Consumer Engagement in the Connected Age Richard Cantwell

Consumer Engagement in the Connected Age Richard Cantwell Chairman – Board of Governors, EPCglobal

Marketing A typical scenario n I am an executive at Acme Enterprises. n Acme launches a new allergy-free detergent. n We need consumers to know about this product. n How do I reach them? (This talk will get to technology… eventually)

A history of marketing n The “Old Days” (100 -150 years ago) Word of Mouth n n n 20 th Century Mass Media n n Targeted Credible TV, Radio, Syndicated Print Everyone received the same message Built big Brands Today Product offerings & target audiences are both more segmented n Reaching today’s consumer is a marketing challenge

The problem The battle for eyeballs: n TV viewer-ship fragmented n Big companies shifting dollars out of traditional media n Internet advertising lacks meaningful metrics & adequate capabilities (Mc. Kinsey, 8/07) n Other forms of digital media little understood n Billboards? Marketing is at a cross-roads An answer: n Reach consumers in the store Pizza Hut ad on the side of a Russian Proton rocket!

The possibilities Interaction/ context No interaction Location (RFID) Identity (Loyalty cards) Video n Fixed n Cart-video Cycling advertisements Video attracting you to items related to your cart? Video showing product related to previous purchases? Audio n Fixed n Beamed i. Pod? Store announcements Music in exchange Music related to for locationprevious related ads? purchases? Value-Offer Promotional announcements Offer related to your purchases? Promotional prices & special offers on above?

This is really happening I will talk about 3 examples n Wal-Mart TV n Smart Shopping Carts n Promotions

Wal-Mart TV n n “… the average recall of a brand advertised on Wal-Mart television is 66%, compared with 24% for brands advertised on in-home television. ” Customers 15% more likely to buy product today and 25% more likely to buy product in future Sources: n “Wal-Mart Adds In-Store TV Sets, Lifts Advertising, Wall Street Journal (Sep 22, 2004) n Research commissioned by Premier Retail Networks (PRN) and conducted by AC Nielsen

Displays on the Cart n Displays on the Cart: Example Modstream n Displays ads on the handle 5 -year life RF update of messages from one central location n n

Interaction and display n Media Cart seek scan navigate

RFID in Promotions RFID is already being used for promotions n Promotions displays are RFID tagged n Store doors have readers n Display movements are monitored n Lack of movement is detected/corrected n 22% improvement in sales

Now add consumer context Imagine if the Cart knew: n Location from RFID/Wi. Fi n Identity from RFID n Bluetooth/Wi. Fi to download audio/video on the fly Imagine if the display could signal: n Rate of sale using RFID/Wi. Fi Now you could: n Introduce customers to new products, product categories n Offer up promotional pricing & special offers n Measure efficacy of various promotions & displays n Do dynamic pricing to avoid overstocks n Provide consumer services like food allergy notification

Further possibilities Interaction/ context No interaction Location (RFID) Identity (Loyalty cards) Video n Fixed n Cart-video Cycling advertisements Video attracting you to items related to your cart? Video showing Testimonials? product related to previous purchases? Audio n Fixed n Beamed i. Pod? Store announcements Music in exchange Music related to Commentaries? for location-related previous purchases? ads? Value-Offer Promotional announcements Offer related to your purchases? Promotional prices & special offers on above? Consumer Blogging?

In-store Consumer Engagement This is an key direction for marketing n RFID will play a key role n n So will other technologies: n Wi. Fi n Bluetooth n GPS? How this works is for technologists to figure out n The benefits are huge for everyone! n

Thank You! dcantwell@epcglobalinc. org