Big Data and AI for vending machines is being transferred from a wide range of industries that use Artificial Intelligence (AI) to improve the efficiency and effectiveness of vending operations. For example, Coca-Cola is leveraging this technology to create its own unique buying experiences. Smaller companies are using data from their vending machine credit card readers to optimize sales.
Big data applications in smart vending machines (augmented reality is already starting to hit the vending biz) are expected to grow significantly over the next couple of years due to their potential to improve the efficiency and effectiveness of various operations.
The soft drink industry still has a long way to go before fully embracing the use of Artificial Intelligence (AI). However, Coca-Cola is leading the way in this innovation through its vending machines.
Current Market Trend for AI Vending Machine Industry
- AI-powered machines are changing how businesses operate by providing them with an enhanced customer experience and personalized marketing.
- Due to the emergence of the COVID-19 pandemic, the need for more effective and efficient delivery of goods and services has increased. With the increasing number of AI-powered vending machines, the market is expected to grow quickly.
- Due to the rising number of services offered by the vendors, such as training and support, the demand for these services is expected to rise significantly over the next few years.
- The increasing number of AI-powered vending machines is expected to provide businesses with a competitive advantage by allowing them to manage their inventory efficiently.
- The increasing number of fast-casual restaurants is expected to drive the demand for AI-powered vending machines during the next few years.
- The global AI-powered vending machine market is expected to grow at a robust Compound Annual Growth rate of 16.25% during the next few years.
How Big Data & AI Help Effectiveness of Vending Machines
A startup in Australia started testing AI on 60 vending machines in a town near Sydney. It then developed an algorithm specifically designed for Coca-Cola to improve the efficiency of its vending machines. The experiment results showed that big data could help improve the effectiveness of vending machines.
The challenge of optimizing the shelf space and the efficiency of a consumer retail store’s supply chain is one of the most common issues retailers face globally. With the help of big data, companies can now effectively implement and manage their algorithms in the field.
Big data is becoming more prevalent today, so it is becoming more critical for companies to use it to improve their marketing. For instance, by analyzing the data collected by their customers, they can more effectively market their products by finding great locations for their machines.
Reasons Coca Cola Use AI for their Vending Machines
Coca-Cola uses AI in its vending machines to improve the efficiency and effectiveness of its operations. These include planning sales points, analyzing location data, and providing a personalized customer experience.
There are various aspects of how Coca-Cola uses AI in its vending machines. These include the ability to enhance the customer experience, improve the efficiency of its operations, and identify the ideal combination of flavors.
- Choosing the Ideal Location for Vending Machines
- Engaging with frequent customers
- Displaying multiple product options
The success of a vending machine depends on various factors such as its building location, its choice of micro-location inside the building, and its ability to attract and retain loyal customers. Understanding the data collected by the machines is not always straightforward.
Like Starbucks, Coca-Cola uses AI in its vending machines to provide its customers with various products and services. However, unlike Starbucks, the company does not have staff members to help its customers.
To Determine the Best Location for Vending Machine
Choosing the best location for a vending machine is very important for the business of vending machine owners. Successful selection of vending machine locations involves analyzing factors such as the number of people using the facility, its proximity to other businesses, and its competitor data.
One of the most important factors that a vending machine should have is the ability to collect and analyze sales data. It allows the company to improve its sales performance. In addition, this capability enables the company to collect and analyze data from its customers.
The power of Starbucks and other companies when it comes to analyzing a store’s performance is not only about providing useful information about its customers. It is also about developing effective loyalty programs and apps to help its customers.
The second function of an intelligent vending machine is its ability to connect to the Internet of Things. This allows it to collect and analyze data from other connected devices, including other vending machines.
Think about this line up – a beer vending machine (or any type of alcohol), a pizza vending machine (whether made to order, or just heating up a frozen pie), and an art vending machine with local art. Ideally, they’d be right next to each other, but if they are dispersed within a building, each could advertise the others’ products to the customer.
To Engage with Loyal Customers
One of the most common features of an intelligent vending system is its ability to integrate with a company’s loyalty program. This will allow it to accept more payments.
In Japan, Coca-Cola has partnered with a smartphone app known as “Coke On” to provide its customers with a loyalty program that allows them to collect points when they use their phones to purchase from the vending machine. This program offers the company various benefits, such as customer loyalty.
In Australia, Coca-Cola experimented with a different type of intelligent vending machine. It was designed to provide customers with a personalized experience while collecting data.
Aside from connecting to the internet, AI vending machines should also be able to use digital displays. This allows the company to enhance its offerings and provide a better customer experience.
With the help of AI, this new type of vending machine can be fully functional and provide a personalized experience for its customers.
To Showcase the Coke Brand & Products
Traditionally, vending machines have been used as prominent advertisement points for a brand. However, in recent years, they have also become more sophisticated, allowing the use of high-quality images and videos.
The concept of an intelligent vending machine was first introduced by Coca-Cola almost a decade ago. This new machine was designed to provide a more personalized experience for its customers.
The first version of the “freestyle” vending machine allowed customers to customize their drinks. It then created the exact drink they wanted based on the selected range.
New generation machines of the company’s Freestyle line have a large touchscreen and a mobile app. However, they also have various dormant features that can be activated later.
The future of AI and Coca-Cola’s use of it is still unclear. However, the company could develop various AI-powered products with the proper hardware and connectivity.
The humble vending machine has the potential to become a smart device that can rival the capabilities of home appliances. It can also provide Coca-Cola with valuable data.
Ways Coca Cola Uses Big Data & AI in Their Vending Machines
It is no doubt that Coca-Cola has a lot of time and resources invested in this area. The company has an impressive market share in the vending machine industry and is constantly looking for new ways to improve its marketing and business operations. In addition, the data collected through its various marketing activities has been used to inform its business models and strategy.
AI in Coca Cola Vending Machine
The goal of the machine is to enable the collection and management of sales and recycling data. It can also automate the logistics of the supply chain.
Through facial recognition technology, consumers can now pay for their drinks using their smartphones. They can also collect credits by recycling their bottles.
The company’s vending machines now feature an AI-based system that can perform various tasks, such as identifying the customer and retrieving their bottles. There are also two “eyes” that can assist customers in accessing their purchases.
In China, The Coca-Cola Company has introduced an AI-powered vending machine that allows its customers to recycle and purchase refreshments. Through this machine, the company can achieve its goal of reducing its environmental impact.
Big Data in Coca Cola Vending Machine
The company’s robust information-driven methodology allows it to provide its customers with the best possible service. Through the use of AI, Coca-Cola collected vast amounts of data that can be used to improve its operations.
Coca-Cola’s ability to collect and analyze data has allowed it to improve the products and services it provides. For example, the dispatch of a novel flavor Cherry Sprite was attributed to the insights that the company collected from its customers. In addition, through the vending machines’ ability to identify the ideal combination of flavors, Coca-Cola created an instant refreshment that was refreshing and entertaining.
Android Pay Dispatches in Coca Cola Vending Machines
Coca-Cola reported that it had activated more than a thousand vending machines in North America in 2015. Through Android pay, its customers can now enjoy the convenience of buying and redeeming their drinks. During that time, Google revealed the Android pay system, which was designed to enhance consumers’ decision-making and safety capabilities when it comes to paying for things with the help of their smartphones.
Additional Benefits of AI Vending Machines Beyond Data
The benefits of intelligent vending machines go beyond producing drinks and collecting data. They also demonstrate the human side of AI.
Coca-Cola partnered with a chatbot company to develop the machines. As a result, they could create a chatbot personality that could interact with the customers.
The best chatbots are designed with an appreciation for the brand they represent and the personality that fits that brand. For example, Coca-Cola’s machines can also customize their characters to reflect the location of the machine.
For instance, a vending machine in a university might have a fun personality while one in a hospital might have a more sober one. Through the use of AI, Coca-Cola created a personalized experience for its customers.