It was just a few years ago that brick-and-mortar retailers were scrambling, trying to find ways to remain fresh in the wake of surging e-commerce companies. Many traditional retailers assumed that companies like Amazon would be the death of the in-person shopping experience. Now, brands (Amazon included) are once again looking to brick-and-mortar spaces as a way to experiment with the ever-evolving relationship between retail and technology.
On the cutting edge of this frontier is Vengo, an unorthodox vending machine/brand promotion hybrid. No, Vengo is not loaded with stale pretzels and Necco Wafers, but computer accessories and upscale beauty products.
“If companies want to earn brand loyalty and inspire customers to make that crucial first purchase,” said Vengo co-founder and CEO Brian Shimmerlik, “they need to be where customers are and that’s both online and in store. Specific to offline, we’re seeing that those brands that can deliver to a customer at exactly their moment of need are at a huge advantage.”
Vengo’s sleek machines can be found everywhere from New York University dormitories to Hyatt hotels. Don’t expect them to look similar to each other, or stock the same products though — part of what makes Vengo unique is its customizability. While Vengo machines on college campuses are likely to include college-specific logos and contain Macbook chargers and midnight snacks, you’re more likely to find a Vengo full of Kiehl’s products in a hotel bathroom.
The brand that figures out how to be exactly where you are at the moment of need is going to win you over as a customer.”
These are not random, or even intuitive decisions on Vengo’s part — but marketing decisions rooted in Vengo’s in-depth data and analytics, which help brands better understand what consumers are looking for in an on-the-go or spur-of-the-moment purchase.
“Think about it,” Shimmerlik said. “If you’re walking into the gym and realize you forgot your post-workout deodorant and the gym has it available for you to purchase, you’re going to buy whatever brand is in front of you rather than walk down the street to Duane Reade. The brand that figures out how to be exactly where you are at the moment of need is going to win you over as a customer.”
Vengo isn’t the only company to explore the relationship between technology and retail — Amazon presently operates a successful bookstore in New York City, and is experimenting with cashier-less retail in Seattle. San Francisco-based clothing e-tailer Everlane drew thousands to the opening of their New York City boutique.
Perhaps this marriage of tech and brick-and-mortar retail is an inevitable closing of the buying loop. E-commerce rose to prominence for its ability to give us anything, at any time. Now, tech companies are using their data and technologies to transform brick-and-mortar locations into an extension of this on-demand approach.
Statistics recently compiled by the Harvard Business Review indicate that in-person retail results in far more conversions (i.e. purchases) than pure e-commerce. While the average e-tailer sells a product a customer views just four percent of the time, brick-and-mortar retail has the potential to drive between 20 to 40 percent of merchandise.
In a recent interview with AdWeek, Clorox CMO Eric Reynolds discussed how companies are working to bring the “experience” of in-person shopping to the online world using tools like social media, customer support, and a community atmosphere on their site.
As the relationship between e-tail and retail deepens, Shimmerlik noted that shoppers can expect an even more individualized experience. “As data and retail systems get more sophisticated, and a customer’s unique information and shopping history can be accessed from any device, brands will be able to offer custom shopping experiences, price targeting, and loyalty bonuses at any point the customer interacts with the brand.”
Though shopping may look very different today than it did ten years ago, you can bet that this is not the end of the road for e-commerce experimentation. Perhaps, another ten years from now, we will be having this same conversation, wondering what’s to come after Amazon’s delivery robots.
