Week 2 Blog 1: Using Cell Phones Coupon and RFID Tags

For the last two weeks, Diary Queen offered the customer the RFID tags, each with peel-off adhesive strips, which can be attached on back of cell phone, wallet, and watches or anything that customers always have with them. So you can not miss it or misplace it when it’s the actual time to use it. These tags give the differing purchase histories of each customer. Also the tags will serve as digital coupons as well as makeshift CRM/loyalty programs. These tags are working as trial and it has been tested only at one location in Rochester. Customers can use the tag only if they have it activated. They can activate it by texting the number which goes to the system controlled by an Indianapolis RFID vendor called Tetherball and associates the tag with the customer’s identification. Coupon recommendations get modified when purchases are made and the CRM database expands. Then customer will receive the coupon on their cell phone. These tags can be scanned by the contactless readers which communicate with both Tetherball and the chain’s payment processor. They are trying to find the way to use the texted coupons and pay by using the cell phone and having the track of first data which is the number that is associated to the RFID tag. (Self-checkout) One of a mobile marketing company in Chicago, Samplesaint Inc., has developed the technology that lets the supermarkets scan the image of the coupons from the cell phone.(the bar code is designed small so it can fit on any mobile phone’s screen. In my idea according to the article since all the supermarket’s items are going to hold the GS1 DataBar, even for poultry items (which the DataBar for this item can hold the expiration date, and gives warning if it was expired). Then the both idea, offering the RFID tag to the customer and the way to do check out and using the coupon images on the cell phones, can decrease the mistakes that impacts the profit margins of that supermarket. Also this way will save a lot of time for the customers. But this idea is only true if supermarkets provide enough scanners for the customers.

Source:
http://www.storefrontbacktalk.com/payment-systems/dairy-queens-mobile-coupon-experiment-look-ma-no-phone/2/

Other sources:
http://www.nytimes.com/2009/06/07/business/07novel.html?_r=1&ref=technology
http://www.avidian.com/crm/crm-database.aspx