Boost Your Vending Machine Business with these Top 7 KPI Metrics!

Welcome to our latest blog post dedicated to the top seven vending machine KPI metrics! As an experienced serial entrepreneur, I understand the importance of tracking and calculating key performance indicators to improve my business operations regularly. And this is especially relevant in the vending machine industry, where every penny matters, and every decision counts. Did you know that the global vending machine market size is projected to reach almost $45 billion by 2025, growing at a 9% compound annual growth rate?

With such a bright outlook, it's no wonder that vending machines have become ubiquitous in public spaces, schools, offices, and convenience stores. They offer convenient, fast, and affordable solutions to hungry and thirsty people on the go. However, not all vending machines are created equal, and not all KPIs are equally relevant to all businesses. For instance, did you know that the average revenue per vending machine can vary from $500 to $3,000 per month, depending on the location, type, and products sold?

This is why we have compiled this list of the top seven vending machine KPI metrics you should track and calculate to boost your performance, profitability, and customer satisfaction. Our expert tips and real-life examples will help you make informed decisions, streamline your operations, and stand out from the competition. So, without further ado, let's dive into it!

• Repeat customers: A repeat customer is a happy customer who trusts your products and service enough to come back for more. This KPI measures the percentage or frequency of customers who return to your vending machines over time and can help you gauge your brand loyalty, pricing strategy, and product mix.
• Average revenue per vending machine: The average revenue per vending machine is a critical KPI that can help you assess the profitability and viability of each machine unit in your fleet. By tracking how much money you make per machine per day, week, or month, you can optimize your pricing, product assortment, and maintenance schedule.
• Number of eco-friendly packaging used: The number of eco-friendly packaging used is becoming increasingly important for vending machine operators who want to reduce their carbon footprint and appeal to environmentally conscious customers. By tracking how much plastic, paper, or recyclable materials you use, you can reduce waste, save costs, and improve your brand image.

Number of repeat customers

As a vending machine operator, the number of repeat customers is a critical performance metric. This KPI helps determine the loyalty of your customers and the success of your business in retaining them over time. The following sections provide a detailed explanation of the Number of Repeat Customers KPI:

Definition

The Number of Repeat Customers KPI measures the total number of customers who made repeat visits to your vending machines over a specific time period. Repeat customers are those who have made at least two purchases within the timeframe.

Use Case

The Number of Repeat Customers KPI helps vending machine operators understand the loyalty of their customers and their business's ability to retain them. This KPI enables you to identify strategies to improve customer retention, such as offering loyalty programs, targeted promotions, or improving product selection.

How To Calculate KPI

Calculate the total number of repeat customers by identifying customers who made two or more purchases during the timeframe. Then calculate the total unique customers that visited your vending machines during the same timeframe. Divide the total number of repeat customers by the total unique customers to get the Number of Repeat Customers KPI.

Calculation Example

Suppose you have 100 unique customers that visit your vending machines in a month, and 20 of these customers make two or more purchases during the same timeframe. In that case, the Number of Repeat Customers KPI is 20%.

KPI Advantages

• The Number of Repeat Customers KPI helps you understand the loyalty of your customers and your business's ability to retain them.
• This KPI enables you to identify strategies to improve customer retention and increase sales from repeat customers.
• By improving customer loyalty, vending machine operators can create a more stable revenue stream over time.

KPI Disadvantages

• Although the Number of Repeat Customers KPI is a valuable metric, it does not account for changes in the number of unique customers over time.
• This KPI also does not provide insights into overall sales performance or profitability.

KPI Industry Benchmarks

The benchmark for the Number of Repeat Customers KPI varies depending on the vending machine's location and the industry. However, in general, a repeat customer rate of 20-30% is considered good in the vending machine industry.

Average revenue per vending machine

When it comes to measuring the success of your vending machine business, average revenue per vending machine is a crucial KPI. This metric will help you determine if your machines are generating enough revenue to cover expenses and turn a profit. Let's dive deeper into this KPI by exploring its definition, use case, and industry benchmarks.

Definition

The average revenue per vending machine KPI measures how much money, on average, a single vending machine generates. This KPI takes into account all revenue, including cash and credit card sales, and calculates the average over a specific period of time.

Use Case

The average revenue per vending machine KPI is useful for vending machine business owners who want to understand the revenue potential of their machines. By tracking this metric, business owners can determine which machines are the most profitable and identify trends that may impact revenue, such as location, product selection, and pricing strategies.

How To Calculate KPI

Calculation Example

Let's say you have five vending machines that generated a total revenue of $10,000 over the course of a month. To calculate the average revenue per vending machine KPI, you would divide the total revenue by the number of machines:

Therefore, the average revenue per vending machine for the month is $2,000.

KPI Advantages

• Provides insight into individual machine profitability.
• Helps identify trends that may impact revenue.
• Allows for targeted strategies to increase revenue.

KPI Disadvantages

• Does not account for costs associated with running vending machines.
• May not provide a complete picture of business profitability if some machines are consistently unprofitable.
• Can be impacted by external factors, such as changes in consumer behavior or product demand.

KPI Industry Benchmarks

The average revenue per vending machine metric can vary widely depending on the type of products sold, the location of machines, and other factors. In general, industry benchmarks range from $2,000 to $3,000 per month.

Number of eco-friendly packaging used

As the world becomes increasingly environmentally conscious, tracking the number of eco-friendly packaging used is an important metric in the vending machine industry. This metric shows the extent to which vending machines are contributing to sustainable practices, whether it’s through using biodegradable containers or encouraging recycling.

Definition

The number of eco-friendly packaging used KPI tracks the number of biodegradable, compostable or recyclable packaging materials used by a vending machine over time. This KPI not only measures the environmental impact of vending machines but also indicates the level of responsibility shown by the vending machine operator in contributing positively to the sustainability agenda.

Use Case

As a vending machine operator, it’s crucial to track the number of eco-friendly packaging used if you want to position your business as an environmentally friendly one. It helps you demonstrate your commitment to sustainability, which can make you more appealing to environmentally conscious consumers. Additionally, tracking the number of eco-friendly packaging used can help you reduce costs associated with waste disposal, as well as minimize your carbon footprint.

How to Calculate KPI

To calculate the number of eco-friendly packaging used KPI over a given time period, you need to divide the number of biodegradable, compostable or recyclable packaging materials used by the total number of packaging materials used. The formula is:

Calculation Example

Assume that a vending machine operator used 500 packaging materials over the course of a week, with 125 of those being eco-friendly. To calculate the number of eco-friendly packaging used KPI for this period, we would use the following formula:

Therefore, the KPI for the number of eco-friendly packaging used during this week is 25%.

KPI Advantages

• Improves brand image by demonstrating corporate social responsibility
• Cost savings in waste disposal fees
• Reduced carbon footprint
• Meets consumer demands for responsible and sustainable products

KPI Disadvantages

• May be costly to shift to eco-friendly options
• May be difficult to find suppliers for eco-friendly packaging materials
• May require specialized knowledge to identify and sort eco-friendly packaging materials for proper disposal

KPI Industry Benchmarks

There are no industry-specific benchmarks for the number of eco-friendly packaging used KPI, as it varies according to the location, type of vending machine and customer base. However, eco-friendly vending machines typically have a higher percentage of this KPI, sometimes ranging from 60% to 90%.

Percentage of locally-sourced products

As the demand for sustainable and locally-sourced goods continues to rise, vending machine operators must pay attention to the percentage of locally-sourced products they offer. This KPI measures the percentage of products sold in vending machines that are sourced locally. Let's dive into the definition, use case, calculation, advantages, disadvantages, and industry benchmarks for this KPI.

Definition

The percentage of locally-sourced products KPI measures the percentage of products sourced within a specific geographic area that are sold in vending machines. This KPI allows operators to track how much of their inventory is locally-sourced and provides insight into their commitment to supporting the local economy.

Use Case

Tracking the percentage of locally-sourced products can help vending machine operators reduce their environmental impact and establish a competitive edge. With the rise of sustainable and environmentally-friendly vending machine options, this KPI can help operators appeal to consumers who care about reducing their carbon footprint.

How to Calculate KPI

Calculation Example

A vending machine operator stocks 120 products in their vending machines, of which 30 are sourced locally. Their percentage of locally-sourced products would be calculated as:

KPI Advantages

• Helps operators appeal to conscious consumers
• Supports the local economy and reduces environmental impact
• Establishes a competitive edge for vending machine operators

KPI Disadvantages

• Difficult to track if sources change frequently
• May limit product options for operators who exclusively source locally
• Requires additional effort to verify and track sourcing

KPI Industry Benchmarks

Vending machine operators should aim to offer at least 25% locally-sourced products in their vending machines. This percentage can vary based on location, product availability, and consumer demand.

Number of partnerships with schools and businesses

Definition: The number of partnerships with schools and businesses is a KPI metric that measures the number of agreements and collaborations your vending machine business has established with academic institutions and enterprises.

Use Case

This KPI is essential for vending machine businesses looking to increase their reach and boost revenue streams. Establishing partnerships with schools and businesses can create a symbiotic relationship where vending machines can provide easy access to snacks and drinks while the school or company earns a percentage of the revenue.

How To Calculate KPI

To calculate the number of partnerships with schools and businesses KPI, you simply count the number of agreements your vending machine business has with academic and enterprise partners over a given period.

Calculation Example

For example, if your vending machine business establishes five partnerships with schools and three with local businesses in a month, your KPI for that month would be eight.

KPI Advantages

• Establishing partnerships with schools and businesses can provide more revenue streams to your vending machine business.
• Collaborating with academic institutions and enterprises can increase your brand exposure.
• Validating your vending machine business as an industry leader through partnership is an excellent way to attract more investors and customers to your company.

KPI Disadvantages

• Establishing partnerships can take time, resources, and energy.
• Promoting your vending machine business to schools and businesses can be a competitive market where securing deals could be challenging.
• Establishing partnerships with companies or schools with unfavorable reputations could damage your brand image.

KPI Industry Benchmarks

Unfortunately, there are no standard industry benchmarks for the number of partnerships with schools and businesses KPI metric due to vast differences in company sizes and geographic locations. Therefore, you should regularly calculate your business's KPI against its internal goals and industry peers.

Percentage of sales from healthy snack options

As consumers become more health-conscious, vending machines are starting to offer healthier snack options. The percentage of sales from healthy snack options is a key performance indicator (KPI) that measures the percentage of total sales that come from healthy snacks.

Definition

The percentage of sales from healthy snack options KPI is a metric that tracks the percentage of total vending machine sales that come from healthy snack options. This includes items like granola bars, protein bars, and other low-calorie snack options.

Use Case

The use case for the percentage of sales from healthy snack options KPI is to track the success of vending machine businesses in offering healthy snacking options to their customers. By measuring the percentage of sales that come from healthy options, businesses can determine if they are meeting consumer demand for healthier choices.

How To Calculate KPI

To calculate the percentage of sales from healthy snack options, you need to divide the total sales from healthy snack options by the total sales from all vending machine items, and then multiply by 100 to get a percentage. The formula is:

Calculation Example

Let's say that your vending machine business generated $10,000 in total sales for the month. Of those sales, $2,500 came from healthy snack options (granola bars, fruit cups, etc.). To calculate the percentage of sales from healthy snack options, you would use the formula:

So in this example, 25% of total vending machine sales came from healthy snack options.

KPI Advantages

• Helps businesses meet consumer demand for healthier snack options
• Encourages healthier eating habits
• May result in increased sales if healthier options are popular among customers

KPI Disadvantages

• May be difficult to implement in vending machines with limited space
• Healthy snack options may be more expensive to stock, resulting in lower profit margins
• Not all customers may be interested in healthier options

KPI Industry Benchmarks

According to a report by the National Automated Merchandising Association (NAMA), the average percentage of healthy vending machine items sold is approximately 15%. However, this may vary based on factors such as location, demographics, and the type of vending machine items sold.

Customer satisfaction rating.

As a serial entrepreneur who has run multiple businesses, I can tell you that tracking KPIs is essential to ensuring that your business is successful. One of the most important KPIs to track is customer satisfaction rating.

Definition

Customer satisfaction rating is a KPI that measures how satisfied your customers are with your product or service. It is typically measured on a scale of 1 to 10, with 10 being the most satisfied.

Use Case

Tracking customer satisfaction rating is important for several reasons. Firstly, it allows you to gauge how successful your product or service is at meeting your customers' needs. Secondly, it can help you identify areas for improvement and make changes to your business based on customer feedback. Finally, it can help you retain customers and improve customer loyalty.

How To Calculate KPI

To calculate customer satisfaction rating, divide the total number of satisfied customers by the total number of customers surveyed, and then multiply by 100. The formula is:

Calculation Example

Let's say you surveyed 100 customers and 80 of them reported being satisfied with your product or service. To calculate your customer satisfaction rating, you would use the following formula:

So your customer satisfaction rating would be 80%.

KPI Advantages

• Helps identify areas for improvement
• Increases customer loyalty
• Can lead to increased revenue
• Provides valuable insights into customer behavior and preferences

KPI Disadvantages

• Can be influenced by external factors
• May not be a true reflection of overall customer satisfaction
• Can be difficult to measure accurately

KPI Industry Benchmarks for the KPI: ' Customer satisfaction rating.'

Industry benchmarks for customer satisfaction rating vary depending on the industry. However, a score of 80% or above is generally considered to be good.