Vending Machines Getting Smarter
Carl Goodwin
Guest Columnist on Vending and the new Smart Vending. Carl Goodwin is a technical expert in multiple areas: Smart vending, health, oil/gas, retail, gov, biotech, telecoms, R&D, AI, ML. Based in Truro, Nova Scotia, Canada
Supporting Member: Intel — nice whitepaper on Smart Vending
What happens when a traditional vending machine is equipped with technologies that transform the vending experience for both the customer and the retailer?
For the customer:
- Enticing and engaging multimedia experience
- Optimized climate control for products
- Wide variety of payment options
- Accessible display flexibility
- Attractive value-adds such as subscriptions and loyalty rewards (where enrolled)
- Availability of restricted products (eg, via age gating)
- Integrated links to other services For the retailer:
- Increased engagement and conversion
- Optimised product self-life
- Centralised inventory with real-time event and stock reporting, plus analytics
- Dynamic pricing based on loyalty or traffic metrics
- Interchangeable themes, look and feel
- Ensure ADA compliance and controlling liability
- Advertising space while at idle
In short, the vender stops being a passive box of products and starts to engage the customer actively.
The machine effectively becomes a sales agent out in the field, not only helping the customer get what they need but also making the experience enjoyable and keeping them coming back for more: all the time carefully noting what sold best to whom and when – and getting out in front of problems before they arise.
For the uninitiated, these features may sound expensive and risky. However, for an expert in the art, these aspects are simply what you would expect from a retail site—virtual or otherwise—albeit one that interacts with the real world through various sensors and has some level of control over the vendor circuitry.
Innovative vending solutions are now becoming cost-effective, especially with the recent advent of reliable IoT and edge computing. Thus, the market is primed for rapid expansion.
Persistence Market Research said, “The global smart vending machines market is expected to grow at a CAGR of 12.8%, reaching US$48.9 billion by 2030 from US$21 billion in 2023″[1].
Vending market
Given these numbers, manufacturers are starting to take note, with “smart vending” features such as touch screens, facial recognition, age verification, and centralized stock inventory regularly popping up in offerings from the Far East and the usual big domestic shops.
Their challenge, however, is one of customization and differentiation at scale. Whereas before, it was good enough to specify a custom wrap, the door is now open to a much broader array of options and integrations, each with its particular features, advantages, benefits, and costs. In effect, the inventiveness of marketers on the ground will exceed the ability of the big manufacturers to keep up by way of a “one size fits all” approach.
Therefore, it is no surprise that the more bespoke innovative vending solutions available today tend to blend the best of the established players’ bulletproof hardware with small, agile software companies’ boutique enhancements and mechanical glue. It is merely a matter of time before the market optimizes those relationships, but it is a space worth watching with keen interest.
[1] https://www.persistencemarketresearch.com/market-research/smart-vending-machines-market.asp
Carl Goodwin is an independent kiosk integrator based in Nova Scotia, Canada. With over 30 years of experience building custom solutions, he has a Master’s degree in Bioinformatics from the University of London and is a member of the IEEE.
https://vend.atlantean.ca
Follow Up on Smart Vending
Key Features of Smart Vending Machines
RFID Technology:
RFID (Radio Frequency Identification) is a crucial feature in smart vending machines. It helps in tracking inventory in real-time, ensuring that popular items are always in stock and reducing food waste by alerting operators when items are nearing their expiration dates. This is particularly useful for fresh food vending, where maintaining product quality is essential.
Remote Monitoring and Management:
Smart vending machines can be monitored and managed remotely. Operators receive instant alerts if there’s an issue, such as a temperature fluctuation in a refrigerated vending machine or a stock-out situation. This ensures that the machine is always operational and well-stocked.
Multiple Secure Payment Options for Users:
With advanced payment systems, customers can use various methods to pay for their purchases securely. This includes credit/debit cards, mobile payments, and contactless options, making transactions quick and safe, enhancing the user experience.
Advanced Security and Fraud Prevention Technology:
Advanced payment systems and real-time monitoring help prevent fraud and ensure secure transactions. Remote locking capabilities can also protect the machine and its contents in case of emergencies.
Customizable Inventory:
The ability to tailor product offerings based on sales data and customer preferences ensures that the inventory meets the specific needs of the target audience. This increases customer satisfaction and sales.
Temperature Control
Options such as monitored refrigeration are available for fresh food vending, like those manufactured by REDYREF.
Track Consumer Behavior with Data and Analytics:
Smart vending machines provide valuable data on consumer behavior, sales trends, and product performance. This information helps businesses make informed decisions about inventory management, marketing strategies, and product development.
6 Types of Smart Vending Machines
Smart vending machines are transforming the vending industry by integrating advanced technology, like RFID and remote monitoring, to enhance user experience and operational efficiency. Here’s an overview of various types of smart vending machines and their features:
1. Fresh Food and Refrigerated Vending Machines:
These machines provide fresh meals and snacks. They use advanced refrigeration systems to keep food at the optimal temperature, ensuring freshness and safety. REDYREF’s Fresh Food Fridge, one of our newest kiosks, combines RFID technology with refrigeration to offer fresh food options efficiently, on-demand.
2. Coffee and Hot Beverage Vending Machines:
These machines range from simple models dispensing instant coffee to advanced units offering freshly brewed options using fresh beans. They can customize orders with options for sugar, milk, and flavors, catering to the global increase in coffee consumption.
3. Hot Food Vending Kiosks:
These hot food vending machines are revolutionizing how we access freshly made meals, providing a convenient and efficient solution for busy environments. In fact, there are even some hot food vending solutions that can bake a variety of items, including pizzas, pastries, and gourmet sandwiches on demand.
4. Health and Personal Care Vending Kiosks:
Stocked with items like over-the-counter medications and personal care products, these machines are found in locations such as airports and hotels, providing essential goods conveniently .
5. Office Supplies Vending Machines:
These machines dispense office essentials such as pens, notebooks, and other supplies, making them ideal for workplaces and educational institutions.
6. Tech and Electronics Vending Kiosks:
Offering gadgets, chargers, and accessories, these machines cater to tech-savvy users and are commonly found in airports and tech hubs.
Benefits of Smart Vending Machines
Smart vending machines offer numerous advantages over traditional vending machines, making them an attractive option for businesses looking to enhance customer experience and in crease operational efficiency. Here are some key benefits:
Greater Customer Satisfaction:
The ability to tailor the machine’s inventory based on customer preferences and sales data means that each vending machine can offer a personalized selection of products. For instance, REDYREF’s Fresh Food Fridge can be stocked with the specific types of fresh foods that your employees prefer, whether it’s sandwiches, salads or healthy snacks.
24/7 Accessibility:
These machines are accessible around the clock, providing fresh and quality food options anytime. This makes them perfect for locations like offices, schools, and hospitals, where people need quick and healthy meal options at all hours.
Energy Efficiency for Cost Savings:
Many smart vending machines are designed with energy-saving features, such as scheduling cooling only during specific times or using vacuum-insulated systems to maintain temperatures without continuous power consumption. This reduces operational costs and supports sustainability efforts.
Enhanced Customer Experience:
Equipped with interactive touchscreens and user-friendly interfaces, smart vending machines make the purchasing process easy and engaging. They can display product information, advertisements, and even personalized recommendations based on consumer behavior.
Reduced Waste:
By using real-time inventory tracking and RFID technology, smart vending machines can reduce waste by ensuring that only fresh products are stocked and expired items are promptly removed. This helps maintain product quality and minimizes losses due to spoilage.
Marketing Opportunities:
The digital interfaces on smart vending machines can display advertisements, promotions, and product information, turning the machine into a marketing tool that can influence consumer purchasing decisions and increase revenue.
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