RFID-Based Personalized Pricing and Messaging in Retail
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Solution Overview
Problem
Traditional retail environments lack effective mechanisms for presenting personalized information, such as pricing and messages, to customers, as they cannot automatically identify and respond to individual customers' preferences in real-time.
Innovation Solution
The use of RFID tags and biometric methods to determine customer and product proximity, coupled with a personalized product information server that applies rules-based systems to provide tailored pricing and messages based on customer attributes and product information.
Engineering Contradictions & Design Principles
Engineering Contradiction Analysis
1Ease of operation
If traditional retail environments use manual methods to present marketing information, then employees can greet frequent customers by name, but it is not practical to follow customers through the store to present personalized marketing information
Solution Approach 1:
The patent introduces an intermediary system consisting of RFID tags, readers, and a server that automatically identifies customers and delivers personalized marketing information. This intermediary automation system resolves the contradiction by performing the personalized service function without requiring employee physical presence, thus maintaining ease of operation while avoiding the complexity of manual tracking.
Solution Approach 2:
The system enables self-service by allowing the retail environment itself to automatically identify customers through RFID tags and present personalized marketing information without human intervention. The customer's shopping cart or handheld device automatically receives relevant marketing content based on their identified preferences and purchase history.
2Adaptability or versatility
If retailers display multiple price levels for the same product based on loyalty programs, then they can create special promotions, but final product pricing cannot be determined until the customer has finished their purchases
Solution Approach 1:
The system performs preliminary action by pre-calculating and displaying personalized pricing information to customers as they shop, rather than waiting until the end of the transaction. The server continuously evaluates the customer's cart contents against loyalty program rules and displays the final price upfront, eliminating the time loss of waiting for checkout processing.
Solution Approach 2:
The system implements feedback by continuously monitoring the customer's shopping progress and dynamically updating the displayed pricing information. As customers add or remove items, the system provides real-time feedback on how these changes affect their personalized pricing, allowing them to make informed decisions before completing the purchase.
3Adaptability or versatility
If online retailers personalize pricing and marketing information, then they gain competitive advantage, but traditional brick-and-mortar retailers cannot effectively change prices on an individual basis at the point of purchase
Solution Approach 1:
The patent replaces the mechanical system of manual price tagging and display with an electronic system using RFID technology, wireless communication, and software-based pricing logic. This substitution enables traditional retailers to achieve online-level personalized pricing adaptability by using electronic price tags that can be dynamically updated based on customer identification and purchase history.
Data Source
AI summary
Methods and apparatus are provided for presenting personalized information to consumers in a retail environment. A personalized price is determined for at least one product that is in physical proximity to the customer. The physical proximity may be determined, for example, by evaluating identifiers, such as RFID tags, associated with each customer and product. A personalized message can be also presented to a customer regarding at least one product that is in physical proximity to the customer. The personalized message can provide, for example, dietary or safety information relevant to the customer and at least one product in the proximity of the customer. The personalized information may be determined based on one or more personalized message rules.