Many top retailers are investing in near field communication (NFC) technology to lead digital transformations that improve the customer experience. NFC technology facilitates quick transactions, digital content distribution, and immersive experiences that can increase the appeal of brick-and-mortar store locations. While shoppers still prefer to complete purchases in-store, there has been a gradual shift to full e-commerce transactions, suggesting that retailers must rethink the way they attract customers.
Today’s retailers should have NFC technology in stores to streamline payments, improve the customer experience, and facilitate social media engagement to shape future business strategy.
Streamline Payments with NFC Technology
Long checkout times can discourage customers from shopping in stores. However, NFC technology can streamline payments to expedite the checkout process. Additionally, this enables retailers to accept mobile payments directly through Apple Pay, Google Pay, and Samsung Pay. Mobile payments are on the rise, increasing from just $3.5 billion in 2014 to nearly $120 billion in 2018.¹
Retailers who accept mobile payments give customers greater flexibility. Customers will always have their phones on them but might not always have their wallet or an accepted credit card on hand. Customers can complete mobile transactions quickly by placing their NFC-enabled mobile device near the payment terminal.
Furthermore, mobile payment providers offer tokenization to protect customers’ credit card information from malicious activity. Providers will associate a virtual card number with a user’s actual card number so only the tokenized card is shared with the payment terminal. The added layer of security is a win for customers who must be more vigilant in an era of credit card skimming and cybercrimes.
Related reading: Why Fashion Retailers Are Investing in Mobile POS & Loyalty Technology
Create An Immersive Customer Experience
Retailers can also use NFC technology to create an immersive customer experience. Tapping a mobile device near an in-store display can unlock relevant content, videos, and more to give the customer more information about a product or even how to use it. This is especially beneficial when it comes to comparing two similar items when reaching a purchasing decision.
Retailers that use phone numbers to link customer profiles can leverage the connectivity to design a personalized experience for the customer that resonates with their interests. This experience might suggest relevant products, present special offers, and additional information about other local stores with products of interest in stock if they’re unavailable.
Customers who feel that brands are more receptive to their needs are more likely to make future purchases and enroll in loyalty programs. Customer retention is essential for retailers to maintain and grow their businesses at a time where there are so many choices. Additionally, customers who come into a store are more likely to make additional purchases than those who buy strictly online, so creating a memorable experience can facilitate sustained business growth.
Facilitate Social Media Engagement
That memorable experience can be shared on social media too. NFC tags can be placed in strategic locations throughout the store, that when tapped, mobile devices can take an action such as providing location. Store visitors can then instantly share that they are in a particular store with their followers. Alternative actions include setting up follow or like actions for company pages to increase online engagement.
Social media is more popular than ever, and with younger generations that grew up on social media coming of age, it’s important to cater to this demographic. Leveraging NFC technology to facilitate social engagement to increase in-store visitors is a tremendous value-add for retailers looking to get shoppers through the door.
Runit’s cloud-based integrated inventory management and POS system includes error-free credit card encryption, delivers real-time data for faster checkouts, and more that benefits both retailers and their customers. NFC technology in stores can significantly improve the customer experience and bring customers back into stores.
To learn more about our cutting-edge solution, contact a member of our team today.
Sources
¹https://biztechmagazine.com/article/2018/05/near-field-communication-technology-starts-transform-retail
