In 2020, e-commerce went from an emerging business strategy to a business necessity. The pandemic accelerated the growth and revealed the necessity for businesses to build a strong e-commerce platform. Purchases made via smartphones (m-commerce) have exploded, and this movement won’t end with the pandemic. Mobile is the future of everything, and an NFC label will take it to the next level.
- According to IWSR, the global ecommerce market for wine and spirits is expected to see a 42% increase over last year, and mobile has become the preferred way to get online.
- A Statista forecast expects that by 2021, 72.9% of all e-commerce will be m-commerce.
Brands that adapt to these changes in consumer behaviors will pull ahead of their slow-to-change competitors and become industry leaders.
Smart labels are an important part of a successful m-commerce strategy.
Let’s take a look at the following:
- Smart labels
- NFC – the technology that goes into smart labels
- How NFC works
- How NFC can help my business
What is a Smart Label
A smart label is a label that incorporates technology that extends information and content from labels or packaging into an interactive experience for the customer. They come in a variety of forms, including NFC, RFID and QR codes. We’ll look specifically at NFC technology in this article.
What is NFC?
NFC, or Near Field Communication, is a short range wireless communication technology that enables two electronic devices to communicate with each other. It evolved from RFID (Radio Frequency Identification), which is the technology used when you scan your key card to get into the office or use Fast Track to bypass waiting in line at a toll booth.
The main difference between NFC and RFID is that NFC is a high-frequency version of RFID. This enables NFC to transfer data much faster, and at a much closer distance than RFID. Because NFC needs to be in close proximity (within 4 inches) to a device for the signal to be picked up, it’s considered to be very secure. This is why it’s used as secure alternative to credit cards for mobile payment services such as Apple Pay and Google Pay.
How does NFC work?
A tiny chip, or NFC tag, is connected to an antenna which allows the chip to interact with an NFC reader/scanner, like a smartphone. The most common form of NFC tag is a sticker; however NFC tags can easily be integrated into other supports such as a card, product label, bottle cap, etc.
NFC tags are passive devices, meaning they operate without their own power supply. They rely on an active device, such as a smartphone, to come into range before they’re activated. Once activated, they’re able to transfer information to a smartphone.
How can an NFC label help grow my business?
An NFC label gives consumers a way to initiate an interaction with your business before, during and after a purchase. With the tap of a smartphone, a prospective customer can get the product information they need to help them make a purchase decision. The same NFC tags can keep the connection going after the purchase, providing your brand with opportunities for up-sales, cross-sales, and reorders.
Here are some of the ways an NFC label can be used to promote your brand and increase sales:
- Create an interactive experience for your customers
When a customer taps your label, they’ll be able to see in-depth product information, videos, get directions to your business location, or connect to social media.
- Tap to learn about a product
Share tasting notes, food pairings, videos of the winemaker describing the wine, or even show the winemaking process.
- Build loyalty and rewards programs
Use NFC to promote and enroll customers in loyalty programs such as wine clubs, points programs, special offers, or rewards.
- Customers can see ratings and revies of your products
Shoppers read between 1 and 10 reviews before making a purchase. It’s a very important part of the purchasing experience. With a tap, customers can read reviews about your product to help guide them through the purchasing process, and they can leave their own reviews.
- Provide product recommendations
Suggest other items to customers based on what they’ve already purchased and make it easy for customers to reorder products.
Make NFC Part of Your Marketing Strategy
We are at the beginning of a shift in the way brands interact with their customers. Customers are looking to connect with brands, and they’re doing it on their phones. An NFC label will enable your business to connect with your customers any time, any place, in any way you can imagine.
Not sure how to start using NFC as part of your marketing strategy? Connect with us to request a free demo or let us help you find the right plan.
If you’re already using NFC to connect with your customers, leave a comment and let us know about it!