Jay White Ozgur Ozturk Babatunde Olubando Sev’erine Tanic

Agenda Background –RFID –CRM Definitions and History –Radio Frequency Identification (RFID) –Customer Relationship Management (CRM) Implementation of RFID in retail Current uses of CRM retail Questions

Background- RFID RFID is revolutionizing the way organizations around the world perform their operations. Entities involved range from hospitals to the United States Department of Defense. It helps in the tracking of goods and assets. RFID ?

Background - CRM Term for a group of concepts and tools to help manage relationships with customers. Successful program can: –Increase Sales –Retain Customers –Provide reporting capabilities on multiple level CRM ?

RFID History

History - RFID Initial beginnings traced back to WW 2 radar with identify friend or foe (IFF) system. Based on Radio frequency. Electronic surveillance tags developed (still in use today). [1-bit – ON/OFF] Current range of radio frequency ( 13.56MHz)

History - RFID Uses range from access control, payment control systems (Ez-Pass) to car security systems. IBM patented the technology in 1990s Sold patent to Intermec

History- RFID Cost prohibitive at first and lack of international standards. Price is much more affordable now (cost of tags less than $0.10) Hardware, Software infrastructure and business processes Software infrastructure most expensive.

History -RFID Hardware Types of RFID tags: Passive Active

History -CRM Pre-electronic CRM –Record books –1 on 1 personal relationship building –Note cards, file cabinets, 1980’s –databases, spreadsheets, personal managers. –Static information –Limited reporting capabilities

History -CRM 1990’s CRM –Advancements to software, storage capabilities and the internet –Expanded beyond an electronic Contract Manager –Allow companies to offer incentives, gifts and perks for customer loyalty –More companies in the software market

CRM Uses SalesForce.com Creates software for Sales, Marketing and Customer Service Software is compatible with mobile gadgets: Phone, Palm Point, (Outlook) Features for every business level (sales, managers and executives) for daily tasks, reporting and planning purposes.

CRM Uses PeopleSoft Enterprise CRM Software – DePaul University CRM to manage student services and business operations Student Services: Academic Advisement, campus announcements, financial aid, grads, class assignments and surveys

RFID Implementation in Retail A Microsoft Perspective

RFID Implementation RFID can help retailers save a lot of money in the way they transports their goods from suppliers to end users.

RFID implementation Parts, components, Pallets integrated into RFID system to allow for proper tracking and inventory control

RFID implementation Once the parts leave the supplier they can be tracked delivered and logged into inventory with the least amount of human contact.

RFID - implementation Once products reach distribution center, they can be divided based on destination location by the EPC information.

RFID - implementation RFID readers placed on aisles at the store can help detect low inventory of products and send alerts to suppliers and managers to restock.

RFID- Implementation

10 uses of RFID in Retail 1.Store management alerted to out-of-place items 2.Restocking alerts and replenishment 3.Dynamic Pricing 4.Expiration and obsolescent/seasonal alerts 5.Reduced need to check merchandise 6.Streamlined self-checkout 7.PDA-based shopping lists that interact with RFID tagged merchandise and store map 8.Warnings about contents to which a shopper or family member is allergic or wants to avoid. 9.Monitoring controlled substances 10.Mapping shopping behaviors. (Excerpted from “ Fifty Uses of RFID in Retail by NCR corporation)

Current Uses of CRM in Retail

CRM Uses Customer Analytics – Customer analytics studies details regarding the customer from data gathered in the course of her interaction with the retailer. –The business benefits by trapping the loyalty of the customer by rendering improved services.

Sources of Customer data - Loyalty Programs of the retailer, Rewards Card - Consumer registration - Data from Debit Card/Credit Card - Syndicated data such as Axiom and Claritas databases - Customer registration forms on the Retailer's web site - Click Stream data from Web Logs, revisits to web sites - Point of Sale data - Personalized delivery services - Mail order catalogs

CRM Uses Application areas for Customer Analytics - Customer Segmentation - Target Marketing - Campaign Management - New product Introduction - Customer /Channel Affinity

CRM Uses Analytics for Sales - Customer Profitability Analysis - Cross-selling and Up-selling - Product Affinity

Areas where RFID is Used Retail, Manufacturing and Distribution Healthcare and Pharmaceuticals Logistics, Public Sector, and Government.

Challenges for RFID Large volume of data Product Information maintenance Configuration and management of readers and devices Data integration Data ownership and partner data integration Data security and Privacy

Questions