Automatic Merchandiser

MAY 2012

Automatic Merchandiser serves the business management, marketing, technology and product information needs of its readers including vending operators, coffee service operators, product brokers, and product and equipment distributors in print.

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S T R A TE G I C TH I N K I NG the Coca-Cola Interactive Vending Machine, the Pepsi Social Vending System, the Crane Merchandising Systems touchscreens, the VE Con- nect interactive touch screen from Vendors Exchange International Inc. and the VendScreen from Vend- Screen? If you have not seen these important innovations, go out of your way to learn more. The interactive machines offer vending operators an important ben- efi t that deserves to be mentioned. Whether or not the federal calorie disclosure law requires nutrition information at the point of sale, vending operators will fi nd it in their best interest to provide nutritional information before the purchase non-game contexts. Typically, gamifi cation applies to non-game applications and processes, in order to encourage people to adopt them, or to infl uence how they are used." For younger people, it is essen- tially an extension of video games to retail shopping. How has shop- ping changed? It has become a game — with interactive shopping tools. This interactive experience is what younger people expect, maybe even demand, as the way to engage their interest, motivate them to shop and possibly make a purchase. The new 4 Cs, connect, com- municate, customize and cashless, is our new and most important chal- lenge. Our future and maybe even THE new 4 Cs is our new and most important challenge. is made. This is how to do it. The nutritional data, allergy facts and all related details are easily accessible from the interactive screen. That does not mean that shop- pers must access the information. After all, not every shopper in convenience stores or supermarkets looks at the nutritional panel when they are shopping. But they want the information to be there if they want to read it. Interactive shopping goes mainstream Deployments of interactive shop- ping experiences are multiplying at a rapid pace. Shoppers of all ages, but especially younger people, like to use these features. Why is that? In a word, it is "gamifi cation." According to Wiki- pedia, "Gamifi cation is the use of game design techniques, game think- ing and game mechanics to enhance 16 the survival of the vending industry depend on it. Let's consider them one at a time. Connect: We need online pres- ence for our vending, OCS and onsite foodservice operations. Communicate: Being online will allow us to reach our audience — shoppers and potential shoppers — with information concerning what we are selling now and will be adding next week. And our audi- ence will be able to reach us with requests and feedback about how we are doing. The odds are that a Tweet will be available about an out-of- stock before we see it with telemetry. Customize: This will be our biggest hurdle. We must learn how to provide customized orders for the locations we serve. Subway, the sandwich shop chain, is recognized as providing many healthier selec- tions. Why? It is very simple. Every Automatic Merchandiser VendingMarketWatch.com May 2012 sandwich (plus salad or breakfast item) is custom-made — assembled based on what the customer wants. Cashless: This is the next big hurdle. Young people do not carry cash. They want to pay with a debit or credit card. Or better yet, with their smart phones. No need to cite the data. The trend is inevitable. We will be a virtually cashless society in the next fi ve to 10 years. Don't wait — test cashless soon. It won't work at every site. But it will work at many locations. The dollar coin is not a solution for our industry. It will not work. It is too heavy. Did you ever carry 17-dollar coins in your pocket? I did recently when I got change at a parking kiosk, and I did not like it. Take a moment to ask yourself these two questions: 1) What will my business be 20 years from now? 2) What am I doing to make sure that we will survive and ultimately be successful 20 years from now? The way people shop is changing rapidly. The way retail stores respond is driv- ing dramatic changes in how stores respond to that change. The challenge for vending, OCS and onsite foodservice operators is how effective will we be in this new 4-Cs world. We must be relevant for all of the shoppers we serve. Younger shoppers are already living in the world of the new 4-Cs. Let's catch up to them because they are not waiting for us. ABOUT THE AUTHOR Paul Schlossberg is the president of D/ FW Consulting, which helps clients mer- chandise and market products in impulse intense selling environments, such as vending, foodservice and convenience stores. He can be reached at Paul@DF- WConsulting.net or 972-877-2972; www. DFWConsulting.net.

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