[Presentation from February 12 Webinar: Consumer Perspectives on In-store Engagement Technology Webinar] In this webinar, Strategy Analytics, a leader in global consumer insight research and consulting, will offer attendees exclusive access to the findings of their new observational consumer research and web survey. The presentations will reveal insights into the needs and preferences of today’s mobile consumer, and how to provide a more relevant, convenient and enhanced in-store shopping experience. To watch the recorded webinar or to download the "NFC Technology: How Changing Consumer Preferences Create New Opportunities for Retailers" white paper that this presentation is based on, go here: http://nfc-forum.org/retail-study/

1. Based on Observational and Survey Research Performed by Strategy Analytics, Autumn 2014
Advancing Near Field Communication Technology
CONSUMER PERSPECTIVES
ON IN-STORE ENGAGEMENT TECHNOLOGY
FEBRUARY 12, 2015
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2. MEET OUR WEBINAR HOST
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Paula Hunter
Executive Director,
NFC Forum

3. AGENDA
Housekeeping
Our speakers
Research background
Facts and stats
6 Opportunities for retailers and brand owners
Questions & answers
Why NFC for brand owners and retailer
Next Steps
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4. HOUSEKEEPING
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How to submit
questions
Access the recording
of this webinar:
http://nfc-forum.org/retail-study/
Share with friends
and colleagues

5. MEET OUR SPEAKERS
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Christopher Dodge
Associate Director of User Experience
Practice, Strategy Analytics
Matthew Bright
Retail Working Group Chair,
NFC Forum

6. RESEARCH BACKGROUND
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7. RESEARCH BACKGROUND
Purpose of Study:
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Retailers and brands
more
customer-centric
Growth of digital
interactivity for
retailers and brand
Gather data about
end-user experiences
and perceptions of
NFC in retail setting–
as it relates to other
technologies

8. RESEARCH BACKGROUND
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 36 participants
 Six retail simulation experiences
Part 1: Observational research
(primarily qualitative)
Part 2: Web survey
(quantitative)
 1,038 consumers surveyed
Research methodology:
Focused on North America
Note: all data collected before Apple Pay was introduced

9. FACTS AND STATS
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10. FACTS AND STATS
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is an indoor proximity-based solution, which is
branded in various ways including Apple’s
iBeacon. Compatible phones receive short
messages when they are in range of a
Bluetooth Beacon transmitter. In the retail
environment, Bluetooth Beacon is used to
“push” targeted messages to the mobile
consumer, such as a flash sale or coupon. One
or more applications must be installed to
connect the consumer with the Beacon
messages.
Bluetooth Beacon
(short for Quick Response Code) is a two-
dimensional matrix barcode that contains
information that can be read by a mobile phone
via its camera. Consumers scan QR codes to get
information about a product or service and
access websites. A QR code reader application
must be installed to decode the barcodes.
QR Code
is a short-range wireless technology that
enables simple and safe two-way interactions
between compatible electronic devices,
allowing consumers to make payments,
instantly access targeted digital content, and
pair electronic devices with a single touch.
Near Field Communication - NFC

11. COMPELLING DATA
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FACTS AND STATS
From 2014 to 2015 over 1 billion NFC-enabled devices will be shipped worldwide.

12. OVERVIEW OF CONSUMERS’ USE OF NFC
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FACTS AND STATS
Which of the following tasks have you used NFC on your phone to complete?*?
2%
19%
27%
34%
45%
59%
68%
0% 10% 20% 30% 40% 50% 60% 70% 80%
Other
Activate a gaming figurine (non-phone)
Use for ticketing
Access digital content
Pay for items in a retail store or vending machine
Transfer content from on NFC phone to another
Pairing with another device
* For those that have used NFC technology

13. FACTS AND STATS
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42%
47%
51%
61%
64%
70%
70%
77%
24%
23%
22%
22%
17%
16%
16%
10%
34%
30%
28%
16%
19%
14%
14%
13%
0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100%
Ages of family members
Occupation
Number of family members
Details of items purchased
Age
Details of discounts/coupons used
Zip code
Gender
Would be willing to
provide this information
Not Sure
Would not be willing to
provide this information
Participants were asked “what information would you be willing to share with your
preferred retailers in exchange for specific and personalized rewards and deals?”?
Total sample size: 1,038

14. COMPELLING DATA
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FACTS AND STATS
OVER
75%
MORE THAN
75%
OVER
60%
of respondents who used NFC
were very satisfied with their
experience
of respondents indicated an
interest in viewing additional
product information including
inventory and availability via
NFC.
were interested in an NFC-
enabled mobile shopping cart
in-store experience and using
NFC to order the replacement
parts or accessories for
products, such as ink and
toner cartridges for printers.

15. SIX OPPORTUNITIES FOR RETAILERS AND
BRAND OWNERS
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Note: all graphics represent data from online survey

16. SIX OPPORTUNITIES FOR RETAILERS AND BRAND OWNERS
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Provide quick access to store
deals, Wi-Fi, loyalty and
rewards account
If your favorite retailer or
brand offered coupons and
discounts for connecting to
their store, how would you
prefer to connect your phone
to the store?
1 43%
25%
14%
17%
Using NFC Using QR Code Using Bluetooth Beacon Using browser
Total sample size: 1,038

17. SIX OPPORTUNITIES FOR RETAILERS AND BRAND OWNERS
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Quote from observational research:
“ NFC is the better option for accessing
information or deals – especially if the
QR code is on the wall or at an angle
that makes it difficult to scan. ”
Research participant

18. 45% 32% 9% 6% 8%
0% 20% 40% 60% 80% 100%
Very interested Somewhat interested
Not sure Somewhat uninterested
Not at all interested
SIX OPPORTUNITIES FOR RETAILERS AND BRAND OWNERS
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Deliver valued product
information, store inventory
insight
How interested are you in
accessing more product
information and store
inventory using NFC
technology when shopping at
your favorite retail shops?
2
Total sample size: 1,038

19. SIX OPPORTUNITIES FOR RETAILERS AND BRAND OWNERS
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Provide simple and quick
access to related, contextual
product information
If your favorite retailer or
brand offered the ability to get
recipe ideas with shopping
lists related to a product, how
would you prefer to access this
information on your phone at
the store?
3
50%
23%
10%
17%
Using NFC Using QR Code Using Bluetooth Beacon Using browser
Total sample size: 1,038

20. SIX OPPORTUNITIES FOR RETAILERS AND BRAND OWNERS
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Quote from observational research:
“ NFC is really convenient
and there’s no downside. ”
Research participant

21. SIX OPPORTUNITIES FOR RETAILERS AND BRAND OWNERS
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Provide digital shopping
cart experience
How interested are you in
having the digital shopping
cart experience when
shopping at your favorite
retail shops?
4 36% 30% 13% 8% 13%
0% 20% 40% 60% 80% 100%
Very interested Somewhat interested
Not sure Somewhat uninterested
Not at all interested
Total sample size: 1,038

22. Inform decision making by
offering convenient access
to large item product
information
SIX OPPORTUNITIES FOR RETAILERS AND BRAND OWNERS
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If your favorite retailer or
brand offered the ability to get
more information on larger,
higher-priced items, how
would you prefer to access this
information on your phone at
the store?
5
56%
23%
7%
14%
Using NFC Using QR Code Using Bluetooth Beacon Using browser
Total sample size: 1,038

23. SIX OPPORTUNITIES FOR RETAILERS AND BRAND OWNERS
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Quote from observational research:
“ I prefer NFC because I have my child
with me, and with the QR code I have
to take time to find the app and then
scan the barcode. ”
Research participant

24. SIX OPPORTUNITIES FOR RETAILERS AND BRAND OWNERS
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Offer ability to order correct
consumables (such as
printer ink and toner) from
home [post sale]
6
If your favorite brand
offered the ability to order
parts/accessories in this way,
how would you prefer to
do this?
61%20%
19%
Using NFC Using QR Code Using browser
Total sample size: 1,038

25. SIX OPPORTUNITIES FOR RETAILERS AND BRAND OWNERS
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Consumer preference for NFC for retail and brand experiences?
43%
49%
50%
56%
61%
25%
24%
23%
23%
20%
14%
13%
10%
7%
17%
15%
17%
14%
19%
0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100%
Connecting to Wi-Fi, view deals, etc.
Product info, check stock levels
Related product info
Product info - large items
Reorder consumables
Using NFC
Using QR Code
Using Bluetooth Beacon
Web browser

26. QUESTIONS AND ANSWERS
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27. WHY NFC NOW FOR BRAND OWNERS
AND RETAILERS?
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28. WHY NFC NOW FOR BRAND OWNERS AND RETAILERS?
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The surge in NFC growth and
investment creates solid
foundation
Consumers prefer NFC
NFC and Bluetooth Beacon
can co-exist to combine in-store
proximity alerts (Bluetooth) with in-store and
post-sale item-level interactivity (NFC)
NFC fits omni-channel picture
(offline to online)

29. WHY NFC NOW FOR BRAND OWNERS AND RETAILERS?
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Simpler
More
convenient
Faster
Better
consumer
control over
the interaction
Why consumers prefer NFC:

30. WHY NFC NOW FOR BRAND OWNERS AND RETAILERS?
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BE AN INNOVATOR.

31. WHY NFC NOW FOR BRAND OWNERS AND RETAILERS?
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Customer-centric
Retailers and Brands
Strive to Connect
Authentically with Their
Best Customers and
Build Trust.

32. NEXT STEPS, RECOMMENDATIONS
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We encourage you to join the NFC
Forum and to get involved with the
Retail Special Interest Group
Details here: http://nfc-forum.org/retail-sig/
And here: http://nfc-forum.org/about-us/join-the-
forum/membership-overview/

33. NEXT STEPS, RECOMMENDATIONS
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Encourage others to share the
NFC Technology: How
Changing Consumer
Preferences Create New
Opportunities for Retailers
white paper.
Link here:
http://nfc-forum.org/retail-study/

34. RETAIL SPECIAL INTEREST GROUP OVERVIEW
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 Application developers
 Semiconductor manufacturers
 Smartphone and consumer electronics
manufacturers
 Operating system developers
 Mobile network operators
 Payment companies
Key business and technical experts
representing:
Retail SIG key responsibilities:
 White papers and use cases
 Market evaluation and preferences research
 Industry promotion to improve the consumer
experience
 Opportunities for industry collaboration and
networking
 Influence NFC technical standards to meet
the needs of retailers, brands, and other
stakeholders

35. CONTACT INFO
Press Inquiries: Ruth Cassidy: rcassidy@virtualmgmt.com
Retail and Payment Special Interest Group interest: Matthew Bright: scrwg-chair@nfc-
forum.org
General membership information: http://nfc-forum.org/about-us/join-the-
forum/membership-overview/
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36. THANK YOU!
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