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

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iBeacons – Fad Or Trend? …

iBeacons – Fad Or Trend?

23 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.

The 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 nascent technology.

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  • 1. technology for real world retail
  • 2. your retail sales with a marketing utility that enables you to effortlessly communicate with customers as they discover and interact with—and as you encourage them to discover and interact with—your products in the real world deployed using unobtrusive and broadly supported mobile Bluetooth® technology embeded within inexpensive and practically invisible signal emitting devices referred to as ‘beacons’ improve
  • 3. every year, more and more people make their purchasing decisions online real world retail is becoming less important to consumers
  • 4. 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 400billion visits million square feet 0 10 20 30 0 100 200 300 43.8 million 17.6 billion 2010 2011 2012 2013 2001 2005 2009 2013
  • 5. your opportunity to influence their decision is lost consumers making purchase decisions online increasingly complete their purchase online
  • 6. 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 retail ecommerce 2003 2005 2007 2009 2011
  • 7. ecommerce deletes opportunity ecommerce takes away the opportunities created by a real world retail presence • the potential for serendipity • the convenience of proximity • the influence of salespeople • the persuasiveness of touch • the immediacy of gratification
  • 8. Giving customers a reason to rediscover your real world retail presence ensures that you keep all of the opportunities of that presence. With beacon technology, you increase your marketing capacity within the physical space surrounding your real world products or retail environments. A beacon technology deployment consists of a mobile application in the relevant app stores, and a series of inexpensive and practically invisible signal emitting devices referred to as ‘beacons’. When customers who have your application installed on their devices are near, your beacons trigger customizable notifications—alerting these customers to your presence, and giving them a reason to enter the premises and try (or return to) your product. But beacon technology is not just about increasing traffic—it’s also about improving your customers’ experience of your brand by creating more regular and more frequent and more personal relationships with them. With a beacon technology deployment, you can individually identify customers, provide information and purchase options for products on display or in a customer’s hands, personalize your offers, compete for every purchase decision, and expedite every sale. All within the scope of your mobile application and the signals emitting from your beacons. beacon technology gives it back and improves upon it
  • 9. • capture new customers and window shoppers by promoting a free mobile application and associating use of the application with special offers or membership benefits • notify customers of your presence when they are near your real world products or retail location • identify customers individually and passively in order to monitor interest, direct salespeople, or interact with welcoming messages and queries • guide customers to the products they’re looking for with text, voice, video, photographs, or maps • promote retail purchases in store by offering personalized coupons or discounts valid for the duration of a customer’s particular visit • provide assistance and information electronically, to the customer’s mobile device, while your product is in the customer’s hands • customize promotions to customer preferences so to increase the likelihood of your product being sold • compete for purchase decisions when customers are comparing your product to a competitive offer • support contactless payment by making the checkout process available on your customers’ mobile devices • switch customers to online ordering in the event the product they’re looking for is out of stock, and schedule a notification when the product is once again in stock at the same location offering nearly unlimited potential
  • 10. features: • size • range applications: • proximity notifications • guidance • contextual information • personalization made possible by simple features and broad applicability
  • 11. at least 20 millimetres1 at least 3 millimetres1 size features of beacon technology Beacon technology deployments are made possible by the placement of small, battery powered Bluetooth® signal emitting devices referred to as ‘beacons’. Depending upon the design of the beacons you choose, and for the most part relative to predictable battery life, the width and height of each beacon can vary—with the smallest measuring 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 with a 1 year battery life.
  • 12. 100 metres range features of beacon technology 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 1. http://www.bluetooth.com/Pages/Fast-Facts.aspx
  • 13. proximity notifications applications for beacon technology A range may be defined around any particular beacon within which customers who have your app are automatically notified. Welcome to our shop! Are you looking for anything in particular?
  • 14. guidance applications for beacon technology
  • 15. contextual information applications for beacon technology IDID product or display internet
  • 16. personalization applications for beacon technology Hello Mary, 50% off your special offers for today are: FREE Hello George, 2 for 1 your special offers for today are: 10% off Hello Jane, 20% off your special offers for today are: 10% off Using beacon technology, you can individualize your retail promotions to specific customers according to their purchasing patterns and in-store history. With stored credit card information, your customers can skip the checkout counter and make their purchase as soon as the product is in their hands.
  • 17. building a mobile beacon application will help you achieve new retail successes
  • 18. beacon technology is already installed in a majority of smart mobile devices Beacon technology capitalizes upon the ubiquity of Bluetooth® , the wireless standard built into almost every mobile device in use today. It is a feature of the newer operating systems installed in these devices.
  • 19. worldwide support for beacon technology in consumer mobile devices (Mar 2014) 1. CNET News (Jun 2013) http://cnet.co/1ebIPjF 2. Apple (Mar 2014) https://developer.apple.com/support/appstore/ 3. Telecoms.com (Jan 2014) http://bit.ly/1kDA2yv 4. Google (Mar 2014) http://developer.android.com/about/dashboards/ 2,000 total devices in use (millions) 0 500 1,000 1,500 Google AndroidApple iOS version 7 (released Oct 2013) earlier versions version 4.4 (released Sep 2013) earlier versions support for beacon technology no support 600million1 devices in use with support for beacon technology 82%2 1.9billion3 devices in use with support for beacon technology 2.5%4
  • 20. alternative technologies aren’t as good Other identification technologies are obstacles. Because it’s invisible, beacon technology is not. RFID NFC QR codes
  • 21. consumer adoption and privacy Technically, anybody who carries a smart mobile device featuring Bluetooth® wireless capability—and who updates their device at least occassionally—has already adopted beacon technology. More practically, to get your customers to adopt beacon technology specifically for your brand, you will need to give them a reason to install your mobile application, and—in the interest of providing them an experience that doesn’t require your application to be open—allow it to display push notifications. 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, and if you can reward your customers for placing their trust in you it’s most likely that only very few will have any concern about allowing themselves to become known to you. Bluetooth® must be on Customers must have Bluetooth® turned on for your beacons to have effect. The most modern of the smart 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. 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.
  • 22. practical considerations Security 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 made to be confused. The seriousness of this depends on the services and functionality you provide through your mobile beacon application. Durability 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 not less than 1 year, 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. Programming Each beacon—and each of your customers’ mobile devices—broadcast a uniquely identifying number. As many customers are likely to change devices or even carry multiple devices, it’s necessary to maintain a database using intelligence built into your mobile beacon application that can associate multiple IDs to a single customer. This is most easily achieved by providing customers with personal accounts and giving them a reason to not create more than one.
  • 23. start your beacon technology project by contacting me Stefan Wolpers stefan@wolpers.com +49 171 303 0321