RFID: Great Marketing or Invasion of Privacy?

RFID, or Radio Frequency Identification, is a technology used to track retail inventory. Much like a bar code it is used to identify an item. It also has a chip and antenna, which can send information via radio waves when activated. It is a great tool for retailers to: ensure shelves are stocked; track the delivery route; and assist in recalls. However, if left activated, it can track your use and whereabouts with the product when tied to a credit card or loyalty card transaction.

As a marketer, I'm a great believer is utilizing data, such as loyalty cards or CRM databases. It allows for better decision making and ROI. As a consumer, however, I am disturbed by the ability to abuse this technology.

The key difference between this technology and other forms of data collection is in customer choice. We have become more accustom over recent years to "opt-out" of being on a list. We have a choice to use a credit or loyalty card. However, technologies like RFID become instrusive when the customer does not have either the knowledge or ability to refuse being tracked. This is not only a privacy issue, but a marketing and PR issue. Sooner or later, the public will become tired of the intrusions in their life. Similiar to what has happened to direct marketing--telemarketing, "junk" direct mail and "spam" email--the consumer will rebel. In the end, a dissatisfied consumer will make it harder for marketers to do our jobs.

RFID and similiar technologies must stop at the transaction level and put the control back in the consumer's hands if we are to have long-term success.

http://www.nj1015.com/absolutenm/templates/?a=5817&z=2