Posted by Brett Cortese in mobile, apple, retail, blog, strategy

NFC (near field communications) is expected to bring sweeping changes to customer interactions at retail locations. Everything from check-out, to just-in-time couponing, to social networking will be affected. The hope is that NFC will be a great new tool for creating stronger customer loyalty and satisfaction while making the smartphone the link between the digital realm and the physical realm. 

While NFC technology will provide exciting opportunities, it is going to take quite some time before it reaches critical mass in the United States. Even buyers of the latest iPhones and most Android phones will find themselves without NFC capabilities. This means we have many years to go before a reasonable amount of users will be able to take advantage of NFC. 

Bummer right? Nope. It is already possible to create a truly exceptional retail customer experience utilizing the capabilities of nearly all smart phones today. Getting a little creative with the GPS, camera, and cellular data connection can produce solid results, and most importantly create experiences which elicit deep brand loyalty. Lets look at a few mobile solutions from Apple, Starbucks, and Square that do just that.

Apple Store Application
Not surprisingly, Apple continues to be a pioneer in retail store experience. Their Apple Store application gives customers a newfound independence while also making it easier to get support.  

Utilizing GPS data, the app recognizes that the user is in or near a store. Then it provides support wait times, allows access to the queue, and provides other information and tools that enhance the store experience. The user can then easily get into the support queue while they browse or run other errands.

Apple enables do-it-yourself checkout from a mobile device while in the store. A user is able to walk in, pick up an accessory, scan it, charge it to their Apple account, and walk out completely independently. I recommend trying this. On one hand it was liberating—Apple earned my trust by giving me theirs. On the other hand, I had anxiety that I'd be tackled by an unseen ninja on my way out the door. Irrational fear of Ninja's aside, I felt closer to the Apple brand after that experience. 

Starbucks Application
The Starbucks app takes a bit of a different approach to mobile payments. Here, the act of transacting is performed by either the customer or the barista scanning a barcode image presented in the app with traditional laser scanners. This deducts the transaction amount from the user's Starbucks Card account and and proceeds to update loyalty points. When combined with an auto-reload of the user's Starbucks Card, the app allows Starbucks customers to carry nothing but their phone into stores and still garner all the benefits of loyalty.

Square Card Case Application

Square has created an impressive solution utilizing primarily GPS and Cellular data. When the customer walks into (or near) a store, the merchant is alerted and provided both their picture and name. The merchant records the purchase via the Square merchant application and the charge is placed on the customer's "tab."  A paperless receipt is then provided to the customer via the application.

While these examples don't provide swipe and go access to payment systems or social networking, they succeed in creating the experience that has many so excited about NFC: a stronger connection to retail customers.

1. Michele 02.15.12 at 2:45 PM

   Wow, that’s pretty amazing technology.

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