1. AutoID & Transaction Automation Practice
Michael Liard – Director
NFC, RFID & Mobile Barcodes:
Connecting with Consumers in a
April 2012
Connected World
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2. About VDC Research
Market Intelligence for Technology Executives. VDC Research Group (VDC) provides market research and
advisory services to the world's top technology executives. Our clients rely on us to provide actionable insights to support their
most important strategic decisions. The firm is organized around four practices, each with its own focused area of coverage
including: automatic identification and data collection, embedded hardware, embedded software and enterprise mobility.
Please visit our website at www.vdcresearch.com to learn more, or call 508.653.9000.
AutoID & Transaction Automation Embedded Hardware & Systems Mobile & Wireless
MEET THE TEAM MEET THE TEAM MEET THE TEAM
Industrial Automation & Control Embedded Software & Tools Emerging Technologies
MEET THE TEAM MEET THE TEAM ABOUT THE PRACTICE
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3. Connecting with Consumers in a Connected World through AutoID Technologies
The power of the consumer has only increased with the rise of smartphone adoption
By bringing together banks, merchants, advertisers, other
marketing partners and consumers, the mobile commerce
network is expected to provide an enhanced real world
shopping experience that is more accessible, convenient and
personal.
In an age where the consumer is king, smart brands will look
to embrace technology and to enter into a two-way
conversation with consumers, delivering information and
offers to build loyalty.
Enter RFID, NFC and Mobile Barcode Scanning.
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4. Brands Linking RFID to Social Media
Four Lead-Adopter Examples
Coca-Cola Village Izzy’s Ice Cream
Amusement Park Café
(Israel) (USA)
Vail Resorts, Mercedes Benz Auto
EpicMix App Show,
(USA) Bash Interactive
(USA)
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5. What is NFC Technology?
Near-Field Communication (NFC) enables wireless, RF-based communication
between smartphones and other devices at close-range. NFC operates at 13.56
MHz, and uses HF RFID protocols, including ISO 14443 A and ISO 14443 B.
NFC was developed by Sony and Philips (now NXP semiconductors) in 2002.
Key NFC applications include device/Bluetooth pairing, ticketing,
logical/physical access control, mobile payment, mobile marketing, information
access and peer-to-peer (P2P).
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6. NFC Technology Adoption Curve
NFC adoption is limited in most parts of the world (Japan is a key exception)
Most current activity is driven by pilots or small-scale deployments
Present Day Adoption
Facilitated & Broader Adoption
Committment
Understanding
Awareness
Innovators Early Adopters Early Majority Late Majority Laggards
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7. Consumer Applications for NFC
Over 1,000 NFC users (consumers) across the world share their application experiences
Much of the NFC attention Consumer End User NFC Applications
(N=1006)
to date has been focused
TOTAL Americas EMEA APAC
on mobile payment
Contactless/Mobile
Howeve,r NFC technology 49.2% 47.6% 43.0% 54.2%
Payments
can enable much more, Bluetooth pairing 41.7% 30.3% 28.8% 43.1%
including:
Mobile
41.0% 33.1% 36.4% 48.4%
• Smart marketing/ Promotions/Offers
advertising Information
39.2% 33.1% 25.2% 39.3%
Access/Retrieval
• Digital content delivery
Peer-to-Peer 38.8% 28.0% 23.8% 40.0%
• Access control Ticketing (i.e. transit,
37.1% 22.4% 23.8% 34.2%
entertainment)
• Gaming
Mobile Couponing 35.6% 30.3% 24.8% 40.7%
• Device pairing via
Interactivity with
Bluetooth Digital Signage
33.5% 34.6% 30.1% 43.1%
• Location Based Services Customer Loyalty 33.3% 39.8% 36.4% 40.7%
(LBS) Interactivity with In-
32.1% 29.5% 22.2% 33.3%
Store Displays
Interactivity with
28.1% 34.6% 34.8% 43.8%
Posters
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8. Like Traditional RFID Technology, NFC also Enabling “Check In” via Social Media
NFC is also set to shake up social ‘check-in’ platforms such as Foursquare and
Facebook
 Places such as bars and retail outlets look to introduce NFC hubs allowing consumers
to swipe in and swipe out of locations
 With many coffee houses, clothing shops and shopping centers already offering
incentives for customers to share their location with their friends on Facebook or
Foursquare, NFC technology could remove existing barriers to entry and encourage
much wider spread adoption of location based services (LBS) and networks.
 This would make it even easier for consumers to work in conjunction with brands to
source smarter and better deals, and pass the baton to friends.
NFC-enabled mobile phones will be able to pick up information from an NFC
chip or tag, allowing the capture of real-time information on customer loyalty,
item performance and more, to benefit retailers, brands and marketers.
In the long-term, BI tools will also be increasingly integrated with NFC
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9. NFC Technology: More NFC-enabled Smartphones Will Drive Applications
Less than 10% of smartphones shipped today incorporate NFC, Increasing to 50%+ over next five years
NFC allows mobile operators, banks, retailers and advertisers to benefit from a
fresh and steady stream of consumer information.
By tying existing loyalty programs to NFC smartphones, retailers, wholesalers
and vendors will be able to gather customer data for:
 Demographic analysis, evaluating sales and store trends
 Judging product preferences, and powering other analytical tasks
 Operational decision making enabled by active data warehousing, such as detecting
stolen products and generating automatic security and stock replenishment alerts
 Allowing retailers to use customer-generated data to create precisely targeted
marketing programs based on gender, age, location and other criteria, as well as to
instantly adjust prices and other purchase terms based on place, date, time and other
factors
 Customer analytics that utilizes detailed data on customers’ use of transportation
services and commercial facilities
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10. Mobile Barcode Scanning
One term, two distinct methods, meanings and approaches
With Device Mobile Barcode Scanning (WDMBS)
 Mobile barcode scanning applications or use cases where the consumer “actively”
performs the scan by taking a picture of a barcode and reading/decoding the symbol
with pre-installed or downloaded app/software on their mobile device.
 Examples: RedLaser, ShopSavvy, Microsoft Tag and other decoder software/apps
 Scanning activity peaks during key shopping seasons (Christmas, Back-to-School)
On Device Mobile Barcode Scanning (ODMBS)
 Mobile barcode scanning applications or use cases where a barcode/symbology is
“passively” displayed on a consumer’s mobile device screen and scanned/read by an
enterprise (e.g., retailer, restaurant, airline) using a barcode imager scanner.
 Examples: Target Mobile Coupons and Gift Cards; Starbuck’s Mobile Payment
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11. Consumers Displaying Barcodes ON their Mobile Devices
Couponing is the leading application for On-Device Mobile Barcode Scanning
What are the reasons you have DISPLAYED a barcode in a retail store?
N = 721
Percent of
Respondents
To redeem a coupon/discount 59.8%
To show my membership/loyalty card 34.5%
To pay for a purchase (i.e. mobile gift card) 25.9%
To obtain my account history or profile at the retailer 15.5%
To access my social networking account (i.e. Twitter, Facebook) 10.8%
Other 6.2%
Note: Total sums to over 100% due to multiple responses
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12. Consumers Scanning Barcodes WITH their Mobile Devices
Product look-up and price comparison remain solid number one application, especially among US consumers
What are the reasons you have SCANNED or TAKEN A PICTURE of a barcode in a
retail store?
N = 1121
Percent of
Respondents
Scanning product barcode to look up/compare price 64.9%
Couponing 32.5%
Payment 12.8%
Information Retrieval/Lookup 64.5%
Social Networking 11.9%
Other 2.7%
Note: Total sums to over 100% due to multiple responses
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13. Fickle Consumers Can Shut Down the NFC & Mobile Barcode Scanning Machine with their Actions
Consumer indifference, lack of awareness and poor early/first experiences are the biggest threats
Banking & Mobile
Standards Bodies & Finance Operators/Carriers
Industry Associations
NFC, RFID,
Barcode
Manufacturers
Brands &
Retailers
Consumers
Advertising & Marketing
Channel Mobile
Software, App & Handset
Service Manufacturers
Providers
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14. Recommendations for Achieving Success with AutoID Technologies
There is much to consider with RFID, NFC and Mobile Barcode Scanning, but here are a few thoughts…
Consumer education and awareness are immediate market requirements
 Do not wait to fill this void/satisfy this requirement.
 Joint messaging and cross-marketing a necessity today – no retailer or brand is an
island
 However, singular approaches still recommended to bolster consumer perception as
leader/ innovator
A key proxy for an enterprise’s, retailer’s or brand’s mobile ‘preparedness’ may
rest in answering the question: “Where is an organization at in terms of its
overall digital on-line advertising strategy in general?”
 Those with strong on-line advertising strategies tend to have sharper mobile
strategies/visions, especially for mobile barcodes
 Advertisers could build a bridge for rest of value chain to access enterprises as well as
consumers
 Where do most of Japanese consumers capture QRcodes? – from websites.
 NFC-enabled posters, displays and digital signage can delivery premium content
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15. Ways to Work With Us
Our market research is the basis for the many other ways that VDC can help you to grow your business. Our clients rely on us to
provide actionable insights that support their most important strategic initiatives including: corporate development projects,
opportunity assessments and lead generation programs.
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16. Thank You
Contact Details
Michael Liard
Director
AutoID Group
VDC Research Group, Inc.
Email: mliard@vdcresearch.com
Phone: +1 508-653-9000 ext. 145
www.vdcresearch.com
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