30% Same Store Sales Increases Hedged for Inflation!
After meeting with a client at the NAMA CTW (Coffee Tea & Water) Show in Las Vegas, he expressed his sincere appreciation for his integrated OCS Online E-Commerce web site. He explained that the results were so good that they had to do an external analysis of the orders to ensure their preliminary results were indeed accurate. In order to ensure a true year over year comparison, only accounts that existed for multiple years were analyzed for a true same store sales analysis. The report also considered the high impact that inflation had on the prices of products sold in the past two years.
The customer revealed that they have enjoyed a 30% same store sales increase over prior year sales attributed to the features leveraged with the OCS E-Commerce site. This equated to over $2 million in additional revenue without adding new business.
How did they achieve a 30% increase in revenue?
- 70% of clients were migrated from legacy ordering methods to online ordering.
- Clients receive order reminders to place their orders ensuring no orders are missed and business lost to Staples, Amazon, etc.
- Clients are shown the entire catalog of products enticing them to order items they were ordering elsewhere or picking up themselves.
- Promotions drive consumers to add different products to their shopping lists.
- Linked products ensure that associated items are shown to the clients during their custom shopping experience eliminating the opportunity to forget a linked item such as the associated lid to a cup.
42% increase in average order size.
The average Tech 2 Success Online Ordering customer enjoys a 13% increase in average order size after just one month of fully implementing the integrated system. After one year, the average operator sees a 42% increase in the average order size.
At the 2022 Self Service Innovation Summit in Hollywood, FL, Patrick Sheehan, President of Sheehan Brothers Vending, stated that he had numerous low volume OCS accounts that they were considering canceling business with and removing equipment, however since implementing their online ordering from Tech 2 Success, these accounts have become profitable by significantly increasing the average order size and variety of products the accounts place on their order.
Coffee Operators Leverage promotions for success!
E-Commerce is a proven and best in class method for promoting products and services offered in Office Coffee Services. Operators using Tech 2 Success for online ordering are able to leverage the space on their E-Commerce web site to promote products and services and lettheir clients know which new products are available to complemet the season, such as pumpkin spice or peppermint mocha flavored products. It is also a great way to introduce new products and see customers add them to their shopping lists. In addition to new and seasonal products, operators offer their clients the ability to excite their teams on “special days” like National Tea Day, National Chocolate Day, etc. By implemented these promotions, fully managed by the Tech 2 Success team, operators have enjoyed thousands of dollars in revenue above and beyond the traditional orders placed by customers.
The chart above shows the AVERAGE sales impact from the best promotions implemented in 2022.