Reader Network Presence Detection for Retail Marketing
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Solution Overview
Problem
Current customer relationship management systems in physical retail environments lack the ability to effectively service customers based on their profiles, preferences, and transaction history, and fail to provide timely and relevant marketing opportunities.
Innovation Solution
A Digital In-Store Ad Network system that uses a network of device readers to detect customer presence and identity via wireless communication, analyzing visit patterns to deliver targeted marketing messages to customers' wireless devices, optimizing customer purchasing ability and increasing store revenues.
Engineering Contradictions & Design Principles
Engineering Contradiction Analysis
1Loss of time
If basic incentive systems are used at the end of transaction, then customer service is provided, but the timing is too late to effectively influence customer behavior
Solution Approach 1:
The system performs preliminary actions by detecting customer presence and delivering marketing messages before the customer completes their shopping or makes a purchase decision. The reader network identifies customers upon entry and provides targeted offers during their shopping trip, allowing the customer to act on the information rather than receiving incentives after the transaction is already decided.
2Measurement precision
If a network of device readers is installed to detect customer presence, then customer identification and tracking capability is improved, but device complexity increases
Solution Approach 1:
The system uses universal wireless communication technology (such as RFID, NFC, or Bluetooth) that can be integrated into existing customer devices like smartphones, wallets, or loyalty cards. The reader network leverages these existing wireless capabilities rather than requiring specialized tracking hardware on each customer device, thereby reducing overall system complexity while maintaining accurate presence detection.
3Reliability
If targeted marketing messages are delivered to wireless devices, then advertising effectiveness is improved, but information processing requirements increase
Solution Approach 1:
The system applies local quality by delivering customized marketing messages tailored to each customer's specific preferences, purchase history, and current location within the store. Rather than sending generic advertisements to all customers, the system analyzes individual customer profiles and provides relevant offers only to those likely to be interested, optimizing advertising effectiveness while managing information processing through selective personalization.
Applied Scientific Principles
This section explains which scientific principles are used to turn an abstract innovation direction into a practical engineering solution.
Function Achieved in This Case
Enhances customer loyalty and increases sales by providing relevant and timely offers, improving advertising effectiveness and customer engagement within retail environments.
Implementation Method 1
The presence and identity of the customer are wirelessly detected via a network of device readers installed in the business establishment upon the customer's entry to the business establishment based on wireless communication with a wireless device carried by the customer
Data Source
AI summary
A customer relationship management system wirelessly detects presence and identity of a customer when the customer enters a business establishment. The system captures a visit pattern of the customer based on communication from the wireless device. A relevant marketing message for the customer is determined based on the customer's presence, visit pattern, identity, and location. The marketing message is delivered directly to a wireless device carried to the customer upon a subsequent entry of the customer to the business establishment. Responses of the customer (e.g., purchasing patterns, etc.) are stored for subsequent use in presenting relevant offers.