Landor: |
What is NFC and what is so exciting about it? |
Alex: |
NFC is a new channel where information and data can be pushed to consumers directly through their mobile phones. It's exciting because it's the convergence of commerce and advertising. In the past, one enabled the other even though marketing and transactions were separate. NFC is one channel that can serve both needs. And it's a big win for marketers - marketing and business objectives will be more tightly aligned. |
Landor: |
What is NFC going to replace? |
Alex: |
Quick Response (QR) codes, for one. They were an experiment that did not take off. They aren't reliable, it wasn't always obvious to consumers how they could interact with them, and they were clunky at times. NFC has the potential to replace credit and debit cards, loyalty cards, and coupons. And it could be considered another form of advertising, alongside email advertising, banner ads, social media marketing, and traditional advertising. It's a more direct, targeted way of reaching consumers. |
Landor: |
What's the benefit of NFC for marketers? |
Alex: |
NFC will drive demand similar to how LivingSocial, Groupon, and Facebook Deals do. But instead of driving social-buying consumers to try new products and experiences through essentially random spin-the-wheel-type deals, NFC deals will be made in context. NFC is data driven, and deals can be made based not only on a customer's location, but on their purchase history and shopping habits. This is highly targeted, personalized advertising. And with NFC campaigns, marketers will be able to prove ROI on marketing spend more directly. NFC isn't just a cool technology - it seems like the right channel for brands. |
Landor: |
Which brands can take best advantage of this technology? |
Alex: |
Everyday brands in particular - things like toothpaste, cookies, soda, and coffee. For instance, imagine checking in to the supermarket terminals located at the entrance to learn about the daily deals. This could drive purchase behavior; you might buy things you weren't initially planning to, because you'll want to take advantage of the deals. You might head to the toiletries aisle even though you weren't initially planning on it because Crest is on sale that day.
Another practical application for NFC is in malls. A big challenge for malls is effective wayfinding - it's difficult for a retailer who's not in a prime spot to get foot traffic. We could use NFC to push information to customers' mobiles as they walk through malls. Retailers also struggle to use the mall as an advertising channel; there's not a lot they can do in the physical space. But they could use NFC to advertise digitally - to push deals, VIP invites, and announce new product releases to attract customers to their stores. This type of NFC use could be just as effective in theme parks, at expos, and in conference halls. |
Landor: |
What's the benefit of NFC for consumers? |
Alex: |
NFC can tailor relevant deals to consumers based on trends in purchase behavior. For example, if someone goes to Starbucks at 4 p.m. every day, Starbucks can push that person deals in the afternoons. Like social-buying sites, it could also help consumers explore products and experiences that they might not normally - only more effectively because offers would be kept within their interests.
People like to save and they like to feel like savvy shoppers; there's both a practical and an emotional benefit there. Social-buying sites have taken off because of this, and NFC basically combines the power of a Groupon with the power of a credit card. |
Landor: |
But if someone is already going to Starbucks every day, why would Starbucks want to offer them deals and incentives? |
Alex: |
To reward their loyalty. Or maybe they're offering half off on a pastry with the purchase of the coffee drink the person normally buys. And NFC's usefulness isn't just limited to pushing deals: Brands could use it for new product announcements, special event invitations, and more. Maybe a favorite local lunch spot is featuring a live jazz band on Friday; it can announce this to loyal customers. |