Can Digital Signage Benefit Vending?

July 31, 2014

Vending hasn’t embraced digital signage to the same extent as restaurants. It’s still used relatively infrequently, mostly by large bottlers placing machines in public locations. However, there are some real advantages for vending operators to consider when looking at the video screen options on vending machines and utilizing them better on micro market kiosks.

Sales lift

Probably the number one benefit and most important aspect when looking at investing in new equipment is how the purchase will translate into sales. According to an April survey from Digital Signage Today, most restaurants, 60 percent, see between a 1 and 5 percent sales increase after installing a digital menu board. Over 20 percent report the sales lift is greater than 5 percent.

While vending uses a different business model, video screens do grab the customer’s attention through movement, color and even sound. The product images and messages can be triggered by time of day as can items the operator wishes to upsell with other item purchases. And these principles are true for a vending machine as well as a micro market kiosk.

Engaging user

Grabbing the consumer’s attention isn’t enough. It’s also about engaging them. Between computers and smartphones, nearly everyone is interacting with digital media. A vending machine with a video screen becomes more than a piece of furniture in the breakroom. Instead it’s an innovative way for a consumer to purchase a refreshment. And with the ability to allow consumers to see label details, digital signs on vending machines can give a much more interactive experience.

Incremental revenue

The potential for manufacturers to pay operators to run ads on their vending machine’s digital signage exists. Already advertisers run ads on video players for television stations, pay for shelf space in grocery stores and even support mobile marketing apps. However, getting manufacturers to use the operator’s screens for marketing will mean offering certain products, promising a large number of users or providing demographics information. Local companies might be an easier target for advertising to generate additional revenue.

Promotions fast and cheap

Another advantage to digital signage is its ability to market promotions. Depending on the sign, adjusting the images, words or message can be done quickly and much less expensively than printing out clings or signs for the breakroom. An example from a different industry is presented in a whitepaper by the Digital Signage Connection detailing how a car wash business was able to upsell and save money by opting for a digital sign. Customers were viewing options while they waited in line and purchased more once it was their turn. Plus, it was easier and less expensive for the company to offer promotions. Physical signs didn’t have to be created, printed and placed. Prices could be adjusted quick and easily, unlike a traditional printed sign.

Local

Local is a new buzz word in the food industry, but it goes beyond where the vegetable came from. Vending and micro market operators can use the screen on the hardware to run local news items. It maybe be updates on the high school sports teams or the downtown art crawl. Even more localized would be announcements for the individual company where the machine is placed. It could be a call for participation in the next blood drive or Relay for Life event.

Investing in marketing is tough for small, independent companies, but it’s important. Just because consumers are in the same building as the vending machine or micro market, don’t assume the vending machine or micro market is at the top-of-mind when they are hungry. Make the machine or micro market memorable (and hopefully upsell products) with digital signage. 

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