ZoomSystems Retailer Relies on Sprint and Sierra Wireless for High Speed Internet

ZoomSystems, based in San Francisco, CA, develops automated stores that provide consumers an interactive retail experience. The stores enable brand leaders, such as Sony, Proactiv Solution, Motorola and Jonhson&Johnson to have high visibility at a fraction of the cost of traditional billboard advertising. ZoomSystems’ nationwide network consists of more than 300 automated stores in high-traffic locations, such as airports, malls and hotels.

A ZoomSystems small-format robotic store measures about 40 square feet and provides retailers the ability to generate revenue without the overhead costs, such as employee compensation, included in a brick and mortar store. Additionally, an automated store is dedicated to a single brand, thereby eliminating competition for shelf space and consumer attention.

The consumer experience begins upon first viewing this ‘state-of-the-art’ robotic store, where product is prominently displayed in a well-lit environment behind shatter-proof glass. A touch screen delivers an experience similar to online shopping, where customers view product photos and retrieve product and brand information. This touch screen also provides the consumer with the company’s 30-day return policy and Frequently Asked Questions about their purchase experience. Once the consumer has made a selection through the touch screen, he is instructed to swipe his credit or debit card. The product is then retrieved from its position via robotic arm that carefully delivers the product directly to the consumer. Patented optical technology ensures that the product has been delivered prior to the customer’s credit or debit card being charged. Additionally, the entire store network is monitored with proprietary software 24 hours/day.

ZoomSystems has been experiencing a major growth spurt as retailers and brand leaders begin to embrace the company’s automated store concept. Airports, for example experience massive foot traffic and encourage consumers to make impulsive purchases. The captivity of an airport audience is a significant factor in the success of these automated store locations.

BUSINESS PROBLEM
By far the most expensive part of the automated store installation process is pulling Ethernet cable. Costs range from $1,000 - $5,000 to hardwire a location, and in some areas landlines are not even an option. In addition, airport facilities present vendors with a lot of “red tape”, which causes immense administrative burdens.

For instance, when installing DSL into airport locations, ZoomSystems was required to use approved airport contractors instead of being able to bid for a lower cost option. In addition, if any drilling or construction was necessary, the company was required to work with the airport’s environmental department. This process included inspections for hazardous materials, which can drastically increase the lead time for installing a ZoomSystems store.

SIERRA WIRELESS AirLink™ SOLUTION
In order to alleviate the cost and time required to install DSL, ZoomSystems turned to digital cellular connectivity - Sprint’s 3G EV-DO wireless network. The leading cellular provider referred ZoomSystems to Sprint’s valued partner, Sierra Wireless, to complete the wireless solution. This consists of Sierra Wireless’ AirLink Raven Ethernet (Raven-E) intelligent wireless modem running on Sprint’s EV-DO Rev. 0 network. The Raven-E is powered by ALEOS™ embedded intelligence, enabling remote configuration, packet-level diagnostics and reliable network session persistence.

With wireless, ZoomSystems’ automated stores are “plug & play”. Installation time has decreased by up to two months with cost-savings of $1,000 - $5,000 by eliminating the expense required to pull cable. With robust wireless signals found in airports across the country and the greater bandwidth and faster data transfer rates offered by the latest 3G technology, ZoomSystems has found its wireless installations to provide the mission critical uptime required to run its automated stores. ALEOS’ ability to establish and maintain a network connection is of vital importance for ZoomSystems, giving them the peace of mind that their stores are always on-line. In addition, ALEOS enabled a seamless integration with ZoomSystems’ proprietary software, providing the company the ability to proactively detect issues and fix them remotely or dispatch a field technician as necessary.

“We are a 24/7 retailer, so uptime is crucial,” explained Matt Moses, VP, Operations at ZoomSystems. “We were skeptical that wireless could manage the speed and load size requirements for our application, but the performance and uptime have been no different than with our hardwired network locations.”

Another issue that often comes up in airport locations is the requirement to move an automated store to accommodate construction or optimize foot traffic when flow patterns are altered. Wireless connectivity makes the ZoomSystems stores highly portable, allowing the network connection to move with the store without requiring the movement of cable.

ZoomSystems is also equipped with 24/7 monitoring through almost 100 Raven-E devices, with wireless connectivity used at about one-third of automated store locations.

Enabling consumer interaction while easing the purchase process through automation is changing the way brands reach their customers. ZoomSystems’ solution is evidence of how the current and future generations of wireless technologies enable innovative retail applications that deliver methods to simplify the consumer’s purchase decision and transaction. By taking advantage of flexible, high speed data, retailers can increasingly improve the customer interface and interactive tools necessary to meet the changing needs and habits of their customers.

TANGIBLE RESULTS
The ZoomSystems solution deployment using AirLink’s Raven-E network devices on Sprint’s EV-DO cellular network produced the following improvements:

-- Eliminated a dependency on DSL by leveraging the CDMA nationwide footprint, allowing ZoomSystems to avoid landline installation costs and increase the size of their potential market to areas where DSL is not available.
-- Improved relationships with customers through proactive system fixes.
-- Enabled real-time, remote monitoring of the Raven-E modems with embedded ALEOS technology.

RETURN ON INVESTMENT
The financial impact of ZoomSystems’ 3G solution encompassed both increased market reach and cost reductions. The solution:

-- Shortened cycle from installation to revenue-generation, enabling immediate monetization of the site.
-- Eliminated wires, enabling a more portable solution and allowing equipment to easily be deployed for short-term opportunities (i.e., trade shows, special events, etc.). Special event installation costs have been reduced by eliminating the cost of leasing DSL lines.
-- Decreased cost of installation by eliminating need for landline connection to ZoomSystems stores. Historically the most costly and time-consuming part of the solution, the installation process has been reduced by up to two months and has translated into a cost savings of $1,000 - $5,000 per installation.