Combining
loyalty platforms with RFID technology
Wednesday
January 26, 2005
The
contactless payment technology firm ViVOtech has announced the launch
of a new software solution that combines RFID technology with retail
customer loyalty and pre-paid/gift programmes, presenting consumers
with the opportunity to use a single card for both payments and
loyalty scheme memberships.
The
new software platform uses RFID (radio frequency identification)
technology to integrate customer loyalty applications with pre-paid
or gift card transactions. Retailers will now be able to offer a
self-branded contactless (RFID) card or key fob that will function
like a combined prepaid and loyalty card. This article is copyright
2005 TheWiseMarketer.com.
Retailer benefits
With share of wallet being a key issue for many retailers, the new
platform provides the consumer with the option of carrying only
one card for their payments and loyalty membership. ViVOtech expects
retailers to see a boost in the effectiveness of their loyalty programmes
as a result of faster and more convenient payments.
Using the contactless RFID technology, ViVOtech estimates that retailers
would be able to replace (on average) 23% of cash transactions by
converting them into contactless payments. According to ViVOtech's
own research, contactless transactions tend to be 20% larger in
purchase size than their cash counterparts (possibly because the
amount of cash in a consumer's wallet or purse is usually limited).
Consequently, one likely benefit to the retailer of employing contactless
payment technology is a greater sales volume over existing cash
transactions.
Consumers benefit too
With the increasing usage of loyalty and prepaid/gift cards, retailers
can also gather consumer purchasing and behavioural data which can
be used to target specific consumer groups with personalised promotions
and rewards (e.g. instant rewards, cross-selling, special offers
and other bonuses). A certain novelty value will also be experienced
by consumers who would be using their contactless payment card to
earn and/or redeem loyalty points at their favourite retailers.
Technology platform
Based upon the Java J2EE software platform, the system is designed
to handle multiple databases and operating systems (such as Windows,
Linux, Unix, and Solaris), offering scalability and future support
for custom applications and advanced promotional and loyalty applications.
It is also designed to interface directly with retailer's legacy
systems and financial networks using ISO8583 standard electronic
messaging and IP (internet protocol) networking.
Customizable options
ViVOtech has put much thought and effort into providing functionality
not found in most other loyalty and prepaid/gift platforms, such
as a web browser-based interface for both users and administrators,
along with several built-in formats that allow for automatic point
accumulation, reporting, and redemption for the consumer.
ViVOtech provides the RFID cards and fobs, along with personalisation
software to enable retailers to issue contactless loyalty and gift/prepaid
cards to their customers. Retailers can also opt to use ViVOtech's
design services to create customised shapes and forms for the contactless
fobs, based on the lifestyle and profile of their customer base.
"The beauty of the ViVOplatform is that it lets existing legacy
systems take advantage of contactless functionality on gift and
loyalty transactions," commented Mohammad Khan, president and
COO for ViVOtech.
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