Extending CRM in the retail industry : an RFID-based personal shopping assistant system

This paper describes the research and development of a radio frequency identification (RFID)-based personal shopping assistant (PSA) system for retail stores. RFID technology was employed as the key enabler to build a PSA system to optimize operational efficiency and deliver a superior customer shopping experience in retail stores. We show that an RFID-based PSA system can deliver significant results to improve the customer shopping experience and retail store operational efficiency, by increasing customer convenience, providing flexibility in service delivery, enhancing promotional campaign efficiency, and increasing product cross selling and upselling through a customer relationship management (CRM) system. In this study, an RFID value grid for retail stores is proposed that allows managers to use RFID technology in stores to add value to the shopping experience of their customers. Four propositions are presented as the research agenda for examining the ability of RFID technology to improve the operations management of retail stores.