There was a lot of passionate response to the post a few weeks ago “Will Mobile Phones Replace In-Store Retail Salespeople”. Even more reason that these three announcements this week caught my eye:

■  The Aberdeen Group published a report that stated in 2008, the total of digital signage market revenue stood at $766 million and is expected to reach $2.2 billion by 2014, growing at a healthy CAGR of 20%.
■  The London Daily Mirror reported according to unnamed sources that Nokia is planning to begin rolling out embedded NFC (near field communications) kits into its entire line of Symbian phones beginning Q3, 2010. The Finnish giant already has NFC in selected handsets, such as the 6216 Classic.
■  Malaysian manufacturer Fonelabs will produce two million low cost (under $100) NFC enabled phones in 2010
What do these three items have to do with retail? First, just as a refresher, Near Field Communication (NFC) is “a short-range high frequency wireless communication technology which enables the exchange of data between devices over about a 10 centimeter (around 4 inches) distance.” In other words, if you have an NFC enabled phone and opt-in, your mobile phone will be able to communicate with another proximate electronic device automatically.

The types of applications for NFC on mobile are numerous:

■  Electronic payments – swipe your phone and make a payment without a credit card. NFC technology is already being used in Japan in more than 30,000 stores. Users can place $50 amounts, for example, into their smart phones to make payments or even use them in smart vending machines.
■  Mobile ticketing on public transportation – swipe your phone on readers placed in buses, airlines, and trains
■  Electronic keys – swipe your phone and open hotel doors or your house door
■  Smart posters – use your phone to read RFID tags on billboards and other signs to receive additional information and to let the “billboard” know you are there
Smart posters is the one that I find particularly intriguing.

Let’s imagine for a second, that you walk into your favorite bookstore where you have purchased many titless in the past. With your permission, as you walk past an internal electronic billboard, you allow the billboard to communicate with your phone. Instantly, the billboard scans your past purchases and recommends new books to you that you might enjoy reading. Or even better, a scanner reads your phone as you walk in and sends you an SMS with a customized offer to you for a discount on items you purchase that day as an opted-in frequent customer.

It’s kind of like going into your favorite pub where everyone knows your name. Of course, downsides such as privacy cannot be underestimated (but, that is why it has to be on an opt-in basis). Imagine, though, how much more effective it would be to having a customized sales experience. In clothing stores, sales people can know what you like, know your size, know if it is in-stock, and immediately bring you customized selection of new items. Out of stock items could be posted to your customer ID and custom SMS messages could be automatically sent to let you know when the item is back in-store.

For the retailer, NFC gives unprecedented real time monitoring of consumer behavior in-store that could lead to better consumer in-store experiences – more accurate preference tracking of target audiences for better merchandise selection, display and pricing, and an ideal feedback channel for more detailed research. Individually, salespeople could be more effective in providing consumers with more meaningful in-store experiences if they are familiar with their past interactions.

Will mobile phones replace in-store retail salespeople? The consensus opinion from that last post was no, but it surely will change the playing field in a substantial way. The impending mobile NFC introductions are yet another way that the retail experience of the 21st century will never be the same.

Mark Jaffe is a mobile industry and digital media executive with an active consulting business that enables mobile technology companies, as well as other technology and digital content companies, to achieve breakthrough revenue growth with sustainable profits from a foundation of sound strategic analysis and innovation. He is also a noted speaker at industry conferences, as well as a speaker and facilitator at corporate retreats and strategy workshops. Further biographical information can be found at www.markjaffe.com.  His mobile industry blog, Mobile Mandala, can be viewed at  www.mobilemandala.com

Mobile phones have to be one of the best on the spot, at the moment, information retrieval resources of all time.  How many times have you seen disagreements settled immediately, courtesy of a quick iPhone web research query?  Well, it looks like some companies are ready to capitalize upon our penchant for instant research about things that interest us.

Let’s flash back to a recent industry panel where a senior Best Buy executive said “The right information at the point of impulse increases desired consumer’s behavior, sales, profits and customer satisfaction.” That sure sounds like a description of one of Best Buy’s best in-store salespeople helping out customers standing next to the latest electronic gizmo in one of their stores. 

It isn’t.

The conference was a mobile conference and the speaker was the senior manager of marketing and emerging capabilities at Best Buy.  She was talking about using mobile phones – not salespeople – as the information source at the point of impulse. I guess there is nothing like a little recession to make retailers think a little harder about how utilize our collective penchant for using our mobile phones for quick research projects and potentially saving some money in labor costs in the process.

Here’s how it works:  Using the mobile phone, customers can request information about any product on demand in a Best Buy store with a call to action on a product fact tag in store. What a great idea for consumers (no more pesky sales people asking ‘how can I help you’) and what a great idea for Best Buy (cut a little payroll here and there as the idea takes hold – I know, I know, not one salesperson will be fired as a result of this technological advance which is solely dedicated to the betterment of our customers:)

The truth is that we are already moving more and more to a self-service environment, anyway.  Why not leverage the mobile phone to eliminate cost, bring down prices, reduce the frustration in trying to flag down elusive salespeople to ask questions, and give us another excuse to have fun looking up info on our mobiles?  It sure makes sense to me.

So, let’s take this one step further.

What if retailers gave us the opportunity to engage in interactive texting?  Think of all the time we waste, and frustration we accumulate, in big box stores feeling like we always have to muscle in to get a little service.  Wouldn’t it have been a lot easier to just text in the question via mobile phone?  Then, get an answer and re-text our next question?

Why stop at electronics stores? What a great way for bookstores to compete with online retailers – just text in the title you are looking for and receive information on whether or not it is in-stock and where it can be found.

And, how great would it be to have self service mobile Q&A on the new car lot?  I don’t really like all of the sales pressure from those pushy car salespeople and now I can avoid it once and for all.  For good measure, I could just text the offers and counteroffers back and forth and never have to talk to them in person!

The best application, though, would be in high end department and apparel stores.  After trying on the overpriced designer suit, I could text in the question “How does it look?” I guarantee the response will be the same as if I had asked an in-store salesperson (who could actually see me in the suit) the same question.

On second thought, text messaging just can’t replace the sincerity of those baby blue eyes telling me I how good I look, even if they don’t really mean it.

Mark Jaffe is a mobile industry and digital media executive with an active consulting business that enables mobile technology companies, as well as other technology and digital content companies, to achieve breakthrough revenue growth with sustainable profits from a foundation of sound strategic analysis and innovation. He is also a noted speaker at industry conferences, as well as a speaker and facilitator at corporate retreats and strategy workshops. Further biographical information can be found at www.markjaffe.com.

If you would like to access Mark Jaffe’s blog Mobile Mandala directly, please visit www.mobilemandala.com.  If you would like to communicate with Mark Jaffe directly, please email mark@markjaffe.com