Matt Bright, Chair of the NFC Forum’s Retail and Payment Working Group, hosts the Retail and Payment Webinar! Matt explains how NFC technology can grow revenues, enhance the customer experience and help provide long-lasting relationships in the changing retail environment. Case studies are presented from Smartrac, Thinfilm, Blue Bite, and 1trueid.
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Bridging Digital & Physical Retail with NFC: A New White Paper
1. BRIDGING DIGITAL & PHYSICAL RETAIL
WITH NFC: A NEW WHITE PAPER
Matt Bright, Retail and Payment SIG Chair
November 14, 2018
1
2. AGENDA
2
● Introducing a new NFC Forum White Paper:
“Bridging Digital and Physical Retail with NFC”
● Retail and Payment Industry Trends, Tips for Reaching the Connected
Consumer
● NFC Technology Applications and Case Studies – Presented by:
Smartrac – Amir Khosh, Global Partnerships, Alliances and Product Marketing
Blue Bite – Rachel Furst, Director of Product Marketing
1trueID – Carlo Carminati, Sales and Marketing Director
Thinfilm – Paul Butler, Product Management
● Getting Started with NFC
● Q&A
3. INTRODUCING A NEW WHITE PAPER:
“BRIDGING DIGITAL AND PHYSICAL RETAIL WITH NFC”
1. What is NFC and How Does it Work?
2. The opportunity for brands and retailers
3. The consumer journey
Pre-purchase
In-store
Post-purchase
4. Smart NFC brand & retail strategies
5. 11 tips for successful NFC campaigns
6. Taking the next step
3
5. RETAIL & BRAND REALITIES
Consumer loyalty is fading: 90 of the top 100
Consumer Packaged Goods (CPG) brands
have seen their share decline
2/3 of consumers surveyed said that the
number of companies or brands they
consider when making purchase decisions
has increased significantly compared with 10
years ago.
Customer Experience scores have plateaued
5
6. RETAIL & BRAND REALITIES
Mobile has become the preferred way to get
online
Even traditional in-store retail depends on
mobile
Consumers tested in five in-store retail
scenarios preferred using NFC 2 to 1 over QR
codes and as much as 8 to 1 over Bluetooth
beacons
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7. HOW TO REACH THE CONNECTED CONSUMER
7
1) Find ways to build
bridges between the
physical and
virtual worlds
2) Find ways to break
through the noise,
capture the shoppers
attention and build a
positive perception
of your brand
3) Drive engagement
by delivering
product info,
benefits, offers
on demand
8. HOW TO REACH THE CONNECTED CONSUMER
8
4) The easier
consumers can
engage with your
content, the better
5) It pays to maintain
the relationship
beyond the sale
6) Broader use of
analytics can deepen
your understanding
of customer behavior
10. SMARTRAC CASE STUDY
PRESENTED BY:
AMIR KHOSH, GLOBAL PARTNERSHIPS, ALLIANCES AND
PRODUCT MARKETING
Advancing Near Field Communication Technology10
11.
12. SOCCER BALL CASE STUDY
12
● What was the challenge?
Counterfeit Products
● Goals – trying to accomplish
Authentication & Customer Insights
● What is the implementation – product, label, etc.?
Digitization of Adidas World Cup Telstar Soccer Ball through Smartrac Enablement Stations
13. CUSTOMER REFERENCE - ADIDAS
13
● Sensor Technology
NFC Embedded CIRCUS FLEX tag
● Deployment
FIFA World Cup Issue Official Game Ball
● Touch-points
600K
● Project
Telstar 18, the Official Match Ball for the 2018 FIFA World Cup, is the first-ever match ball to
feature an embedded NFC tag. Upon interaction – each ball generates a unique identifier,
unlocking exclusive content and information for the user. The personalized customer
experience displays specific details of each ball, and provides access to different challenges,
which users can enter in the run-up to the World Cup.
17. 17
● Challenge:
Sneaker Con wanted a more bulletproof solution to their LEGIT tag; one that physically verified
authenticity in a tamper-proof way, and that could communicate digitally to sneakerheads.
● Goals
To become the standard of what is authentic, and to create a digital marketplace and
community for sneakerheads to strike deals.
● Implementation
Physical, NFC-enabled tag that could be fastened to sneakers
● Enablement
Product authentication
Sneaker Con x Blue Bite Product Authentication: Case Study
18. 18
● Solution:
Two-part solution:
• Improvements to the real-life authentication process at Sneaker Con convention
• Creation of an official Sneaker Con digital marketplace app
Convention:
• All sneakers sold/traded had to be verified “legit” by authenticators
• If sneakers were genuine, authenticator would activate a physical NFC-enabled LEGIT tag with the
sneakers’ details (brand, model, size, condition, etc.) and an official Sneaker Con digital stamp of
authenticity.
• The LEGIT tag was fastened to the sneaker
• Digital details could not be changed or reversed
• Physical tag used a special tamper-proof mechanism so it could not be removed
Sneaker Con x Blue Bite Product Authentication: Case Study
19. 19
● Solution Continued:
App:
• Marketplace app where sneakerheads could buy/sell sneakers
• App integrated with the authentication process at the show: once an authenticator certified a sneaker,
an attendee could easily add it to their virtual closet by simply tapping the new LEGIT tag
• The app would display a LEGIT badge next to the product image, indicating the sneaker was
authenticated in person by Sneaker Con experts.
• The only way to receive a LEGIT badge in the online marketplace was to physically tap an NFC enabled
LEGIT tag.
● Results:
Enablement of 3,235 LEGIT tags, with an activation rate of 34% in less than 60 days
In the first month of the launch, Sneaker Con’s app had over 50, 000 downloads
Sneaker Con x Blue Bite Product Authentication: Case Study
20. 1TRUEID CASE STUDY
PRESENTED BY:
CARLO CARMINATI, SALES AND MARKETING DIRECTOR
Advancing Near Field Communication Technology20
22. 1TRUEID - ALESSANDRO GHERARDI TAILOR MADE
22
BENEFITS
• Enhanced customer experience via personalised
service offerings that adapt to individual needs
• Device data can provide a 360 degree view of the
customer
• Process digitisation/automation
• Social Blockchain of goods
CH A L L E N G E
• Finding an adequate technology to support and
manage all the business information
• Creating washable tags to insert in the shirts
• Seamless digital identity
Project Name: Su Misura
Status: On going
Industry sector(s): Fashion / Luxury
Region(s) from: Italy
KEY FACTS GOALS
• Tracking Made to Mesure production with NFC
• Resellers management
• Anti Counterfeiting
• Automatic Identification
• Traceability
23. 23
1TRUEID - ALESSANDRO GHERARDI TAILOR MADE
IMPLEMENTATION
Phase 1:
Tag application on made to measure shirt
Phase 2:
Tag encoding with ERP data
Phase 3:
End user features
Phase 4:
Reseller features
24. 24
1TRUEID - ALESSANDRO GHERARDI TAILOR MADE
RESULTS
Thanks to this digital project, Alessandro Gherardi could identify every
single customized «Su Misura» shirt, through the NFC technology. The
electronic identification of the customized shirts and textiles created
during the production phase, supports the communication with the end
customer and helps having more efficient operations between resellers
and dealers. The solution based on 1TrueID platform, offers furthermore
the item´s warranty of originality, producer and dealer traceability. All of
this combined definitively creates a different and superior customer
experience.
26. BARBADILLO: NFC “TAP & WIN” IN SPAIN
Challenge:
Promote white wine for summer drinking
with seafood
Goals:
Increase sales of Castillo de San Diego in coastal areas
Drive in-store & at-home activity through contest entries
Build email list for future promotions
Generate brand buzz across media channels
Implementation:
Integrated approach: Hardware + Software + Conversion
NFC-enabled ‘neck collar’ applied to bottles
126,000 bottles deployed nationwide in Spain
200+ major retail outlets
Prizes up to €1000
28. BARBADILLO “DANDO EN EL BLANCO”: RESULTS
Results & Insights:
Winner:
Marketing
Promotion
26%
61%
11%
54%
14%
30%
Thinfilm
- 10x more
traffic than
Social /
Facebook
- 4x more
engagement
than banner /
display ads
- Even better
than Google
Search /
Google
Banner /
Display Ad
Social / Facebook
54% of brand engagement came from NFC and
Thinfilm SpeedTap™ enabled bottles
Inner circle: Share of paid traffic
Outer circle: Engagement per source
2x
Increase in subscribers over
traditional URL / QR campaigns
2.8x
Time spent on site
vs. all other traffic sources
33%
Of consumers interacted
from 2+ locations
30. GETTING STARTED WITH NFC:
PRE-PURCHASE USE CASES
30
Drive response through smart
packages and hang tags
Build a personal connection
through showroom
appointments
Creating buzz through non-
traditional ads
31. GETTING STARTED WITH NFC:
IN-STORE USE CASES
31
Engage consumers
with smart signage
Deliver one-on-one
service to shoppers
Deliver timely offers at
the point of sale
Promote app use to
strengthen customer loyalty
Offer a connection to social
media
Support chatbot conversations for
better service
Optimize availability and inventory
through omnichannel integration
Make loyalty programs more
convenient for customers
32. GETTING STARTED WITH NFC:
IN-STORE USE CASES
32
Build customer relationships
via vending machines
Provide fast, simple, secure
payment at fixed and mobile
points of sale
Enable kiosks, pop-up stores,
fairs, and micro-merchants
Assure product quality
through integrated sensing
Provide product authentication
for premium goods
Confirm product integrity
to drive sales
33. GETTING STARTED WITH NFC:
POST-PURCHASE USE CASES
33
Deliver post-sale product
added value and messaging
to continue the relationship
Support automated or
subscription purchases and
reorders
Cross-selling and upselling via
e-commerce
Connecting consumers to
warranty registration, support,
customer service
Enabling personalized gifting Opening a channel for
timely feedback
34. LEARN MORE: FREE RESOURCES FROM THE
NFC FORUM RETAIL & PAYMENT SIG
Advancing Near Field Communication Technology34
1. Infographic:
Next-
Generation
Retail and
Brand
Experience
https://nfc-
forum.org/next-
generation-retail-brand-
experience-customer-
journey-infographic/
35. LEARN MORE: FREE RESOURCES FROM THE
NFC FORUM RETAIL & PAYMENT SIG
Advancing Near Field Communication Technology35
2. Major Study:
Mobile Consumers Prefer NFC
Technology over Alternatives
https://nfc-forum.org/retail-study
36. JOIN THE NFC FORUM
36
● Brands, Retailers, and Technology Providers:
Becoming an NFC Forum member helps you drive NFC adoption, awareness and education!
Visit the NFC Forum website to learn about key NFC technical and compliance specifications
Learn about the benefits of NFC Membership
View NFC Case Studies and 2018 Innovation Award Winners
Share NFC-enabled products on our NFC Product Showcase
Join the Retail & Payment SIG to shape the conversation around NFC’s use in retail and
payment applications
Thanks very much, Susan, and welcome to all of you joining us live – around the world - on today’s broadcast. If you’re joining us later via the recorded session, a warm welcome to you, as well!
As Susan mentioned, my name is Matthew Bright and I have the distinct honor of serving as Chair of the NFC Forum’s Retail and Payment Working Group. Our organization is chartered to evaluate and promote the best applications for NFC technology in the retail and payment domains. From time to time, we publish public documents to help stakeholders – including brands, retail technology providers, and system integrators – better understand how NFC affects their business today as well as how they can take advantage of the technology in order to improve their business in the future.
Today’s webinar is divided into five parts:
First, I’ll introduce the NFC Forum’s latest white paper, entitled “Bridging Digital and Physical Retail with NFC”. This new document is required reading for anyone who wants to deploy NFC in an omnichannel retail or payment environment.
Second, I’ll walk through – at a high level – the trends that are shaping the retail and payment industries in this era of the connected consumer. We’ve all seen dramatic change in the retail space in recent years, as traditional bricks & mortar retailers have added technology to meet their customers online, while brand new retailers who started online are now introducing their very own physical stores. From either starting point, it’s clear that the future of retail is omnichannel – a hybrid of physical and digital.
Next – what’s sure to be the highlight of this webcast – is the presentation of four case studies – describing real, in-market deployments covering a variety of vertical markets, including apparel, sporting goods, footwear, and food & beverage. You’re going to hear directly from industry experts responsible for some of the most innovative NFC implementations to date and understand how they were implemented and the kinds of results they achieved.
Following that, I’ll make you even hungrier to deploy NFC by presenting a diverse menu of NFC use cases that can be deployed today. You’ll see how NFC technology can improve consumer engagement and gather valuable analytics at every stage of the consumer journey: pre-purchase, in-store, and post-purchase.
And finally, we’ll take your questions. Feel free to ask them throughout our session, using the GoToWebinar console.
I’m glad we’re having this conversation today, because it’s a key moment for so many types of businesses. We are currently experiencing a massive convergence of omnichannel retail, direct brand-to-consumer marketing, and mobile technology usability and availability. Did you know that today, worldwide, there are more than two billion NFC-capable smartphones in the hands of consumers? We want you to be able to take advantage of that technology. In order to do that, the white paper will teach you the basics of NFC and what it can enable for brands and retailers, describe how NFC can be used to enhance each stage of the consumer journey, and then help you to get started with NFC technology.
This free white paper is available now on the NFC Forum website. For live attendees, you’ll receive a direct link to download the white paper, plus other relevant NFC Forum material. I encourage you to read it. No matter your position in the industry and regardless of your position in your company, NFC is going to affect you. It’s best to be prepared!
So let’s find out why we’re living in a particularly important time.
First and foremost, the consumer concept of loyalty is changing. Brands and retailers have historically invested heavily in building and maintaining brand loyalty, but today’s consumers have more choices than ever, including more QUALITY choices than ever. This has created a crisis for traditional brands, in which 90 of the top 100 brands have seen share declines in recent years. This ties directly to data revealing that fully two thirds of surveyed consumers said they are considering many more brands than they had considered a decade ago. The seemingly infinite warehouses accessible through e-commerce providers provide opportunities to quickly and easily compare more options than ever before. Take a moment to consider the difference between the 1990s approach – scanning a store shelf to compare the two or three options available in a particular product category – and the 2018 approach – scanning dozens of results representing brands from around the world. Brands and retailers need to encourage loyalty.
In addition, customer experience scores have flatlined. Today’s consumers expect more, and the best omnichannel implementations will attract both their attention and their loyalty.
It goes without saying that mobile has become the preferred way to get online. In fast-moving countries like China, this happened some time ago. However, large, developed economies have now reached the tipping point where the majority of the population will reach first for their mobile device when they want to get something done.
This means that even traditional physical retail depends on mobile. More than 90% of consumers use their devices while in store. This means that brands and retailers need to identify and adopt technologies that – with speed and excellent usability – bridge the gap between physical products and the digital experiences that bring them to life for today’s consumers.
And we have data on what those consumers prefer. A recent study confirmed that shoppers preferred to engage using NFC technology by a margin of 2-to-1 compared to QR codes and a stunning 8-to-1 margin compared to Bluetooth beacons.
What are brands and retailers to do?
First, they need to prioritize connections between the physical and digital worlds. Omnichannel commerce has grown significantly. Now, brands need to think about creating omnichannel brands, where digital resources enhance the experience delivered by the physical product.
Second, brands and retailers need to create direct channels to consumers to sidestep the chaos of search-based approaches to brand discovery and education. This will cut through the noise created by this environment of seemingly infinite choice.
Third, with a direct channel to the consumer, you can start to provide information of great contextual value, meaning information that is IMMEDIATELY useful to a decision a consumer is making. If you can provide an answer to a question in a consumer’s head RIGHT THEN, such as “why should I buy this?” or “how do I use it?”, you’re on a path toward completing the sale or encouraging loyalty.
Fourth, keep in mind that simpler engagements are better. Don’t overcomplicate the interaction – keep load times quick, bring the most useful information to the foreground, and simplify data entry whenever possible. Because many NFC tags are encoded in ways that make them uniquely identifiable, you can provide useful, item-level provenance information, product registration forms, or customer service inquiries with the vast majority of information already filled out. That’s one good way to increase your conversion metrics!
Fifth, you can take advantage of technologies that reach beyond the point of sale. NFC simplifies consumer engagement before and after purchase, and the same NFC-enabled product or package can be used to extend the direct consumer channel throughout the product’s lifecycle, including the replenishment or reordering process. That’s how you maintain loyalty.
And finally, cloud-based NFC solutions allow you to gather analytics, leading to real-time insights on consumer behavior that were previously unavailable to marketers. As industry experts say, ‘data is the new oil’, and brands that can use interaction data to optimize the consumer experience will have an advantage over the competition.
Now, let’s hear from industry experts who live and breathe NFC on a daily basis. We’ve handpicked four diverse case studies to give you a sense of how NFC is being used today, and – more importantly – what kinds of results you can expect from an NFC deployment. Following the case studies, I’ll return with some additional ideas of how you can use NFC to improve your consumer engagement in pre-purchase, in-store, and post-purchase environments.
MATT: First, I would like to introduce Amir Khosh of Smartrac. Amir, please go ahead.
When adidas presented Telstar 18, the Official Match Ball for the 2018 FIFA World Cup, it introduced the first-ever match ball to feature an embedded NFC tag: SMARTRAC’s CIRCUS FLEX. Upon interaction – which involves a simple tap of a mobile device against the NFC touch-point on the ball – each ball generates a unique identifier, unlocking exclusive content and information for the user. The personalized customer experience displays specific details of each ball, and provides access to different challenges, which users can enter in the run-up to the World Cup.
MATT: Thanks, Amir. Next, it’s my pleasure to welcome Rachel Furst of Blue Bite. Rachel, please go ahead.
MATT: Thanks, Rachel. Next, welcome and good evening to Carlo Carminati of 1TrueID. Carlo, please go ahead.
MATT: Thank you, Carlo. Finally, a warm welcome to Paul Butler of Thinfilm. Paul, please go ahead.
MATT: Thanks to all four of our presenters for sharing their expertise in how NFC technology can build a useful – and measurable – bridge between the physical and digital worlds. Now, I’d like to inspire you with some more ways to use NFC technology at each stage of the consumer journey: prior to purchase, at the moment of purchase, and following the sale. Successful brands and omnichannel retailers know that today’s consumers expect a good experience throughout their engagement, so I’ll give you some ideas to inspire your next NFC campaign.
Prior to purchase, the connected consumer spends his/her time online doing research, reading reviews on social media, and checking prices, as well as viewing advertisements across multiple media. Brand discovery can begin at any time – including when a consumer sees an NFC enabled product or package at a friend’s house. With the touch of a phone, they can learn all about it. Furthermore, NFC technology can be used to create buzz through non-traditional ads, whether it’s an easy-to-use magazine insert or an NFC-enabled bus shelter ad. You can even set up the in-store sales process for success with NFC tags that are configured to quickly and easily book a showroom appointment.
Next, whenever the consumer arrives at a traditional physical store, brands and retailers have multiple opportunities to enrich the experience and help shoppers make an informed purchase. Because there are so many ideas here, I won’t have time to cover each in detail, but it’s important to understand that a single NFC tag can become a consumer’s gateway to a wealth of digital experiences, including loyalty program integration, offers integration, support integration – in the form of chatbots, and social media integration – both for asking about products and reporting feedback to one’s friends. I would like to point out that NFC technology can be integrated into mobile applications on every major mobile platform to support applications like product comparisons, wish list registration, and even e-commerce integration for enhanced inventory availability checking. For brands and retailers with mobile app strategies, many have found that their best and most loyal consumers use apps to engage regularly with their brand. By integrating NFC into physical stores and physical products, you can take the next step to create a true omnichannel experience for your best customers.
On the payment side, NFC payments can be used to simplify the user experience in a variety of environments. If you’ve ever used one of the NFC-based phone payment systems like Apple Pay, Google Pay, or Samsung Pay, you know how easy it can be to simply touch the phone – which is probably already in your hand – to the payment terminal. This opens a wealth of possibilities when payments aren’t shackled to a traditional cash register and point of sale environment. Retailers, for example, can deploy mobile points of sale, sometimes called M-POS, to put associates onto the sales floor and simplify the purchase process as soon as the customer is ready to buy. What’s more, NFC payment dongles can be used with minimal setup to help micro-merchants to accept a full range of payment options, including contactless payments, for less than one hundred dollars. Finally, when thirst or hunger strikes, NFC enabled vending machines make sure the customer can buy regardless of whether they happen to be carrying the right change. It’s a win for both sides of the transaction!
Product and supply chain integrity is a TRILLION dollar issue. As you learned from our presenters, NFC technology is increasingly being used to help improve supply chain integrity by allowing end users to authenticate products in shops or after purchase. NFC technologies can also allow consumers to verify the integrity of an electronic seal, to ensure that the item hasn’t been tampered with or refilled with inferior or dangerous product. In addition, NFC enabled sensors can be deployed in cold chain environments like food, pharmaceuticals, and flowers to create a powerful audit trail verifying that the monitored product was kept in the ideal temperature range during the entire journey from factory to end user. In applications like vaccines and insulin, lives are on the line! NFC can help.
Once the consumer has made a purchase, that same NFC label that provided value in earlier stages of the consumer journey will continue to provide value to the brand and retailer when that NFC tagged product is in the consumer’s home or other point of use. Keep in mind that many in-store retail technologies will stop being useful the moment the consumer walks out of the store. NFC is different. You can keep the relationship going – as well as analytics responsible for consumer behavioral insights – by making it easy to engage after the purchase, in what we call the ‘consumption phase’. Did you know that one of the most popular forms of YouTube content is instructional – or ‘how to’ content? A single NFC tap can transport the consumer to your brand’s own preferred instructional content so they get the right guidance, leading to the best possible results. No more sifting through search results controlled by an algorithm. You – the brand or retailer – can curate exactly what the consumer sees.
Furthermore, you can use the technology to enable a feedback channel, whether it’s to complete a satisfaction survey or file a customer service request. Thanks to the item-level intelligence of each uniquely identifiable NFC tag, your support team could know exactly which unit of that item, including its manufacturing date, location, expiration date, is the subject of the inquiry. This not only enhances your ability to deliver customer service, it enhances your organization’s drive for consistent quality by providing contextually relevant data with item-level precision.
Finally, NFC tagged products and packages can become channels for e-commerce. Tap to reorder use cases streamline the process of maintaining a loyal consumer. Plus, because it’s a
Smartphone-based eCommerce experience, you’ll be able to – as appropriate – offer cross-sale and up-sale opportunities at the moments they could be most effective.
Now, we’ve barely scratched the surface of all the ways NFC can enhance your omnichannel consumer experience. There’s much more detail in the white paper, and I encourage you to download and read it.
If you’re looking for more information on NFC’s role in the retail and brand experience, or if you simply prefer big pictures to thick whitepapers, I encourage you to download the NFC Forum’s infographic: The Next Generation Retail and Brand Experience. You’ll find – in an easy-to-read graphical form, high-impact motivating statistics, a journey through all three stages of the consumer journey, and a helpful comparison between NFC and other retail technologies.
The noted research firm Strategy Analytics – in partnership with the NFC Forum – completed a major comparative study of retail engagement technologies, including QR codes, Bluetooth beacons, and NFC tags, of course. You can download the full report at no cost and see what consumers liked and disliked about each technology. Plus, you’ll see which technologies and use cases consumers preferred overall. The report is available now on the NFC Forum website, following the link above. For your convenience, we’ll also include these links in a post-event email.
Now that you know how NFC is integral to modern retail and brand marketing, NFC could very well become an important part of your company’s strategy. I warmly invite you to join the NFC Forum, where we welcome brands, retailers, and technology providers to sit side by side. Membership gives you a seat at the table to influence the direction of NFC technology, including technical standards, test specifications, and market opportunities. You can learn more by visiting our website, N-F-C-dash-Forum-dot-org. On the site, you’ll find an overview of our technical specifications, descriptions of the benefits available at each level of membership, and a wide variety of inspirational case studies, including our 2018 innovation award winners. The NFC Forum is where NFC innovation happens, and we’d love for you to be part of the conversation.
MATT: At this time, I’ll hand it back over to Susan Layne, NFC Forum marketing director, to direct questions from today’s attendees to our presenters. As a reminder, you can submit your questions using the GoToWebinar console. We apologize if we can’t answer all questions. Susan, could you please get us started?
MATT: Thanks to our attendees for each one of your insightful questions and our most sincere thanks for attending today’s NFC Forum webcast. For live attendees, you will receive – in the coming days - a link containing the webcast replay as well as a direct link to the NFC Forum resources mentioned during today’s discussion. We hope you’ve learned a great deal about how NFC technology is revolutionizing the retail and brand experience in our connected world, and we look forward to being able to discuss YOUR very own successful NFC deployment in a future NFC Forum event. Thanks again for watching and have a great day! *END*