Chip to track consumer behaviour

A chip-based key has been developed by an IIT graduate that would prop up sales of general stores and other retailers by capturing consumer behaviour.

A new hardware-software combination designed by a company called ConsumerVision has been prepared using the Radio Frequency Identification technology.

Around 500 kirana (general merchant shops) stores who are using the chip and the company's promoters are gung-ho about their product's capability.

With RFID, the stores are able to identify customers the moment they walk in, their preferences, price-points they are comfortable with and other such other useful information.

"Besides, it also informs customers about the best offers in the store, ConsumerVision CEO and product architect (an IIT, Mumbai alumnus) Rohit Nalwade said. Started by IIT graduates and PGs, the company has already reached out to nearly 8,000 such stores pan-India and "500 of them have already joined hands with us," Nalwade said.

The company is currently housed in the Society for Innovation and Entrepreneurship (SINE) incubator at IIT Powai, which provides support to startups such as ConsumerVision.

Buoyed by the initial response, Nalwade said his company is now approaching kirana stores in different places such as Surat, Baroda, Mumbai, Ahmedabad, Nashik, Uttar Pradesh and others.

""The response from all the places is extremely good and we are aiming to provide this facility pan-India," he said.

ConsumerVision, along with the RFID system, will also instal a point of sales machine in the kirana stores. Whena customer carries the RFID system in a key-like device which has a small wireless RFID chip in it, he is immediately recognised the moment he comes near the store and will be welcomed with a SMS message like "Good Morning, Mr __," Nalwade said.

"Thereafter, the customer would be made aware of the best offers through multiple media like discounts on the bill, SMS messages on the best existing offers in the store, a small TV display of the customer's favourite brand and other such facilities," he said.

On the company's revenue model, Nalwade said "presently, we are giving it for free to the kirana stores as it is difficult for them to buy such expensive machines. But we will be charging them a percentage of their sales, which, in any case, will be a very small amount."

"Our point of sales will keep a tab on each transaction," he added. The technology, however, requires that each store be of a minimum 300 sq ft area, he said.

"If the sale of the store increases dramatically, the owner, through this technology, can identify his best customers and may then want to give personal service or other value-adds like a discount to induce loyalty," he said.

Each point of sales machine costs around Rs 65,000 and each RFID system costs around Rs 180, but this could come down as technology advances.

Nalwade said his company is also in talks with big retailers and the response from this segment too has been positive.