Is this plastic device the silver bullet that malls are looking for?
Last fall, a mall in Helsinki offered shoppers targeted deals if they agreed to tote a key fob with them. Some 14,000 customers tried out the plastic RFID device, which is called a "Physical Cookie." Shoppers who toted the Physical Cookies were offered individually targeted deals on electric signs in the stores and in the mall.
As the video above explains, Physical Cookies work just like their online counterparts. That is, they study the shopper's preferences and tailor deals and messages accordingly. Instead of logging user's history though, Physical Cookies just look at the time spent during mall shopping. Property investor Sponda worked with ad agency TBWA\Helsinki to create the plastic devices, which fit in one's pocket and don't require registration or sharing any personal information.
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After a four-month trial, Sponda reported that customers with Physical Cookies spent 21.7% more time in stores than those who didn't. The company also claimed it was able to "guide" 14.5% more customers from the busiest ground floor to the mall's second floor via electronic messaging. For retailers, the devices -- which cost about $0.17 each -- can provide real-time analytics that could help optimize floor space and see which displays are attracting the most attention.
Similar technology exists on users' smartphones. In particular, a close analogue is the iPhone's iBeacon. In a press release, Theodor Arhio, Creative Director of TBWA\Helsinki, said he believes after the novelty wears off though, consumers will get tired of iBeacon.
"Stores are already installing iBeacons so that when you walk past a shelf they occasionally ping your smart phone with an ad or an offer. But that is about to change as more brands join in. Soon - if you keep your iBeacon functionality switched on – you´ll be spammed with messages," said Arhio. "We wanted to disrupt that. Instead of spamming you with messages, the retail space reacts to your behavior."