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Soft ice cream expert and one of the global fast food giants Dairy Queen tested the RFID membership program at a branch in Indiana. Customers who joined the program received text coupons via their mobile phones, and then used the RFID tags attached to their phones to bid for the coupons.
A few weeks ago, Dairy Queen started using this RFID system designed by mobile marketing company Tetherball.
In the past year, Dairy Queen has adopted Tetherball’s text coupon system in Indianapolis and Philadelphia stores. Customers who join the project receive text coupon messages and redeem them at the local Dairy Queen store. Using this system, Dairy Queen can provide coupons based on customers’ past consumption history and track the results of promotional activities. Such coupons can be restricted to specific dates and time periods so that Dairy Queen can track the flow of customers generated by limited-time offers.
Tetherball’s Mobiquitous WEB reporting system can provide detailed coupon usage information and overall performance analysis of the event.
However, the existing system requires customers to show their mobile phone to the cashier to check when cashing out, and cannot provide real-time feedback on the results of promotional activities.
The RFID version of the system sticks the 13.56 MHz RFID Tetherball tag on the mobile phone (or customer wallet), and can authenticate the customer’s identity before redeeming the coupon. Participating customers provide their mobile phone number and zip code so that the promotion can narrow the target to the nearest Dairy Queen branch from the customer’s home.
When customers come to the store to redeem the coupons, they either show the RFID tag in front of the cashier reader (using a standard contactless payment reader), or bring the mobile phone close to an independent kiosk and print the paper coupon and customer ID The code will be automatically transmitted to the Mobiquitous system.
“RFID enables better tracking,” said Jamie Guse, network administrator of International Dairy Queen. “We can learn the number of times customers have visited the store, track customer behavior, and get more demographic information. When tags are scanned, discounts can be obtained. The coupon is invalid in real time.”
Some other hotel chains and retailers have also adopted various forms of mobile marketing. For example, Burger King launched a promotional program specifically for Apple iPhone.
According to Tetherball chairman and COO Jay Highley, the company spent at least 18 months developing this RFID solution.
Highley said that other customer authentication methods include scanning barcodes on mobile phones, but this has proven to be inconvenient or costly. “RFID can provide 100% accuracy and real-time usage reports. It cannot be copied, forwarded or sold online.”
The use of RFID tags combined with text messages also eliminates the need for customers to download software to their mobile phones. “When a customer has to download software to a mobile phone, the merchant will lose 90% of the market. Even when they do download it, there are still many compatibility issues.”
Dairy Queen is currently testing the RFID system in Rochester, Indiana and other places. According to Guse, the system has only been running for 3 weeks, and it is still impossible to determine whether the system is successful.If the test is successful, the company plans to extend the system to other locations
Tetherball and ViVOtech collaborated to develop a reader system and kiosk. RFID tags are based on the ISO 14443 proximity card standard.
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