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In today’s fast-paced and
mobile world, coffee and WiFi seem
to go hand
in hand when people are out and
about. While some brands have opted
to charge their customers for WiFi
access, our studies and experience
in the hospitality industry has shown that
it can be more profitable to offer
the service as an amenity than as a
fee based service.
By offering High Speed Internet
Access at your location, technology
oriented consumers will naturally be
attracted to your location in their
quest to stay connected to the
Internet.
The longer they stay with you the
more they will naturally spend.
Although there will be the
occasional freeloader, there a
number of ways to deal with them.
Today's WiFi
is no longer about just laptops. Many technology oriented consumers
carry WiFi enabled cell phones, PDA's, and other
web enabled portable electronic
devices. With the surge of Wi-Fi
enabled devices, such as the iPhone
and Blackberry, there is a real need
for more bandwidth and WiFi
locations to download large files to
iPhones as the 3G network simply
cannot handle large file transfers.
Anyone
who uses an iPhone is constantly on
the search for open WiFi hotspots
and in many cases they will go out
of their way to find a location in order
to download podcasts, music, and
videos from their iPhone music
store. While the 3G network works
for smaller files, at&t offloads
any file transfers over 10 Mb to a
WiFi network. This means that iPhone
users must find an open hotspot to
download larger files.
In
the search for open networks, iPhone
users use a variety of means. WiFi
scanners, billboards, and window
signs in cafes, restaurants', bars,
etc... Once they find a hotspot,
they can download their favorite
utube video or podcast. This usually
means that they have some time on
their hands and they generally order
a meal and drinks while their iPhone
downloads.
What
does this mean for the restaurant
owner? By offering free WiFi, they
were able to attract an otherwise
unreachable customer. In many
cities, iPhone users seek out
hotspots just to stay connected.
Think about it if you could attract
5 new customers a day by hosting a
WiFi hotspot. Would it be worth
it?
Case
Study: Wanda's Filling Station
Wanda
is considering an Nuvad Technologies
system for her pizza shop but she
isn't sure it's worth the expense.
Her average orders are 165 pizzas
per day with an average sales value
of $28.95. If she can attract 8 new
customers per day and 5 of those
customers place orders for pizza
what would that do for gross sales?
Average
daily sales 165 x $28.95 = $4776.50
Easyspot
170 x $28.95 = $4921.50
$4921.50
- $4776.50 = $145.00 per day
increased sales revenue
$145.00/4776.50
= 3 percent increase in sales
By
installing the Nuvad Technologies
solution, Wanda should be able to
attract iPhone & Blackberry
users and increase her sales revenue
by 3 percent per day.
Advertising
opportunities
The
Nuvad Technologies solution always
redirects the first site visit to a
custom portal that highlight's
Wanda's Pizza shop. The portal will
allow her to sell advertising space
to complimentary businesses in her
area. From the portal she believes
that she can sell $200.00 per month
in advertising space to other
complimentary businesses in her
area.
By
installing the Nuvad Technologies solution, Wanda
should be able to realize a monthly
increase in sales of 3-4 percent and
generate a $200.0 per month revenue stream
through advertising on her custom
portal.
The
total amount of revenue generated by
offering a WiFi hotspot more than
offsets the monthly support and
connection charges. Wanda believes
that the Nuvad Technologies solution is
the right choice to increase sales
by attracting iPhone users through offering
a free WiFi hotspot.
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