Automatic Merchandiser - 30

via the 365Pay app. In many ways, it
catapults our operators beyond even
what main street retailers can do today."
Johnson explained that Yoke enables
operators to offer promotions by
sending push notifications to customers through their mobile app. Going
an extra step, operators can also email
users about a promotion or send them
a coupon that they can add to their
loyalty card and then redeem later.
"Some promotions are designed to
build happy, loyal, repeat customers that
feel appreciated, but you also want to use
these tools to drive consumer behavior,"
Johnson said. "A redeemable coupon
keeps someone from just coincidentally
saving money on something they were
going to buy anyway. When you push
someone a deal that gets added to their
wallet, it can actually change consumer
behavior. You want to encourage people
to buy, but to buy more than what they
would have otherwise."
Jorquera said that operators and
brands can subtly increase sales of specific products by up to 50% by displaying selected products as the first items
to appear when consumers open vĪv.
"Operators can promote specific
products without directly advertising to the consumer that particular
products are being promoted," Jorquera
explained. "It can be thought of as
'advertising without advertising.' Most
consumers don't want ads prominently
displayed to them and usually dismiss
them. vĪv product promotions influence consumer purchases without
them even realizing it and consistently
increases purchases."
OVERCOMING BARRIERS

Promotions only work when they're
properly conceptualized and executed,
and if micro market customers are
aware of them.
"It's all about driving awareness of
these programs and having a sustained
marketing plan like a retailer would,"
McWhirter said. "If you're simply wait-

Automatic Merchandiser * June/July 2020

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build a loyal, engaged customer base
and drive consumer behavior.
PARTNERING ON PROMOTIONS

"Some promotions are
designed to build happy,
loyal, repeat customers
that feel appreciated,
but you also want to
use these tools to drive
consumer behavior."
Michael Johnson, Yoke's co-founder
and CEO

ing to see what you have extra inventory
of in the warehouse to run a fire sale on
that one product, you're doing it wrong."
According to Johnson, getting users
on board has always been a key to success for micro markets.
"It sounds so simple, but in this
self-checkout, contactless, human-less
environment, it's easy to forget, but it's
all about awareness," Johnson added.
"Especially coming from vending, when
you're transitioning into micro markets,
you've got to have more of a retailer's
mindset. Retailers don't just put products on the shelves and hope they sell.
They're engaging customers, they've got
marketing, and they're building a genuine connection between their brand and
those customers. You could go through
your portal and build the world's greatest promotion, but if that doesn't reach
people, you're wasting your time."
Johnson said that any time a new
market opens, operators should hold
a grand opening, sending someone
to physically sit in the market (ideally
during a busier time, like the lunch
rush) and inform new customers about
how the loyalty program works and
sign them up for it. Doing a "re-grand
opening" as needed is also helpful, even
as often as once a month, in order to

When it comes to utilizing advertising and marketing campaigns to drive
promotions, operators are not alone.
They can partner with suppliers on
advertising and marketing campaigns
to push promotions out to their highly
desirable audience of loyal micro market customers.
"By having a collaborative partnership with suppliers or brokers - they
order in bulk and can get discounted
pricing - operators can get special
deals." Reilly said. "Also, work with
manufacturers or partners to introduce new products. A lot of the time,
manufacturers will offer collateral
and support in introducing these new
products with swag, giveaways or
promotional discounts."
Partnering with brands and food
providers is a course of action that
Vagabond always recommends to vĪv
Market operators, Jorquera added.
"By forming partnerships, the
operator can shift the cost of discounts
from themselves to supplier partners
and brands," he added. "Product brands
and operators can target particular
consumers with specific promotional
programs through direct mail or by
promoting specific products at the vĪv
sale point to support all efforts as well."
365 Retail Markets has a relationship with Advana, a company that
specializes in organizing targeted
campaigns with consumer packaged
goods (CPG) brands that manufacture
food and beverages sold in micro markets. Ads are pushed out on screens on
vending machines, digital displays in
cafeterias or kiosks in micro markets.
"Advana creates relevant ads
tailored for each of those devices,"
McWhirter explained. "Advana can
work with brands and operators alike
to transmit content to our 20,000+
screens across the globe."

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