Beyond this, it is the tapping that can really empower the consumer. NFC is a wireless technology that enables data exchange or information delivery and communication to occur between any two electronic devices when they “tap” or come together in proximity of each other. If you tap your NFC-enabled device to another NFC-enabled device or tap point, like a smart poster or label, you can retrieve a message.
When you boil it down, you’re connecting chips; chips that are actually embedded in devices. We are not just talking smartphones and tablets, but also appliances like a refrigerator, or an inanimate object like a poster, coaster, shirt, and more. These chips can pretty much go anywhere and be encoded with almost any message, including animation, apps, and forms.
The power comes with the message that is shared or received via an online connection or by tapping your phone to another NFC-enabled device. Think of the activity-driven opportunities this seemingly simple new distribution point provides, especially now, as more smartphones with NFC enter the market.
You can deliver payment options, coupons, loyalty programs and brand apps, links to join interactive games, product information, social media connections, and on and on.
The possibilities are endless and its simplicity is why there is so much chatter. This simplicity and ease of connectivity makes NFC the technology everyone wants to develop.
Tap to the Business
NFC can be used as a pointer at tap, which means it uses a URL and points to, or sends the user to a specific site, or it can be used to bootstrap more capable wireless connections, like establishing Bluetooth connections or configured Wi-Fi networks. This bidirectional communication capability allows for another highly desirable use case: geotargeted and geofenced message delivery. This takes location-based message targeting to the next level.
Excitement is building across industries from the realization that this provides previously unheard-of advertising and marketing opportunities as well as data capturing possibilities. It also creates the potential to close the loop, capturing data from the point-of-manufacture to the point-of-sale.
Use of the cloud and mobile technology changed the basic paradigm of brick-and-mortar retail and how consumers shop. It brought the store to consumers where they are and when they want it. Shoppers now have the ability to search for products and services, compare information and prices, share preferences and ratings, and shop from their mobile devices anytime, anywhere.
Now add that offline connection of NFC, and suddenly that point of purchase becomes portable. This is an unintended consequence of NFC, I’m sure, as the technology was mainly developed for use with payments, smart cards, and wallets, but it is a reality nonetheless because now you can tap on an object and be directed to mobile commerce, which gives you the ability to order an item for pick up or delivery and purchase it without ever having to use a static checkout point or sales register.
This means you can allow the consumer to shop from anywhere. From a smart poster at the bus stop, to a label in a shoe or on a coffee cup, to a tag on a counter at a local bodega, all you have to do is provide that ability to tap. This ability to tag and label individual items and products now also allows for the connection of realtime inventory information to retail distribution and purchase occasions, thus creating a new data point for collection, which provides consumer-driven business intelligence.
Think of the benefits to the retail business when you can provide direct product messaging to drive and complete sales. You increase sales and improve the customer experience and brand loyalty.
Tap to All
If you don’t want to wait in line or carry packages around, or if the shirt you want is not available on the shelf, you can tap on a label, order the right size and color, and have it shipped. You get what you want, when you want, where you want.
As these implementations evolve, they will have a tremendous impact on manufacturing and supply-chain paradigms and supply-chain management across industries. Realtime data connected to realtime distribution needs can affect where products are made and how and when they are delivered. Businesses can direct and redirect shipments on demand. They can close the gap between what they produce and what they sell. This truly impacts just-in-time inventory and can help retailers recapture lost sales.
The data from these connections provide brands with deeper, more relevant insights that can result in better decisionmaking abilities and overall performance. This new realtime product and service feedback loop between brands and consumers is also creating a resurgence of “prosumers.”
“Prosumers” is an older term once used mainly to describe customers as producers; cocreators of a product’s value. I think that concept applies now more than ever, thanks in part to NFC.
Today’s consumers are more actively engaged and more directly involved with creating value for a brand, very often in realtime. They are influencing and helping brands make product decisions. This involvement often extends to the process, design, or even customization of the end product.