Commerce with a Tap

It is estimated that around 300 million NFC enabled devices would be sold in 2013 and by 2015 this number would reach a whopping one billion.

Near Field Communication is the technology responsible for devices such as smartphones and tablets to communicate with nearby devices and objects with a simple tap.

Most new smart phones contain a chip that is capable of sending a radio wave that gets picked up by another NFC device or any object with an RFID tag. The tag, which is small enough to be attached to a product or an ad poster with a sticker, when tapped by a device like an NFC enabled phone can ask the device to open a link, download an app or a file make a payment. The best part about this communication is that it is secure.

Businesses have employed Near Field

Communication to bolster better experiences

and engagement, leading to a revolution in

commerce. NFC as a technology can make

real world commerce engagement more

sophisticated and personalized by making the

tap act as the equivalent of an online “click”.

by Kaushal Sarda

ReferencesBoden, Rian. “Hointer adds NFC to next generation store concept.” NFC

World. 06 Mar 2013.

Clark, Sarah. “London pub picks NFC for social media marketing.” NFC

World. 13 Feb 2013.

Deffree, Suzanne. “Near-field communications to go far in 2013.” EDN

Network. 07 Dec 2012.

Dyer, Karl. “Adspace to roll out NFC advertising in 140 US shopping

malls.” NFC World. 11 Mar 2013.

Tode, Chantal. “Kraft NFC pilot delivers 12 times the engagement level of

QR codes.” Mobile Commerce Daily. 18 Oct 2012.

Wheeler, Judd. “2013 Mobile Trends and Predictions.” The Mobilists. 22

Jan 2013.

There are three key advantages using of NFC for commerce and customer engagement: 1. NFC removes the friction that exists in engagement with the help of QR codes, as it requires one to load the app and scan the code before triggering the desired action 2. NFC enables businesses to leverage seamless connectivity of online to offline engagements 3. A tap is equivalent to a consumer’s expression of intent. This technology allows brands to serve a pre-crafted personal brand experience based on intent.

Commerce

Kuliza Social Technology Quarterly Issue 08

4. Adspace

Adspace Digital Mall Network added NFC capabilities to its video advertising displays in 140 US shopping malls. The new Adspace’s Smart Screens enabled advertisers to offer consumers an access to content downloads, web-based games, promotions and coupons, maps and social media integration by tapping or scanning the attached mTag placard on the side of the unit with their mobile phones.

1. Kraft

Kraft recently piloted an NFC program at select grocery stores. RFID chips that could be read by NFC-enabled smart phones were placed in signage on the shelves right in front of Kraft cheese and Nabisco cookie brands. The goal was to encourage consumers to tap their smart phones to access fun recipes, download the i-Food Assistant app or share their experiences on Facebook. The pilot campaign results showed that NFC “tap” engagement level was twelve times higher than for QR codes, which also appeared on the signs.

3. Hointer

The Seattle-based fashion retailer used NFC to move away from a traditional sales assistant-driven customer experience to a more rich, scalable, personal and engaging experience. Customers visiting the store tap a tag or scan a QR code on an item they wish to try, and then select the size using the Hointer application on their smartphones. They then wait for their items to automatically drop into a chute in the changing room from a robot-operated stockroom in under thirty seconds.

2. Public Houses

The Cavendish Arms pub in Stockwell, London, installed an NFC and QR codes based platform to promote the venue via social media. Customers could scan the QR codes or tap their NFC phones to tags located in the pub and connect through Facebook to pick up a special offer like a free drink. In turn, a message would be sent to their friends on Facebook and Twitter stating they are at the pub along with details on current events that night.