Kraft Foods Pilot Finds Better Value With NFC

by Mercator Advisory Group 0

A recent Kraft Foods pilot involving interaction between RFID chips and NFC-enabled smartphone users shopping at select grocers showed much higher consumer activity levels compared with a QR-code system.

From Mobile Commerce Daily:

The results from the pilot include that the overall NFC “tap” engagement level was 12 times higher than for QR codes, which also appeared on the signs. Additionally, more than 36 percent of shoppers who tapped the NFC-enhanced shelftalker converted into an action, such as saving a recipe, downloading the Kraft app or sharing with friends.

Additionally, the amount of time consumers spent engaged with the brand was 48 seconds when NFC was involved. This is significantly higher than the five to 10 seconds consumers typically spend at the shelf choosing a product.

Of course, Kraft’s proclaimed success with NFC will bring up the argument about what’s better in the long-term for mobile payments and everything that goes with it such as loyalty programs. Tim Daly, co-founder of pilot participant Thinaire, argued in the Mobile piece that NFC offers a more streamlined experience for consumers compared with QR codes. Starbucks, however, would have something to say about.

But part of what makes Starbucks successful is the loyalty aspect of its mobile application. Consumers in general crave rewards and now Starbucks customers can earn them in a snazzy way by paying with their phone and soon will have free drink coupons delivered to the mobile application.

QR codes are ahead in the game at this point because NFC’s ecosystem in the United States is still fragmented. Obviously that is changing with Google Wallet and the start of the Isis trial next week, but QR code-technology is more readily available.

Mercator Advisory Group recently accessed the current state of NFC in the U.S. in a new report.

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