NXP supports consumer demands for personalization and transparency
With innovative NFC technology, NXP supports consumer demands for personalization and transparency via merged online/offline services.
NFC technology is a gateway to the digital era, giving consumers new ways to interact with their favorite brands while brand owners can streamline operations and easily connect with consumers to increase revenue. NFC technology strengthen brands and helps brand owners to drive sales, nurture customer relationships and loyalty, improve operational efficiency, and generally bring new energy to the shopping experience, by engaging with consumers at deeper levels – even beyond the purchase.
NXP Semiconductors, a co-founder of NFC technology, reveals how NFC makes digital authentication and deeper consumer engagement possible.
New Experiences More Interesting than New Products?
According to Global Data, 60 percent of consumers find new experiences more appealing than new products and want more than just functionality. BCG has found that with a highly personalized shopping experience, customers spend up to 40 percent more. Consumers also expect more transparency and accountability from brand owners.
What are the Benefits of NFC?
In today’s hyper-connected shopping environment, where consumers have so many online and offline options to choose from, attracting and keeping customers is one of the biggest challenges. Wireless technology in general, and NFC in particular, are valuable tools, since they offer new ways to connect and engage with tech-savvy consumers. And, when used creatively, NFC creates a competitive advantage, by triggering purchases and building deeper relationships that can in turn foster brand ambassadors and increase loyalty. In addition, brand owners can gain new first-party consumer data.
Not all NFC chips are the same
NXP guarantees maximum interoperability with the NFC infrastructure thanks to its extensive product portfolio. This ranges from feature-light, lower security to feature-rich, high security chip technologies to meet a broad range of NFC applications, both in proximity (ISO 14443) and vicinity (ISO 15693).
Direct 1:1 Consumer Engagement
Attached as an NFC label to a package or directly incorporated inside an item, e.g. a closure, the product becomes a voice which allows brands to directly communicate with consumers before, during, and after sale. A quick tap with an NFC-enabled smartphone to the label can open a website, launch an app, and much more. Digital content can be changed dynamically and contextually, based on time, location, or prior actions. New chips with first-opening detection of a package also allow status-dependent messaging. Consumers receive further product information and can benefit from new services and experiences, whilst manufacturers benefit from increased sales and brand loyalty.
Strong Customer Loyalty
Brands can reward customers for purchases and make ownership more valuable with individualized services, limited offers, exclusive brand communities, and unique buying privileges. Combined with smart crossselling and up-selling campaigns, customers can be introduced to the broader brand portfolio. NFC chips with cryptographic security, such as NXP's NTAG DNA, can also ensure authenticity of coupons and gift vouchers, and protect digital marketing campaigns from misuse thanks to one-time promotional URLs.
Product Authentication and Transparency
Especially premium products from high-value brands face counterfeits. NFC technology helps brand owners and their consumers to easily verify the authenticity of a product by using an NFC-enabled smartphone. Each NFC tagged item has its own ID, and can use special on-chip security features, such as a digital signature or cryptography, for advanced protection. With this, items can be digitally verified if they are genuine. Brands can assure product provenance and traceability. In addition, NFC tamper evident solutions help detect whether a product has been interfered with or opened prior to sale. The tamper loop can be mounted around the opening of a product, for example a wine bottle cap or the top of a box.
NFC Top Stories
1. Mammut Connect
Mammut, the Swiss-based manufacturer of outdoor clothing, introduces "Mammut Connect", an NFC-based brand experience platform for outdoor enthusiasts through and app. With a tap of an NFC tagged garment, the customer gets access to product-related information, such as material details and after-sale services. The app also provides inspirational outdoor content and rewards, like inviting customers to events. Users can also digitally create diaries of personal trips to be shared with peers.
2. Kraft Heinz
"Find the Golden Single!" is an NFC-activated raffle of the food giant Kraft Heinz in the USA. An innovative NFC label with smart opening detection is integrated into the packaging of Kraft Single cheese sold at Walmart. The label provides the customer with a range of content when tapped with an NFC-enabled smartphone in order to encourage purchase at the point of sale. Creative recipes based on the cheese, an instantly redeemable shopping voucher and an interactive raffle. As part of the raffle, customers have the opportunity to win a Walmart electronic gift card worth $50.
3. Adidas x Parley
Adidas develops a special running shoe in collaboration with Parley, a non-profit organization fighting for increased awareness of marine pollution. The upper material of the Adidas x Parley Ultraboost consists of 95% recycled ocean waste. The NFC tagged shoes lets consumers verify product originality. Users can also follow the story of the shoes, from plastic bottle to final product, and learn how to protect the oceans. They can also join the Parley Ocean movement themselves.
Malibu Rum invites customers to join the summer promotion and the interactive competition of the 'Malibu Games'. The Connected Bottles, sold in the USA in 2019, have an NFC chip integrated into the cap of the bottle. Customers can enjoy special content such as bartender drink recipes and take part in the interactive competition with exciting prizes by tapping the bottle cap with an NFC-enabled smartphone. Malibu has been using NFC as part of intelligent packaging since 2015.
The Italian luxury label Bvlgari uses NFC technology to protect leather goods against counterfeits. The premium handbags have embedded NFC tags that contain a digital certificate of authenticity. Thanks to Bvlgari Touch, prospective buyers receive information about the product and its making, while a purchase unlocks care tips and styling trends, as well as buyer-exclusive digital experiences. For example, adventures around the bag can be digitally documented and shared with a VIP peer community.
6. Philips VisaPure
In this line of personal-care devices for skincare and aesthetics, the international health-technology company Philips uses built-in NFC readers to authenticate NFC-tagged brush heads and configure device operations. Rotation and pressure get automatically set for ease of use and optimized device performance. Consumers also have the option to easily reorder accessories by an easy tap with an NFC smartphone.
7. Henkel Indola
The international consumer goods giant Henkel equips their salon-exclusive brand of haircare and style products with NFC tags. Professional stylists can find inspiration with product formulas, a creative look book, styling tutorials, and more. The tags also provide access to a peer stylist community to exchange ideas and gain support.
8. Mattel Hot Wheels
Hot Wheels ID is an evolution of the popular toy brand that offers a mix of physical and digital gaming experiences. With Hot Wheels ID, kids can race their NFC-tagged Hot Wheels cars on their Smart Track that comes with a built-in NFC reader. By using a NFC-enabled smartphone, the Hot Wheels can be added to a free app, acting as a virtual garage. The data coming from the track is sent back to the ID app via Bluetooth, calculating the number of laps taken, top speed and distance raced.
9. Rémy Cointreau
The spirits producer Rémy Cointreau integrates NFC technology into the cork of the Louis XIII Cognac decanter. This enables customers to register their purchase and become members of the exclusive Louis XIII Society. In this private club, members enjoy exclusive services and VIP events, such as personal engraving, private tasting sessions and international connoisseur meetings. Customers simply need to hold their NFC-enabled smartphone to the cork.