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1.
AutoID & Transaction
Automation Practice Michael Liard – Director NFC, RFID & Mobile Barcodes: Connecting with Consumers in a April 2012 Connected World © 2012 VDC Research Group, Inc. AutoID & Transaction Automation 0 vdcresearch.com
2.
About VDC Research
Market Intelligence for Technology Executives. VDC Research Group (VDC) provides market research and advisory services to the world's top technology executives. Our clients rely on us to provide actionable insights to support their most important strategic decisions. The firm is organized around four practices, each with its own focused area of coverage including: automatic identification and data collection, embedded hardware, embedded software and enterprise mobility. Please visit our website at www.vdcresearch.com to learn more, or call 508.653.9000. AutoID & Transaction Automation Embedded Hardware & Systems Mobile & Wireless MEET THE TEAM MEET THE TEAM MEET THE TEAM Industrial Automation & Control Embedded Software & Tools Emerging Technologies MEET THE TEAM MEET THE TEAM ABOUT THE PRACTICE © 2012 VDC Research Group, Inc. AutoID & Transaction Automation 1 vdcresearch.com
3.
Connecting with Consumers
in a Connected World through AutoID Technologies The power of the consumer has only increased with the rise of smartphone adoption By bringing together banks, merchants, advertisers, other marketing partners and consumers, the mobile commerce network is expected to provide an enhanced real world shopping experience that is more accessible, convenient and personal. In an age where the consumer is king, smart brands will look to embrace technology and to enter into a two-way conversation with consumers, delivering information and offers to build loyalty. Enter RFID, NFC and Mobile Barcode Scanning. © 2012 VDC Research Group, Inc. AutoID & Transaction Automation 2 vdcresearch.com
4.
Brands Linking RFID
to Social Media Four Lead-Adopter Examples Coca-Cola Village Izzy’s Ice Cream Amusement Park Café (Israel) (USA) Vail Resorts, Mercedes Benz Auto EpicMix App Show, (USA) Bash Interactive (USA) © 2012 VDC Research Group, Inc. AutoID & Transaction Automation 3 vdcresearch.com
5.
What is NFC
Technology? Near-Field Communication (NFC) enables wireless, RF-based communication between smartphones and other devices at close-range. NFC operates at 13.56 MHz, and uses HF RFID protocols, including ISO 14443 A and ISO 14443 B. NFC was developed by Sony and Philips (now NXP semiconductors) in 2002. Key NFC applications include device/Bluetooth pairing, ticketing, logical/physical access control, mobile payment, mobile marketing, information access and peer-to-peer (P2P). © 2012 VDC Research Group, Inc. AutoID & Transaction Automation 4 vdcresearch.com
6.
NFC Technology Adoption
Curve NFC adoption is limited in most parts of the world (Japan is a key exception) Most current activity is driven by pilots or small-scale deployments Present Day Adoption Facilitated & Broader Adoption Committment Understanding Awareness Innovators Early Adopters Early Majority Late Majority Laggards © 2012 VDC Research Group, Inc. AutoID & Transaction Automation 5 vdcresearch.com
7.
Consumer Applications for
NFC Over 1,000 NFC users (consumers) across the world share their application experiences Much of the NFC attention Consumer End User NFC Applications (N=1006) to date has been focused TOTAL Americas EMEA APAC on mobile payment Contactless/Mobile Howeve,r NFC technology 49.2% 47.6% 43.0% 54.2% Payments can enable much more, Bluetooth pairing 41.7% 30.3% 28.8% 43.1% including: Mobile 41.0% 33.1% 36.4% 48.4% • Smart marketing/ Promotions/Offers advertising Information 39.2% 33.1% 25.2% 39.3% Access/Retrieval • Digital content delivery Peer-to-Peer 38.8% 28.0% 23.8% 40.0% • Access control Ticketing (i.e. transit, 37.1% 22.4% 23.8% 34.2% entertainment) • Gaming Mobile Couponing 35.6% 30.3% 24.8% 40.7% • Device pairing via Interactivity with Bluetooth Digital Signage 33.5% 34.6% 30.1% 43.1% • Location Based Services Customer Loyalty 33.3% 39.8% 36.4% 40.7% (LBS) Interactivity with In- 32.1% 29.5% 22.2% 33.3% Store Displays Interactivity with 28.1% 34.6% 34.8% 43.8% Posters © 2012 VDC Research Group, Inc. AutoID & Transaction Automation 6 vdcresearch.com
8.
Like Traditional RFID
Technology, NFC also Enabling “Check In” via Social Media NFC is also set to shake up social ‘check-in’ platforms such as Foursquare and Facebook Places such as bars and retail outlets look to introduce NFC hubs allowing consumers to swipe in and swipe out of locations With many coffee houses, clothing shops and shopping centers already offering incentives for customers to share their location with their friends on Facebook or Foursquare, NFC technology could remove existing barriers to entry and encourage much wider spread adoption of location based services (LBS) and networks. This would make it even easier for consumers to work in conjunction with brands to source smarter and better deals, and pass the baton to friends. NFC-enabled mobile phones will be able to pick up information from an NFC chip or tag, allowing the capture of real-time information on customer loyalty, item performance and more, to benefit retailers, brands and marketers. In the long-term, BI tools will also be increasingly integrated with NFC © 2012 VDC Research Group, Inc. AutoID & Transaction Automation 7 vdcresearch.com
9.
NFC Technology: More
NFC-enabled Smartphones Will Drive Applications Less than 10% of smartphones shipped today incorporate NFC, Increasing to 50%+ over next five years NFC allows mobile operators, banks, retailers and advertisers to benefit from a fresh and steady stream of consumer information. By tying existing loyalty programs to NFC smartphones, retailers, wholesalers and vendors will be able to gather customer data for: Demographic analysis, evaluating sales and store trends Judging product preferences, and powering other analytical tasks Operational decision making enabled by active data warehousing, such as detecting stolen products and generating automatic security and stock replenishment alerts Allowing retailers to use customer-generated data to create precisely targeted marketing programs based on gender, age, location and other criteria, as well as to instantly adjust prices and other purchase terms based on place, date, time and other factors Customer analytics that utilizes detailed data on customers’ use of transportation services and commercial facilities © 2012 VDC Research Group, Inc. AutoID & Transaction Automation 8 vdcresearch.com
10.
Mobile Barcode Scanning One
term, two distinct methods, meanings and approaches With Device Mobile Barcode Scanning (WDMBS) Mobile barcode scanning applications or use cases where the consumer “actively” performs the scan by taking a picture of a barcode and reading/decoding the symbol with pre-installed or downloaded app/software on their mobile device. Examples: RedLaser, ShopSavvy, Microsoft Tag and other decoder software/apps Scanning activity peaks during key shopping seasons (Christmas, Back-to-School) On Device Mobile Barcode Scanning (ODMBS) Mobile barcode scanning applications or use cases where a barcode/symbology is “passively” displayed on a consumer’s mobile device screen and scanned/read by an enterprise (e.g., retailer, restaurant, airline) using a barcode imager scanner. Examples: Target Mobile Coupons and Gift Cards; Starbuck’s Mobile Payment © 2012 VDC Research Group, Inc. AutoID & Transaction Automation 9 vdcresearch.com
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Consumers Displaying Barcodes
ON their Mobile Devices Couponing is the leading application for On-Device Mobile Barcode Scanning What are the reasons you have DISPLAYED a barcode in a retail store? N = 721 Percent of Respondents To redeem a coupon/discount 59.8% To show my membership/loyalty card 34.5% To pay for a purchase (i.e. mobile gift card) 25.9% To obtain my account history or profile at the retailer 15.5% To access my social networking account (i.e. Twitter, Facebook) 10.8% Other 6.2% Note: Total sums to over 100% due to multiple responses © 2012 VDC Research Group, Inc. AutoID & Transaction Automation 10 vdcresearch.com
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Consumers Scanning Barcodes
WITH their Mobile Devices Product look-up and price comparison remain solid number one application, especially among US consumers What are the reasons you have SCANNED or TAKEN A PICTURE of a barcode in a retail store? N = 1121 Percent of Respondents Scanning product barcode to look up/compare price 64.9% Couponing 32.5% Payment 12.8% Information Retrieval/Lookup 64.5% Social Networking 11.9% Other 2.7% Note: Total sums to over 100% due to multiple responses © 2012 VDC Research Group, Inc. AutoID & Transaction Automation 11 vdcresearch.com
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Fickle Consumers Can
Shut Down the NFC & Mobile Barcode Scanning Machine with their Actions Consumer indifference, lack of awareness and poor early/first experiences are the biggest threats Banking & Mobile Standards Bodies & Finance Operators/Carriers Industry Associations NFC, RFID, Barcode Manufacturers Brands & Retailers Consumers Advertising & Marketing Channel Mobile Software, App & Handset Service Manufacturers Providers © 2012 VDC Research Group, Inc. AutoID & Transaction Automation 12 vdcresearch.com
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Recommendations for Achieving
Success with AutoID Technologies There is much to consider with RFID, NFC and Mobile Barcode Scanning, but here are a few thoughts… Consumer education and awareness are immediate market requirements Do not wait to fill this void/satisfy this requirement. Joint messaging and cross-marketing a necessity today – no retailer or brand is an island However, singular approaches still recommended to bolster consumer perception as leader/ innovator A key proxy for an enterprise’s, retailer’s or brand’s mobile ‘preparedness’ may rest in answering the question: “Where is an organization at in terms of its overall digital on-line advertising strategy in general?” Those with strong on-line advertising strategies tend to have sharper mobile strategies/visions, especially for mobile barcodes Advertisers could build a bridge for rest of value chain to access enterprises as well as consumers Where do most of Japanese consumers capture QRcodes? – from websites. NFC-enabled posters, displays and digital signage can delivery premium content © 2012 VDC Research Group, Inc. AutoID & Transaction Automation 13 vdcresearch.com
15.
Ways to Work
With Us Our market research is the basis for the many other ways that VDC can help you to grow your business. Our clients rely on us to provide actionable insights that support their most important strategic initiatives including: corporate development projects, opportunity assessments and lead generation programs. © 2012 VDC Research Group, Inc. AutoID & Transaction Automation 14 vdcresearch.com
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Thank You Contact Details
Michael Liard Director AutoID Group VDC Research Group, Inc. Email: mliard@vdcresearch.com Phone: +1 508-653-9000 ext. 145 www.vdcresearch.com © 2012 VDC Research Group, Inc. AutoID & Transaction Automation 15 vdcresearch.com
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