As the business universe evolves around the globe, certain industries need to gain customers’ trust for acquisition and retention. The case of CBD (cannabidiol) products is no different; CBD is essentially one of the active compounds found in the marijuana plant, and it is not psychoactive. In order to be categorized as CBD and not marijuana, a product should comprise less than 0.3% THC (tetrahydrocannabinol – a psychoactive material). With the importance of CBD in regulating the endocannabinoid system of the human body on one hand and a very thin lining of segregation that exists between harmful and harmless chemical compositions, transparency is the key element in the business model. Original Labs Inc. developed PearlCBD product-line, which incorporates NFC technology in the packaging of products via which customers can review all the relevant product info with a single tap, thus reshaping SOPs of an industry that lacks standardization.
How NFC Technology Works for Product Authentication
Near Field Communication (NFC) tags, also referred to as Info Tags, are embedded in the packaging of the PearlCBD products. These tags contain essentially-microchip which can store the relevant product information. While the whole communication framework is being complemented by a private-cloud architecture, the digital scanning of NFC tags provides a customized experience for every product. For the NFC technology to work, an NFC reader serves as a pre-requisite; customers can tap/scan the “more info” sign from their NFC-enabled smartphones, and it can display three sets of information on the display of mobile devices:
- The authenticity that the product is originally from the PearlCBD is provided by a mere scan because the packaging contains an embedded microchip.
- In order for customers to know what’s inside the package, a multi-pronged information set is provided which essentially entails the details of three (03) lab tests: pre-test (before the raw-product left the farm), post-test (once the lab received the product) and post-formulation tests (quality assurance).
- Customers should easily comprehend what CBD products mean to them, thus educational content is displayed, which includes the differences between CBD and marijuana or the difference between CBD and THC.
Benefits of Using NFC Technology – CBD Industry
The use of NFC technology, especially in the CBD sector, is multi-faceted and significantly helps enterprises in customer acquisition and retention. Not only establishes a one-on-one trust relationship between an enterprise and customers but also brings the factor of transparency and authentication into the whole value chain. Specifically, on the demand side, customer awareness is critical, while dealing with CBD products as it can have potential ramifications. It also helps organizations achieve some level of standardization which surely can help streamlining business operations and SOPs.
Future Prospects for use of NFC Technology – CBD Industry
The use of NFC technology for CBD products has opened a lot more avenues for the usage of these products in high-impact domains. For example, CBD can be used for pets, beauty accessories, and supplements, micro-dosing, and consumables. For sure, extensive R & D is required for all the aforementioned developments but and an important aspect is communicating the relevant info to the potential customers for generating trial; NFC labels can surely do that in an efficient and effective manner.
The use of NFC Technology by PearlCBD underlines the principle of leveraging technology to foster customer trust. It not only helps achieve the technological eco-system, which serves as an enabler for business expansion and growth but also brings transparency into the whole value chain. The cascading positive impacts of NFC technology can educate the customers about the value proposition; implementing this technology can initially involve capital investments but can guarantee higher ROIs, which would be achieved by incremental revenues.
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