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Cellular Connections You Never Knew Existed

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You drive into a gas station and notice the LED sign that reads how high the Powerball® is this week. You pull up to the pump and make a mental note to buy a ticket. As you wait for your tank to fill, the screen on top of the pump shares today’s weather and a few specials you can find inside. Then, you walk into the gas station to buy that lottery ticket. The lottery register greets your purchase, and you’re ready to move on with your day—hopefully with the winning ticket in your pocket.

During your time at the gas station did you ever consider how many wireless connections were at work? Probably not.

When you do think of wireless connections, it’s likely Wi-Fi hotspots or smartphone payment tools like Square that come to mind. However, there are many little-known and less visible ways that retailers and service providers use 4G LTE connections to make operations work. From digital signs to lottery terminals, wireless connections help make our world go around in ways you may have never imagined. They’re all working to create an experience for you as a customer and a return for merchants and manufacturers. Let’s dive deeper into a few applications where invisible wireless “workers” are impacting your retail environment.

Lottery TerminalsScreen Shot 2014-07-15 at 10.20.07 AM

Tucked behind the counter at your local convenience store, you’ll find that signature register or lottery terminal. You might just think of this as the machine that prints your easy-pick, but if the terminal gets disconnected the vendor is on the hook for much more than your ticket alone. It’s up to the store to ensure the machine is up and running at all times, so no revenue is lost. In fact, the damage can add up to more than all of the numbers on your ticket combined. For that reason, many of these terminals are connected to a datacenter with both a satellite and a 3G or 4G LTE connection.

Although the vast majority of lottery revenue is returned to players in prize money, the remainder pays for the operation of the lottery—including paying the retailer for hosting the lottery terminal. More importantly, the lottery also contributes hundreds of millions of dollars to state budgets. In 2012 in the state of Minnesota alone, $124M was contributed to funds such as environment and natural resources, game and fish, metropolitan parks and trails, zoos and infrastructure. The State Gaming Commission authorizes one vendor to operate their entire statewide lottery. In exchange for that level of access, the commission holds the gaming contractor accountable to maintain a high service level. If terminals aren’t able to communicate, the gaming contractor can be held accountable for damages of $20 per minute or more—per terminal.

Tire Air Vendingairtire

Hopefully, it’s your lucky day and you have a winning ticket in your pocket, but in the case that your day started out rough and your dealing with a flat tire, you can pull up next to an air-pump kiosk. Don’t have change? No problem. Swipe your credit card and the transaction is sent over a cellular connection.

While the connection makes payment collection more convenient for you, there’s a lot more at stake than meets the eye. In the past, technicians had to phisically visit every single machine to empty the coin bin– whether it was full or not. Not, a cellular connection enables the machine to report back how full the coin bin is, along with the health of the machine. This saves the manufacturer millions of dollars in employee and transportation costs, and it ensures all machines are up and running properly creating even more revenue– not to mention better customer service for the retail operations that host these machines.

In many cases, manufacturers experience a loss between money collection and revenue that makes it back to the business. In one example, receipt reconciliation loss was $11M per year. In the first year, a connection improved that loss by 80%, providing a bottom line impact of $8.8M. Lack of pick-up optimization (sending someone to collect the money after the machine is already too full to accept more coins) created an annual loss of $5.5M; that was improved by 50% and impacted the bottom line by almost $3M. Downtime, which caused the most significant loss at $12M per year, was improved by 30%. With numbers like these, an air vendor could easily double the value of the system in one year alone.

Charging Stations & Digital Signs

Have you ever charged your mobile phone while enjoying a cup of coffee at Starbucks? If you have, you know that finding a free plug in a packed coffee house can be hard. These charging stations can be even more valuable at the airport —we’ve all fought for that prime spot in the flight gate waiting area. Now, Monster Media has created a digital experience to accompany the convenience. You’ll see a digital ad while your phone or laptop is being charged. That content is delivered by a 4G LTE connection—the same type of connection that can also deliver information to the display screen on a gas pump.

Wireless charging stations are a huge value-add to customers, and in Starbucks’ case they encourage people to stick around longer—which leads to more coffee sold. For advertisers, this value can be paired with their message—a message that might even be specific to your currently location. Similarly, at the gas pump, customers have the convenience of catching the news or relevant information while pumping gas, and gas stations are able to advertise deals to lure customers into the store to make purchases.

Bottle Recycling Machine

For some of us, returning bottles is a well-known past-time. But for many states, reverse vending machines are becoming common-place. In either case, the system enables consumers to recycle, make money and keep neighborhoods clean. Recycling is so popular today that machines can fill up fast, which causes downtime. How does the vendor know when the machine is full? A cellular connection to HQ. recycling-logo

rePLANET added a cloud connection to their recycling center solution. Without a wireless connection to the machine, a technician would have to drive hours, costing the company hundreds of dollars. Now, with a wireless VPN connection, the machine reports its capacity remotely. The technician’s PC can be remotely controlled with the cellular connection to get updates and new configurations. The new method costs less than 20% of the cost of drive time and shipping and takes about 10% of the total time previously required to correct problems.

So, the next time you pull up to a gas station or visit a store, take a closer look at the digital sign, lottery terminal, air pumps and bottle recycling machines—you won’t be able to see the wireless connection, but you can be sure that it’s working for you and for the stakeholders who put it there. Those wireless connections are making your life easier and more interactive, and driving revenue and extreme savings for organizations all around the world.

Want to learn more about how businesses are using cellular technology? Check out this story to see how Tel-O-Fun is using cellular connections to handle bike rental payments in Tel Aviv.

This Week in the Internet of Things: Friday Favorites

The Internet of Things is developing and buzzing all around us. Throughout the week we come across innovative projects, brilliant articles and posts that support and feature the innovators and companies that make our business possible. Here’s our list of favorites from this week’s journey on the Web.

Why the Internet of Things will Disrupt Everything | Wired

How an Intelligent Thimble Could Replace the Mouse in 3D Virtual Reality Worlds | MIT Technology Reviewdigix2-sg1-300x300

XBee Internet Gateway Update Released

The Internet of Small Things Spurs Big Business | InformationWeek

Internet of Things and Connected Retail Experience | Wired 

Please tell us in the comments below or Tweet us, @DigiDotCom- we would love to share your findings too. You can also follow all of the commentary and discussion with the hashtag #FridayFavorites.

Retail Innovation Soars with Secure and Reliable Cellular Connections

The web has raised consumers’ expectations of retail stores and transformed the purchasing process. Brick and mortar shops need to find ways to compete with the convenience offered by online shopping. Retailers are using wireless connected devices and new technology to create an interactive experience for their customers. In this video, learn how store owners are using cellular connections to make retail systems secure, reliable, and innovative.

 

Click here to learn more about Digi’s new cellular router, the WR11.

Using Sensors for Unique Business Intelligence in Retail

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Warby Parker is opening up its first full-fledged store (beyond its showrooms) and is using sensors, Wi-Fi and other technology to understand how people use their retail space, and take that data and marry it with their online sales trends.

But this isn’t just another retail store, co-founder Neil Blumenthal told me [Om Malik] in a conversation a couple of weeks ago. Instead, the company is using sensors, Wi-Fi and other new technologies to understand how people use its retail space, taking that data and marrying it with its online sales trends and other information. As a result it can come up with unique business trends that not only lead to more interesting pricing models but also help give its design and sales teams vital intelligence.

Watch the video and read the full article on GigaOM

Warby Parker

 

What other retail brands do you of that are capitalizing on the Internet of Things to get closer to customers and increase revenue?

This Week in the Internet of Things: Friday Favorites

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The Internet of Things is developing and buzzing all around us. Throughout the week we come across innovative projects, brilliant articles and posts that support and feature the innovators and companies that make our business possible. Here’s our list of favorites from this week’s journey on the Web.

CES 2013: The ‘internet of things’ opens up huge possibilities for retailers on The Drum

CISOs Move “Internet Of Things” From Incidental To Important on BizTech2.com

28 Internet of Things (IoT) Trends and Prediction Articles for 2013 on HorizonWatching

Maximizing the value of M2M for industrial applications on Industrial Embedded Systems

2013 M2M and Internet of Things Conferences and Events

Do you have a link to share? Please tell us in the comments below or Tweet us, @XBeeWireless — we would love to share your findings too. You can also follow all of the commentary and discussion with the hashtag #FridayFavorites.

The Internet of Things and Retail: What to Expect on Black Fridays to Come

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Black Friday is only a couple of days away. With all of the talk about shopping, we couldn’t help but think of the Internet of Things and its impact on retail experiences. Here are 5 ways your shopping experience could or may have already changed as the Internet of Things evolves.

On Demand Information 
One of our favorite XBee projects, the TeamLab Hanger, demonstrates how the Internet of Things can offer an on demand information to shoppers while they’re making purchase decisions. This interactive hanger is used as a platform for the fashion industry. As a customer picks up a piece from the clothing rack, a television screen displays the piece on a runway providing a visual experience and options for how the piece can be worn.

Radio Frequency Identification (RFID) & QR Codes
RFID technology allows automatic identification of objects with the help of a small electronic chip. The data stored on a RFID tag can be read by wireless devices. Retailers can use these tags to increase inventory accuracy and better meet customer expectations. While RFIDs are helpful to manufacturers, QR codes can be helpful to buyers. There are many mobile apps, like Consmr, which allow consumers to get inside information on products that isn’t readily available by examining the product on the shelf.

Products and Shelves that Care for Themselves
The Internet of Things can help manufacturers and store owners optimize efficiency by receiving automatic alerts when products need serviced or shelves need stocked. Anything from a vending machine jam to an empty endcap– devices can communicate when human action is needed.

Store Environment
Sensors can detect the store’s environment and affect it accordingly. This can help staff ensure that you’re getting the intended and usually carefully crafted experience. It can also give stakeholders real-time information on the store’s condition at any given point in time. Sensors can communicate and control the physical environment such as light, sound and temperature– they can even count people in the store to analyze foot traffic.

Consistent Experience
Data from machines paired with sales data can help businesses ensure a quality experience across multiple locations. As a simple example, take fast food. When visiting a fast food restaurant, we rely on a consistent experience. If the corporate division of a fast food franchise can see when a location needs to make a change based on local machine data, stakeholders have more control on quality and consistency without being physically present at store roof-tops.

Which technologies will prevail and reshape our retail experiences? Only time, and you, will tell. As Marc Weiser said, “The most profound technologies are those that disappear. They weave themselves into the fabric of everyday life until they are indistinguishable from it.” The next time you’re in a store, maybe in the early hours of the morning this Friday, ask yourself if the Internet of Things has changed your shopping experience without you noticing.

Do you know of a great Internet of Things innovation you’d like us to talk about? Let us know in the comments section below or on Twitter.

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