It’s tempting to want to take advantage of all revenue streams when in business. That is why many businesses charge customers for access to their WIFI. But, is this advisable? The current business climate points to revenue loss instead of capture when charging for WIFI. How?
Look At The Big Picture
Unlike flying in an airplane, most businesses don’t have their customers confined to their area for a set amount of time. This means that visitors are unlikely to be inclined to pay for a service so ubiquitous and will likely be repelled by businesses that charge for access. We, at Eidi Properties, encourage our tenants to see the big picture.
First of all, most people currently have data plans on their phones and would not be reliant on local WIFI. However, many of those data plans are limited and by providing free WIFI, customers appreciate the service, creating a positive feeling about your business.
Second, the WIFI can compel customers to stay longer. Studies universally show that customers who stay longer spend more. Longer stays can easily compensate for the lost revenue of a few who would actually pay for access to the internet.
Third, customers will likely choose your business over a competitor who doesn’t provide free WIFI. This is due to the fact that people use the internet when shopping to research purchases, compare prices, specs, and download coupons. This also makes the business’ site more attractive due to shoppers looking for promotions and specials.
Data Helps Stores Help You
Fourth, stores can use the data gathered by shoppers on their WIFI networks to better target their sales. Customers browse for deals and to compare. Their online habits can be better understood through observing their queries. If a customer in your store Googles an item, but leaves without buying it (statistically speaking) then, perhaps, the store has it priced too high. Knowing this can help a store find equilibrium pricing and best move merchandise.
Ultimately, a store should not look at providing WIFI service like a product but a service. This service can attract customers and promote purchases. In today’s world, stores that charge for WIFI are likely costing themselves more opportunity than they are gaining revenue. We encourage businesses to see the big picture to attract and keep more customers.