RFID Enabling A Sell Out
It is traditional to justify an investment in RFID technology far more superior than barcodes system. Often the key ROI is calculated in terms of operational productivity. While this is wonderful news to companies that are looking for systems that drive bottomline downwards, there are greater RFID treasures waiting to be uncovered. Today at a meeting with a director from Schimidt Electronics, he painted his vision of RFIDed solutions in various verticals. He was literally going in circles about creating efficient inventory channels for various applications.
Lets fast forward backend supply chain RFID usages to the heart of retailing. The question I am more interested is exploring how can RFID help drive revenues through enhanced customer experience? Could RFID enable in-store products that connect with shoppers emotionally? RFID can define new personalized customer interaction. RFID is an investment for a remarkable experience, that differentiates itself from other stores offering similar products. RFID ROI figures for customer centric usages makes up equally well if not better than backend supply chain management stories.
- This is another story about how RFID is used to create a novel feature that resulted in a sold out. When Star Wars Episode I was released, Hasbro, a toy manufacturer produced models of Darth and other SW characters with embedded RFID tags in them. Using an accompanied RFID reader, it will recognize its character based on the tag and plays a cool liner dialogue from the movie. It was a runaway success, driving increased sales for the toy company. That was quite a connection RFID helped achieved with customers.
- A possible scenario in the jewelry retail. The service staff removes a tagged piece of jewelry from the showcase, places it on a RFID tray and offers it to the customer. During this time, the RFID integrated media system detects the presence of the tag via the RFID tray, retrieves its information and plays a relevant video of a model wearing the jewelry on the nearby plasma screen. The system also remembers the number of times the jewelry product has been requested. It gets more interesting when product sales is compared to its actual display placements.
- The same idea can be adapted for a fashion store. As the shopper walks into the changing room to try on the new clothing, the RFID reader detects the tagged clothing and plays a personalized promotional video of the product. In UK London, Marks and Spencer rolled out RFID trial stores over 9 stores. By 2006, the number of Marks and Spencer stores participating will extend to 42. The application was intended to ensure optimum on-shelf product availability for their customers. I would think the application can easily be extended to include product marketing within their stores.
There are probably a dozen and more innovative retail uses for RFID. I think I will add to this list as I learn more. If you have other ideas or heard of others, feel free to leave a comment and I will update the list.
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