The retail industry is one of the most fast-paced and competitive industries because consumers’ demands of goods and services evolve constantly and they have an insatiable habit to experience the best and most convenient shopping experience. While retail companies continue to ensure the quality of their products and services, attention to detail on shopping experience and phygital technologies are some ways to increase consumer engagement, spending, and satisfaction. Two of the top trendsetting technologies that retailers can utilize in order to bridge themselves to consumers effectively are Internet of Things (IoT) and Near-field Communication (NFC).
IoT has enormous potential in the retail industry due to the possibility of retailers’ marketing content to be accessible to consumers at a rapid pace. A traditional brick and mortar store can have a more innovative shopping experience wherein a passerby can readily communicate with installed IoT devices at the store through his/her smart phone.
One example is to utilize an IoT device that has a Bluetooth Low Energy (BLE) beacon which continuously transmits signals waiting to be accessed. When the passerby with BLE enabled smart phone is within the proximity, targeted marketing content will be sent to his/ her smart phone instantly. The interaction between the IoT devices and smart phones can be a two-way communication if consumers provide information about their preferences, suggestions, or personal information to the retailer’s backend data center. This set-up of data sharing and gathering is a very powerful tool for data analytics as a catalyst for the retailer’s growth and relevance.
There are three main significant applications utilizing NFC technology. The first one is tagging NFC tags to assets or products for asset tracking and identification. It provides a flexible, faster and more effective way to access product information by tapping an NFC-enabled smart phone/NFC reader on the NFC tag. Product data security of NFC tags is ensured by the foundation of smart card technology security algorithms, which translates to the solution against counterfeiting. With the integration of a logistics management system, real-time tracking of the NFC tagged products is realized to improve transparency and inventory management.
Secondly , it can be used in NFC payment system for fast and easy checkout experience. Using NFC-enabled smart phones, cards, or any hardware as mode of payment, consumers can enjoy the benefits brought by NFC payment .
Lastly, NFC can be used in loyalty applications to flourish as a complementary feature in order to promote marketing initiatives such as discounts, special offers, or other perks for rewarding customers who continue to patronize the retailer’s products and services.
Transform your retail store from a traditional and mundane space to a highly interactive and entertaining venue for customers to visit by implementing IoT and NFC solutions. AB circle provides NFC tags and NFC contactless smart card readers to enhance consumers’ shopping experience to retailers searching for impactful innovations.
The ease and speed of accessing the information of the tagged assets using NFC-enabled devices allows consumers greater transparency of the products and services offered by the retailers. Product transparency is a strategic tool for retailers to boost their marketing campaign by exposing potential customers to their portfolio, websites, and social media accounts hence, increased customer engagement. When customers are engaged to their retailers through constant digitized feedback, retailers are able to pursue data analytics to further formulate strategies to enhance customer satisfaction.
On the other hand, the efficiency of the tap and go concept in terms of NFC-based payment provides facileness and convenience to the customers by saving queuing time and effort. Thus, it further satisfies a more comfortable shopping experience.
With logistics management system, NFC technology provides retailers the ability to trace the whereabouts of their products real-time along the supply chain. Furthermore, augmented with a Point-of-Sale (POS) system, inventory status is updated accordingly. Since NFC tags have the ability to store data, retailers have options to implement an online (interbranch) and offline (local branch only) processing of location and inventory status of assets or products.
NFC tag has a pre-programmed unique identifier which acts as an electronic certificate of authenticity. This unique identifier can be tied up to a brand or product, consumer can verify whether the item is original and genuine by tapping a NFC enabled device on the tag. There are smart card technology standards setting the baselines of security, the unique identifier and data programmed in the tag are protected and can only be accessed or modified by authorized personnel.
Retailers do not need to distribute hard copies of flyers, brochures or coupons for promotion as with any IoT device or NFC tag installed, they can be accessed by customers or passersby via their NFC smart phone. Paper or plastic-based marketing collaterals can be eliminated to promote eco-friendliness in retail.
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