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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THE WAY I SE E I T S Micro markets give vending better marketing tools By Elliot Maras, Editor elf checkout micro mar- kets are the fastest grow- ing segment in automatic merchandising today, carving a new niche in our nation's retail landscape. Being a new format, many questions remain about fi nancial metrics and the best business model for opera- tors to use with these systems. But what the vending indus- try needs to recognize going for- ward is that 1) the technology doesn't stand still, and 2) the micro markets will have a big, positive impact on traditional full line vending. The micro markets will inject vending with a long needed shot in the arm. In his article on page 18, contributing editor Allen Weintraub reviews the key questions vending operators should ask themselves in decid- ing which system to invest in. The more salient topic he brings to light, however, is the revolutionary impact of the consumer data that the micro market software gathers for operations and marketing. Vending enters a new era The micro markets are bring- ing vending into the world of retail marketing in a more powerful way than ever. Most micro market pro- viders are offering customer rewards programs and com- bination offers. Because the system providers have roots in vending, some have recognized 6 the benefi ts of adapting these programs for vending and are developing ways to introduce them to vending. The vending industry's adoption of cashless payment technologies, meanwhile, sets the stage for a consumer data revolution in vending. Cashless systems evolve Cashless vending system pro- viders are developing interac- tive prepay, coupon and loyalty programs to enable operators to offer prepaid cards that give consumers the ability to reload a card, stack up loyalty points and be rewarded for their purchases with coupons and are eliminated. More impor- tantly, the operator has access to data about the consumer that opens the door to value enhanc- ing marketing opportunities. Keep in mind: technology doesn't stand still. Consumers are already using their mobile phones as mobile wallets. Even for vending purchases. When consumer product manufacturers realize the marketing power the vending channel can give them with these new tools, vending will command the same relevance for these manufacturers as supermarkets, mass merchants, drug stores, restaurant chains, and convenience stores. The THE micro markets will inject vending with a long needed shot in the arm. promotions. The programs can be integrated into Facebook and other social media sites. These payment systems will allow vending operators to adopt micro markets' marketing pro- grams, giving vending a whole new set of consumer benefi ts. In his article, Weintraub notes the micro market opera- tor's fi rst objective is to enroll customers in stored value card accounts so that the individual consumer can be identifi ed. By using cash to upgrade the stored value card, credit/debit card fees Automatic Merchandiser VendingMarketWatch.com May 2012 manufacturers will then invest more of their marketing dollars in vending. The future is already here The immediate opportunity for vending is to use the data that the cashless programs generate for marketing and operations. The micro markets, mean- while, are helping to drive the vending industry to a bold new future. Please send your comments regarding this or any article in Automatic Merchandiser to Elliot.Maras@VendingMarketWatch.com AUTOMATIC MERCHANDISER EDITORIAL ADVISORY BOARD Scott Guardino Paramount Automated Food Service Pompano Beach, Fla. Randy Parks ProStar Services West Carrollton, Texas Paul Shlossberg DFW Consulting Goshen, N.Y. Mike Nugent Compass Group USA Middletown, Pa. Brad Ellis Crane Merchandising Systems St. Louis, Mo. Tom Siciliano Integrity Recruiting & Consulting Inc. Huntley, Ill. Tom Britten Britten Management Services Zephyrhills, Fla. Brad Bachtelle Bachtelle & Associates Inc. Tustin, Calif. Glenn Butler CTO Services LLC Boston, Mass. Gene Ostendorf InOne Technology Hunt Valley, Md. Paul Schindelar Kraft Vending & OCS Hanover, N.J. Chuck Reed MEI West Chester, Pa. Anant Agrawal Cantaloupe Systems San Francisco, Calif.