R for RFID, R for Retail: Guide for Brands, Shop Owners & Tenants

R FOR RFIDR FOR RETAIL

All That Retail Should Know About RFID

CO

NT

EN

TS Introduction........................................................................................................................4

All you need to know about RFID..........................................................................................5

What is it for?.........................................................................................................6

Few words on RFID tags.........................................................................................7

What is the real cost of tags?..................................................................................8

Is RFID safe?..........................................................................................................9

Tailor-made RFID..............................................................................................................11

4 steps for success..............................................................................................12

Is it worth it? The simulation of RFID implementation...........................................13

RFID in your shop.................................................................................................16

Self-checkout with RFID......................................................................................21

Loyalty program: RFID and beacons.....................................................................22

Inspirations.......................................................................................................................25

SMART RFID for shopping centres.......................................................................26

All that counts in every race is only first place. Winner takes the most prestigious prize. Winner will be remembered, not

somebody who finished second. Similar race takes place in retail. Here, everyone wants to leave competitors behind, gain

advantage and have convincing victory. We tell you how to do it.

RFID technology is enjoying its popularity all over the world. Every day new chain stores, shopping centers, warehouses are

launching their own RFID systems. They perfectly know what benefits are guaranteed with RFID. News about it spread on the spot.

Thanks to this RFID guide, you receive the complete package of information which will help you in making the most important

decision for your business. Decision on using RFID.

Me and my team Smart Technology Group have been designing RFID systems for over eight years. It is our great pleasure to share

our expert knowledge and experience. If you consider that this report is not enough for you and you need more explanations or

advice – contact us. We will answer your every question.

PhD. Eng. Karolina Kozłowska

Smart Technology Group CEO

INTRODUCTION

4 R for RFID, R for retail

ALL YOU NEED TO KNOWABOUT RFID

To put it simply, RFID is a technology perfectly created for stock-taking, identification, products searching and

all other processes based on scanning. Never before they have been so easy to perform – as they are now with RFID. The

harmonious cooperation between RFID reader and tags will bring you results that you could only dream of.

It comes as no surprise that in short time this technology conquered retail market. RFID is used by big shopping malls as

well as single boutiques. RFID scalability means that every user can adjust it to one's specific needs.

4 key things about RFID:

scanning accuracy: 99,7%

number of simultaneously scanned products: 300

read distance: up to 20 meters

products can be identified through obstacles.

ANTENNAS

they send data from tags to reader.

Allow for strengthening signal and

increasing the maximal distance

between reader and tags

RFID TAGS

markers which are put on single

products, boxes, pallets, vehicles, or

loyalty cards

Typical RFID system consists of following devices:

5Smart Technology Group

READER

the heart of system, responsible for the

most of functions. All actions start here

and all data is sent to it. Reader may be

fixed (permanently installed in one

place, e.g. in warehouse, fitting room or

near cash register) or mobile (perfect for

stock-taking).

WHAT ISIT FOR?

The following metaphor is the best way to

explain how tags work: tag after being put on any item,

becomes this item. By identifying tag, you identify

specific product.

Tags are used for marking single goods, boxes, vehicles,

company's resources. Practically, everything can be

marked with them. The variety of tags shapes and sizes

makes that they work perfectly with fragile jewelry, all

kind of clothes and shoes, as well as pallets, boxes, and

forklifts. Advanced technology makes it possible to sew

tags in material, which makes them invisible for clients.

The most popular form of tag is sticker: durable and

easy to use.

Tags facilitate many processes, directly influencing

business results and shop management.

The crucial activities that will surely benefit from RFID

tags are:

stock-taking;

products and documents searching;

antitheft protection;

loyalty programs.

They act as middleman between tags and

readers. Data stored by tags is activated with

electromagnetic waves from antennas. This data is sent

to antennas and then to reader. When choosing

antennas, consider location where they will be

assembled. Different antennas will be suitable for

antitheft protection that for stock-taking.

The heart of RFID system. All data read from

RFID tags is sent to it and then is processed for our

interpretation and analysis. Reader is also our eye: it

helps us to see tagged products. The more

technologically advanced reader, the more visibility it

guarantees.

Mobile version is used for ad hoc stock-takings and

products searching. Mobile reader replaces barcode

scanner. Fixed version allows for automatic stock-

taking, identification of products brought by customers

into fitting rooms or put on counter to be purchased. It

works equally well in antitheft gates, providing efficient

protection from stealing goods: by clients and

personnel.

From the retail point of view, the key criterions for

selecting RFID reader are following parameters:

read distance – from what distance it will be

possible to correctly identify tags. It is crucial for

stock-taking;

maximum number of tags identified in one second –

how many products can be simultaneously

identified;

maximum number of antennas with which reader

can work – the bigger number, the bigger savings.

Instead of buying three readers, one will be enough

to gather data from 8 antennas.

Special attention should be paid to communication

interfaces: how many wireless technologies can reader

use to gather and send data to us? There can be found

readers which, apart from RFID, have additional built-in

modules, such as Bluetooth (this reader will work like

beacons), Wi-Fi, ZigBee and GPRS/GSM. Extra modules

help us in more efficient shop management, e.g. loyalty

program based on mobile application and traditional

loyalty card with RFID tags can be easily implemented.

RFID TAGS

ANTENNAS

READER


FEW

TAGS

In retail, RFID technology can replace barcodes. Indeed, barcodes pale in comparison with RFID tags. Their usefulness becomes

surprisingly limited. Why are tags superior?

RANGEBarcode will be correctly identified only when scanner is only

few centimeters away. To identify RFID tag, this distance may

be… some meters. It means that employee who does stock-

taking does not have to come to every single product. It is

enough just to move RFID reader toward goods to immediately

and correctly scan it.

SIMULTANEOUS SCANNINGGreat convenience provided by RFID is the feature of correct

scanning up to 300 products at once. Yes: 300 products at once.

In comparison with barcodes, which must be scanned one by

one, it is a huge leap forward. RFID will successfully identify

single products placed in one box as well as tagged packages

put on pallet.

GREATER CAPACITYRFID tag can store much, much more data that barcode. It will

contain product name, model, serial number, experience date,

where it was made and by which producer… All that is necessary

for efficient shop and warehouse management. Can barcode

store as much data? Of course it cannot. Its capacity is 96 or 128

bits, while RFID tag can contain up to 2 kilobytes of data – 16

times more than barcode.

NO VISUAL CONTACTA scanner must see barcode to identify it. Any obstacle (sheet of

paper, carton box) or reversing barcode makes that it will not be

read. There is no such problem with products marked with RFID

tags. They will be correctly identified even when they are in box,

are covered with other products (e.g. on shelf) or have been

turned backwards.

LEGENDARY DURABILITYRFID tags are famous for its durability and longevity. They will

work even after sterilization that is necessary for hospital

equipment. There is no need to worry that after many years they

will lose their unique features – contrary to barcodes. Their

surface can wear off, they get wet or unglue from products or

boxes. This never happens with RFID tags.

WORDS

ON

RFID

Smart Technology Group 7

WHAT ISTHE REAL COST OF TAGS? Many managers claim that RFID implementation

is unprofitable due to high price of RFID tags. They

suggest that purchase of several thousand of tags would

cost fortune, while barcodes are cheaper. It is true: you will

pay less for barcodes. But… is a single unit price the only

cost worth considering?

Let's pay closer attention: when buying barcodes, we have

to take these costs into consideration:

operational costs – processes based on barcodes take

a lot of time. Every barcode must be scanned

individually. The only way for accelerating this process

is to engage more employees, what generates

additional costs;

personal costs – engaging more employees means

that they cannot perform their daily duties. Their

efficiency suffers and cost of their salary does not

bring expected results;

inaccurate stock-taking costs – accuracy of barcode

stock-taking is far from 100%. It results in imprecise

deliveries: it is uncertain which products should be

ordered and which one should be dropped;

unavailable goods costs – the consequence of

inaccurate stock-taking is also lack of knowledge

about the availability of our products and stocks. Thus,

clients may not find what they are looking for. And if

they won't, then we will not only lose potential profits,

but lose a client, too: he will choose better stocked

shop;

additional transport costs – if shipping from our

warehouse will be wrongly prepared (due to imprecise

products search or due to human errors), you must pay

twice for transport;

afterhours costs – stock-taking often must be

performed afterhours what is an extra cost for

employer;

closing costs – stock-taking performed in regular

hours means that shop must be closed and there is no

sale;

brand image costs – if stock-taking is imprecise or

performed too rarely, your personnel will not be able to

answer your clients' questions about products

availability or their location. And such discouraged

clients will go to your competitors.

It is time to scrutinize costs related to RFID tags.

Firstly, we pay for the pack of tags, and then we

calculate the rest of financial issues.

Due to tags, following benefits are generated:

decrease of operational and personal costs –

employees using RFID can do much more in much

shorter time, so they become more effective and

can fulfill additional duties;

afterhours savings – there is no more need to pay

for afterhours spent on stock-taking. With RFID,

this process lasts from several seconds to few

minutes. And it can be performed without closing a

shop;

profits from bigger sales – if we have full

information on our stocks and we can track

demand, we will precisely adjust orders to

customers' needs. Our goods will not endlessly

occupy our shelves;

savings on additional transport – RFID precision

eliminates all mistakes made at shipping

completion. You will not pay for additional

transport;

better brand image – performed on a regular basis

stock-taking with SMART RFID guarantees that

your clients always have full information on the

availability of products they are looking for. They

will never leave your shop empty-handed (nor with

empty bags).

The analysis of RFID tag price judging only on its unit

price, is not complete. The purchase of barcodes is

merely the beginning of serious expenses. At the other

end, there are RFID tags: their implementation starts

bringing regular and measurable savings. And while

we subsidize barcodes, RFID tags refund our costs.

8

At the first sight, barcode costs are invisible and

staggered, yet with real influence on current expenses.

Influence real, but also negative, alas.

R for RFID, R for retail

IS RFIDSAFE?

Can RFID be considered as a safe wireless

technology? The unambiguous verdict is difficult to

claim, but the newest achievements of Smart

Technology Group engineers make RFID one of the

safest retail technology.

Introduction of innovative, often groundbreaking

solutions for retail carries a great risk. Any mistakes,

such as abuse of personal data will be immediately

noticed and spread on the spot. One has to be also

especially careful to not generate unpredicted losses

caused by innovation.

It comes as no surprise that managers opt for

implementing new technologies only after thoughtful

and accurate analysis. Their stand, determined by

worth admiring care for their brands, is completely

understandable.

Not so long time ago, radio identification was a

solution rarely used by retail. However, the growing

number of successful implementations changed the

attitude of many brands. Today, it is easily noticeable that

RFID is more and more accepted. The new RFID systems

are being designed and implemented literally every day all

around the world.

T h i s p o s i t i ve t e n d e n c y w i l l b e s u re l y

strengthened by the recent improvements applied for

RFID. Or rather, for SMART RFID, to be exact, as the

products of this brand have been equipped with smart

mode. Thanks to these modifications, SMART RFID users

can be 100% sure that both them and their clients now can

enjoy safe solution. It will not be the exaggeration that

smart mode is innovative at worldwide scale. Apart from

Smart Technology, no company can offer it.

How does it work?

One of the biggest threat related to RFID came from the

possibility of illegal modification of tag unique content. It

stores such key product data as price, model, color, series

etc. Due to tag capacity, a lot of information can be saved

at tag. If content is changed (despite owner's will),

problems emerge. For example, expensive Italian shoes

could be purchased not for 1000 euros, but for 100 euros,

as such price could be set in tag. Or, what is even worse,

thief will not have to pay at all as he can modify tag that

antitheft gates will not detect it.

RFID: TAMED...

... AND SAFER

But it should be noted that such abuses are not

common. They require special hardware and tools,

while technical knowledge and cleverness are needed

to stay undetected. Plus, additional safe methods are

used, e.g. tag content is protected with password.


Now, thanks to , these criminal actions smart mode

become almost impossible. The correct identification of

tags is guaranteed by readers. They are the key part of

every RFID system. The ones equipped with smart mode

can recognize that specific tag has been illegally modified.

Reader will notice salesperson so he cannot sell these

shoes with lower price. Reader will notice any attempt of

theft and launch signal/sound alarm, surprising a thief not

expecting that his shoplifting could be detected.

Smart mode solves also stock-taking problem. Tag has

two numbers built-in: EPC and TID. EPC is Electronic

Product Code, a unique serial code allowing for

identification of tagged product. TID is Tag Identification,

consisting of memory storing information about tag itself.

In most of cases, for products identification (e.g. during

stock-taking), it is enough to read EPC. But to prevent

frauds, some systems are designed in a way that requires

both EPC and TID for products identification. It increases

the level of security, as TID is almost impossible to be

faked (contrary to EPC). But, on the other side, this option

decreases the precision and speed of stock-taking.

As it is known, RFID guarantees 99,7% accuracy during

stock-taking, and up to 300 products can be identified

simultaneously in just one second. But when RFID reader

must identify both EPC and TID, efficiency declines. Plus,

stock-taking must be performed from smaller distance

and slower (e.g. stock-taking during forklift ride is not

possible).

It can be firmly said that RFID UHF readers Master 01 with

smart mode are tools that guarantee the previously

unimaginable level of security while using RFID. They are

the direct and effective answer for critics' objections

concerning threats presented by radio identification. If

only the other wireless technologies, implemented in

shops, warehouses or chain supply would have the

similarly advanced security protection, all retail could

sleep well.

SMART MOVE NO NEED TO WORRY

This challenge is solved with smart mode, because this

mode can identify “its own” tags and it does not read

illegally modified or created tags. With reader with

smart mode, precision of stock-takings, speed and

distance do not change at all.

WAL-MART: GIANT BRANDWITH GIANT RFID PROFITS

180 million dollars: thanks to better

knowledge of employees about every

product location

300 million dollars: faster searching for over

billion of pallets

575 million dollars: the elimination of internal thefts and

administrative errors

600 million dollars: additional profit thanks to reduction of

unwanted products on shelves

6,7 billion dollars: savings on work costs by elimination of manual

scanning of products and pallets


TAILOR-MADE RFID Since its beginnings, RFID has been the subject of quite a lot of myths. Rumors about the legendary difficulties

with RFID implementation and installation are wide spread. It is difficult to pinpoint the source of this information.

Maybe it was triggered as an automatic association that advanced radio technology requires great effort to be

launched.

In reality, things are way simpler. Installation takes barely few hours, during which a warehouse of shop may be normally

functioning and be open. Hardware and software integration lasts shortly and no special effort is needed. Provided that

experts take part in these processes. Experts are the warranty that both installation and integration will run smoothly.

The choice of experts is even more relevant that the choice of hardware.

Cooperation with proper people guarantees professional advice regarding purchase of the most suitable devices.

Let's look closer at all steps of RFID implementation – of course, implementation done with experts.


STEP 1.

If support from professionals

w i th w ide knowledge and

practical experience is such

important, then how to find

reliable partners? Firstly, analyze

their professional history,

achievements, clients, and

awards. The precious tip: the

more company is mentioned in

media , the better. This is

because journalists know who to

ask for expert comment. If some

companies are selected, then

request some information on

support they offer. Do they

develop individual plan? Help

w i t h h a rd w a re p u rc h a s e ?

Coordinate implementation and

give you after-sale support?

CHOICE OFEXPERTS

STEP 2.

Second step begins with the

analysis of needs: what is RFID

for? What effects should it bring?

W h a t p r o b l e m s s h o u l d i t

answer? It ought to be defined if

system will be used for stock-

taking, antitheft protection, or

loyalty program. Decisions made

at this stage determines the final

shape of all system as well as

hardware. A space, where RFID

will be working, matters, too.

Experts need this information to

come up with draft plan.

Smart Technology Group experts

use FlexSim, a software that

allows to precisely calculate

profits and savings generated by

SMART RFID. If it is planned for

warehouse to facilitate goods

reception or stock-taking, then

time needed for every operation

will be calculated, as well as the

number of employees engaged in

them. Therefore, person ordering

SMART RFID is fully aware of all

benefits.

PROJECT OFRFID SYSTEM

STEP 3.

Time to bust another RFID myth:

its implementation does not

require changing software.

S M A R T R F I D s m o o t h l y

integrates with MRP, ERP, WMS,

POS and any other software.

In teg ra t ion i s done by IT

specialists. While they do it,

warehouse or shop may normally

function: goods can be receipted

and sent, clients may be served.

Integration includes barcodes.

I t i s n o t t r u e t h a t R F I D

implementation is equal to

resignation from barcodes. Two

data carriers may be used

simultaneously.

SOFTWAREINTEGRATION

STEP 4.At final stage, small RFID reader

and antennas are assembled in

selected destination. Goods

must be marked with tags, too,

but it can be done by supplier in

his factory or distribution center.

Experts say that this is the best

solution. Hardware assembly

will run smoothly and has no

effect on shop or warehouse

funct ioning. No breaks in

m a n u f a c t u r i n g , s h o p a n d

warehouse are open, clients do

shopping and there is no need to

f o r c e e m p l o y e e s t o t a k e

obligatory vacation.

ASSEMBLY


IS IT WORTH IT? THE SIMULATION OF RFID IMPLEMENTATION.

How precise can be the simulation of RFID implementation? Basing on experience, it can be said that results of

simulation done during planning phase, are very exact. As an example, let's use effects achieved while preparing SMART RFID

system for client from shoemaking industry.

All input data – number of pallets, boxes, manpower, time needed for specific duties – were submitted by client. It was then

used to create simulation presenting the detailed benefits provided by SMART RFID for following processes: goods reception,

stock-taking and completion.

3 employees

3 employees

3 employees

2 employees

3 employees

2 employees

33 pallets

33 pallets

100 packages

3300 packages

100 packages

100 packages

3300 packages

100 packages

8h

8h

5h

0,1h

UNLOADING

INVENTORY

COMPLETING

employee may carry

up to 5 packages

at once

10-100 packages

on one pallet

1

2

3

1 234567890

1 234567890

1 234567890

CONDITIONS

1/3 less

time

100 packages

on every pallet

CONDITIONS


Apart from accurate calculation of operation processes and management optimization, it is possible to forecast real

savings, generated thanks to SMART RFID. And that is the way how benefits for customer (who previously had been using

barcodes) were calculated.

UNLOADING IN WAREHOUSE

COMPLETION IN WAREHOUSE

STOCK-TAKING IN WAREHOUSE

Data based on SMART RFID implementation for a client of Smart Technology Group.

Implementation in low storage warehouse.

Every pallet contained 100 boxes with products.


Implementation in low storage warehouse..

Every pallet contains from 10 to 100 boxes with products. Displacement = 1%.


Implementation in low storage warehouse.

BARCODES

BARCODES

BARCODES

RFID TAGS

RFID TAGS

RFID TAGS

*SM

AR

T R

FID

mob

ile r

eade

r N

EO w

as u

sed

for

scan

ning

and

sto

ck-t

akin

g.

** M

inim

al g

ross

hou

r w

age=

4 e

uros

.

NUMBER OF EMPLOYEES

NUMBER OF EMPLOYEES

NUMBER OF EMPLOYEES

33

8h

72 EUR

1 512 EUR

18 144 EUR

33

8h

72 EUR

1 512 EUR

18 144 EUR

8h

72 EUR

432 EUR

33

5h

30 EUR

630 EUR

7 560 EUR

33

5,4h

30 EUR

630 EUR

7 560 EUR

0,1h

0,9 EUR

5,4 EURPERFORMED 6 TIMES A YEAR**

NUMBER OF PALLETS

TIME OF UNLOADING*

TOTAL COST OF LABOR** DAILY

MONTHLY

YEARLY

NUMBER OF PALLETS

COMPLETION TIME*


MONTHLY

YEARLY

STOCK-TAKING TIME*


TOTAL COST OF STOCK-TAKING

14

UNLOADING, COMPLETION AND STOCK-TAKING

REAL LIFE SCENARIO

How much do you pay for all these processes?

How much would you pay if you performed them with RFID UHF?

SMART RFID implementation caused that general costs of scanning processes were reduced by .57%

1 day

1 month

1 year

216 EUR

3 024 EUR

36 720 EUR*

63,3 EUR

1 310 EUR

15 728,4 EUR*

152,7 EUR

1 714 EUR

20 991,6 EUR*

YOUR GAIN WITH**BARCODES RFID TAGS

*Sto

ck-t

akin

g is

per

form

ed 6

tim

es a

yea

r.

**S

MA

RT

RFI

D m

obile

rea

der

NEO

was

use

d fo

r sc

anni

ng a

nd s

tock

-tak

ing.

0 eur

5 000 eur

10 000 eur

15 000 eur

20 000 eur

25 000 eur

30 000 eur

35 000 eur

1 day 1 month 6 months 12 months

costs of processes with barcodes

costs of the same processes but performed with SMART RFID

SAVINGS


RFID IN YOURSHOP

RFID IN ACTION

Time to look closer at specific ways of using

RFID technology. It is true that in comparison with

other wireless technologies, RFID stands out with its

flexibility and adaptability to various conditions. And

what is most important, it never loses its basic

features: precision, effectiveness, speed.

It should be mentioned about extraordinary

RFID feature: easiness of integration with other

software and technologies. Thanks to it, it was

possible to create SMART RFID, the brand of devices

which could use simultaneously many technologies:

RFID, Bluetooth, Wi-Fi, GSM/GPRS or ZigBee. Author's

idea developed by the engineers from Smart

Technology Group led to further increase of RFID

possibilities for retail.


WAREHOUSE

AND BACK OFFICE

One of the places, in which RFID systems are the

most often deployed. No wonder: this technology works

perfectly there. Such processes as goods reception are

rapidly facilitated. RFID portal installed at entry gate

allows for immediate identification of products, packages

and pallets brought by trucks. One drive through portal is

enough to precisely scan all delivery. Of course, products

must be marked with tags.

Automatic products scanning eliminates the great

number of mistakes made by employees. These errors

usually result in low knowledge on products availability,

chaos in warehouse and wrongly tagged products which

caused problems in finding them on shelf or in shop. The

positive result of automatization is 91% acceleration in

transferring goods from warehouse to shop.

Access to information on stocks availability increase

availability of products on shelf by 80%. Staff perfectly

knows which resources should be ordered. The risk of

running out of stock (because no one noticed that new

orders must be made) is eliminated almost completely.

However, to have such knowledge, the SMART RFID

devices are needed.

The best tools for warehouse are:

– shelf equipped with fixed Real Time Inventory Shelf

RFID UHF readers and antennas, it performs detailed

and automatic 24/7 stock-taking;

- mobile RFID UHF reader, identifying up to 300 NEO 01

products, packages, or pallets in 1 second. It allows for

frequent and regular stock-taking;

– convenient solution for SMART RFID portal

automatic and group identification.

RFID IN MAKRO CASH & CARRY, REAL, MEDIA MARKT AND SATURN

20 seconds

20 seconds

12 minutes

6 minutes

time needed

for goods

reception

time needed

for goods

reception

time saved on

Dispatch Advice

(DESADV)

time saved on

Dispatch Advice

(DESADV)

SAVINGS IN WAREHOUSE:

SAVINGS IN SHOP:

SHOP

Systematic stock-taking should be performed in

shop, too. Firstly, personnel must be able to answer

clients' every question on products availability and

location. Secondly, employees should know how many

products are currently in shop to assess demand.

Research clearly show that client who did not find specific

product he was looking for, not only will leave unhappy, but

for future shopping he will more often choose

competition.


Up to now, frequent stock-taking was impossible to

perform as it was too time-consuming and engaged many

employees. Plus, it was often necessary to temporary

close shop for its time being or force employees to work

afterhours. The alternative was imprecise orders, not

determined in any way by real consumers' demand.

Things have drastically changed thanks to RFID

technology. RFID readers can scan tags without visual

contact, from distance of 8 meters and the number of

scanned tags is 300. As the result, stock-taking in any

boutique (regardless its space, number of shelves or

goods) can be done every day. It takes just few seconds

and mobile reader RFID UHF, Neo 01 is used for it.

Already mentioned Real Time Inventory Shelf will do its

job, too. Matching shop's interior design, it helps with

convenient monitoring of products on shelves. At every

moment, any employee or manager may verify with

computer, what specific products are on shelves.

FITTING ROOM

Properly used RFID technology can result in

quantifiable financial results. It will come as an efficient

pro-sale support.

Great example of it is the usage of RFID in fitting room.

Client who enters it, brings in chosen clothes, shoes, and

other fashion accessories. All of them marked with RFID

tags.

It makes them automatically recognized by antennas and

readers in fitting room. On inside screen, client may watch

marketing videos encouraging him for further shopping.

Client may also check product availability in any colour or

size or even ask personnel to bring any product directly to

fitting room.

Equipping fitting room with RFID increases the conversion

level by 60%. It means that 3 of 5 customers will decide to

buy clothes they brought into fitting room.

CASH DESK

The biggest shopping nightmare may be long

queues, in which one must stand dozens of minutes. Such

a long-time is a result of necessity of scanning of every

single product by putting its barcode to scanner.

RFID easily identifies up to 300 products in 1 second. If

RFID antenna and reader are installed under counter, all

customer's shopping will be scanned instantly. No need

for individual scanning, it is enough just to put products on

counter, even if they are in shopping bag or basket.

Therefore, customer service lasts only 6 seconds. Time is

saved and much more clients may be served. And daily

profits are growing. Plus, people will notice that shopping

in such boutique is more pleasant, so they will come more

frequently. Especially in such hectic times like holiday

shopping or sales.


LOYALTY GATES

ANTITHEFT GATES

Another way for increasing shop turnover is

effective loyalty program. It helps not only in monitoring

clients' behavior, but also allows for reaching them with

personalized offer, efficaciously encouraging them to

shopping.

If traditional loyalty cards would have RFID tags, then

every customer with this car could be automatically

recognized after entering shop. If there is a screen inside,

then any advertisement or slogan could be displayed on it.

It would serve as additional marketing incentive. Similar

action may be launched at cash-desk: if client's loyalty

card is recognized, he can get personalized discount as

a little “thank you”.

The interesting idea is to combine RFID with Bluetooth,

popular beacons. Such mix is possible thanks to SMART

RFID devices. They can effortlessly work with various

wireless technologies. Loyalty program built on RFID and

Bluetooth at the same time, can reach two times more

customers: ones using traditional card and ones using

mobile application on their smartphones. With SMART

RFID, loyalty program doubles its effectivity and reach.

Next area of RFID usage, that influences shop

functioning in a real way, is antitheft protection.

Detectability of products stolen by clients increases by

90% and by 98% when it comes to products stolen by

employees. Such tight protection from shoplifters

reduces losses and has a positive impact on final account.

COST REDUCTION =

PROFITS GAIN

Procter&Gamble Lake West Group Scottish CourageBrewing UK

3% 20% 10 mln

ca. 1,2 billion

dollars thanks

to improving

chain supply

time saved at

products

searching

savings after

shoplifting

reduction


R for RFID, R for retail20

SMART RFiD

BARCODES

RFID UHF

TAKE YOUR PROFITS ON HIGHER LEVEL WITH SMART RFID

FULL KNOWLEDGE

ON GOODS AVAILABILITY

REDUCTION IN

LOST GOODS

99,7% STOCK-TAKING

PRECISION

300 PRODUCTS SCANNED

IN 1 SECOND

CUSTOMER SERVICE

IN 6 SECONDS DAILY GROWTH OF

TRANSACTIONS BY 6%

DOUBLY EFFECTIVE

LOYALTY PROGRAM

INCREASED

CONVERSION RATE

HIGHLY ENGAGED

CUSTOMERS

98% REDUCTION

IN STOLEN GOODS

PERFECTLY PRECISE

STOCK-TAKING

IMPROVEMENT IN

STOCK AVAILABILITY

EFFECTIVE

ANTI-THEFT PROTECTION

SATISFIED

CUSTOMERS

TIME-CONSUMING

STOCK-TAKING

IMPRECISE AND ERROR-PRONE

SCANNING OF PRODUCTS

RISK OF LONG LINES

OF FRUSTRATED CUSTOMERS

OLD-FASHIONED AND

LIMITED LOYALTY PROGRAM

SELF-CHECKOUTWITH RFID

Industry report from Vouchercloud brings

shocking statistics: British supermarkets lose 450 billion

of pounds every year. Reason? Queues caused by self-

checkout.

Self-checkout was introduced to facilitate customer

service. Allowing clients to personally scan products and

pay for them was supposed to shorten time spent in

queues. As it turns out, self-checkout resulted in the

escalation of problem. A typical client seeing long lines to

self-checkout, removes even 3 products from his

shopping basket. 64% respondents claimed it was caused

by too long and too slow moving queues. Products

removal is a way to save some precious time and leave

shop as soon as possible.

Such reaction is not surprising. People are getting

increasingly accustomed to immediate service and they

expect the same treatment in super- and hypermarkets.

Disappointment with long lines is strengthened as people

had been told that self-checkout is a faster and more

comfortable alternative for traditional way of paying.

Question must be asked: is self-checkout missed,

expensive and losses generating idea?

No – a simple task is enough to “repair” self-checkout.

Solution is to install RFID system. Customer passing

through a gate that has antennas installed, will have all his

products f rom shopping basket/car t scanned

immediately. All data is sent to cash register and customer

knows how much to pay. Time of customer service is

shortened to maximum 15-20 seconds which are needed

to push a cart through RFID gate, make payments and

collect a receipt.

Shop guests would eagerly use this facilitation. It can be

assumed that negative trend underlined in Vouchercloud

report would be reversed. Instead of products removal

from their baskets, clients would add more goods. They

would know that there would be no necessity to wait in

line.

It is important that such solution is not a hypothetical one.

In many boutiques, RFID antennas are installed at cash-

desk. Client puts his product on counter and in the same

moment it is known what products are purchased and how

much client should pay for them. Customer service takes

barely 6 seconds what saves a great amount of time. This

is precious, especially when many customers visit shop,

e.g. during holiday shopping.


LOYALTY PROGRAM:RFID AND BEACONS

Published by PriceWaterhouseCoopers report

“Customer in digital world” analyzes reasons why on-line

shopping is more competitive than traditional one. What

matters is a profound knowledge on client's preferences.

Consulting experts prove that e-commerce staff knows

what any given person bought earlier, where he/she

comes from and what should be recommended to him/her.

Such data is collected simultaneously with on-line

shopping. Salesman in boutique should put much more

effort to access such information. But even then, his

attempts may fail. Therefore, such great attention is paid

to perfecting loyalty programs. They are expected to build

long-lasting, personalized relations with customers and

must be based on awareness of customers' preferences

and their shopping history.

Loyalty programs are one of the most important retail tool. They are used for building long-lasting relationship with

customers and for effective pro-sales actions. It is believed that thanks to beacons, loyalty programs could bring even better

results. But recent reports prove that beacons use their full potential when they are used with RFID technology.

LOYALTY SKILFULLY PROGRAMMED

As reports show, creating and managing loyalty programs

is far from easy. Hybris published its research “The

Contextual Marketing Imperative: The Evolution of

Personalization from Push Messaging To One-To-One

Personal Customer Experiences” in which its experts

argue that 61% customers would be less motivated to visit

shop again if they do not receive an offer which is highly

personalized. Experts from PWC reached the same

conclusion: according to already quoted report, 62%

clients resign from shopping in boutique if they are

discouraged by personnel. Another report, “Retail Without

Limits – a Modern Commercial Society” claims that

clients accept personalized offers: 25% of them demands

personalized transactions.

BARCODES

BEACONS


Looking at these results, it would be easy to say that

loyalty programs work fine and managers know them

perfectly. But that would not be true.

Firstly, current schemes of loyalty programs seemingly

discourage consumers. According to PBS DGA research,

almost half of Poles rate the attractiveness of loyalty

programs as very poor and claim they are not interested in

using them. The older client, the less interested he is in

becoming a member of such program. It is due to fact that

increasingly ubiquitous technologies and loyalty mobile

applications are too innovative for baby boomer

generation.

Secondly, marketers themselves are constantly facing

troubles with selection of most suitable tools for creating

loyalty program and personalization. Hybris report puts it

clear: even though 91% marketing experts define

personalization as a key challenge, only 16% can register

customer preferences and reach clients in real time with

incentives based on genuine customer behavior.

NEW HOPE?

It is easy to draw conclusion. The biggest obstacle – both

for customers and managers – is technology. It may be

too challenging or it may be too disappointing and lacking

some serious features. It was hoped that situation would

change thanks to beacons and Bluetooth technology.

Every client downloading mobile application may be

identified by devices located in shop. Next, he gets

personalized discount or shopping offer on his

smartphone. On the closest screen, next to him, he will see

an ad, determined by his previous shopping history.

Bluetooth, a wireless technology that was greeted with

great enthusiasm, has some severe flaws:

application must be downloaded;

application must be launched during shopping;

smartphone must have Bluetooth 4.0;

customer must be convinced to use smartphone and

appreciate benefits it provides.

And not all clients share the interest in Bluetooth. They are

discouraged by numerous, obligatory to performed

activities, which are obligatory to receive personalized

offer. Decrease in interest in mobile application comes

with age. These are not solutions that would be eagerly

used by clients accustomed to traditional methods, such

as loyalty cards. Personnel can complain about beacons,

too. These devices require battery replacements; hence

they must be constantly monitored. Alas, it is difficult to

discover if any of beacon is not damaged and needs to be

repaired. Beacons are quite expensive, too, as well as

designing mobile application is.

RFID


But it would be wrong to assume that beacons fail and are

not appropriate for loyalty programs. There is a great

number of customers representing younger generation,

who enjoy using mobile applications. But narrowing focus

only on one group limits the effectiveness of loyalty

program. It can also seriously deform statistics about

customers visiting shop.

2 BETTER THAN 1

There comes new solution with which there is no need for

compromise. Due to technology progress, it is possible to

combine Bluetooth (beacons) with second wireless

technology RFID (using tags).

Both technologies are similar in the basic mechanic. The

biggest difference is between beacons and tags. The

latter do not need batteries to be working. They are

activated by magnetic field emitted by antenna located

e.g. in loyalty gates, under doormat or at cash register.

Tags are also almost indestructible: they work in every

temperature, they cannot be broken nor damaged. They

have greater variety of shapes and sizes than beacons.

With tags, literally everything can be marked.

So, where should they be put to modernize loyalty

program? It is simple: on loyalty card. This would make

card easily recognizable at every client's entrance to shop.

Contrary to beacons, client would not have to make any

action. Just having loyalty card in pocket, wallet or bag

would be enough.

Data contained in RFID tag would be sent to RFID reader.

There, data would be interpreted and reader would decide

about displaying appropriate ad, giving a personal

discount, or suggesting in fitting room's interactive mirror

clothes matching client's previous preferences.

This innovative solution is offered by Smart Technology

Group. It can work with mobile applications, correctly

identifies signals sent by beacons and tags. Brand will be

able to build long-lasting relationship with all shop's

customers: these who use new technologies and these

who prefer traditional ways of shopping. The result would

be 50% increase of loyalty program effectiveness and

reach.

SMART RFiD


INSPIRATIONS

Popularity of new solution is unceasingly growing in retail industry. There is a growing number of boutiques in which

benefits of RFID stock-taking are appreciated. There is also still a lot of praises about beacons which are considered as a

revolutionary way for reaching customers with personalized shopping offer.

How could shopping centers use these new technologies?

The number of new technologies in shopping centers and malls is getting greater. New solutions are

supposed to increase customers' convenience or help in managing the center. Owners of malls should be happy as

there are tools who combine both functions. These are SMART RFID devices, using up to 5 wireless technologies.


SMART RFID FOR SHOPPING CENTERS

WHAT IS ALREADY AVAILABLE? Currently, the most popular technology used by

shopping centers is surely Wi-Fi. Sharing a free Internet

connection has become an obligatory convenience,

expected by all visitors. In passages, there are multimedia

stands which allow for printing discount coupons.

These stands are often equipped with barcode scanner

which is used for organizing a lottery or similar events

with clients' engagement Some malls implement

technologies for car parks management. These

technologies automatically identify cars, lead to available

parking lots and charge drivers depending on duration of

parking. Almost every mall uses counter at entrance/exit

for footfall control.

Equally popular are mobile applications. The most often

they contain mall map, list of shops and news widget.

Separate category, in which technologies are used, is

event organization. Augmented Reality is probably the

best example of attractive implementation wireless

technologies into mall's event strategy.

However, great disadvantage of current state is fact that

there is no one tool, combining all these features. If

shopping center wants to be a modern and functional

place, its administration must use many different

systems, programs, or applications. Which is far from

modern and functional, isn't it?

Imagine this: car pulls in mall's car park.

Barrier lifts after scanning the loyalty card. At the same

moment, information goes to mall's database that

specific customer, identified by name and surname,

showed up in shopping center. Instead of loyalty card,

smartphone with mobile application could be use. In

that case, one shake with smartphone would be

enough to lift barrier.

When customer enters passage, RFID antennas and

readers assembled inside identify him and based on his

previous shopping experience, he gets personalized

and tailored-made discounts. He can also see current

promotions and ads, displayed for him on screens or

multimedia stands he passes in passage.

Simultaneously, the advanced system can monitor his

location in real time. Mall's management sees which

boutiques attracted visitor's attention, in which zone or

on which floor he spent the most of his time, which

restaurant he chose. When leaving, he will open barrier

with loyalty card or with mobile application. This will be

his last dispatch: how long did his visit last.

The key conclusion is that to run and manage all these

functions only SMART RFID is needed: Master 01

reader, set of antennas and loyalty gates. All perfectly

integrated and working smoothly.

WHAT COULD BE AVAILABLE

WITH SMART RFID?


WHAT WOULD CLIENT GAIN WITH SMART RFID?

Primarily – comfort during visit and strong feeling that he is in a friendly space. Using mobile application or loyalty

card for car-park, driver would not have to waste time for traffic jams on narrow roads leading to shopping centers. Discounts

offered customer would be personalized, hence more expected and attractive, matching his preferences.

WHAT WOULD MALL BOARD

GAIN WITH SMART RFID?

The key issue is easy access to many strategic

processes, determining business and marketing

operations. All information on customer's profile and his

preference would be sent to one, easy to use tool. What's

more, profile would be updated in real time. Marketing

department would not have to organize costly exit pool

research to learn anything about visitors. It will be easy to

evaluate such important parameters like time spent in

shopping center, characteristic of visitors, most popular

shops, and frequency of visits.

It would result not only in precious knowledge, but also in

savings, like the already mentioned elimination of

marketing research.

SMART RFID allows for locating in real time clients who

have mobile application or loyalty card. Location of

products or equipment is easy, too. SMART RFID can be

used for marking e.g. segways.

Implementation of such technologically advanced

solution has a positive impact on the process of creating

brand image – among tenants as well as clients. First

group will surely appreciate detailed and updated

information about clients. They will eagerly use SMART

RFID as a new marketing channel for communication with

clients.

Latter will see shopping center with SMART RFID as a

modern and friendly place, taking good care of its visitors.

It will result in more frequent visits and shopping.

TURNOVER INCREASE AFTER REDUCTION OF PRODUCTS SHORTAGE Stock-taking with SMART RFID may be performed even couple of times a day. It makes easy to control stocks and make

precise orders in advance.

These are quite spectacular proofs of RFID benefits:

TYCO The GAP

AccentureMeadWestvaco

TescoMcKinsey

1,6% totalsale growth

3% total retail sale

6,2% totalsale growth

2% clothes salegrowth

3-8% total salegrowth

4% DVD salegrowth


R for RFID, R for Retail: Guide for Brands, Shop Owners & Tenants

Business

Transcript of R for RFID, R for Retail: Guide for Brands, Shop Owners & Tenants