Near field communication (NFC) has offered a new marketing tool unlike any that have come before it. The NFC is a set of standards for devices, like smartphones, to establish radio communication with each other by touching them together or bringing them close together. This allows for the exchange and duplication of data, but it also offers a great tool for commerce. NFC devices can be used in contactless payment systems allowing for mobile payment to replace or supplement other payment systems currently used in credit cards and electronic ticket cards. Most recently, Kraft Foods has piloted an NFC trial at grocery stores that show high engagement levels (compared to QR codes). For this trial, RFID chips that are readable by NFC-enabled devices were placed in signs on the shelves in front of certain products. This allowed consumers to tap their smartphones and gain access to recipe content, download the Food Assistant app or share information on Facebook. The benefits of this technology compared to others is that this is a frictionless technology. Users don’t have to download an app if they don’t want to. Like we saw in the tips for a great point of purchase display, this technology has an immediate call to action that calls for a simple tap with your phone. Results of the trial showed that the overall ‘tap’ engagement level was 12 times higher than for the QR codes that accompanied the RFID chips. Also, more than 36% of shoppers that took advantage of this marketing tool converted it into an action- like saving a recipe or downloading the Kraft app. In-store marketing has only 5-10 seconds to grab the consumer’s attention, however when NFC was involved the consumer spent up to 48 seconds engaged increasing that chance of purchase ten-fold.

Source: AIPIA

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