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Companies Use Active RFID Cards to Improve Customer Service

In October, the company plans to release the second generation of this technology, known as Novitaz Edge. This second-generation card is smaller than its predecessor, Munshani says—as thin as a credit card. Both the Indian bank and Canadian restaurant are employing the second generation of this technology.

The active RFID transmission enables readers—VHS tape-size devices provided by Novitaz—to capture unique ID numbers on tags as they approach what Munshani describes as a "hot spot" where the business wishes to track activity. Novitaz software allows the interrogators to capture the ID number transmitted by the tag, then forward that number wirelessly to a back-end system hosted by the business, and track how long the specific customer remains in a given location—as well as providing the identity of that shopper in the back-end system, based on a link between the unique ID number and that shopper.

The company can then conduct its own business analytics to track, for example, whether the shopper actually purchased the item he or she was examining. It can also display specific advertising on screens as the consumer approaches a location elsewhere in the store, or mail coupons to that shopper he or she leaves, specific to products in the hot spot where that individual was located.

In restaurants, Munshani says, a participating cardholder's unique ID number could be read by interrogators as that person arrives at the parking lot, and again as he or she enters the dining room. With this data, restaurants could inform a hostess or other staff member who the arriving individual is, how that patron prefers to be served and the food and beverages he or she typically orders. Based on this more personalized service, Munshani says, the restaurant could then draw diners back to the restaurant more often.

The Novitaz cards will be available in card format for use as a loyalty card or credit card, or they could be provided by banks with options to be utilized in numerous businesses. The cardholder, in the latter case, would then visit Novitaz's Web site and log into the system online, using the serial ID number printed on the card, and input the information that person would be willing to share—and with which businesses. The serial number, as well as the customer's shopping history and other data, would then be linked to the card's RFID number.

No matter how a cardholder chooses to employ the card, Munshani says, it would transmit only its unique tag ID number, and that would link to specific data the consumer chooses to share—and only with the businesses it selects. "The metrics related to that ID number don't travel with you," Munshani says. Other businesses would be unable to access information related to that ID number, even if they had readers capable of capturing that ID number.

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