iBeacons – Fad Or Trend? The Use-Cases For Retail And Omni-Channel Solutions [RELOADED]


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iBeacons – Fad Or Trend? [RELOADED]

49 slides on the use-cases of Apple's BLE – Bluetooth Low Energy – beacon technology that allows for the first time to precisely locate a person within pre-defined proximity of a sensor and to communicate with that person contextually.

But where's the beef? NFC, QR-codes and WLAN tracking were promising that before and never caught on.

This improved slide-deck provides an answer to that question by addressing the most important use-cases as well as dealing with privacy and technologies issues of the (still) nascent technology.

Published in: Business, Technology

iBeacons – Fad Or Trend? The Use-Cases For Retail And Omni-Channel Solutions [RELOADED]

  1. 1. beacon technology improve your real world retail sales
  2. 2. strategy, development, and deployment services for your retail operation www.beaconup.co.uk a technology primer by 2
  3. 3. marketing with beacons 3 Enhance your real world retail presence with a marketing utility unlike any other! Beacon technology enables you to wirelessly locate, identify, communicate, and transact with each of your customers individually as they discover and interact with — and as you encourage them to discover and interact with — your products or retail environments.
  4. 4. 3 Beacon technology involves deploying inexpensive and practically invisible signal emitting devices referred to as ‘beacons’. Positioned strategically, these small devices unobtrusively broadcast location identifying information to you via your customers’ mobile devices using broadly supported Bluetooth® technology — without requiring your customers to do anything beyond installing your app.
  5. 5. It starts with beacons — either attached to your real world product or surrounding your real world environment. As a customer approaches, their Bluetooth® enabled device invisibly receives signals emitting from these beacons. Their device now knows that your product or shop is there. 5 and your mobile app
  6. 6. 6 Completing the deployment is your mobile app — published to and available in the relevant mobile app stores. With your app installed on your customers’ devices and receiving the signals from your beacons, you can now individually locate, communicate, identify, and transact with these customers who previously could not have known of your retail presence other than by past experience, signage, or a published address.
  7. 7. the connection necessary for real world retail to thrive in an age of ecommerce 7
  8. 8. 8 With beacon technology, your mobile app connects your online marketing to your real world presence. It enhances the information delivery and ecommerce capabilities of your web site by incorporating these into a mobile app cognisant of and ancillary to your customers’ immediate present. Dynamically presenting personalized information and fulfilling desired transactions relative to whether a customer is near your shop or holding your product in their hands adds the advantages of online shopping to the conveniences of real world retail. This makes your real world presence a profitable and competitive advantage in an age of ecommerce — instead of the cost centre it is quickly becoming.
  9. 9. 9 because ecommerce has made real world retail less important to consumers
  10. 10. total retail visits in the US for the months of November and December Stores confront new world of reduced shopper traffic. Published by the Wall Street Journal, 2014 January 16. Data regarding retail visits was collected from 60,000 tracking devices installed at shopping malls and large retail stores in the US (source: ShopperTrak). Data regarding the opening of retail spaces was compiled from 54 of the largest US markets (source: CoStar Group). http://bit.ly/beacon-2014-01-16-001 amount of new retail space opened in the US annually 40 billion visits 0 10 20 30 17.6 2010 2011 2012 2013 400 million square feet 0 100 200 300 43.8 2001 2005 2009 2013 10
  11. 11. who increasingly choose to make their purchases online 11
  12. 12. ecommerce as a percentage of US retail sales The tipping point (ecommerce version). Published by Jeff Jordan, Partner, Andreessen Horowitz, 2014 January 14. Data collected by the US Census Bureau. http://recode.net/2014/01/14/the-tipping-point-e-commerce-version/ 20% 25% 0% 5% 10% 15% 2001 of all retail sales media, sporting, and hobby goods electronics and appliances furniture and home furnishings clothing and accessories health and personal care food and beverage total ecommerce 2003 2005 2007 2009 2011 12
  13. 13. consequently the advantages of real world retail are being lost as ecommerce grows 13
  14. 14. as consumers shift to online shopping your retail marketing loses: 14 the convenience of proximity the potential for serendipity the influence of salespeople the persuasiveness of touch the ability to give immediate gratification
  15. 15. 15 beacon technology combines the best of ecommerce with your real world presence and improves upon it
  16. 16. Though real world retail is quickly becoming a cost centre, its advantages are still competitive assets. Instead of losing to your customers’ propensity for online shopping, you can build upon the advantages of being physically there — and increase your real world sales. People don’t walk past your web site, but they do walk past your shop, shelf, or product display. Advertise a free mobile app. Once installed on the devices in their hands you can alert these customers when they’re near, and give them reasons to discover each particular storefront, product, or display you have — with personalized offers or discounts specific to each. By helping them discover and giving them a reason to explore your real world presence, your real world traffic will increase. 16 start by improving discovery
  17. 17. But increasing traffic is only a part of the objective. Beacon technology is also likely to improve your customers’ experience of your brand by encouraging more regular and more frequent and more personal relationships between you. Individually locating and identifying each and every customer enables you to provide personalized information and purchase options for the products they’re physically looking at; compete for every purchase decision in real time; upsell or suggest alternatives; and expedite every sale by bringing the checkout counter to their device. There’s no longer a reason to separate ecommerce from real world retail. Make it a part of your real world presence with beacon technology. The scope of what’s possible is what you will eventually use to improve your real world sales. 17 and finish by improving experience
  18. 18. 18 Come in today and get 20% off one of our fancy shirts! It will look great with the pants you bought from us last week! • proximity notifications • personalization Welcome back! You’ve now got 20% off one of our fancy shirts! See them on display just five metres to your right. • personalization • guidance You’ve found our fancy shirts! We think the red shirt will match your pants best. Also, check out our outrageous neckties! • proximity notifications • contextual information Ready to go? PAY NOW 1 fancy shirt: $19 2 outrageous neckties: $58 • location aware ecommerce
  19. 19. using simple signal emitting devices 19 Beacon technology relies upon the placement of small, Bluetooth® signal emitting beacons throughout your retail environment or within your product packaging. These are simple devices, the essential features of which include a conveniently small physical size, significant and flexible signal range, and one or more years of battery power.
  20. 20. significant and flexible signal range a conveniently small physical size one or more years of battery power 20 the essential features including
  21. 21. at least 20 millimetres1 at least 3 millimetres1 Depending upon the design of the beacons you choose, the width and height of each beacon can vary. The smallest measure just millimetres in both dimensions. 1. Actual size varies by manufacturer. These dimensions are the smallest that we know of currently available for a beacon featuring 1 year of battery life. physical size 21
  22. 22. signal range 100 metres1 1. http://www.bluetooth.com/Pages/Fast-Facts.aspx A single Bluetooth® signal can be detected at a range of up to 100 metres depending upon the design of the signal emitting beacon, your customer’s mobile device, physical obstructions, and radio interference in the 2.4 Ghz band.1 22
  23. 23. battery power Beacons are small, battery-powered devices. Most models currently available run for one or multiple years on a single coin cell battery. Bluetooth® Emitter Coin Cell Battery 23
  24. 24. 24 offering nearly unlimited potential With a handful of beacons and a well designed mobile app, you can make your real world retail presence your most compelling marketing tool. Start by building upon the marketing potential summarized here to ensure your brand delivers on the promise of beacon technology. Then differentiate by developing more.
  25. 25. 25 for marketing your retail presence direct attention with proximity notifications provide your customers with guidance promote interest with contextual information ensure relevance with personalization improve convenience with location aware ecommerce
  26. 26. It’s often difficult for customers to find what they’re looking for in large retail spaces or shopping centres. Give them guidance. With beacon technology, you can lead them directly to your product or the product they’re looking for — whether or not a salesperson is present. 26 guidance
  27. 27. proximity notifications Direct attention with proximity notifications. By defining a range around any particular beacon, you can notify customers of where they are and what they’re near. Direct their attention to new products, in-store promotions, or even just the fact that your shop is there. 27 Welcome to our shop! The fancy shirt you are looking at is on sale today!
  28. 28. product or display contextual information 28 ID ID internet Promote interest with contextual information. It’s often that not all of the information you want to provide about a particular product is printed on its packaging or price tag. Instead of leaving prospective buyers with questions — and losing those sales — use your beacons to provide up-to-the-minute information about each and every product that catches their attention. On a mobile device you’re not limited to just text and graphics!
  29. 29. Hello George, your special offers for today are: Hello Jane, your special offers for today are: Hello Mary, your special offers for today are: personalization Ensure relevance with personalization. Using beacon technology, you can individualize your retail promotions to specific customers according to their purchasing patterns and in-store history.
  30. 30. location aware ecommerce 30 Improve service with location aware ecommerce. With stored credit card information and the barcode or ID broadcast by a beacon, your customers can skip the checkout counter and make their purchase as soon as the product is in their hands. If what they want isn’t in stock, sell it to them anyway for later pick up at the shop with a beacon that instantly and automatically navigates your ecommerce catalogue on their mobile device. Thank you This is your receipt. details Visit us online to see our new collection of outrageous neckties that perfectly match your new fancy shirt! Ready to go? Total: $19.00 1 fancy shirt $19
  31. 31. 31 already installed in the majority of new smart mobile devices Beacon technology is a feature of newer mobile operating systems. It capitalizes upon the ubiquity of Bluetooth®, the wireless standard built into almost every mobile device in use today.
  32. 32. 32 970 million of these have been updated to support beacon technology, and every new device sold has support built in. 2.7 billion As of June 2014, the number of Apple iOS and Google Android devices in use worldwide exceeds
  33. 33. 1. Apple (Jun 2014) https://developer.apple.com/videos/wwdc/2014/#101 (video 44:42) 2. Apple (Jun 2014) https://developer.apple.com/support/appstore/ Google AndroidApple iOS 1,500 2,000 0 500 1,000 million devices in use version 7 (released Oct 2013) earlier versions version 4.4 (released Sep 2013) earlier versions 800million1 devices in use with support for beacon technology 89%2 1.9billion3 devices in use with support for beacon technology 13.6%4 3. Telecoms.com (Jan 2014) http://bit.ly/1kDA2yv 4. Google (Mar 2014) http://developer.android.com/about/dashboards/ worldwide support for beacon technology in consumer mobile devices June 2014 33
  34. 34. unlike alternative technologies 34 RFID NFC QR codes
  35. 35. An industry standard for inventory tracking and identification, RFID (Radio Frequency Identification) is one of the predecessors of beacon technology. Beacons effectively wrap powered RFID signals within the wireless Bluetooth standard, making RFID broadcasts capable of being detected and used by mobile consumer devices. 35 RFID
  36. 36. NFC is a relatively new form of RFID, frequently marketed as a mobile payments solution. It offers communication and data capabilities similar to beacons, but only within a 20 centimetre radius — rendering it useless for geolocation. Unlike with beacon technology, users with NFC capable devices must initiate (as opposed to allow) any interaction. No Apple® device nor any model of iPhone currently supports NFC. 36 NFC
  37. 37. A type of barcode, QR codes use a printed or displayed image to store data and allow it to be transmitted via optics — most commonly barcode scanners and cameras. Although capable of storing a similar amount of data as beacons, in order for consumers to interact with that data they must make a concerted effort to use their device’s camera to capture the barcode and process it using barcode reading software. 37 QR codes
  38. 38. 38 achieve greater retail success with a beacon enabled mobile app
  39. 39. A beacon enabled mobile app can be much more than a mobile version of your web site — and should be. If well designed, it will unify your real world and online presence by using the location relevant data made identifiable by your beacons. standard web site with a beacon enabled mobile app 39
  40. 40. A beacon enabled mobile app can deliver your marketing both inside and outside your retail environment, giving your customers a reason to keep your app on the home screen and top of mind. Help them discover your shop, shelf, or product display. Create surprise and significance in serendipitous moments with location sensitive coupons or promotions. Help them to feel informed before and satisfied after each purchase decision. Instil loyalty by personalizing your prices or product selection and delivering these with the immediate gratification that only real world retail can offer. Make it easier for them to buy with location aware ecommerce — rather than standing in line at the checkout counter, waiting for a clerk to run their credit card. By combining the advantages of real world retail with the marketing potential of beacon technology, you’ll not only be displaying your products on your customers’ devices — you’ll be providing them the encouragement they need to make purchases that they may not have otherwise made, or thought to make. 40
  41. 41. that your customers are ready to install Consumer adoption of beacon technology is a given. Technically, anybody who carries a modern mobile device has Bluetooth® built in and, if they update that device at least occasionally, can already run apps designed to use beacon technology. But practically, to get your customers to enable their existing beacon receptivity specifically for your brand, you will need to give them a reason to install your mobile app, and — in the interest of providing them an experience that doesn’t require your application to be open — allow it to display push notifications. 41
  42. 42. Modern mobile operating systems — including both iOS and Android — give people the option of turning off Bluetooth®. This was done because of the now false perception that Bluetooth® is a significant drain on battery life. Bluetooth® must be turned on for your beacons to have effect. Although on by default, people who turn off Bluetooth® will need to be reminded that it should be kept on in order for them to receive the benefit of interacting with your (and any other) real world beacons. Push notifications may be used to provide such reminders. ask them to keep bluetooth® on 42
  43. 43. Because beacon technology gives you the ability to uniquely identify your customers and their physical location, there are valid concerns regarding privacy that you will need to address. However, any relationship requires some level of reciprocity. If you can reward your customers for placing their trust in you, it’s likely that very few will have any concern about allowing themselves to become known to you when they enter or approach your real world location. consider their privacy 43
  44. 44. 44 after a few simple steps your customers will beacon with you ask them to allow push notifications ask them to install your app ask them to keep Bluetooth® on confirm that they can trust you with their privacy
  45. 45. 45 three factors to be mindful of Security, durability, and software design are three factors that you need to consider when designing, deploying, and maintaining a mobile beacon application.
  46. 46. Beacons may be stolen. The signals emitting from your beacons uniquely identify you and each of your beacons. If a beacon is stolen and not immediately removed from your system, your retail presence could be misrepresented and your customers could be confused. The seriousness of this depends upon the services and functionality you provide through your mobile beacon application. Beacons are battery operated. The durability of any particular beacon is directly related to the size of its battery. Although most beacons currently on the market are provided batteries sufficient to power the device for one or more years, these batteries are not rechargeable, and it’s entirely possible that malfunction or water damage could take any of your beacons out of service without warning. security durability 46
  47. 47. Beacons interact with devices, not people. Because customers are likely to change devices or even carry multiple devices, it’s necessary that your database can associate multiple devices with each customer, and that your application can maintain a single session across those devices. Correctly and securely identifying customers is particularly important, especially when enabling ecommerce. Providing customers with personal accounts and giving them a reason to not create more than one is crucial to achieving a reliable mobile beacon application. software design 47
  48. 48. 48 are you ready to start your beacon technology project?
  49. 49. Stefan Wolpers stefan@beaconup.co.uk www.beaconup.co.uk BeaconUp™ offers expert strategy, development, and deployment services for retail beacons and mobile beacon applications. To successfully transition your retail marketing to beacon technology, talk to me. This document is copyright ©2014 Stefan Wolpers. All rights reserved.