Retail Smart Vending Machines Deliver the Goods Boost Sales and Cut Costs with the Internet of Things By Mark Scantlebury, Associate Editor Yesterday’s vending machines were mechanical systems designed simply to take money and dispense merchandise. They offered limited visibility into consumer behavior. Today this is rapidly changing. Powerful processors and the Internet of Things (IoT) are revolutionizing the industry, creating inviting experiences that build sales and help vendors optimize their offerings and operations. This article looks at the benefits of IoT vending machines, and provides an under-the-hood look at one of these machines, the Costa Express CEM-200 shown in Figure 1. Through this example, we show how Costa Coffee was able to increase sales, improve operating margins, build customer loyalty, secure transactions, and deliver customer insight by using Intel ® technologies. Key elements of an intelligent vending machine include: • High-quality graphics, video, sound, and other sensory stimuli • Personalized, highly responsive touch-screen and gesture-based interaction • Flexible payments, including cashless transaction options • Intelligent cross selling and couponing, and customer relationship management systems such as loyalty cards • Telemetry data to remotely monitor inventory We also demonstrate the value of working with the Intel ® Internet of Things Solutions Alliance (Intel ® IoT Solutions Alliance), including Affiliate member Bsquare and Associate member Microsoft. From modular components to market-ready retail systems, Intel and the 250+ global member companies of the Alliance provide scalable, interoperable solutions that accelerate deployment of intelligent devices and end-to-end analytics. Close collaboration with Intel and each other enables Alliance members to innovate with the latest tech- nologies, helping developers deliver first-in-market retail solutions to increase sales and efficiency. The Need for Intelligence Adding intelligence and connectivity to vending machines can greatly improve the customer experience, attracting more customers and boosting sales per transaction. Interactive interfaces can make purchases more enjoyable, and can provide valuable information like ingredient lists and nutritional data. Telemetry enables use of fresh ingredients that might spoil in a traditional machine. Together, an improved user experience and a higher quality product can increase customer willingness to pay premium prices. Figure 1. The Costa Express CEM-200 uses technologies and services from Intel and the Intel ® Internet of Things Solutions Alliance. intel.com/embedded-innovator | Embedded Innovator | 10 th Edition | 2014 | 35