Named after a medieval Danish king who united warring tribes, Bluetooth technology has been designed to offer a standard for proximity network applications. Simply defined, it is a wireless RF technology providing high bandwidth communication, in a 10-100 metre range, using a single chip adapted to mobile phones and PDAs. A key advantage, stressed Leonard Scheepsma, Business Development & Sales Manager, Bluetooth Venture, is that there are no charges for the user since the system operates on unlicensed frequencies. Bluetooth is also robust given that it functions through fast frequency-hopping. .
For retailers, the technology offers benefits in three areas:.
1. Logistics: tracing products during distribution and into store .
2. Marketing: using customer data to offer specific services and improve store offer .
3. Payment/self-checking: secure payments via card, elimination of queues .
Jan-Olof JarnesjÖ, Manager Store Systems, ICA, then described two pilots schemes carried out at ICA stores using Bluetooth. The first, which ran from June to December 2000, involved 10 users from within the company who made payments using their mobile phones. Two Bluetooth access points were installed in the store to activate a special customer menu on the phones. The users were offered three options: payment with the ICA card, balance check for their ICA card and special offer information. The second trial, carried out this year, involved "self-buying". A group of 20 customers were invited to enter their purchase details into their mobile phones by scanning items as they went round the store. Payment was processed automatically at the checkout where the POS scanner captured the purchase information. Other features offered by the system included running total checks, corrections to purchases and price checking. .
The success of the trials has encouraged ICA to look ahead to a roll out soon. The low cost and simple installation are major attractions for retailers, while consumers gain from ease of payment and more personalised customer service.
