Social RFID?
By Bob Johns, associate editor, Integrated Solutions For Retailers magazine
Radio Frequency Identification (RFID) has had its ups and downs through the years. Recently, though, RFID has seen a resurgence in popularity as reader technology has improved, tag costs dropped, and hundreds of new uses have been developed. So, I thought it would be interesting to see what is new in the industry by contacting ThingMagic.
Started in a garage in Massachusetts in 2000, ThingMagic has grown into a pioneer in the RFID reader field, incorporating emerging technologies like GPS and NFC and even social media. Recently the company announced it has been working to combine RFID and social media to enhance the brand loyalty of its customers.
How Social Media Fits With RFID
The first thing that comes to my mind is "How can RFID possibly have anything to do with social media?" So, I decided to give Ken Lynch, ThingMagic's director of marketing, a call. He noted that as RFID becomes integrated in mobile devices, retailers are able to have consumers opt-in to receive targeted marketing based on their individual preferences no matter where they are. The consumer can then automatically share their deals and experiences within their social network. In store, a consumer can choose a product and enter the dressing room to try it on; music associated with the type of attire, such as hip-hop for youth apparel, rock for leather apparel, etc., would then begin to play to enhance the experience. Interactive kiosks would allow the consumer to view celebrities wearing the same or similar styles. Based on prior purchases and even consumer comments, companion merchandise can be recommended, and users would be encouraged to share their choices on a social network. Enabling posts like "What do you think?" and pictures to be uploaded to sites like Facebook from the kiosk willhelp the consumer to get opinions on the outfit in real time. In turn, this allows all of the consumer's "friends" to see the retailer in a, hopefully, positive light.
Lynch commented that trade shows, concerts, sporting events, and resorts have begun using RFID embedded technology to allow patrons to interact with each other, sponsors, and retailers through kiosks and various touchpoints. Attendees can connect their RFID-enabled device, phone, badge, bracelet, etc. directly to their Facebook or other social sites to allow real-time updates. The users can then check-in at numerous locations, update their status, and converse on their experiences with other attendees and friends instantaneously. ThingMagic allowsthem to "like" and update profiles using ODIN Software's EasyConnect, which is embedded into Facebook Places' RFID presence modules.
The opportunity to capture analytics from these consumers is astounding. Retailers can view real-time responses to sales events, purchases, store appearance, and even store personnel. Ordering, training, advertising, and more can be altered to accommodate consumer demand and opinion. Companies are increasing brand awareness through these consumers and gaining a more intimate view of how the retailer is perceived by the market. Partnering with social networks like Facebook, Twitter, and others allows a retailer to obtain this information quickly and react accordingly. A recent conference that ThingMagic participated in included more than 24,000 interactions between attendees and 150,000 post views on Facebook. As retailers implement kiosks with similar technologies, they can use the customer's social network to gain brand awareness.
As technology improves and social networks continue to grow and influence consumers' daily lives, RFID will play an ever-growing role in how retailers market to them. Smart shelves and smart displays are beginning to be integrated with RFID to target specific markets and personalize the shopping experience. Just imagine looking at a product and receiving a coupon for that product on your phone at the same time. Then, you may be asked to "like" the product for a further discount. Touchscreens strategically placed throughout the stores will allow you to share your thoughts on the products with manufacturers and retailers and even update your status to show others what you think of the products.
My conversation with Ken ended with him concluding that, "There is no doubt that over the next decade, RFID systems will become an integral part of the consumer and business experience. The convergence of wireless technologies will be augmented by RFID systems. The development of passive RFID as part of this platform will be driven by the potential to measure, report, and monetize a growing number of transactions in the physical world." Retailers have entered a new world of consumer centric selling and servicing. Consumers expect service to be personal and engaging and pricing to be reasonable across all channels. Having the consumer's preferences and history available in real-time will allow the retailer to personalize the interaction and build on the consumer's own network.
For more information on ThingMagic, got to www.ThingMagic.com.
Check out how American Apparel is using RFID in the January edition of Integrated Solutions For Retailers.