"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.and
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!
Grocers say that users like the convenience of the system. "It speeds up the checkout process," Mr. Huddleston said. "The female customer does not have to bring her purse in the store."
The initiative, which will extend through the holiday shopping season and into 2003, aims to increase merchant, consumer, and industry awareness of the importance of authentication as the underpinning for secure transactions; drive the development of authentication standards by key industry participants; increase consumer awareness of what's necessary to ensure a trusted online experience; and notify consumers and online merchants about risky practices of "quick" or reduced authentication that doesn't adequately identify online businesses.There isn't anything particularly new in this initiative -- it looks like a new marketing effort to re-package existing VeriSign services with a new wrapper.