Jan 19, 2016For the past two months, men's clothing and accessories retailer The Dandy Lab has been using Reward Technology's RFID-enabled loyalty-card solution at its store on London's Brushfield Street. As a result, the company reports a 20 percent increase in customer retention—those returning to the store to make additional purchases—according to Julija Bainiaksina, The Dandy Lab's cofounder and head of innovation and technology.
Reward Technology, a U.K. startup, developed the RFID-based system to locate consumers carrying RFID-enabled badges (such as loyalty cards), link each person's ID number with data about his or her previous purchases, and then forward the appropriate content to that individual's phone via a text or e-mail. The solution was originally designed for the retail market, says Paul Sheedy, Reward Technology's chief executive, but is also being used by Central Working, a U.K. workspace provider, as well as by hotels and office buildings. To date, companies in the three sectors are piloting or are in the process of adopting the technology in order to capture data regarding the locations of individuals, and to then feed information back to them according to their location and interests.
The Reward Technology system serves as an alternative to Bluetooth Low Energy (BLE) beacon technology, Sheedy says. Sheedy says that prior to Reward Technology's establishment, he participated in a research project that found beacon technology was not very popular with female shoppers in their middle years—a key target group because they make up the majority of loyal customers in the grocery sector. That demographic group, his studies determined, did not want to stop to download apps for the stores in which they shop, or to have to turn on Bluetooth or Wi-Fi services to enable the system to locate them and forward content.
Ultrahigh-frequency (UHF) RFID offers a less disruptive solution, Sheedy says. With Reward Technology's system, a shopper, upon receiving a loyalty card, provides a limited amount of information that includes how she would like to be reached with promotions and coupons (via text message or e-mail, or via an API that delivers a message in an app). The card comes with a built-in UHF Impinj Monza 6 RFID chip with a unique ID number linked to the individual's contact information. Reward Technology partners with Software AG, which provides the software that links the shopper's ID and location data with her shopping behavior data so that coupons and promotions are more specifically targeted to that individual according to her previous purchases.
At stores, Impinj xArray or xPortal readers are installed at the entrance. As an individual walks through or near that entrance, the reader captures the tag's ID number, and software accesses appropriate content to that ID, which is then forwarded to the individual through Reward Technology's system, via the chosen method of communication, such as text or e-mail. For instance, if the shopper typically purchases a certain type of clothing, the message might list products in that category that are on sale in the store.
When it first opened its doors in August 2015, The Dandy Lab used a different loyalty system, by which discounts were offered to customers at the point of sale (POS), based on the amount of purchases they had made in the past—data that was stored in the POS software along with each individual's loyalty-card number.
"For us, the main goal of the loyalty scheme is to increase customer retention and loyalty, and also provide superior customer service," Bainiaksina says. The store had wanted to provide discounts according to customer behavior. "We also wanted to provide our staff members with the tools that help them to give a better customer service," she explains. "Therefore, we were keen to explore Reward Technology's solution, as it gives an ability to recognize the customers in real time as soon as they walk in through the doors."
The company's new Personal Shopping Scheme program, made possible by Reward Technology's RFID-enabled solution, allows subscribed customers to receive 10 percent discounts on all products. In addition, they can view personalized product recommendations.
In addition, The Dandy Lab's staff can view—via data provided by its POS software and Reward Technology's software—who has arrived at the store, along with that person's previous purchases and sizes. Thus, a salesperson can recommend products that the shopper might like.
In the hospitality sector, Reward Technology's systems are being trialed to target VIP customers. First, a guest who is a regular customer of a hotel, or a lounge or other business within that hotel, receives a member card containing a Monza 6 RFID chip. The chip's ID number can be linked to the individual's name and picture.
When that consumer enters the hotel bar, for example, an RFID reader installed at the entrance allows the bartender to view that person's name and image on a computer screen, along with a history of previous orders or favorite drinks or meals. In that way, an employee can greet the customer personally and offer her "the usual."
The technology is also being tested for security and other applications within office buildings. By installing xArray readers at elevators or lobbies, as well as xPortal readers in stairways, the Reward Technology system can be used to identify who is on which floor in real time, using Software AG's real-time data solutions software. Security personnel can then view this information in the event of an emergency.
The system can also be used for other purposes, such as networking. Central Working, which provides office space and services to workers at small and midsize firms, has been using Reward Technology's RFID-based system to monitor the arrivals and departures of its clients' employees for two years, says James Layfield, Central Working's CEO. The company has now begun utilizing the technology to match an individual's work-related needs and interests to the expertise of others working at the same facility.
Approximately 1,000 companies are clients of Central Working, which operates five worksites—four in London and one in Manchester. At any given time, there could be several hundred or more workers at each of those sites. At every site, Central Working provides wireless Internet coverage and equipment, such as PCs, that individuals might require to perform their work.
The facilities, all five of which are equipped with Reward Technology's RFID solution, are designed to promote collaboration between workers within a company and with those of other businesses. "We have a belief that the sense of community is being lost in the West," Layfield states. The facilities are designed to bring back that community sense for those working in Europe, North America and other locations. Central Working installed UHF RFID readers at the doorways and issued RFID tags in membership badges.
The firm initially employed the Reward Technology solution to identify and track who was on the premises, and thereby better manage the assets onsite in order to meet users' needs. But now, Layfield says, Central Working is also using the system to provide personalized service to its client companies. When a business signs up for membership, it provides a list of interests, as well as any problems, such as the need for a better Web design, additional workers or legal assistance. The technology then matches those needs with others' skills and responsibilities.
If a worker arrives at one of Central Working's sites with a need for Web designers, for instance, and such a professional happens to be onsite, both individuals will receive a text or e-mail message providing information about each other so that they can meet up. "Imagine if you need something, and you get an e-mail or message with a solution," Layfield says. "That's a magical thing to bring to a real-world community."
