A vending machine presents a variety of options for its consumers- be it a light snack or even a burrito- there is something for everyone! While there is no denying the potential of a vending machine, the equilibrium of consumer satisfaction and a successful business for the operator is still to be achieved.
A vending machine can become your constant source of income. But, vending machines are currently performing at far less than their actual potential. Every business functions to make profits. However, vending machines have the capability to do more than just earn profits. They have the potential to earn trust and change consumption patterns!
Let’s analyze how your vending machine is performing and how you can utilize its maximum potential.
1. The efficiency of Internal Processes
During a normal workday, the refiller would analyze the vending machine inventory and pick-up the required products. Then, the refiller would go to the machine location, restock the commodities, empty the cash box and leave.
However, do you regularly analyze your user’s data? Do you get alerts about possible stock outs? Do you understand if your product mix is suitable for the audience you are catering to?
A technology interface that provides a 360 degree view of your business and provides control at your fingertips, can enable you to optimize internal processes thereby directly impacting your bottom line.
2. Location of Placement of Machines
Location of the machine plays a major role in performance. Installing a stationary-product vending near an office or school or a healthy drinks machine near workout zone would justify the demand-supply of the location.
For example, JanaJal, a for-profit organization in India, has installed various water vending machines at railway stations across Ghaziabad and Mumbai. They call these machines water ATMs. The machines take only INR 5 per liter for water. The reason for placing these machines at railway stations is to offer easy access to travelers and nearby villagers.
Recently, a Japanese vending machine called Gachapon that usually dispenses capsule toys has been adapted to sell rice in single servings to attract students and busy professionals who may not have time to buy rice in large quantities!
We are fairly certain you have already thought about this! The benefit of having these unique vending machines can be multiplied further by converting casual buyers into repetitive consumers using a mobile based vending app because guess what- consumers all over the world carry Smart phones irrespective of where they go!
3. Machine Up Time
Globally, average monthly sales from a vending machine is around 800 USD. Since most machines are available at office spaces, we can safely assume that they are active 8 hours a day. This means a single vending machine has the capacity to generate a revenue of USD 34-40/ day (if not more!). Now imagine the loss of revenue you would face if the vending machine malfunctions during the peak 8 hours of office time! It can be worse if this malfunction is not caught early!
Any equipment can suffer an anomaly, which can cease proper functioning. However, detecting this anomaly in hours (or even minutes) rather than days is how you can increase your consumer services and directly impact sales.
A technological solution can inform you as soon as your vending machine faces any functioning irregularity and you will be better equipped to handle the malfunction.
4. Product Mix in the Machine
Are you aware of the behavioral patterns of your vending consumers? Do you have the insight into their consumption preferences to help serve them the right product at the right time?
Evaluating user data through a seamless technology interface will help you peek into the actual purchase statistics. For instance, your users at a particular location may want more water on Monday and users at another location may look for mid-night snacks. By ensuring you stock the right products at the right machine, you can ensure improved sales and consumer retention.
5. Mobile Based Vending Solution
Repeatedly trying to make a transaction, select a snack, and enter money in the machine is not how users plan on purchasing products.
By providing mobile based cashless solution, as an operator, you not only empower users to transact more effectively but also provide them with additional benefits like automated refunds and expenditure tracking.
Additionally, with the help of mobile based vending apps, you can enable consumers to buy in combos! Selling a bottle of soda along with a sandwich will increase not just the ticket size of purchase but also improve your bottom line!
6. Consumer Support
As per data provided by US Field Agent, 23% consumers feel nervous when using vending machines due to frequent malfunctions and subsequent lack of support. The difficult working of traditional vending machines paired with lack of assistance makes various consumers turn their backs on it.
A virtual support system through a mobile based vending platform can complement your modern vending machine and lead to high performance. Users can get guidance in case of concerns and vending machine operators can evaluate a recurring issue at earliest.
7. Consumer Delight
Consumer delight is a collective effort that comes from streamlining all the above things. From being able to enhance the functioning to making smooth transactions in a consumer controlled experience, everything contributes to consumer delight.
Smart Data Analytics with Vendekin
In a recent report, it was revealed that vending machine profits for 2017 reached a 7-year high with USD 21.6 billion revenue.
Introducing Vendekin’s technological solution in vending machines will only increase these numbers. Vendekin offers technology-based vending machine solutions that help owners implement cashless transactions, real-time inventory analysis, anomaly detection system, virtual assistant support, and remote pricing management. Contact Vendekin today to get a different & exciting perspective about the direction for your vending business!