How does Free or Paid Wi-Fi Increase Revenue?

IRG CEO Mike Luzio shares how both free and paid customer Wi-Fi increase revenue and create a better customer experience.

Also read: "The Bean" Selects IRG to Provide Free Customer Wi-Fi.

Q: What changes have you seen in the past few years in how retailers, QSRs and cafes have view customer Wi-Fi?

Luzio: Wi-Fi is nearly everywhere today, or at least customers expect it to be everywhere. What once was considered a special service to customers has become so common, retailers risks turning customers away if Wi-Fi is not available and easily accessible. In just a few short years, the number of people requiring or expecting Wi-Fi in public places has grown exponentially. It's no longer only the traveling professional who needs Wi-Fi, but all customers perceive their need of it - whether for business, social media and entertainment, or simply surfing the web.

Q: Does offering free Wi-Fi encourage customers to stay longer in your restaurant without necessarily buying more?

Luzio: No. Experience has shown that offering Wi-Fi results in higher store traffic, higher customer loyalty, and higher per-ticket sales. Not offering Wi-Fi is equivalent to a retailer having a no returns policy for fear of the few customers who may abuse it.

Q: How can you measure the increased customer loyalty from Wi-Fi?

Luzio: Our customers reveal case after case where customer traffic increased after paid or free Wi-Fi was available and easily accessible by customers. Traffic alone indicates positive customer response, but it doesn't stop there. Per-ticket sales steadily increase. Customers view the QSR or cafe as a destination where they intend to spend more time, and therefore buy larger drinks, food items, and more. Further, the increased traffic results in measurable, additional sales. Customers enjoy a more inviting experience and the retailer watches sales climb. Everybody wins.

Q: Which is better, offering free or paid customer Wi-Fi?

Luzio: It really depends on the business model of the retailer. IRG's project managers help guide retailers in deciding what makes the most sense for their business. The trend, however, is to offer it free. Increased sales and higher per-ticket sales result in a quick ROI, but IRG takes it one step further. We help retailers leverage their broadband and customer Wi-Fi to generate more revenue. We have several options to make that possible, from splash screens offering purchase incentives to ad-based Wi-Fi. The possibilities are endless.

Q: Is there a security risk to customer Wi-Fi? Can customers access business data?

Luzio: The short answer is no. Security must be addressed at every turn when it comes to broadband. IRG is PCI Compliant, and we have countless security measures in place to protect our customers' data - all of it.

Q: What advice would you give a retailer or QSR considering offering customer Wi-Fi?

Luzio: Offering customer Wi-Fi is one way a retailer can leverage its broadband. IRG firmly believes broadband is a commodity, but how it's used is what really matters. It's proven that a better customer experience increases revenue. My advice is to view Wi-Fi as a revenue generator - because it is - rather than a line item expense. Also, carefully choose your managed service provider. Our clients will attest IRG's service, reliability, and expertise are unmatched. I encourage any retailer to read how IRG helped The Coffee Bean and Tea Leaf.

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