consumer perspectives on in-store engagement technology webinar

Based on Observational and Survey Research Performed by Strategy Analytics, Autumn 2014

Advancing Near Field Communication Technology

CONSUMER PERSPECTIVES ON IN-STORE ENGAGEMENT TECHNOLOGYFEBRUARY 12, 2015

1

MEET OUR WEBINAR HOST

Advancing Near Field Communication Technology2

Paula HunterExecutive Director,

NFC Forum

AGENDA

Housekeeping

Our speakers

Research background

Facts and stats

6 Opportunities for retailers and brand owners

Questions & answers

Why NFC for brand owners and retailer

Next Steps


HOUSEKEEPING


How to submit

questions

Access the recording

of this webinar:

http://nfc-forum.org/retail-study/

Share with friends

and colleagues

MEET OUR SPEAKERS


Christopher Dodge Associate Director of User Experience

Practice, Strategy Analytics

Matthew BrightRetail Working Group Chair,

NFC Forum

RESEARCH BACKGROUND


RESEARCH BACKGROUND

Purpose of Study:


Retailers and brands

more

customer-centric

Growth of digital

interactivity for

retailers and brand

Gather data about

end-user experiences

and perceptions of

NFC in retail setting–

as it relates to other

technologies

RESEARCH BACKGROUND


36 participants

Six retail simulation experiences

Part 1: Observational research(primarily qualitative)

Part 2: Web survey(quantitative)

1,038 consumers surveyed

Research methodology:

Focused on North America

Note: all data collected before Apple Pay was introduced

FACTS AND STATS


FACTS AND STATS


is an indoor proximity-based solution, which is

branded in various ways including Apple’s

iBeacon. Compatible phones receive short

messages when they are in range of a

Bluetooth Beacon transmitter. In the retail

environment, Bluetooth Beacon is used to

“push” targeted messages to the mobile

consumer, such as a flash sale or coupon. One

or more applications must be installed to

connect the consumer with the Beacon

messages.

Bluetooth Beacon

(short for Quick Response Code) is a two-

dimensional matrix barcode that contains

information that can be read by a mobile phone

via its camera. Consumers scan QR codes to get

information about a product or service and

access websites. A QR code reader application

must be installed to decode the barcodes.

QR Code

is a short-range wireless technology that

enables simple and safe two-way interactions

between compatible electronic devices,

allowing consumers to make payments,

instantly access targeted digital content, and

pair electronic devices with a single touch.

Near Field Communication - NFC

COMPELLING DATA


FACTS AND STATS

From 2014 to 2015 over 1 billion NFC-enabled devices will be shipped worldwide.

OVERVIEW OF CONSUMERS’ USE OF NFC


FACTS AND STATS

Which of the following tasks have you used NFC on your phone to complete?*?

2%

19%

27%

34%

45%

59%

68%

0% 10% 20% 30% 40% 50% 60% 70% 80%

Other

Activate a gaming figurine (non-phone)

Use for ticketing

Access digital content

Pay for items in a retail store or vending machine

Transfer content from on NFC phone to another

Pairing with another device

* For those that have used NFC technology

FACTS AND STATS


42%

47%

51%

61%

64%

70%

70%

77%

24%

23%

22%

22%

17%

16%

16%

10%

34%

30%

28%

16%

19%

14%

14%

13%

0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100%

Ages of family members

Occupation

Number of family members

Details of items purchased

Age

Details of discounts/coupons used

Zip code

Gender

Would be willing to

provide this information

Not Sure

Would not be willing to

provide this information

Participants were asked “what information would you be willing to share with yourpreferred retailers in exchange for specific and personalized rewards and deals?”?

Total sample size: 1,038

COMPELLING DATA


FACTS AND STATS

OVER

75%MORE THAN

75%OVER

60%of respondents who used NFC

were very satisfied with their

experience

of respondents indicated an

interest in viewing additional

product information including

inventory and availability via

NFC.

were interested in an NFC-

enabled mobile shopping cart

in-store experience and using

NFC to order the replacement

parts or accessories for

products, such as ink and

toner cartridges for printers.

SIX OPPORTUNITIES FOR RETAILERS AND BRAND OWNERS


Note: all graphics represent data from online survey



Provide quick access to store

deals, Wi-Fi, loyalty and

rewards account

If your favorite retailer or

brand offered coupons and

discounts for connecting to

their store, how would you

prefer to connect your phone

to the store?

143%

25%

14%

17%

Using NFC Using QR Code Using Bluetooth Beacon Using browser




Quote from observational research:

“ NFC is the better option for accessing

information or deals – especially if the

QR code is on the wall or at an angle

that makes it difficult to scan. ”

Research participant

45% 32% 9% 6% 8%

0% 20% 40% 60% 80% 100%

Very interested Somewhat interested

Not sure Somewhat uninterested

Not at all interested



Deliver valued product

information, store inventory

insight

How interested are you in

accessing more product

information and store

inventory using NFC

technology when shopping at

your favorite retail shops?

2




Provide simple and quick

access to related, contextual

product information


brand offered the ability to get

recipe ideas with shopping

lists related to a product, how

would you prefer to access this

information on your phone at

the store?

350%

23%

10%

17%






“ NFC is really convenient

and there’s no downside. ”




Provide digital shopping

cart experience

How interested are you in

having the digital shopping

cart experience when

shopping at your favorite

retail shops?

436% 30% 13% 8% 13%

0% 20% 40% 60% 80% 100%

Very interested Somewhat interested

Not sure Somewhat uninterested

Not at all interested


Inform decision making by

offering convenient access

to large item product

information




brand offered the ability to get

more information on larger,

higher-priced items, how

would you prefer to access this

information on your phone at

the store?

556%

23%

7%

14%






“ I prefer NFC because I have my child

with me, and with the QR code I have

to take time to find the app and then

scan the barcode. ”




Offer ability to order correct

consumables (such as

printer ink and toner) from

home [post sale]6

If your favorite brand

offered the ability to order

parts/accessories in this way,

how would you prefer to

do this?

61%20%

19%

Using NFC Using QR Code Using browser




Consumer preference for NFC for retail and brand experiences?

43%

49%

50%

56%

61%

25%

24%

23%

23%

20%

14%

13%

10%

7%

17%

15%

17%

14%

19%

0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100%

Connecting to Wi-Fi, view deals, etc.

Product info, check stock levels

Related product info

Product info - large items

Reorder consumables

Using NFC

Using QR Code

Using Bluetooth Beacon

Web browser

QUESTIONS AND ANSWERS

26 Advancing Near Field Communication Technology

WHY NFC NOW FOR BRAND OWNERS AND RETAILERS?




The surge in NFC growth and

investment creates solid

foundation

Consumers prefer NFC

NFC and Bluetooth Beacon

can co-exist to combine in-store

proximity alerts (Bluetooth) with in-store and

post-sale item-level interactivity (NFC)

NFC fits omni-channel picture (offline to online)



SimplerMore

convenientFaster

Better

consumer

control over

the interaction

Why consumers prefer NFC:



BE AN INNOVATOR.



Customer-centric

Retailers and Brands

Strive to Connect

Authentically with Their

Best Customers and

Build Trust.

NEXT STEPS, RECOMMENDATIONS


We encourage you to join the NFC

Forum and to get involved with the

Retail Special Interest Group

Details here: http://nfc-forum.org/retail-sig/

And here: http://nfc-forum.org/about-us/join-the-

forum/membership-overview/

http://nfc-forum.org/retail-sig/

http://nfc-forum.org/about-us/join-the-forum/membership-overview/

NEXT STEPS, RECOMMENDATIONS


Encourage others to share the

NFC Technology: How

Changing Consumer

Preferences Create New

Opportunities for Retailerswhite paper.

Link here:



RETAIL SPECIAL INTEREST GROUP OVERVIEW


Application developers

Semiconductor manufacturers

Smartphone and consumer electronics

manufacturers

Operating system developers

Mobile network operators

Payment companies

Key business and technical experts

representing:Retail SIG key responsibilities:

White papers and use cases

Market evaluation and preferences research

Industry promotion to improve the consumer

experience

Opportunities for industry collaboration and

networking

Influence NFC technical standards to meet

the needs of retailers, brands, and other

stakeholders

CONTACT INFO

Press Inquiries: Ruth Cassidy: [email protected]

Retail and Payment Special Interest Group interest: Matthew Bright: scrwg-chair@nfc-

forum.org

General membership information: http://nfc-forum.org/about-us/join-the-

forum/membership-overview/


mailto:[email protected]

http://nfc-forum.org/about-us/join-the-forum/membership-overview/

THANK YOU!


consumer perspectives on in-store engagement technology webinar

Retail

perceptions of nfc

nfcenabled devices

beacon messages

targeted messages

overview of consumers

compatible electronic

bluetooth beacon transmitter

pair electronic devices