The launch of iPhone 6 with NFC has changed the NFC landscape in the U.S. both on the handset side as well as infrastructure. Many researchers believe that digital technologies will influence a large portion of 1.1 Trillion dollar of in-store retail sales. NFC technology is one of the major technologies in this equation and the application(s) is called Proximity Marketing. Imagine you are buying a tennis racket which happens to have an NFC tag so you simply tap your phone over it and get more details on it like the ideal grip size, etc.
Currently there are 45+ proximity marketing companies in U.S., that are using NFC technology. And it’s not just proximity marketing applications but others as well as shown in the infographic below:
In 2015 how far the players have been able to move the needle in proximity marketing?
- Active NFC devices in U.S.- 14 million plus
- NFC adoption among retailers – Around 5%
- Retail sales influenced by NFC – USD 2,650 Million plus
- Marketing spending through NFC as a % of U.S. digital marketing spending – 0.89%
Mobile marketing with NFC is effortless. NFC enabled smartphones and tablets can seamlessly exchange digital information between devices or from external NFC (passive RFID) tags. Examples of effective NFC mobile marketing applications include:
- Sweepstakes entry – NFC tags that encourage sign-up-to-win and exclusive offerings
- Coupon redemption – NFC tags contain mobile coupons
- Targeted shopping information – NFC tags that deliver product availability, information and nearby locations
- Social sharing and following – NFC tags that automatically share and like on Facebook and Twitter
- Mobile Payments – NFC tags that allow tap-to-pay applications
Although there are more than 60 proximity marketing companies in U.S. and majority of which are providing NFC marketing solutions, only few companies are able to address the customer pain points. Therefore the challenge remains.
LTP along with GrowthPraxis is coming up with reports which will find answers to the following questions:
- What is the good value proposition?
- How can a firm build a system which is not affecting the people and is permission based?
- What are the industry verticals which will create high demand?
- What should be the roadmap for start-up and other players in the proximity marketing space?
Detailed contents of the reports:
2015/16 Roadmap for NFC Based Proximity Marketing – A Research Report
- What is NFC technology and use cases of NFC technology
- Global market size of proximity marketing and trends
- Market size of proximity marketing and trends
- Value Chain Analysis of Proximity Marketing
- Retail sales resulting from NFC and forecasts (Till 2018)
- NFC marketing spending and forecasts (Till 2018)
- Active NFC devices in U.S. and forecasts (Till 2018)
- Why proximity marketing is important?
- How proximity marketing companies are trying to play it out?
- Competitor benchmarking of major proximity players
- Company profiles of major companies*
- Roadmap for Proximity marketing companies