RFID Journal profiles ExxonMobil’s Speedpass.
“Giordano says the company‚s market research finds that more than 92 percent of Speedpass customers are highly satisfied with the technology. Giordano says Speedpass are likely to make one additional trip per month to the gas station, which translates into a significant increase in revenue. “We‚re very happy with our investment,” he says.”
Earlier this month, the New York Times also had an article about RFID technology titled “Tollbooth Technology Meets the Checkout Lane“. Folks often want to know what the business case looks like for a new technology. Here’s at least part of the answer based upon the Speedpass experience:
The benefits to merchants are many. They can collect data that are untrackable through cash purchases and, by moving customers through more quickly, save on labor costs.
It says Speedpass customers tend to make an additional visit a month, which translates into a 20 percent increase in their spending. Although the use of Speedpass in convenience stores is still fairly low, the average sale tends to be larger than those by cash or credit card. A typical cash transaction is $3 to $3.50, on average, while credit card sales tend to be 60 percent higher. The average Speedpass transaction is more than double the cash amount, Mr. Clayton said.
You do the math!