Aug 29, 2021A few weeks ago, I wrote about the shortsightedness of companies that try to deploy radio frequency identification (RFID) and other Internet of Things (IoT) technologies cheaply and with no groundwork (see A Little Preparation Goes a Long Way). RFID solution providers have also been shortsighted way too often.
Last week, I spoke with a business that was bringing a new RFID solution to market. They wanted to talk to me about how they should launch in the marketplace. But here's the catch: after developing and manufacturing their product, they had no funds left for marketing and promotion. Sadly, this is more the rule than the exception in the RFID industry. There are a lot of companies that have good products that they don't advertise. The only people that know about them are the top RFID systems integrators, which do their homework.
In his book Escape Velocity, Geoffrey Moore wrote that companies should spend the same amount of money on marketing a new product as they did on developing it. In other words, if you were to invest a million dollars into designing and building your product, you should spend another million to promote it. I don't think any RFID company has ever done that.
By the way, Steve Jobs took 80 percent of the marketing budget from Apple desktops and laptops and put it toward the new iPod when that product was launched. One could argue that this bold move began the transformation of Apple into the juggernaut it is today. Had he put only a small amount into promoting this new product, it's possible Apple would still be struggling, as it was when Jobs returned to the company.
It's unfortunate that businesses in the RFID industry have taken this approach. It not only hurts their fortunes, but many firms have gone under in the past 10 years. Last week brought news that Savi Technology, once one of the leading RFID companies, has filed for bankruptcy. Savi used to do a lot of marketing and sold its active RFID solution to ports, factories and other big facilities. But it was bought out by a larger company that did no promoting, and it was eventually sold off and left for dead.
A lack of promotion also hurts technology users that buy inferior products and find they don't work well enough to deliver value. These companies end up not using an RFID solution, and thus not receiving the benefits the technology can deliver. I suspect that at some point, a new company with both good technology and good marketing skills will launch, and that it will take the industry by storm. Other firms will then realize marketing works and will follow suit. Is your business the one that will change the game?
Mark Roberti is the founder and editor of RFID Journal.
