Artificial intelligence, social media buzz and customer acquisition tools are just a few of the strategies behind vending machines being used as a key part of today’s retail experience.
Intelligent vending machines, which are expected to grow 17% globally over the next five years, come with technology that can provide invaluable customer data – making what was once an anonymous purchase into a visible opportunity for targeting and acquisition.
And so, brands and retailers have begun investing in activations where the machine is central to the experience, and dispense anything from beauty items to full-sized cars. Here we look at the most innovative vending machine experiences and technologies that are helping shape the future of retail.
Adidas: Live interaction
To promote its new Splash Pack line, Adidas installed vending machines in two sports bars in LA and Boston during the baseball World Series. Customers were able to win a variety of limited edition products, from cleats to autographs and gear from Adidas athletes. The vending machine had built-in digital printing capabilities that would unlock different items based on the on-field action. For example, when player Chris Sale hit a homerun, it unlocked a chance to get his graphic tees. That created an ongoing buzz that kept fans coming back to check which new prizes were up for grabs next.
Lululemon: Data capturing
Lululemon tapped into one of its core demographics, runners, by setting up a machine at one of its Run Stop Shops in New York, and another one in Chicago. Prizes included essential running supplies, such as Honey Stinger energy chews and Lululemon socks and hats. To win free goodies, customers had to answer a quick questionnaire on their workout habits, register with their emails and post a picture with the caption #thesweatlifeNYC or #thesweatlifeCHI.
Revlon: Social media shoutout
In a similar vein, Cosmetics brand Revlon teamed up with beauty retailer Ulta to create a vending machine that toured the US to dish out free gifts with purchase for users also willing to engage on social media. After purchasing a product, clients would be encouraged to post a picture on Instagram with the hashtag #LiveBoldly – the title of Revlon’s latest campaign – in order to win a free gift. Different gifts were available depending on how much the client spent in-store.
Mulberry launched an in-store vending machine in partnership with TheCurrent Global, where visitors played a game of roulette in order to win prizes, from leather goods to vouchers to spend. The activity aimed to capture data on existing or new customers of the brand – in order to play, users had to input their social media handles and had the option to add their email address for further prizes. The machine was part of a larger #MulberryLights campaign for the holidays whereby it also toured stores in Edinburgh, Leeds, Manchester and New York.
Caravana: Retail theater
When magnified, vending machines can provide customers with an automated retail theatre that only adds to the retail experience. US-based online car dealership Caravana has created a physical location that features a seven-story vending machine that quite literally, dispenses cars. While most of the purchase process happens online (buying, selling and financing), when the buyer wants to test drive, they can schedule to pick up their desired car at the vending machine, located in Indianapolis. Adding even more to the experience, a Carvana employee will then hand out a giant coin that customers have to slot into the machine in order to retrieve the car. Alibaba has also launched something similar in partnership with Ford in China.
Dirty Lemon: Text-to-buy
NYC-based The Drug Store, which sells healthy beverage brand Dirty Lemon, looks like a walk-in vending machine for its entirely unmanned experience. Customers simply walk into the store and open the fridge to take any beverage, and walk out – there is no staff, cashier or even security in place. To pay, customers must text a number and say exactly what they are purchasing. The company has also deployed RFID tech in the refrigerators to track inventory sold, while a heat map tracker monitors customer flow.
Yves Saint Laurent: Customization
To promote its beauty collection in Hong Kong, Yves Saint Laurent created a vending machine that added a level of customization to the consumer’s purchased. Called “Lipstick Engraving ATM 2.0”, the experience allowed guests to purchase lipsticks and have their name lazered on the product on the spot. “The concept behind the #YSLBeautyClub vending machine is all about fun and engaging way to interact with the brand. It’s about beauty on the go,” said Marie Laure Claisse, YSL Beauty’s marketing manager, at the time.
Hung Fook Tong: Personalization through AI
In Hong Kong, herbal tea chain Hung Fook Tong (HFT) is rolling out vending machines that use a combination of visual recognition technology and artificial intelligence to better understand and serve their customer. Machines will have cameras that photograph the customers, and create an individual profile that also includes past purchases. After analyzing data such as the climate at the point of sale, age and gender, the machine will know which drink or product a particular customer is most likely to buy and provide a recommendation.
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