NFC Enabled Retail

NFC in the retail world opens up a wealth of opportunities for retailers and brand owners, who can take advantage of the technology in most people’s pockets to directly interact with consumers. With the touch of a phone, an NFC-enabled shelf label, display poster, or even the three-dimensional product itself becomes an opportunity to inform, promote, receive feedback, or just entertain.

Application Benefits

  • Provides a bridge between physical and online worlds
  • Enables rich, “sticky,” user experience
  • Allows real time, precision retail marketing based on time, local inventory, the individual, etc.
  • Enables cross-selling opportunities
  • Gives feedback to retailers, such as demographics and behavioral patterns
  • Lets brand owners interact directly with consumers
  • Facilities with more convenient shopping experience
  • Is more environmentally friendly

NFC Features Benefiting Application

  • UID may be mirrored into the NDEF message
  • Write or read/write memory access may be password restricted
  • Optional limit of unsuccessful authentication attempts
  • Counter/counter mirror offers an offline means of tracking the number of taps
  • Low cost and easy to implement, so large scale campaigns are possible
  • Updateable without reprinting the media

How it Works

An NFC tag embedded in a store display poster or easel, or even the product itself (e.g., a shoe) contains an NDEF (NFC Data Exchange Format) message. When consumers tap their NFC-enabled smartphones against the media or object, this NDEF message transfers to their device. The content of the message then determines the user action.

Real-time Precision Marketing

An NFC-enabled display greeting consumers as they enter a store provides both the customer and the retailer with a new shopping experience. On the retailer’s side, the NFC technology enables a shopping experience targeted to that store’s location, their in-stock inventory, and their local consumer demographics, as well as creating a draw for their brick and mortar stores. On the consumers’ side, the same technology offers a personalized shopping experience with specials offered only because they entered that store on that day.

For nationwide chain stores, excess inventory might differ from location to location, and nationwide sales only exacerbate the problem if demand varies significantly between geographical locations. But an NFC-enabled poster, for example, could promote localized deals, selected exclusively by the retailer to clear excess inventory at that location.

This technology also promotes cross-selling opportunities. When brought near an NFC-enabled monitor, an NFC-enabled label on a jacket, for example, might initiate a video suggesting coordinating pieces or accessories. On a grocery store shelf, an NFC shelf label could initiate a recipe display, promoting additional purchases. Or the data exchange could be merely informative, such as how or where a garment was made. In addition to the retailers, brand owners also benefit from the not previously available capability to receive instantaneous consumer feedback about their products.

Taking the technology one step further, the technology supports a more convenient shopping experience based on the honor system. For example, shoppers could tap their NFC-enabled smartphones on a store label as they select their shopping cart contents. Another tap of their phone transfers the list at the payment location, where they may then pay with their digital wallet.

NFC technology has the capacity to change the way people shop, and NXP products available now fully support this new trend.

NXP’s NTAG Product—The Perfect Fit for Consumer Interactive Retailing

NXP’s NTAG technology offers the ultimate in convenience for connecting all types of consumer devices, while enabling rapid and easy communications.