Retaining Customer Loyalty With RFID

Posted by Advanced Mobile Group on May 9, 2017 2:06:30 PM


Since RFID technology has come out, it has been a boon to many different industries, most notably in the warehouse and shipping business where it can be utilized to keep track of inventory and ensure speed and accuracy. However, while the technology is excellent for back of house systems, it turns out that it can be beneficial on the customer side of things as well. In fact, if you are smart about implementing a strategic RFID system then you can even increase your customer service experience and generate more loyalty. Here are several ways that that can be achieved. 

Make Shopping Simple

While not every business can use RFID, some retailers are finding that it can be an easy way to set up customers with accounts that allow them to buy products without having to swipe a card or stand in line. Car washes, for example, have quickly jumped on board the RFID train because it allows them to attach tags to customer’s cars so that they can drive straight into the wash without any delay. Best of all, the tag saves things like preferences and frequency so that you can ensure that they get the right wash each time.

Overall, convenience is always a big selling point, so customers will usually gravitate toward businesses that offer faster and simpler solutions to the shopping experience. If a person can visit a store and buy items without having to wait for a cashier, they will be much more likely to return instead of visiting a competitor that doesn’t have such as system in place.

Collect More Data

Since convenience is the ultimate selling point, it shouldn’t be too hard to get customers to sign up for reward services with your business that utilize RFID technology. When setting up the account, you can get information such as email address, physical address, age, gender, and so on. This data can be immensely helpful down the road as it will allow you to customize and tailor your marketing to reach specific demographics rather than a generic ad or coupon.

Additionally, you can track the frequency of your customer’s visits and see what kind of items or services they purchase the most, which will enable you to further tailor their experience over time. The more that you can make your clients feel appreciated, the more likely they are to return. In that regard, RFID is invaluable because it allows you to collect this data automatically without needing to pester individuals with surveys or questionnaires. 

Simplify Your Back End

In the old days, if you wanted to manage multiple customer accounts you would have to have someone who could monitor activity and ensure that everything ran smoothly, such as making sure that bills went out promptly and that payment was processed without delay. Fortunately, with RFID you no longer need a lot of overhead to manage customer’s data because it can all be automated.

The system can charge cards attached to accounts right away, email or text receipts upon purchase, and even follow up to find out how well their experience was. This way you can connect with and engage with your customers while keeping your back of house running smoothly and efficiently, all without having to bring on extra staff to do so. This will allow you to focus more of your energy on interaction with your customers and enhancing their experience, which will, in turn, foster more loyalty. 

Potential Issues and How to Solve Them

Let’s go back to car washes for a minute. One of the biggest concerns that retailers have is that if a customer wants, he or she could give the tag to a friend or family member and abuse a monthly subscription for unlimited washes.

After all, if the tag is all that is read, who’s to say that it’s actually the customer doing the washing? Well, the best method for preventing this problem is to use tags that will be destroyed if they are removed. If the metallic strip is damaged when the tag is taken off, then it prohibits sharing which ensures that only the person who bought the membership will reap the rewards.

Another possible concern is that if your tags are used to allow for unlimited monthly visits that customers will try to come back as often as possible to maximize their benefit while cutting into your profits. In that case, you may have to either set limits or offer other incentives to prevent that kind of abuse. However, depending on the service you provide, you should be able to manage it effectively without experiencing much loss.

In the end, RFID is an excellent tool that can be utilized in so many different ways that you may come up with strategies and solutions that you may have thought were impossible. The best thing about the technology is that it is adaptable, reliable, and easy to implement, which is why it is gaining so much traction in many different industries. In fact, it could become so ubiquitous that all transactions are done via RFID, rendering traditional methods of payment obsolete.

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Topics: RFID, Retail

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