RFID Loyalty Cards Debut this Fall

RFID technology comes to loyalty cards this fall when Midnight Auto Franchise Corp. launches cards with radio-frequency identification (RFID) capability for its All Night Auto stores. A consumer's transactions and loyalty data will be stored on a single card. Loyalty card supplier Arthur Blank & Co., Boston, handles.

It's one of the first retail marketing applications for RFID technology, which marketers are adopting to improve stock-keeping. Wal-Mart and eight manufacturers have been testing RFID tags in Dallas stores since mid-April. Wal-Mart requires its top 100 suppliers to adopt RFID tags by January 2005 for cases and pallets shipped to Dallas-area Wal-Mart and Sam's Club stores.

"Retailers are seeing benefits of RFID within the supply chain and are pushing for a convergence of the supply chain with customer service. RFID cards that can store personal profiles ... enhance service," said Blank executive VP Eric Blank in a statement.

Troy, MI-based Midnight Auto's cards will store a customer's account number, profile and a record of the last five service visits. Garage staff can access customer information on a wireless tablet computer to check customers in and offer services from a menu-driven system.

Blank suggests other retail applications for the card include "line busting" that speeds up ordering and payment for preferred customers; prepaid gift cards; and kiosks that let cardholders track and redeem loyalty points for instant awards including coupons and movie passes.