Point Of Sale (POS) Competitor Jobs To Be Done
Otter started as a solution for restaurant owners that were using multiple delivery platforms like Door dash, Uber eats, Post mates, and Chow now. Otter aimed to consolidate the delivery platforms into one tablet to free up space and streamline restauranteurs work flow. Overtime the middleware solution expanded into a POS solution.
Problem Statement
The primary objective of this project was to gain a comprehensive understanding of the core functionalities and related jobs performed by POS users. This includes identifying the desired outcomes associated with these functionalities and tasks, as well as uncovering what customers aim to achieve through these activities. By exploring these aspects, we wanted to better align Otter’s POS system with user needs and goals.
We conducted detailed competitor analysis through in-depth interviews with restaurant owners who hired competitor POS solutions. This approach allowed us to gather comprehensive insights into competitor features and customer perceptions, informing our recommendations for Otter’s strategic improvements.
Methods Used
Date
October 2023
Role
Global UX Researcher
Company
Cloudkitchens
Deliverables
Google Slides (Reports and Presentation)
Davinci Resolve (Video Clipping)
Tools
Recruitment
Digital - Google contacts (User emails)
Internal Sources - Salesforce (data base to get customer emails)
Research Operations
Google Appointment (Scheduling)
Google meetings (user interviews/recording)
Dovetail (Transcriptions)
Analysis
Figma Jam (Virtual affinity mapping)
Research Repository
Google Drive
Research Process
Throughout this study, I managed the end-to-end research process and data collection/analysis phases. I conducted a total of 19 in-depth interviews with Otter users who hired Otter POS and Otter users who used Toast, Square and Clover. I owned data analysis and used Figma’s program with affinity mapping techniques to uncover patterns and themes in the data. To start off this project I spoke with the key stakeholders to get an idea of key questions they wanted answers to and some assumptions they had about how restaurant owners are using their POS solutions. Then I would design my research plan which consists of objectives for the project, research scope and focus areas, key questions, and the discussion guide.
Research Methods
For this study, I conducted in-depth semi-structured interviews as the primary research method. This approach involved conducting one-on-one interviews with participants, guided by a flexible discussion guide that includes both predetermined questions and the opportunity to explore topics that arise spontaneously during the conversation.
Challenges
A notable challenge was finding and recruiting participants who are representative of the user base I was targeting. Through sales force, which wasn’t maintained properly, I found it difficult to pinpoint the specific POS users I needed to conduct this research. Without a dedicated research operations team, it was also time-consuming to source and screen qualified users. Another challenge was coordinating schedules with busy restaurant owners who are constantly putting out fires in their business. Many participants availability was limited due to peak business hours and varying shifts. This led to a tremendous amount of no shows extending the time frame of the project.
Key Finding
Through interviews with competitor POS users, three key features emerged as critical factors influencing their selection of a POS system: labor management, order aggregation, and inventory management. Labor management was particularly valued for its ability to streamline payroll processes through direct deposit integration, track labor data, and provide scheduling capabilities, along with compatibility with existing labor management tools. Order aggregation stood out as an essential feature, with users emphasizing the importance of seamlessly integrating all off-premise orders—such as those from delivery platforms or custom websites—directly into the POS system. Additionally, inventory management capabilities, including real-time tracking of stock levels for finished goods, were highlighted as crucial for maintaining operational efficiency and reducing waste. These insights underscore the features that users prioritize when selecting a POS system, providing actionable guidance for refining product offerings.
1. Competitor Features: Key features influencing POS selection were labor management, order aggregation, and inventory management.
2. Preferred POS Features: Clover was chosen for expense and labor management, Square for online ordering and inventory management, with a noted pain point being minimal UI customization, and Toast for labor management, handheld, email marketing, and rewards program.
Clover :
Interviews with Clover users revealed several factors influencing their choice of POS system, particularly when comparing it to competitors like Toast. Expenses were a major consideration, with participants noting that Toast costs approximately $300 per month per location (including integration capabilities), compared to Clover’s more affordable $50 per month per location, which includes all features. One participant shared that they transitioned from using pen and paper to Clover primarily due to its low processing fees, underscoring its appeal for cost-conscious users.
In terms of functionality, labor management was highlighted as a key feature, with Clover offering robust employee time clock and scheduling capabilities. Inventory management was another critical factor; participants who had used systems like Thrive praised Clover’s integrated inventory management tool for its ability to effectively track stock levels. These insights reflect the priorities of Clover users, emphasizing affordability, ease of use, and feature integration as key drivers of adoption.
Interviews with Square users highlighted several key features that influence their choice of POS system, particularly its capabilities in online ordering, labor management, and inventory management. For online ordering, Square’s free custom website was a standout feature, allowing business owners to ensure the site aligns with their brand by keeping the design simple and minimalistic. Additionally, the seamless integration of off-premise orders directly into the POS system was highly valued for improving operational efficiency.
In labor management, Square’s ability to link employee bank accounts for automatic direct deposits was seen as a significant benefit. Participants also praised Square Teams, which enables businesses to track team members’ clock-in/clock-out times and manage schedules with ease. For inventory management, users appreciated the system’s capability to track inventory for finished goods and provide alerts to replenish stock when running low, though they noted that raw materials are not tracked, which could be a limitation for some businesses.
These insights illustrate the importance of brand alignment, seamless integrations, and efficient labor and inventory management as driving factors for Square users when selecting a POS system.
Square :
Square user discusses how inventory tracking allows them to monitor sales and forecast future stock needs, including items like cookies, t-shirts, and candles, ensuring they know when to reorder and keep products in stock."
Toast :
Interviews with Toast users revealed a strong consensus that it is one of the most robust POS systems on the market, effectively meeting their diverse needs. Labor management stood out as a key strength, with users highlighting features like easy, automated payroll and tip management, as well as seamless integration with labor management software. These capabilities simplified administrative tasks, allowing users to focus on their operations.
The handheld POS system was another highly valued feature, particularly for users with mobile or non-traditional setups. One participant, who started with a food truck, appreciated the convenience of handheld devices for taking orders at offsite events, emphasizing its versatility.
Toast’s built-in rewards program also received praise for enhancing customer engagement. The program allows customers to earn points with each order and redeem them for free items, fostering loyalty. While one participant felt that email marketing wasn’t a major requirement due to the likelihood of emails ending up in spam, they acknowledged it as a helpful “nice-to-have” feature for businesses that want to explore digital outreach.
These insights demonstrate Toast’s appeal as a comprehensive and versatile system, particularly for businesses seeking robust labor management, mobile functionality, and customer engagement tools.
Toast user discusses the transition from legacy POS, highlighting the automation of tip pooling and payroll, which replaced manual processes and greatly simplified payroll management.
“The feature they have is that they allow you to have different online ordering systems to take orders. So if I have different virtual restaurants, I can have a dedicated online ordering for that virtual
restaurant.”
3. Core Functionalities: Essential features included integration of third-party software, flexible customization, customer data management, remote accessibility, and reliability.
Labor Management
Labor management emerged as a critical component of POS systems, with users emphasizing the importance of key functionalities such as time clock management, employee scheduling, and payroll automation. These features simplify workforce management and ensure smooth daily operations.
Participants also valued the ability to track essential labor metrics, including clock-in and clock-out times and overtime hours, enabling better oversight and compliance with labor regulations. Additionally, the ability to bridge the gap between sales and labor data was highlighted as a key advantage, allowing businesses to align staffing levels with sales performance for more efficient resource allocation.
These insights underscore the importance of comprehensive labor management tools in POS systems, providing businesses with the data and functionality needed to optimize their workforce and streamline operations.
Customization
Customization was a key consideration for users when selecting a POS system, with many emphasizing the need for a solution that could adapt to their specific business needs. The ability to manage menus efficiently was particularly important, allowing businesses to make real-time updates and tailor offerings to their customers. An integrated online ordering site was also a crucial feature, enabling seamless digital transactions and enhancing the customer experience. Additionally, users highlighted the importance of a customizable POS interface that could be tailored to align with their workflows, making day-to-day operations more intuitive and efficient.
These insights demonstrate that flexibility and adaptability are essential in a POS system, ensuring it can meet the unique demands of individual businesses while streamlining operations.
Customer Data Management
The ability to collect and manage customer data was highlighted as a vital feature for businesses looking to enhance their marketing efforts. Users valued tools that facilitated the collection of key customer information, such as phone numbers and email addresses, enabling targeted outreach and personalized engagement to drive customer loyalty and repeat business.
Remote Accessibility
Cloud-based systems with real-time reporting capabilities were a top priority for users who needed remote access to key operational metrics. This functionality allowed business owners to monitor critical data, such as sales performance and labor costs, even when away from the restaurant. The ability to stay connected and make data-driven decisions from anywhere was considered an essential feature for modern POS systems.
Reliability
Reliability emerged as a non-negotiable feature, with users emphasizing the importance of minimal downtime and fast transaction processing speeds to maintain seamless operations. Ease of use was another critical factor, as systems that reduce the learning curve for new staff through intuitive interfaces and straightforward training materials help businesses save time and improve efficiency.
“We integrate with restaurant 365 for all the accounting and purchasing. Also margin Edge, which allows us to do our actual versus theoretical opposed to using that Chef function within toast which is pretty expensive. We integrate with seven shifts for scheduling. We used sling which was their [Toast] tool but we didn’t like it. Seven shifts just had a lot more robust functionality. ”
“my number one function right now is looking at the restaurants, seeing where we are with labor and being able to make judgment calls to managers, ‘labor’s running high, I see this many people clocked in right now and you only sold $45 in the last two hours. So we need to send somebody home. So I think the most important thing to me is just having cloud and remote accessibility to any report or anything I need from any POS.”
4. JTBD Statement: Users needed enhanced POS functionality and support to improve efficiency during peak service hours.
In the restaurant industry, the needs of business owners and operators are diverse and highly context-dependent, driven by the unique challenges they face daily. Through my research and conversations with POS users, it became clear that a single overarching JTBD statement could not effectively capture the breadth of motivations and priorities that restaurateurs have when selecting a POS system. To address this complexity, I created a primary JTBD statement to encompass the overarching goal of optimizing operations, while also developing more specific JTBD statements organized into six key focus areas: managing labor, tracking data remotely, inventory control, building customer data, flexible customization/ease of use, and reliability. Each column represents a critical aspect of restaurant operations, with tailored JTBD statements that address the distinct reasons restaurateurs prioritize these features. This approach ensures that the unique needs of different restaurants—whether they prioritize labor efficiency, customer engagement, or seamless functionality—are accurately reflected, making it easier to understand and address the core requirements of POS users in this industry.
“As a restaurateur, I want to enhance the functionality and support of my POS to improve overall efficiency during peak hours of service.”
Report Process
After synthesizing the insights from the interviews, I created a presentation ready Google Slide that captured user feedback and findings. To ensure all stakeholders, many of whom worked from home, were kept informed, I scheduled a Zoom meeting to present these insights. Post-meeting, I documented all findings in our UX Research Google Drive and shared key points in our dedicated UX Research Slack channel. This included the Google Slides and allowed team members to ask questions and stay updated on the research, ensuring comprehensive visibility and collaboration across the company.
Here is the link to JTBD Findings and Insights - Otter 2024
Impact and Outcomes
The insights gathered from this study directly influenced the company's product roadmap. By understanding the core functionalities and desired outcomes of competitor POS users, we identified several key features that were critical to enhancing the user experience and meeting customer needs. These findings led to the addition of specific functionalities designed to address pain points and improve overall efficiency. Some key features that were included to the road map was Labor management software allowing the ability to assign employe’s pin-codes in order to clock in directly into Otter POS, native rewards program, and inventory management. As a result, the company was better positioned to increase its closed won opportunities, driving greater customer satisfaction and competitive advantage in the market.