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Between the Aisles: The Vending Machine Evolves

Here’s what you’ve might have missed in the last week or so:

Inside of the Grocery Mind of Amazon Leadership

Recode’s Jason Del Rey shares a revealing interview with Stephenie Landry, Amazon’s VP of Grocery. Learn how they handled their pandemic-powered growth. How Whole Foods challenges its omnichannel offerings. And their smart shopping cart that enables Amazon Go stores. Be sure to stay for the Q&A at the end.

My Take: The media might focus on Amazon’s technology advances. Landry reinforced their drive for consistency and quality of their delivery experience. Amazon’s drive for perfection is foolishly overlooked by most grocers.

The Vending Machine Evolves

Amazon isn’t the only company to corner checkout-free commerce. Those ugly glass food coffins have found their end. SF-based Standard partnered with the University of Houston to create Market Next. This micro convenience store offering the usual beverages, snacks, and sandwiches. The integrated app and a set of cameras will end your fear of wrinkled dollar rejections.

My Take: These white-labeled technologies put vending machines and corner bodegas on notice. I can’t wait for the startup that masters the beer, spirits, and wine retail space.

How Packaging Birthed Modern Grocery

I’m a big fan of Benjamin Lorr’s new book: The Secret Life of Groceries. If you want a taste of his storytelling savvy, check out the interview on Marketplace.

My Take: The evolution of an industry is always multifaceted. If books like the one above garner your attention, read The Box. This page-turner retells the evolution and impact of the humble shipping container.


Between the Aisles is a weekly quick read on relevant grocery and other retail industry news.

Between the Aisles: Farmstead Goes White

Here’s what you’ve might have missed in the last week or so:

Walmart Goes QR

Customers at 70 Sam’s Club locations will speed their time at the gas pump. With Scan & Go Fuel, customers won’t have to dig for their membership card. Users scan a QR code and select a payment method to activate the pump. They added Scan & Go four years in-store and expects to complete the rollout to 518 stores by yearend.

My Take: QR codes are a tired technology and often leveraged as a solution looking for a problem. That said, extending this feature to the pump might drive more adoption in-store.

 

Hardware Goes High Fashion

Lowe’s provided furnishings for virtual shows during New York Fashion Week. Three designers got free flooring and furnishings. The retailer also streamed their events streamed on its Twitter account. Result: Lowe’s scored a bulk of the social media mentions.

My Take: Beware of who you partner with as a brand. And I do hope these designers got a cut of Lowe’s online sales.

 

Farmstead Goes White

Local grocery startup Farmstead will white label their platform for US-base retailers. Rebranded as Grocery OS, their platform will manage inventory, orders, and delivery logistics. And they claim “National two-hour delivery.”

My Take: Developing internal technology and implementing externally are two very different tasks. This is especially true when your customers are tech laggards. And as a current Farmstead customer, I still can’t get groceries from them within two hours.


Between the Aisles is a weekly quick read on relevant grocery and other retail industry news.

3FER: Strange Mobile Bedfellows

Beacons leading the blind

Our growing mobile habits have created strange bedfellows recently. They’re tracking our whereabouts. Hoping we kick our card swiping habits. And bringing dating to business. It’s been an odd few weeks.

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#1: Beacons applied.

After three years of buzz, these Bluetooth low energy devices are starting to meet their promise. Big box and even small retailers have installed them for in-store engagement. Airports are using them to guide the visually impaired. And they’re even comping free sodas to moviegoers as they enter theaters. Here is a small taste of them in action:

Target Launches Beacon Test In 50 Stores, Will Expand Nationwide Later This Year (TechCrunch)

99 Ranch Market uncarts beacon-powered WeChat game for shoppers (Mobile Commerce Daily)

Indoor mapping lets the blind navigate airports (Smithsonian)

Coca-Cola has taken a step closer to using beacons to turn location-based marketing on its head (The Drum)

Imagining a beacon-filled world in Columbus, Georgia (Fast Company)

Apple, Google and the State of the Enterprise Beacon Market (Estimote)

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#2: Apple Pay ain’t.

A year ago, banks raced to adopt Apple Pay. Many retailers were boasting their acceptance. And even the US Postal Service was trying to share in the Apple’s limelight. There’s one key group that isn’t all that excited about this mobile wallet: users. iPhone users aren’t making Apple Pay a habit:

Apple Pay Declining Use (Pymnts)

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#3: Forbes does dating.

We’ve spent billions hoping to connect with others. The most recent dating darling is the app, Tinder, where users swipe left or right on the hunt for the next mate. America’s venerable business bible is hooking up with Tinder to target twenty-something professionals:

Forbes Taps Tinder To Launch ‘Under 30’ Network (MediaPost)

Forbes blends LinkedIn, Tinder formats in exclusive mobile networking community (Mobile Marketer)

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(Photo Credit: SFO)

Timing is everything — especially in startups.

You need to be pretty durable to be an entrepreneur. It’s said that the best lessons in are often the most painful emotionally and financially. And entrepreneurs get hit by these type of lessons almost daily, sometimes twice.

I awoke this morning to find the New York Times had just the ripped the duct tape off an old, painful wound:

In early 2011, I sunk my life savings to launch PoliMobile. We would bring mobile marketing tools into the world of political campaigns. I didn’t make this decision lightly. I spent six months speaking to politicians, political campaign managers, party officials and others. It was enough due diligence to risk it.

Three years of 70-80 hour weeks, two pivots and some successes followed. I left the decision to the results of a meeting of a 20-something campaign staffer. (I won’t mention the campaign. I respect Al Franken.)

He proved to be a carbon copy of most campaign staffers. He was young, clueless, not curious and somehow arrogant despite this being his second race. He preached that young voters would never connect with campaigns using mobile. His iPhone never left his hands.

Moments later, I happily killed off my startup. I never looked back on those three years until this morning’s tweet, but I learned these lessons.

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#1: Due diligence never ends.

While in development, we checked in the with a group of political advisors. They provided excellent feedback. It helped us create a great platform that solve critical issues.

Unfortunately, I was asking the wrong questions to the wrong people. The BETA of our platform got great reviews. The question I didn’t ask the right people is “what you pay for this?” No campaign wanted to buy it..

The reality is that 90% of all the money campaigns raise goes into media buys. The rest goes for food for the volunteers and minuscule salaries for those who manage them. Outside of the candidate in a few key campaign staffers, the rest tend to be pretty worthless.

Those key campaign staffers got to their positions by following the status quo. They stuck to using outdated campaigns tools: lawn signs, direct mail and broadcast media.

Never quit doing due diligence. You can always pivot sooner than later.

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#2: Customers pay you.

Startups put a lot of weight on building a sizable user base. They invest hordes of funds to get users. And adapt to keep them.

Users don’t matter. Customers do.

Many campaigns signed up for trials. We invest new features based on some of the feedback we received. Unfortunately, most of them never used our platform for one key reason: they never paid for it. No matter how much you give away, most will never use what they won’t buy.

Focus on those who pay. Fuck the rest.

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bernie-sms

#3: Timing is everything.

You could do everything perfectly. You could have a few paying customers to validate your work. But if the market is not ready it doesn’t matter.

PoliMobile was ahead of the curve. We launched time when mobile was in heavy use with consumers. Some enterprising campaigns had great success with mobile tools like we offer. Most campaigns today are still not ready for what we offered in 2011.

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I ran into that same campaign staffer later. He was pushing bean water at a second tier coffee chain and didn’t recognize me. I left him an $8 tip on a $2 tea in thanks. He saved me from another few years of pain.

3FER: Moto Me!, Amazon smart buttons & killing a connected Chrysler

Chrysler can't get a brake.
Chrysler can’t get a brake.

As a newly minted Chicagoan, it’s great to see a local company gain some mobile street cred. I’m now tempted to finally become an Amazon Prime member. And I’m glad that I decided against purchasing that new Jeep.

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#1: Moto Me! Motorola had a great week.

Glad to see positive media coverage coming from Chicago instead of Cupertino for once. A year after its breakup with Google, Motorola has shown it can still innovate:

  • The new Moto G proves that it understands the needs of emerging market consumers. (Doesn’t Apple still push the iPhone 4 in India?)
  • The Moto X will offer a better battery and camera than the iPhone 6 at half the price. And Motorola’s direct-to-consumer push eliminates carrier bloatware and draconian controls.
  • The new Moto Pulse and Moto Surround headphones offer battery life and range unmatched by others. And they even made dramatic improvements to the Moto Hint.

(Full disclosure: I’m a Motorola fan boy who owns a Moto X, 360 and Hint.)

Motorola Announces Moto X Style, Moto X Play, and Moto G (Droid Life)

We All Need Motorola’s Direct-To-Consumer Approach With the New Moto X to Succeed (Droid Life)

Motorola also outs Moto Pulse and Moto Surround wireless headphones (GSMArena)

Motorola quietly launches 2nd generation Moto Hint headset (GSMArea)

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#2: Amazon releases a Dashing connected device.

Mastering context is critical when it comes to mobile engagement. Achieving it is also damn near impossible for consumer packaged goods (CPG) marketers.

So when Amazon partnered with CPG brands to capture those mobile moments, magic happens. Starting this week, Amazon Prime customers can buy Dash Buttons at $5 a pop. (Why aren’t free?)

These handy, branded devices will place set orders for more Tide detergent, Huggies diapers and a range other products with a touch of a button. You confirm all orders online or with their mobile app. So your cute kids can’t order a surprised pallet of mac and cheese.

Now when will Amazon start stocking alcohol?

Amazon Dash Buttons Are Now Available to All Prime Members (LifeHacker)

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#3: Chrysler confirms our connected car fears.

Auto companies want to supplant our smartphone addiction. (Bluetooth connectivity is so 2011.) Moms want to download directly from iTunes on the road to pacify those brats with Spongebob Squarepants.

Seems that innovation doesn’t come without consequences.  Fiat Chrysler recalled 1.4M vehicles this week a dangerous security flaw appeared. Two hackers cracked their Uconnect system. They disabled the brakes as a journalist sped down the road at 70 MPH.

The journalist and Chrysler’s reputation ended up in a ditch.

Hackers remotely kill a Jeep on the highway–with me in it. (Wired)

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(Photo Credit: Andy Greenberg/Wired)