Training is an essential step. Users and system administrators who aren’t properly trained from the start may not fully grasp the benefits of the cloud ERP system.

A cloud ERP vendor should offer training assistance, as well as all the documentation and training courses required for a complete training experience.

5. 5.

The deployment is also known as “go-live” and is when the cloud ERP vendor will be available to push the go-live button.

This step involves making the decision about when you want to go live. This usually happens on the day or days that have the lowest impact on the business. Businesses will then need to decide whether they want the new system activated and deactivated simultaneously. Or if they prefer to proceed in a gradual manner.

Whatever activation method you choose, the final result will be a business that uses a mobile cloud ERP system. But there’s more.

6. 6.

After the excitement of a successful launch, there will always be questions or additional assistance. This could include the need to integrate with custom and third-party applications. As the business refines their business processes, and continues to require support, the cloud ERP provider should always be available.

Wrapping up

Ecommerce businesses are enjoying a boom economy, and they expect even more growth in the future. These businesses need to be efficient, flexible and adaptable in order to reap the full benefits of an economy like this. This is possible when they choose the right cloud ERP solution, which natively integrates with their ecommerce platform.

Analysts at IDC write that “Already at an unprecedented high, the rate for change in the global economic system is expected to continue increasing over the next decade.” B2B and B2C merchants require modern, tightly integrated front-office and back office applications to adapt to these changes and remain competitive. These tightly integrated applications offer resilience so merchants can overcome obstacles with agility, rather than waiting for their systems catch up.

Combining the forces of BigCommerce with Acumatica will provide much-needed automation for ecommerce businesses. This will help them streamline their business processes, compete in a growing domestic market, and ultimately succeed in today’s marketplace.

Dropshipping Fulfillment: Understanding Supply Chain and Fulfillment

The supply chain is a fancy way of describing the journey a product takes from conception to manufacturing and then finally to the customer’s hands. Hard-core suppliers chain experts would insist that a product’s supply chains extend all the way to the extraction of materials (such as oil and rubber) needed to make it. This is a bit intense.

We don’t need too much detail for the purposes of this guide. It is enough to know the three main players in the dropshipping supply chains: wholesalers, retailers, and manufacturers.

Manufacturers. manufacturers create the product, and many do not sell directly. They sell bulk to wholesalers or retailers. Although buying directly from the manufacturer is the most cost-effective way to buy products for resale is the best option, many manufacturers have minimum purchase requirements that you must meet. When selling products to customers, you will need to stock the product and then re-ship it. It is often more convenient to purchase directly from a wholesaler.

Wholesalers. Wholesalers purchase products from manufacturers in bulk, mark them up slightly, and then sell them on to retailers for resale. If there are minimum purchasing requirements, these will be lower than the manufacturer’s. Wholesalers are likely to stock products from many manufacturers, if not hundreds. They also tend to specialize in one industry or dropshipping niche. They sell to only retailers, and not to the general public.

Learn more: 

Magento pos

Shopify pos

Bigcommerce pos

Woocommerce pos

Netsuite pos

MSI

Retailers. Anyone who sells products directly at a markup to the public. You are a retailer if your business fulfills orders through dropshipping suppliers.

Dropshipping is not a job, it’s a service.

Notice that dropshipper is not listed in the supply chain. Why is that? Why? Because any one of these three — manufacturer, wholesaler, and retailer–can act in a role as drop shipper.

If a manufacturer offers to ship their products directly to you, this is called dropshipping. A retail merchant can also dropship but its pricing will not be as competitive as that of a wholesaler because it doesn’t buy directly from the manufacturer.

A “dropshipper” doesn’t necessarily mean that you will get wholesale pricing. This simply means that the company will ship your products for you. You want to get the best price so make sure you are working with a genuine wholesaler or manufacturer. This topic will be covered in detail in the next chapter.

Dropshipping in action: How to order

Let’s now look at the process of a drop-shipped order. We’ll show you how an order placed at Phone Outlet, an online retailer that sells accessories for smartphones, is processed. Phone Outlet dropsships all its products directly from Wholesale Accessories, a wholesaler.

This is an example of how the ordering process might look.

Step 1: The customer places an order with the Phone Outlet

Mr. Allen is looking for a case to protect his new smartphone so he orders one through Phone Outlet’s online shop. A few things happen once the order has been approved:

  • Phone Outlet and Mr. Allen will receive an email confirmation (likely identical to the original order) that the store software generates automatically.
  • The payment of Mr. Allen is automatically captured during the checkout process. It will then be deposited to Phone Outlet’s bank account.

Step 2: Phone Accessory Outlet places the order with its supplier

The next step is to forward the email confirmation from Phone Outlet to Wholesale Accessories. Wholesale Accessories will charge the wholesale price plus any shipping and processing fees to the credit card that Phone Outlet has on file.

Note : Some dropshippers support automatic XML order uploading (a common format to store inventory files), but the easiest way to place an order with dropshipping providers is via email. It’s universally accepted and simple to use.

Step 3: Ship the order to wholesale accessories

Wholesale Accessories will pack the order and ship it to the customer, provided that the item is in stock. Although the shipment is from Wholesale Accessories, Phone Outlet will include the name and address on the return label. The invoice and packing slip will also contain its logo. Wholesale Accessories will send a tracking number and an invoice to Phone Outlet once the shipment is complete.

Please note that dropshipped orders often take less time than you might think. Quality suppliers can usually ship an order within a few hours. This allows merchants to advertise same day shipping even if they use a dropshipping supplier.

More information: Everything you need to know dropshipping and ePacket

Step 4: The customer is notified by phone outlet about shipment

Phone Outlet will email the tracking information to the customer once the tracking number has been received. This may be done using the email interface built into the online store interface. Once the order has been shipped and payment received, and the customer is notified, fulfillment can begin. Phone Outlet’s profit or loss is the difference in what it charged Mr. Allen versus what it paid Wholesale Accessories.

Dropshippers can’t be seen

The dropshipper, despite its vital role in order fulfillment and delivery, is invisible to the customer. Only Phone Outlet’s logo and return address will be visible on the shipment once it is received. If Mr. Allen receives an incorrect case, he will contact Phone Outlet. Wholesale Accessories would coordinate behind-the scenes to send the correct item.

Dropshipping Fulfillment: Understanding Supply Chain and Fulfillment

The supply chain is a fancy way of describing the journey a product takes from conception to manufacturing and then finally to the customer’s hands. Hard-core suppliers chain experts would insist that a product’s supply chains extend all the way to the extraction of materials (such as oil and rubber) needed to make it. This is a bit intense.

We don’t need too much detail for the purposes of this guide. It is enough to know the three main players in the dropshipping supply chains: wholesalers, retailers, and manufacturers.

Manufacturers. manufacturers create the product, and many do not sell directly. They sell bulk to wholesalers or retailers. Although buying directly from the manufacturer is the most cost-effective way to buy products for resale is the best option, many manufacturers have minimum purchase requirements that you must meet. When selling products to customers, you will need to stock the product and then re-ship it. It is often more convenient to purchase directly from a wholesaler.

Wholesalers. Wholesalers purchase products from manufacturers in bulk, mark them up slightly, and then sell them on to retailers for resale. If there are minimum purchasing requirements, these will be lower than the manufacturer’s. Wholesalers are likely to stock products from many manufacturers, if not hundreds. They also tend to specialize in one industry or dropshipping niche. They sell to only retailers, and not to the general public.

Retailers. Anyone who sells products directly at a markup to the public. You are a retailer if your business fulfills orders through dropshipping suppliers.

Dropshipping is not a job, it’s a service.

Notice that dropshipper is not listed in the supply chain. Why is that? Why? Because any one of these three — manufacturer, wholesaler, and retailer–can act in a role as drop shipper.

If a manufacturer offers to ship their products directly to you, this is called dropshipping. A retail merchant can also dropship but its pricing will not be as competitive as that of a wholesaler because it doesn’t buy directly from the manufacturer.

A “dropshipper” doesn’t necessarily mean that you will get wholesale pricing. This simply means that the company will ship your products for you. You want to get the best price so make sure you are working with a genuine wholesaler or manufacturer. This topic will be covered in detail in the next chapter.

Dropshipping in action: How to order

Let’s now look at the process of a drop-shipped order. We’ll show you how an order placed at Phone Outlet, an online retailer that sells accessories for smartphones, is processed. Phone Outlet dropsships all its products directly from Wholesale Accessories, a wholesaler.

Learn more: 

Magento pos

Shopify pos

Bigcommerce pos

Woocommerce pos

Netsuite pos

MSI

This is an example of how the ordering process might look.

Step 1: The customer places an order with the Phone Outlet

Mr. Allen is looking for a case to protect his new smartphone so he orders one through Phone Outlet’s online shop. A few things happen once the order has been approved:

  • Phone Outlet and Mr. Allen will receive an email confirmation (likely identical to the original order) that the store software generates automatically.
  • The payment of Mr. Allen is automatically captured during the checkout process. It will then be deposited to Phone Outlet’s bank account.

Step 2: Phone Accessory Outlet places the order with its supplier

The next step is to forward the email confirmation from Phone Outlet to Wholesale Accessories. Wholesale Accessories will charge the wholesale price plus any shipping and processing fees to the credit card that Phone Outlet has on file.

Note : Some dropshippers support automatic XML order uploading (a common format to store inventory files), but the easiest way to place an order with dropshipping providers is via email. It’s universally accepted and simple to use.

Step 3: Ship the order to wholesale accessories

Wholesale Accessories will pack the order and ship it to the customer, provided that the item is in stock. Although the shipment is from Wholesale Accessories, Phone Outlet will include the name and address on the return label. The invoice and packing slip will also contain its logo. Wholesale Accessories will send a tracking number and an invoice to Phone Outlet once the shipment is complete.

Please note that dropshipped orders often take less time than you might think. Quality suppliers can usually ship an order within a few hours. This allows merchants to advertise same day shipping even if they use a dropshipping supplier.

More information: Everything you need to know dropshipping and ePacket

Step 4: The customer is notified by phone outlet about shipment

Phone Outlet will email the tracking information to the customer once the tracking number has been received. This may be done using the email interface built into the online store interface. Once the order has been shipped and payment received, and the customer is notified, fulfillment can begin. Phone Outlet’s profit or loss is the difference in what it charged Mr. Allen versus what it paid Wholesale Accessories.

Dropshippers can’t be seen

The dropshipper, despite its vital role in order fulfillment and delivery, is invisible to the customer. Only Phone Outlet’s logo and return address will be visible on the shipment once it is received. If Mr. Allen receives an incorrect case, he will contact Phone Outlet. Wholesale Accessories would coordinate behind-the scenes to send the correct item.

Pros and cons of sole proprietorship

A sole proprietorship can be a business with only one member that has not been incorporated by state filing. There are pros and cons to sole proprietorships. However, there is no distinction between owner and business and no liability protection. While sole proprietorships can reduce startup costs, they won’t limit your personal liability.

No matter how your business structure is set up, it is important to keep your personal and business finances separate. Combining funds can lead to huge tax, accounting, and liability headaches. Chase ranked first in our review of the best business bank options. A $300 bonus is available to new customers.

Visit Chase

Sole Proprietorship: Pros and cons

 

The advantages of a sole proprietorship Cons of Sole Proprietorship
Simple Setup and Affordable Unlimitable Liability
No corporate business taxes There is no ongoing business life
There are no annual reports/filings It is difficult to raise money
No restrictions on the use of formal business structures Inability to take on business debt
Simple Recordkeeping It can be regarded as unprofessional

 

Free ebook: How to Start Your BusinessStep by step blueprint that will show you how to get from idea to launch within 30 days 

 

5 Advantages of a Sole Proprietorship

The easiest type of business is a sole proprietorship. This type of business does not require any formal setup, annual administration, dedicated taxes or formal record keeping. A sole proprietorship allows you to simply sell goods and services. All bills and debts are your responsibility. All income from business is pass-through, and can be filed on your personal tax returns.

These are the five benefits of being a sole proprietorship:

1. 1. Easy setup and low cost

A sole proprietorship does not require you to file any paperwork or complete formal business structures. The only thing you need to do is start your business. You don’t even have to pay any filing fees or incorporation fees. You may need a permit, special license, surety bonds or business insurance policy depending on your industry. However, you don’t have to file any filings with the state.

This ease of setup and low cost of administration/management makes sole proprietorships great for cottage industries and seasonal businesses. It can be very beneficial to start a new venture, especially one that does not have significant liability.

Sole proprietorships are so easy to establish that they don’t require owners to take the necessary steps to incorporate. This would give them liability protection and other benefits. These steps are not required for sole proprietorships, and they also forfeit the liability protection that comes with formal business structures.

You can protect your liability by incorporating as an LLC using a service such as Rocket Lawyer. You can legally seperate yourself from your business by having them assist you with federal and state filings.

Learn more: 

Magento pos

Shopify pos

Bigcommerce pos

Woocommerce pos

Netsuite pos

MSI

Visit Rocket Lawyer

2. 2.

You don’t have to pay 21% corporate taxes on your business profits as a sole proprietor. You simply keep filing personal tax returns, and any income you receive from your business is claimed as pass-through taxes. All income is subject to your normal income tax rate. Solo proprietors often are exempted from the state franchise and excises taxes.

These exemptions make taxes for sole proprietorships much simpler and less expensive than those of C-corps. Revenue is taxed at company level, and then again when dividends are paid to shareholders. The current dividend tax rate is between 15-20% and 41%, meaning you can pay up to 41% on your taxable profits. This does not include income tax that you pay on your salary.

Pass-through tax benefits are not only available to sole proprietorships. Both LLCs and Scorps can be considered pass-through entities. They avoid double taxation as well as the corporate tax rate. However, LLCs can be subject to franchise or excises tax depending on their operations. This means that taxes may still be higher than sole proprietorships depending on the level of profit.

As a sole proprietor, you might be subject to the following taxes:

  • Normal income tax – As a sole proprietor, there is no salary. All profits are instead filed on your personal tax return, and taxed at the ordinary income tax rate.
  • Self-employment taxes – If you own a business, you will have to pay self employment tax on all income earned by that business. This is the employer-portion FICAtax. This means that you will pay 7.65% additional taxes, or 15.3-16.2% FICA taxes.
  • Sales Tax – Depending on the nature of your business, you might need to collect and pay sales taxes if you sell goods. The amount varies from one state to another, but is usually between 6-9%.

3. There are no annual reports or filings

Solo proprietorships don’t need to file annual reports with the state. You don’t even have to file any other tax returns. This is in contrast with LLCs or S-corporations which generally have to file an annual report after they are formed. This report usually requires the updating of managers or members’ lists.

You would need to file many additional filings if you decide to use an LLC or LLP, Scorp, C-corp, or other entity instead of a sole proprietorship.

  • When you officially establish a company.
  • Annual filing- Charged in most states to keep you company current
  • You must notify the state if you are changing managers or directors.
  • List members –Many types companies must inform the state when their members change
  • An annual audit – Some companies must submit an audit every year
  • Company tax returns Certain types of companies must prepare corporate tax returns, and pay separate taxes for business profits

It is beneficial that sole proprietorships do not have to file an annual return. This saves time and headaches. However, most states charge a fee of $50-$200 for annual filings. Solo proprietors need only file their annual tax returns.

/top-5-simple-pos-software/

/which-features-make-connectpos-stand-out/

/top-10-woocommerce-themes/

/does-service-business-need-a-pos-system/

/connectpos-vs-loyversepos/

/how-can-pos-support-inventory-management/

4. 4.

Others, which are more structured, have certain restrictions on their operations and must meet additional requirements. These requirements do not apply to sole proprietorships. As a sole proprietor, you are free to make any business decision you like, provided it is legal. There is no approval or formal review.

You can skip certain requirements for other business types if you are sole proprietor:

  • Annual meetings –Companies like LLCs must hold an annual meeting to review the lists of members and managers
  • Board Meetings – Some companies must have certain business decisions officially approved by directors
  • Recorded Minutes –Formal minutes must be kept for these meetings of LLCs and corporations
  • Shareholder votes Any formal actions by the company, such as appointing new managers or admitting members, must be voted upon
  • Formal Reviews – Managers need to be formally re-appointed and certain actions must be reviewed.

5. Simple Record Keeping

An LLC or other formal-structured business requires you to separate your personal and business finances. You run the risk of being open to unlimited liability. This is known as “piercing corporate veil.”

Sole proprietors are subject to unlimited liability so many sole proprietors don’t separate their finances. Sole proprietors deposit their business income directly into personal accounts and pay all bills and debts themselves. They treat the business as an extension to their personal finances. This could make it easier to run a sole proprietorship than an LLC.

Although it is simpler to keep business and personal finances separate, it is often not a good idea. Separate records allow you to monitor cash flow and help you manage your business better. First, open a checking account for your business.

Separating finances in a sole proprietorship won’t protect your assets, but it can assist with bookkeeping, as the business grows. If you choose to change to an LLC, or any other type of business structure, it will make things easier. Chase was voted the best business account by us after we reviewed them all. Bonuses are available to new customers.

Visit Chase

5 Con’s of a Sole Proprietorship

Consider the pros and cons of sole proprietorship. One of the biggest disadvantages to sole proprietorship is that it allows for unlimited liability. The business owner can be held responsible for all obligations. If you are looking to grow your business, it is possible that W2 employees won’t be available (only 1099 contract employees).

The following are major disadvantages to sole proprietorships:

1. 1. Unlimited Liability

You don’t have the limited liability protections that an LLP, LLC or S-corporation offers if you are a sole proprietor. If someone is hurt by your business, a product you sell, or a mistake that you make, then you are personally responsible for any business expenses or debts. This means there is no legal distinction between you and your company.

You’ll be responsible for some liabilities in a sole proprietorship.

  • Your business’s expenses
  • Business-related debts
  • Product-related Liability
  • Property-related injuries
  • Insufficient or inappropriate service can result in civil damages

A sole proprietorship has unlimited personal liability. Customers, vendors, and lenders can seek your personal assets to pay any business obligations. This is in contrast with LLCs, Scorps and C-corps which provide a shield of liability between the business and its owners.

top-5-best-canada-pos-systems-in-2021/

top-5-best-australia-pos-systems-in-2021/

/what-is-magento-platform/

/5-best-wine-point-of-sale-systems/

/top-5-excellent-window-pos-software/

/top-best-android-point-of-sale-system/

The personal assets of the company owners are protected in an LLC or Ccorp. They cannot be taken by customers, lenders, or vendors to meet the company’s obligations unless the business owners do anything that would allow the corporate veil be lifted or if the owner signed a personal guarantee. A sole proprietorship may not be the right choice if you are looking to legally protect yourself.

Rocket Lawyer can help you form a single-member LLC. This will protect you from any liabilities that may arise from your company. You can visit them right away and receive legal documents in no time.

Visit Rocket Lawyer

Josh Zimmelman Westwood Tax and Consulting An LLC is a limited-liability company that protects your personal assets from creditors and lawsuits. Others entities, such as sole proprietorships and general partnerships, are unlimited liability companies. These businesses have the same owner and company. Therefore, you are liable for all debts of the business, even if the partner takes them on.”

– Josh Zimmelman, President, Westwood Tax & Consulting

2. 2.

Your business will survive if you set it up as an LLC or C-corp. Your business can continue to exist as long as your business files are current and you have proper licensing. However, if you are a sole proprietor and you have to go bankrupt, it is the end of your business.

There is no way to ensure continuity in a sole proprietorship. A family member or employee may be able to continue working in your business but they would be starting a brand new company. They wouldn’t be sustaining your operations. This makes it difficult to plan for the long-term and make succession plans for your eventual exit.

Sole proprietorships cannot hire full-time employees or W2 employees. Although you can hire 1099 independent contractors to work for you, it is not possible to manage payroll or retain employees over the long-term. You will need to incorporate an S-corporation or C-corp if you plan to hire employees in future.

3. It is difficult to raise capital

If you need to raise capital from outside investors, structuring your business as a sole proprietorship may not be a good idea. Because there is no business to sell, it is almost impossible to raise capital unless you have tangible assets and intellectual property that investors could buy into.

Sole proprietorships do not have equity shares and are not licensed businesses. There is no formal process for reviewing business decisions and approvals. Shareholders in sole proprietorships have virtually no rights. These concerns are why investors don’t usually invest in sole proprietorships.

Even an LLC can make it difficult to raise capital. However, you can elect an S-corp, which makes it much easier. A C-corporation is the best option if you need to raise capital, particularly from angel investors or venture capital firms.

4. You can’t take on business debt

A sole proprietorship is not a company that has been established. Therefore, it is not possible to obtain a loan for a business. All debt, even those you borrow to grow your business or run it, is considered personal debt. Lenders may require that all loans are personally guaranteed by the sole proprietor. This means they have the right to seize your personal assets in the event of default.

Because a sole proprietorship does not constitute a separate business entity, you own the business. You are personally guaranteeing the repayment of any business loans to sole proprietorships.

This may not be the case for other business structures. Even if you are an LLC, you will likely need to personally guarantee any type or loan you get, including an SBA Loan. When you take on business debt, make sure that you understand all of your personal responsibilities.

/top-3-uk-pos-systems-in-2021/

/examples-of-omnichannel-business-in-canada/

/examples-of-omnichannel-business-in-australia/

/examples-of-omnichannel-business-in-the-us/

top-4-pos-software-for-fast-food-restaurant/

/top-5-point-of-sale-hardware-manufacturer/

5. 5. Perceived lack of professionalism

Customers and business partners often think sole proprietors lack professionalism. This may not be an issue for people who want to start a small business from home or make extra money. It is worth taking into consideration the pros and cons associated with a sole proprietorship when you are deciding on the type of business structure that you would like to use.

C-corporations, which are at the opposite end of the spectrum of sole proprietorships and partnerships, are commonly used by large companies around the globe. They are considered the most professional and well-respected. These entities are known for having the most rigid organizational structure and oversight regulations. However, they offer the best opportunity to raise outside capital and provide the highest liability protection.

Solo proprietorships on the other side do not have any form of oversight or management. A sole proprietorship simply means that someone is selling products or working for themselves. Sole proprietors often receive income from their business. Many bills are paid out of their personal accounts.

You can avoid some of this unprofessionalism by opening a small business checking bank in your business’s name. Many providers allow you to use an “doing business under” (DBA) alias. This will depend on the institution. You can find more information in our article on the Best Checking Accounts.

Sole Proprietorship Examples

The pros and cons of sole proprietorships make them ideal for small-scale entrepreneurs just starting out in low cost, low-liability ventures. This is also a better option for small-business owners with no substantial assets, which a creditor could pursue if the business fails.

These are some examples of sole proprietorships that are worth mentioning:

Amazon Businesses

Amazon businesses are often started by people who white label products. This can be done easily as a sole proprietor. You can find more information in our article How to Sell on Amazon.

Etsy Shops

To avoid the expense of setting up and managing a formal business entity, many sellers using Etsy are sole proprietors. You can find more information in our How to Sell on Etsy article.

Other Personal Business

Solo proprietorships can be used to run a variety of other businesses. Sole proprietorships can also be suited to independent service providers such as massage therapists or consultants via platforms like Upwork.

A sole proprietorship can work well for even a small snow-shoving or lawn-mowing business. In these instances, it is important to change to a business that offers liability protection prior to purchasing trucks and other equipment. For example, moving to an LLC or Scorp would protect you against personal liability in the event of injury.

If their business is only a small, part-time venture or a weekend business, some small business owners prefer to be sole proprietors. This allows them to avoid having to register or manage an LLC. However, those who grow eventually opt for a more formal structure which provides greater liability protection.

Alternatives to Sole Proprietorship

There are many business structures that can be used in place of a sole proprietorship.

Limited Liability Company

LLCs make it easy to create and manage a company. You can create them online in most states in as little as 5-10 minutes for $150-$200. Although LLCs offer limited liability protection for company owners, they require annual filings, up-to-date member lists, tax filings with K-1s issued members, and more formal administration.

Limited Liability Partnership

Limited liability partnerships are not available in all states. They can only be used to practice a licensed profession. They are tax-exempt entities and tax liability is passed to their owners based upon the ownership stake.

/open-a-retail-location-in-the-uk/

/what-you-should-know-to-open-a-retail-location-in-the-us/

/why-you-need-to-adopt-an-erp-pos-integration/

/open-a-retail-location-in-australia/

/top-4-pos-software-for-ipad/

/3-outstanding-omnichannel-business-in-the-uk/

Although LLPs function in the same way as LLCs, they can only be used within certain industries.

  • Accounting
  • Architecture
  • Law

S-Corporations

S-corps, closely held corporations, are generally considered pass-throughs and receive special tax treatment in some areas. S-corps owners can pay their own salary, but the IRS doesn’t recognize LLC owners being entitled to a salary. However, they may deduct this expense from the corporate profit.

You can find more information in our article C-corps.

C-Corporations

C-corps are the most stable and expensive of all the business structures. C-corps are subjected to double taxation. Corporate profits are taxed at 21%. These profits are then subject to double taxation once they are distributed as dividends to owners of the company, at the individual income tax rate.

You can find more information in our article Ccorps and S-corps .

Is a Sole Proprietorship Right for

The pros and cons of sole proprietorships are beneficial for new business owners who are just starting out. They should not be entering a risky field or needing a lot of capital. They shouldn’t have to borrow money or be at risk of injury. Ideal would be a cottage industry.

Solo proprietorships work best for those business owners who do not have significant assets that could be taken over by creditors, vendors, or customers as a result of debts or liabilities incurred from the operation. This type of business is ideal for entrepreneurs who are just starting their business and plan to move to a formal structure later.

Frequently Asked Questions (FAQs

1. What are the advantages of an LLC over a sole proprietorship?

An LLC is a better option than a sole proprietorship because it limits your liability as business owner. The sole proprietor of a business is responsible for all its debts and obligations. An LLC allows business assets to be segregated from personal financial accounts. You are personally responsible for any business obligations only if you give a personal guarantee or do anything that would allow “piercing” the corporate veil.

2. 2.Why is it good to be a sole proprietor?

There are pros and cons to sole proprietorships. They can be very beneficial for small businesses or new ones. Unfortunately, many businesses fail. So it’s a good idea to start as a sole proprietorship until you know if your business will succeed. This is especially true for businesses that don’t require large amounts of outside investment or involve a lot of liability.

3. Are You Required to Register as a Sole Proprietor

You don’t need to register as sole proprietor. Depending on the industry you work in, you may need to register for specific licenses.

4. What is the best way to pay taxes as sole proprietor?

You can structure your business as sole proprietorship and continue to pay your personal taxes. You can claim any income you earn from business operations and pay self-employment taxes. Depending on the location of your business, you may need to collect and pay local and state sales tax for any goods that are sold.

Bottom Line

The sole proprietorship is an informal, great structure for small business owners. It is important to weigh the pros and cons when choosing a business structure. These businesses don’t offer liability protection or make it difficult for their owners to raise funds, but they are easy to set up and manage.

Six Ways the Intelligent Engagement Platform Can Help Sales and Customer Success

Six Ways the Intelligent Engagement Platform Can Help Sales and Customer Success

If your CSAT score exceeds 60%, NPS score greater than 70, sales revenues are high, and you don’t want an engagement platform that maximizes customer success and sales, don’t read this.

You are now ready to discover how an intelligent customer engagement platform can increase your sales revenue, increase repeat purchases, provide great customer experiences, improve upsell/cross-sell opportunities and dissolve silos, and improve accountability.

Ten Tips You Must Know About Customer Relationships

Business success is directly related to customer satisfaction. Low customer satisfaction can also affect retention, engagement, and loyalty. This is a sign that you are not providing good customer service. It can cost consumer brands as much as $62 billion annually. Customers will have a delightful experience with your brand if you build and maintain good customer relationships with them.

Building customer relationships is important for a variety of reasons, including better Engagement and higher Retention rates.

What is Customer Relationship?

Customer relationship is the process by which a consumer brand develops a strong rapport with its customers. The process of planning and synchronizing interactions with current and future customers is known as customer relationship management (CRM).

Our goal is to achieve high customer engagement and business fulfillment. Customer satisfaction is an indicator of customer relationship success.

Communication is the foundation of all relationships. With the advent of social media and the internet, you have more ways than ever to communicate with your customers. Communication that is great goes beyond the words and creates a bond.

What strategies can consumers use to improve customer relationships?

Here are 10 ways to build strong customer relationships

1. 1.

Using a customer’s name when talking to them in person, by phone, by email, or when creating customer surveys is one of the best ways to have a more personalized customer experience. The friendlier, more humane approach to the customer-business relationship does not sound coercive.

If a customer purchases your product, sign up for a trial or makes an inquiry, contact them directly to see if you are able to help them. Even if they decline to assist, customers will still appreciate your gesture and be more positive about your business.

You shouldn’t spam customers and you shouldn’t send them messages too often. It is best to build a relationship with customers by sending them personalized messages that are based on their interests and delivered through their preferred medium.

2. Be realistic about your expectations and don’t lose sight of the prize!

Don’t rush or try to get too far too soon. Building a partnership takes time and commitment. Your customers won’t immediately believe you can deliver on your promises. They will be more likely to seek your guidance and input to help them grow their business.

Because customers are different from one person to another and their needs change over time, it is impossible to say that you know exactly what they need. So you can ensure you’re meeting your customers’ needs, it is important that you find out their priorities and why they choose to do business with you.

Customers will hold on to your promises and if you make promises they don’t keep, it is a sure way to disappoint them. They can also spread the information, which could jeopardize your company’s reputation. Promise what you can deliver.

3. To maintain healthy customer relationships, solicit feedback from customers

Build a stronger Customer Relationship by soliciting opinions on multiple channels

Ask for feedback from customers or use social media to solicit it. Customer feedback is one of the most valuable assets a company has. Customer feedback is a direct indicator of how satisfied customers feel with your brand, products, and services in general. It can also tell you a lot regarding your customer satisfaction levels.

Furthermore, customer reviews will aid in the improvement of your services and products, as well as provide data that helps you make better business decisions. Customers will appreciate your taking it seriously.

Do not wait for your clients to give feedback. Be proactive and ask whenever you can. Social media surveys can also be used to get feedback from consumers on the aspects they like most about their interaction with your brand and what they would like to change.

Conduct surveys whenever you are planning to launch a new product or service. This is a great way to build customer loyalty.

4. Self-help is possible

Modern customers prefer to solve their own problems and not have to deal with customer service representatives. Find the most common problems and questions, then respond with detailed articles and step-by–step tutorials.
You can combine the FAQ/Knowledge Base section and the auto-reply function.

It is easy for customers to check the link by adding it in their email body. They will be able to find the answer they seek.

5. Try out giveaways, discounts, and free shipping

Discounts are a great way to encourage customers to purchase from you. A first-time buyer discount code can be included on your website. You can also send emails to customers with information about the discounts.

Consider doing giveaways. This can work well if you offer a subscription-based service. For example, customers could be eligible to win a month of service for free or a subscription that they can share with friends. You can also encourage people to share giveaway-related posts via social media.

Customers consider free shipping to be a “discount” because it lowers overall prices.

Offer free shipping for returns. This is a common concern for retailers as they fear losing money if they have the to pay or reimburse shipping costs. Don’t be discouraged, you can give it a shot. It increases trust and loyalty.

6. 6.

If you want to improve customer service and loyalty, it is important to quickly respond to any complaints. Respond to both negative and positive reviews. Both positive and negative feedback should be acknowledged. If you receive negative feedback, apologize. It will increase customer loyalty beyond just compensating them.

Consistent action builds trust, which is particularly important since prospective customers can view the experiences of current customers via digital and social media.

7. 7.

A guarantee will make it easier for customers to feel secure about purchasing your product. If customers feel they can trust the product, they will be more inclined to like your brand.

Prospective buyers will be less worried about risky investments and buyer’s remorse since there is no upfront cost for a free trial. A well-executed free trial combined with a fair refund policy can be a powerful tool to encourage customers to try your products or services.

8. Offer prompt and efficient customer service

Prioritize customer support and provide prompt service

Communicate with your customers promptly and in a timely manner. Customers expect prompt and professional answers when they have questions about your products or services. Think about it: Most people don’t have much time these days. Customer satisfaction can be affected by even half an hour spent with customer service.

So, provide omnichannel support:

  • Personal communication with staff
  • Support via social media (platforms that your customers use);
  • Email support;
  • Telephone support
  • Chat support

Your customers should be able to reach you as easily as possible. You should list hours for any live chat or business phone service on your website. This will allow users to know when they can reach you. Customers who feel valued and satisfied will be more likely to use your customer service services.

9. Reward customer loyalty

Customers today need personalization. Personalization is key to customer retention and increased revenue. A loyalty program can be a great way to give customers a personalized experience. It makes it easier for you to get customer data. Programs that offer high levels of service are more popular with customers.

Recognize and reward loyal customers for their loyalty. You can offer them special deals, invite them to special events, and let them know about new products and services. Customers who are satisfied with your services and products become loyal advocates.

Remember that your business exists solely because of and for your customers. Customers will return for more if they receive exceptional customer service.

10. To build a better customer relationship, say ‘Thank you’

You can thank your customers in many ways, such as email, social media, phone call, formal receipts and handwritten notes. This is especially important in these digital age. A handwritten thank you note is appreciated even though it is not possible to send one electronically.

Thank you notes let customers know how much your company cares about them. They also show that they are valued as people, and not just as a source for revenue.

Remember that thank-you notes written well will generate positive word-of mouth publicity for your company. It’s simple: customers receive the thank-you notes and share a picture for their social media followers. You can also send holiday cards!

Building and maintaining relationships is the essence of business. Customers are your most valuable resource. Take care of your customers and pay attention to them. Keep in touch, not just communicate with customers.

#GROWTHAsia2021 Highlights: Key Takeaways, Expert Insights and Actionable Strategies

#GROWTHAsia2021 Highlights: Key Takeaways, Expert Insights and Actionable Strategies

2020 was a landmark year for businesses in all geographies. It covered many industries and verticals. In order to provide actionable strategies and bounce-back frameworks to our community of marketers and product owners, we conducted #GROWTHAsia 2020. We organized #GROWTHAsia2021 on the 24th of March 2021 in collaboration with AppsFlyer, Mixpanel, and continued our efforts to provide thought-leadership content.

#GROWTHAsia2021 featured expert panel discussions that focused on customer centricity and brand engagement. They also discussed effective segmentation, leveraging data from users, and building an engagement platform. This event shed light on how businesses can increase customer happiness in a mobile-first and post-pandemic world.

Our illustrious panel included marketing leaders from Asia’s most customer-focused brands such as OVO, Kredivo and KapanLagi Youniverse.

We have you covered if you missed #GROWTHAsia2021 This blog will summarize all the insightful and interactive sessions and provide bite-sized key takeaways you can use to grow your business.

Here’s a quick overview of all panels and sessions at #GROWTHAsia2021. Let’s get started.

Keynote: The Impact Customer Happiness has on Business Revenue

Sarika Tulsyan (Chief Revenue Officer at POPS Worldwide) led the keynote session of #GROWTHAsia2021. Sarika discusses how the greatest threat to a business’s survival in today’s uncertain environment isn’t competition, but poor customer service. She stresses the importance of collaboration and driving customer happiness, with a focus to sustainable revenue. One that is reflective of the overall business growth strategy and aims to achieve long-term organic success.

what is telecommunication

wholesale business ideas

point of sale meaning

shipping and mailing service

#GROWTHAsia 2021 Keynote speech

Watch Full Video

Get Actionable Tips:

  • It is a well-known fact that 20% of a business’s revenue is derived from 20%. It is important to know the difference between customer satisfaction, and customer success.
  • Customer satisfaction can be used as an efficiency metric. However, customer success can be used to measure revenue. There is usually a large gap between these two metrics. Every customer is not a success customer. Therefore, satisfied customers will always outnumber those who can be called successful customers. It is up to you to understand why this gap exists and what you can do about it.
  • This can be done by looking at the various metrics that affect customer satisfaction across a consumer’s journey. Businesses need to pay attention to the “micro-moments”, which are key to customer satisfaction and business growth. A micro-moment for an ecommerce site could be an offline experience (word-of mouth or billboard) that prompts a customer to make an online purchase via a smartphone.
  • This should not be a secondary goal. It should be about understanding these micro-moments, and how to leverage them to drive business growth. This will reduce the customer satisfaction gap and increase customer success.

Expert Insights

  • Businesses can sometimes be hurt by over-personalization that is based on customer segments. A great job at creating customized content might lead to increased conversion rates and checkout rates. However, it may not always lead to higher RPOs or average revenue per user/viewer. Why? Customers aren’t discovering anything new. Over-personalization could actually lead to stagnation rather than growth in your business. It is crucial to find the right balance between these two.
  • Next-generation marketers are responsible for driving the business through understanding the next “trigger” that is informed by data. This helps customers to be more informed and enables them to grow their business.
  • Organizations often define success metrics for different departments in silos, rather than looking at it as one common success metric that can be applied to all departments. A common metric can reduce the gap.
  • It is possible to align our organization’s goals with department goals in respect to marketing, customer service, and product. This creates a level of competence between departments in terms of understanding and defining key responsibility towards the goals. You can create a well-oiled, harmonious business by mapping success metrics to departments. This will ensure that everyone works together towards common goals and maximizes revenue. The three P’s, i.e. People, Process and Product must be in perfect harmony.
  • Only if customer satisfaction metrics are being measured by the right people and monitored properly, can they be considered great. Marketers will only win if they do this.

stock turnover ratio

electronic point of sale

wholesale business

carrying cost

Session 1 – Effective Segmentation Strategies for Customer Engagement

Divya Jagwani, Senior Manager, SEA and MoEngage, moderated the first #GROWTHAsia2021 session. Indina Andamari (VP), Head of Product Growth at KapanLagiYuniverse), Cahyanto Arie Wobowo (Head Marketing & Communications at Kredivo), Dian Gemiano, CMO at Kompas Gramedia, and Khalid Raheel, CMO at Amar Bank joined as expert panelists.

#GROWTHAsia 2021 Session 1 Segmentation

Watch Full Video

This session will discuss the many practical and effective segmentation strategies that can make a big difference in driving customer engagement. This session also demonstrates the importance of having a strong segmentation strategy. It also explains how different industries use segmentation strategies.

These are the actionsable takeaways

  • Segmentation is a key engagement strategy for organizations. Organizations that segment effectively experience higher profits than those that don’t.
    Segmenting users is a way to give personalized experiences, rather than generic and spammy communications.
  • Start small by using unique preferences and behavior patterns to create your segmentation campaigns. Focus on the following: behavioral patterns, year-on–year aggregated consumer data and current preferences (at a granular scale), repeat behavior, purchase drivers, incentives that resonate with the audience, communication channel. Advanced segmentation can be done by looking at the user’s predicted lifetime value.
  • You can run targeted campaigns by looking at the user journey. Then, work backwards depending on your business goals.
  • The GDPR is the gold standard when it comes managing the fine line between privacy and personalization. Transparency with users, which must be a part of every organization’s DNA, is crucial.

perpetual inventory system

what is shopify

wish online shopping

shopify stock canada

mvc architecture

Experts Insights

Agnes Lie

  • The behavioral segmentation approach is the most sophisticated form of segmentation. It involves dividing audiences based upon how they behave on our platforms, from their in-app behavior to actual transactions.
  • This allows us to target more precisely and makes it possible for A/B testing.
  • This yields better results, as the treatment we give to users is based upon real data and not on presumed knowledge.
  • This allows us to combine behavioral data with predictive and deterministic modelling to achieve business goals
  • Segmenting users requires that you look at the product funnel journey to determine where traffic originated and whether it was acquired via big channels like TikTok or Facebook.
  • Before you dig into transactional or behavioral data, look at the segments of the channels.

Indina Andamari

  • We look at cash transactions of users and map out the customer journey to identify key drivers for each stage. Then, we prioritize users according to which group will have the greatest impact. This could be the pool’s size or the ones with the highest revenue. It is important to collect enough data so that you can make a more precise hypothesis.
  • To score demographics, geographical, and psychographic data, we use a data science model. The heat map is what we use to help us prioritize which segments to focus on. After collecting this data, we profile each segment in order to create a user persona. We then look at the segments to see if they have similar characteristics. Then we personalize messaging to test with a control group. This is where you test your hypothesis before making it a fully-fledged campaign.

Cahyanto Arie Wibowo

  • We have three categories of user data based on the data we collect:
    i) Demographic data, such as gender and/or age
    iii) behavioral data used to split our user action
    iii. Technographic data that shows which technologies are used by our users.
  • These factors are used to analyze our internal theme. To improve the features of your product, you can factor in metrics like usage frequency or time spent on-site.

Dian Gemiano

  • Because we all cater to different audiences in the media industry our segmentation strategies differ. We have three types of customers at KG media: the flyby, moderate and loyal. We study the content consumption habits of our customers to determine what content resonates with them most. We aim to make the fly-by customer more loyal and moderately loyal.
  • Advertisers are more passive. We look at basic demographics, consumption behavior and segmentation of purchase intent to help them understand their needs.

receipt template

inventory turnover formula

sku number

card reader

visual merchandising

Khalid Raheel

  • Segmentation is about looking at need-based segments (people who “need” a loan), but also taking into account outliers who may be ‘want-based users (for instance, someone who wants to purchase a second-hand smartphone and might be interested in a loan).
  • Segmentation at Amar Bank tells us what our Tg is. It is also important to understand what customers don’t want, and what they want.
  • Segmentation is essential. It is crucial to know what the need, necessity, and demand are at each stage of life. All three elements are constantly changing. Once you have the user data, you can start to create micro-moments that reflect the needs and benefits of the user.
  • Segmentation should begin with empathy. Understand what the customer needs in order to fill that gap. It is important to integrate the product backwards into a forward-integrated behavior, or vice versa.

Session 2 – Using User Insights for User Retention

Arijeet Rana, Senior Manager, SEA and MoEngage, Rajeshwari Kanesin, Innovation Manager at U Mobile, Joshua Tan (Head CRM at NTUC) and Vineth Kallarakkal, (Head Marketing at theAsianparent), moderated the session.

#GROWTHAsia 2021 Session 2 user insights

Watch Full Video

The session focused on huge data volumes about user journeys and how these can overwhelm modern growth and product teams. It is important to avoid analysis paralysis and understand the key user insights that must be monitored, as well as how they tie into the overall goal of increasing engagement.

These are the actionsable takeaways

  • Customer retention is a key aspect of today’s business environment. One surefire way to achieve this is to leverage user insights to increase user retention. Product teams and growth teams often get lost in the mountains of user data and don’t know which user paths they should be following.
  • The real question is: What are the most important metrics for engagement that you should track and monitor? You can use the RFM model to guide your digital buyer journey.
  • However, user paths and journeys are getting more complicated. Businesses need to be able to identify the key user insights that they are trying to obtain, as well as key metrics to monitor engagement and create feedback between the lifecycle, marketing, and product teams. They must also analyze the warning signs for users who are about to become cranky so you can know the extremes of a user’s lifecycle on your app/website/anyother medium.
  • These valuable data can be used to increase user retention through referral programs, better personalization, optimal frequency of messages, building a community with like-minded users, and so forth.

Wholesale

cost of goods sold

brick and mortar

inventory turnover ratio

Expert Insights

Kushal Manupati

  • It is important to consider engagement metrics from both the perspective of the stakeholder as well as across different stages.
  • With the multitude of channels and users having their own preferences, the user journey is becoming more complicated.
  • A lifecycle framework is essential to determine the life stage of the user, where they want to be, and the relevant KPIs for each stage. A robust tool can help you achieve this and many more.

Rajeshwari Kanesin

You should have separate user journeys for different users to be able to classify them as trusted, verify them and ensure that your user data is accurate. The data can then be scored accordingly.

Joshua Tan

  • Before you can understand which engagement metrics to look at, you need to first identify your North star goal.
  • Next, consider what the job of each channel is to achieve that goal. Then look at how users interact with the channel to determine the engagement touchpoints you really want to capture.
  • It is important to consider not only what engages customers but also what disengages them.

Vineeth Kallarakkal

  • Your engagement metrics will vary depending on which channel you’re measuring, whether it is an app or a site. It is also important to consider how you cater to different user segments. It is also crucial to determine what metrics are most relevant for your user segments.
  • Because users’ needs change at every stage, you need to create user journeys and map them out. A path can be tailored to different users and ensures that your product is well-received by them.
  • To assess the risk of churning you should first examine the usage patterns and determine if there is any decreasing trend in the use of your product. Learn more about why engagement has dropped.

Session 3 – Building the Best-In-Class Customer Engagement Technology Stack

Scott Pugh (APAC Director at Mixpanel), Bibaswan Banerjee, Mark Birch (Startup Advocate APJ, AWS), Khairold Sfri Ibrahim (Digital Products Manager, TM) and Dr. Raymond Chan (Head, Data Science, Chope), as experts.

Woocommerce point of sale

Shopify pos integration

Netsuite pos hardware system

Session 3 building engagement stack

Watch Full Video

This session brought together subject matter experts to discuss the evolution and design of customer engagement technology stacks.

These are the actionsable takeaways

  • Modern customer engagement has seen a paradigm shift, and new technologies and tools have been created to give brands the cutting-edge they need.
  • No matter if you are a startup or a telco company, every company must decide what tooling is best for them at each stage of their lifecycle. The customer engagement stack must be continuously monitored and updated.
  • It is crucial to hold tech providers accountable and maintain a constant dialogue. Consider technology as an extension to your team when you buy it.

Expert Insights

Bibaswan Banerjee

  • We are always trying to solve the biggest problem, which is how to connect things. It can be dangerous to work in silos of technology. Why? It paints a partial picture. It is important to use a constantly-evolving tech stack to make sure that they all talk to one another properly.
  • Look for tech stacks that offer customization and scalability. Big providers have the ability to provide a solid foundation through cloud-based solutions. This could be the foundation. Next, you should add layers that are specific to your business. To be more flexible in customizing your solution, you can leverage a hybrid stack.
  • It is important to strike a balance between what can be taken over from third parties and what parts you need to be highly agile so that you can do it in-house.

Mark Birch

  • Startups in the early stages should concentrate on their core product. They also need to focus on getting the right features.
  • When choosing the right tech stack, you must not compromise the uniqueness or differentiation of your product. Look for solutions that don’t require you to create your own analytics.

Khairold Safri Ibrahim

  • The first thing you should ask when deciding on a tech stack is whether it is necessary at all. Also, do you need to automate these integrations or can they be done manually?
  • You will also need to change the culture within your company in order to encourage people to try new things.
  • It is important to keep your stack of tasks simple. Do not try to do it all at once. Instead of focusing on technology, modeling, or other aspects of the business, start with customers.
    The framework.
  • We discovered that attractiveness is only half the story. The other half is how it works within the company’s context–taking into account the culture, openness to new technology and the availability of resources.

Dr. Raymond Chan

  • Our engagement stack was primarily driven by the need to learn how to personalize search and recommendation. This is why we use event tracking tools to track individual behavior.
  • Here’s how it works: We collect a lot of data and then store it in data warehouses. The models are then used to predict the interests of users. The app then integrates this information back into it, so that our tech style is optimized.

cogs

define premise

magento 2 pos extension

Bigcommerce pos

Session 4 – Recalibrate and Recover. Reopen. Recovering from the Pandemic

Ronen Mense, President and Managing Director of APAC, AppsFlyer moderated the session. A panel was comprised of Lakshmi Harikumar, Dyah Wulandari, Marketing Director, SEA and MoEngage, and Alicia Vo, User Acquisition Lead, Amanotes.

Session 4 bounce back

Watch Full Video

This session will discuss what it takes for businesses to recover, recalibrate and reopen after the pandemic. This session summarizes how the pandemic has increased the digitalization of businesses over the past several years, and addresses the important questions:
i) How can businesses recalibrate?
ii) Should businesses recover?
iii. What’s next in digital marketing when regions reopen fully?

These are the actionsable takeaways

  • The AppsFlyer & iPrice report shows that overall online spending in SEA rose by 19% in 2020. People who have never purchased online are now more open to shopping online. The pandemic has increased the speed of digitalization in businesses, not just by a few weeks but over many years.
  • Businesses need to rethink their marketing strategies and see if every industry and segment behaves in the same way. Mindful marketing is about being happy and not insensitive to people’s feelings.
  • Each brand may have its own reality. However, the common theme for the future must be ‘positivity’, ‘agility’, and ‘adaptiveness’.

Expert Insights

Lakshmi Harikumar

  • Brands that are successful differentiate themselves from others by being agile in adapting their business models is what makes them stand out. This meant that mobile was not only considered as a channel, but also as a business model.
  • Jimmy, an Australian client, is a good example. He’s in the online delivery of alcohol. Given the increasing demand from consumers, he quickly added toilet paper to their entire inventory. This is how brands can be flexible and remain relevant over the long-term.
  • A report we published recently shows that one of the major trends in this pandemic is digital and mobile adoption. Organizations that are not digital were forced to adopt mobile or digital technologies. Additionally, organizations that were digital were required to reinvent themselves in order to stand out from the rest.
  • Businesses need to be innovative partners, make changes in their business models, and communicate openly with customers. It’s about being one with customers and being transparent about your business. Let’s say, for example, that your supply chain is down and orders may be delayed. Businesses will be able to communicate this information with greater transparency, which will strengthen their image and quality.
  • For obvious reasons, there has been an increase in marketing budget. Brands want to keep their voice heard and don’t want to lose the momentum they have built over the years. Paid activities also have an impact on organic traffic. They want to maintain brand positivity.

Dyah Wulandari

  • Businesses must be flexible and focus on the short-term (say, for the next three month) instead of long-term planning. They must also be positive and refocus their attention on “maintenance people”, which is the greatest asset of the company.
  • Our marketing strategy is to balance user needs from the discovery phase to the point when they make a purchase. We are providing enough information in our apps for users to be able to make informed decisions when they reach the ‘consideration phase’.

Alicia Vo

  • We have created lighthearted, cheerful, and warm campaigns that revolve around the “stay at-home” theme. However, we are also sensitive to the stress and anxiety that users are constantly exposed to. We make sure that our messages are not serious and encourage our users to use our apps as a way to escape.
  • We need to build a solid foundation with industry partners. To create a supportive business environment and to offer mutual support.
  • Communication and coordination between various stakeholders can improve the efficiency of your business and provide positive opportunities for the future.

MoEngage and Apxor: Develop persuasive campaigns for adoption and onboarding

We are pleased to announce our partnership with Apxor. Apxor is the first global no-code mobile app adoption and growth platform. This partnership will allow you to create more persuasive campaigns, by linking your onboarding and adopt activities to in-product messaging.

What is Apxor?

Apxor helps product managers and growth marketers set up and run product experiments easily without creating a dependency on release cycles. To find the best product for your users, you can monitor and analyze campaigns. Apxor allows you to create smart nudges such as tooltips and coach marks. This allows you to create onboarding walks, product tours and contextual new feature discovery nudgings.

How to use Apxor and MoEngage to onboard and adopt

Use MoEngage to bring people to your app via push, email, SMS, or social, and Apxor to guide them through the optimal conversion path via nudges, tutorials, and more. To optimize your onboarding, adoption and marketing activities, analyze campaign data from MoEngage or Apxor. These are just a few examples of how this partnership is being used:

Personalize your onboarding journey

MoEngage allows you to find out how many people have downloaded your app, but not yet opened it. To encourage users to download your app, create a segment and send personalized push notifications. After they have logged in, Apxor will launch tutorials to help them understand your value proposition and highlight your key functionalities.

For example, take a food delivery service that uses MoEngage segmentation to identify users who have dropped off and not yet placed a order. This app can send out personalized push notifications (via MoEngage) to bring users back to the app, and then use Apxor to launch onboarding tutorials taking them through the most exciting food items.

Bring your users to the app and take them through an engaging journey

Users should be moved down the funnel

Use MoEngage’s user path analysis to find out where your users are dropping off the most, indicating that your users could need some extra information at this stage to proceed forward. Apxor can be used to fill this gap. It provides contextual nudges to give your users information, motivating them to take the next step.

Consider a retail app that detects high drop-offs during checkout using MoEngage’s user path analysis. The app could then show users a contextualized nudge using Apxor, saying ‘No Shipping Charges for your area,’ incentivizing them to check out.

Identify drop-offs and onboard them with contextual campaigns

Keep users who are likely to convert and keep them happy

Use MoEngage’s predictive segmentation to identify users who’ve been hibernating for too long and are most likely to churn. Send them an email or SMS announcing new features, the latest arrivals, or changes in subscription plans. Use Apxor’s coach marks or in-product tooltips to introduce them the latest updates.

An EdTech app could use MoEngage predictive segmentation to identify students who haven’t been to a course for a while. This app can send out an email announcing an exciting new course and then set up coach marks using Apxor to introduce them to the new courses.

Create campaigns for adoption using smart nudges

Cross-sell and upsell using targeted recommendations

Analyze your user’s behavior with MoEngage to identify purchase trends and champion customers. Personalize your messages with MoEngage, and use Apxor to deliver them at the right moment, encouraging them to discover upsell or cross-sell benefits.

For example, a BFSI app could use MoEngage’s behavioral analysis to determine which users are most likely to invest with mutual funds. Send these users contextualized recommendations via Apxor, encouraging them to start investing instantly.

B2B Sphere: Trust, Rewards, and Risk

B2B Sphere: Trust, Rewards, and Risk

You are here:

Isabel Montesdeoca VP, Group Director, and Ian Bruce Principal Analyst

Show notes:

Trust is often viewed in the context of the consumer — trust in brands, institutions, and the government. It is also crucial in the B2B space, where purchases can have major consequences. This week, Isabel Montesdeoca, Group Director and VP, and Ian Bruce (Principal Analyst) explain how trust works in B2B and what companies can do to improve it.

B2B buying relationships are different from consumer transactions in that trust is a key component. B2B buying relationships are based on a risk-reward calculation. The greater the reward or risk associated with a purchase decision, the more trust you have in that factor.

Montesdeoca states that the risk you are taking is not only for yourself but could also be mission-critical. This is a significant weight that must be considered. If you find a solution that increases your efficiency and competitiveness, that’s a huge reward for making the right decision.

B2B companies do not all build trust the same way. Certain aspects of trust are more crucial in certain industries or situations — for example, accountability might be important while empathy and transparency might be vital in others. It is possible to increase the trust level of your buyer by knowing which dimensions are most important.

These analysts will explain how to find these dimensions and use that insight to build trust. The analysts also discuss the many benefits of trust investing, such as higher buyer status and greater ability to rebound from mistakes. Listen to the episode for more information.