Dec 03, 2013While browsing through shoe displays at 32 of Bon-Ton's U.S. department stores, shoppers can use their Near Field Communication (NFC)-enabled phones to learn more about each style, as well as whether a specific size and color is available at the store—and, if not, how they can most efficiently acquire the shoes they are seeking. Last month, the company launched the RFID-based solution from Thinaire, including Thinaire's software platform and Smartrac RFID tags, made with NXP Semiconductors' NTAG chips, attached to each display shoe. The department store plans next month to evaluate customer responses to the solution, and to determine how it has affected sales.
Bon-Ton operates 273 stores that sell apparel, bedding, beauty products and houseware. As with most retailers, the company's brick-and-mortar stores must compete with online shopping. For that reason, it is critical that the stores be able to provide customers with easy access to product information (in this case, a pair of shoes) in the size and style being sought. If the product is not available at a store, the shopper's NFC-enabled phone will list inventory information for that product at other nearby Bon-Ton locations, or provide the opportunity to complete an online sale through the retailer's mobile commerce channel.
"In general, we are looking for ways to link our retail environment with our digital one," says Luis Fernandez, Bon-Ton Stores Inc.'s executive VP and chief omni-channel officer. "In the case of this technology, we think it's the simplest interface that accomplishes this goal."
By employing NFC technology, Bon-Ton aims to provide relevant product information to consumers at the moment of engagements, says Mark Donovan, Thinaire's chief operating officer. If a customer has an NFC phone, he or she can simply pick up a shoe, turn it over and tap the phone against the Smartrac tag attached to the sole. The phone's reader captures the tag's ID number and directs the phone's web browser to Thinaire's server, where the software platform determines the stock-keeping unit (SKU) associated with that shoe, as well as the store in which that particular tag (and, therefore, the customer) is located. The software then delivers information about that product to the consumer's phone.
The shopper can select the size and color of the shoe she is interested in buying. If the desired footwear is unavailable, the consumer is then shown information about the closest Bon-Ton store carrying that product, or is directed to make the purchase from Bon-Ton online. If it is available at the store, the app informs the patron of that fact, and she can proceed to seek help from a sales representative or search for the product on the shelf.
"At Thinaire, we are keenly focused on [providing] retailers with a way to control the showrooming experience, rather than being victimized by it," Donovan states. "As the levels of smartphone use continue to rise at meteoric rates, providing meaningful engagement experiences that enhance the brick-and-mortar shopper experience is key to a retailer's success."
Each store's shoe department is also equipped with Google Nexus tablets for customers lacking NFC-enabled phones. Shoppers can bring a shoe to the tablet, tap it against the device's built-in NFC reader and utilize the resulting data in the same way they would use it on the phone.
Since the installation's launch on Nov. 10, the company has deployed more than 100,000 RFID tags to date.
Bon-Ton carefully prepared for the launch, Donovan says, which included "developing stores' associate training materials so that their store staff were as knowledgeable about the technology as possible," he explains. The participating sites are located in 14 states, including New York, Michigan, West Virginia, Maryland, North Dakota and others.
"Ultimately, sales lift will be the most important metric," Donovan says. "But early on, this program is all about perfecting the engagement with the in-store customers." Bon-Ton also hopes to increase customer satisfaction, by providing information about the merchandise and its availability via shoppers' phones or the store-provided tablets.
"The feedback we've gotten from customers using this technology is very positive," Fernandez reports. "Once they experience the simplicity of the process and richness of the content accessed, they are very pleased." Bon-Ton will continue to explore ways in which to optimize the data presentation "and the quality of the consumer interaction," he states.
The retailer also carried out more limited NFC trials earlier this year, involving products within its stores' cosmetics departments.
