The purpose of this article is to explore the practical applications of cell phone pager or restaurant text pager systems, to assess their return on investment, and to speculate on the future of the guest pager system.

Guest Pager system technology has evolved beyond the Coaster Pager to what is now known as a “Cell Phone Pager” or “Restaurant Text Pager”. Savvy Restaurant managers, hotel operators, healthcare administrators and retailers are now realizing the efficiency and communication power of the mobile phone in terms of a guest services tool, which can improve operations. and keep costs down. What makes this possible is the proliferation of mobile phone users and advances in mobile phone technology, i.e. smartphones, SMS, MMS, email, the mobile web and of course mobile apps. (thanks Apple). The fact that so many people have mobile phones means that almost everyone has their own pager, in other words, the business owner no longer has to invest in expensive ($2000 – $6,000) pager equipment to communicate with their customers.

According to the Mobile Marketing Association, there are over 4 billion people with cell phones, 5 times more cell phones than laptops and computers, 272 million mobile subscribers in the US 91% of them keep their phones within three of them 24/7. 76% of cell phone users are actively texting, with an open rate of 95%. What are the benefits associated with the cell phone guest locator system?

• Initial costs can be reduced by approximately 75% (from $4,000 to $200)

• Pager loss will be reduced by more than 100% ($70 to 0)

• 8 out of 10 guests have a pager system with them, ie a cell phone

• ROI is less than 12 months

• Best cell phone pager system includes waiting list signal, calling a prime seat, and voice/text guest notification

• No server or software to load or maintain on your PC or network

• Guests have the ability to reply to the page when using a cell phone (ie click to call)

• Guests appreciate the freedom

• Sanitary compared to coaster locators and reduces the spread of influenza, H1N1 and bacteria from staff

• Mobile marketing module (text coupons, mobile trivia, etc.) to drive traffic

COST BENEFIT ANALYSIS OF PAGER SYSTEMS FOR RESTAURANTS

Although expensive, restaurant pager systems developed in the 1990s are easy to set up and easy to use. According to a leading manufacturer of coaster pagers, the standard restaurant pager system will come with 20, 30, 40, or 50 pagers, depending on wait time. Average costs for a restaurant pager system can range from $2,500 for 20 pagers to over $5,000 for a 50-pager system. Determining how many pagers you need can be tricky and you always want to have plenty, but each additional pager can cost up to $70. A common frustration is having to replace lost pagers, not because they break, the guest usually leaves with them.

The return on investment from using cell phone pagers starts with reducing system start-up costs by up to 30% because fewer pagers are required. By using fewer pagers, restaurants will lose fewer pagers, saving them money over the life of the system, which is typically 4-5 years. At many restaurants with average wait times of 45 minutes, the loss rate is about 1-2 pagers per month. With an estimated cost per pager of $45, this will drop to $90 per month or more that could be saved if the restaurant could use cell phone pagers and a smaller number of pagers per system. To use cell phone paging, a broadband internet connection is required at your hostess station.

For most, this expense is already built into the overall cost of their restaurant network, so no additional costs are required. This is an example of the standard ROI at a restaurant with a 60-minute wait. Turntables: If you could convert an average of 2 other parties per night through the restaurant waiting 2 nights per week, then in a month you would convert 8 parties. If your average ticket for 2 parties is $30.00, you will see an increase in sales of $240.00 per month or $2880.00 per year. Pager Loss If you could reduce the number of pagers lost to 2 pagers per month, then you would benefit from a savings of about $120 per month or $1,440.00 per year.

Capital Costs of Guest Pager Systems

When you buy a system for a restaurant that has an hour wait, the standard is to order 40 pagers. With the average cost of $60.00 per pager, if the restaurant uses cell phone pagers, it can avoid the total costs of 40 pagers x $60 = 16, which equals $2,400.00 plus the cost of the transmitter, which is another $2,000 for a pager. total savings of $4400. ROI can be seen in both initial, monthly and yearly savings. If you’re on hold managed by a cell phone or text message paging system, that system will give you the flexibility and functionality that will be most effective in executing your hold. According to Social Mobile Trends.com, this doesn’t take into account the additional benefit of automating your waiting list, which is often an integral part of today’s cell phone paging systems.

Consumer Acceptance of Cell Phone Locators

There is a correlation between the length of waiting time and consumer satisfaction. The longer the wait, the less satisfied the guest is. My observation has revealed that mobile phones, particularly feature phones and smartphones, keep guests distracted while they wait. Many guests, while waiting, tend to talk, text or play on their cell phone, making the transition from traditional guest pagers to restaurant cell phone pagers a natural evolution. According to restaurant owner Phil Conti of Paitti Restaurant Bar and Grill. “Everyone has a cell phone and everyone looks at it or talks on it, especially with all the iPhones and Backberrys.”

KING: SMS TEXT MESSAGE MARKETING

The value-added benefit of cell phone text pagers is the opportunity to collect guest cell phone numbers for permission-based mobile marketing campaigns. Houlihans, Brinker International, and many other restaurant industry leaders have capitalized on the mobile marketing phenomenon. A word of caution: choose a mobile technology company, not just a mobile marketing company that specializes in developing mobile marketing solutions, apps, mobile websites, and mobile marketing campaigns. Unlike the traditional pager industry, these dynamic small companies bring much more to the table, according to John Barker, president of iT-Worxs, LLc, an IT development company that specializes in interactive technology development. “They can keep up with the fast pace of innovation and make sure you don’t get stuck with the technology of the past.