The document discusses how beacon technology allows businesses like restaurants to personalize the in-store customer experience. Beacons use Bluetooth signals to detect when customers enter a store and interact with their mobile devices to greet them or provide customized offers. The adoption of beacon technology is expected to grow significantly in the coming years, driven by declining prices and increasing functionality. Industry analysts predict beacon-influenced on-premise sales in the US will increase from $4.1 billion in 2015 to $44.4 billion in 2016 as more businesses implement the technology.
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Personalized Guest Experiences with Beacon Technology
1. ROCKBOT.COM
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BEACONSAND THE PERSONALIZATION OF
ON-PREMISE
EXPERIENCE
LEARN
HOW
TODAY’S
“SMART
RESTAURANTS”
ARE
USING
ADVANCED
PROXIMITY
TECHNOLOGY
TO
CREATE
PERSONALIZED
GUEST
EXPERIENCES
2. ROCKBOT.COM
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THE ROCKBOT
INSIGHT
You’re
walking
in
the
front
door
of
your
business.
What
is
the
ideal
experience?
Are
you
greeted
when
you
arrive?
Are
you
assisted
exactly
when
you
need
help?
Do
you
receive
an
offer
or
reward
based
on
your
acGons?
Today’s
most
successful
restaurant
chains
have
established
a
pracGce
of
envisioning
their
customers’
in-‐
store
experience
from
first
impression
to
last,
and
are
increasingly
uGlizing
technology
to
make
that
experience
smoother,
more
personal,
and
more
memorable.
But
how
much
can
technology
actually
personalize
an
in-‐
store
experience?
How
can
you
make
each
customer
happy,
when
they
each
have
their
own
personaliGes,
preferences,
and
reasons
for
visiGng
on
a
given
day?
While
online
interacGons
with
your
customers
have
become
hyper-‐personalized
via
email,
social
media,
and
mobile
targeGng,
it’s
been
more
challenging
to
create
a
truly
personal
guest
experience
on
premise.
UnGl
now.
With
the
arrival
of
beacon
technology,
every
single
brick
and
mortar
business—from
restaurant
chains
to
retail
stores—has
a
powerful
new
tool
at
its
disposal.
Imagine
creaGng
a
customized
experience
for
each
of
your
guests
because
your
on-‐premise
technology
system
knows
when
they
walk
in
the
door.
Imagine
a
future
where
your
brand
automaLcally
interacts
with
a
customer
throughout
their
visit,
enabling
them
to
experience
exactly
what
they
want
because
you
know
they’re
there.
In
this
guide,
you
will
learn
the
current
best
pracGces
of
on-‐premise
proximity
technology
for
restaurants,
and
find
answers
to
the
following
quesGons.
How
exactly
do
beacons
work
and
how
are
they
different
from
GPS?
How
do
they
relate
to
my
customers’
mobile
devices
and
my
restaurant’s
current
in-‐store
technologies?
What
are
some
successful
examples
of
beacons
at
restaurants,
and
what
would
an
implementaGon
look
like?
IMAGINE
YOU
ARE
YOUR
CUSTOMER
2
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Standard
GPS
calculates
a
user’s
locaGon,
but
the
range
limits
have
meant
lost
opportuniGes.
Your
smartphone
may
know
you’re
in
a
store,
but
can
it
greet
you
when
you
walk
in?
Track
your
behavior?
Suggest
purchases?
Beacon
technology
was
developed
to
overcome
the
inherent
limitaGons
of
satellite-‐based
locaGon
informaGon
in
a
world
where
smartphones
are
primarily
used
indoors.
Think
of
beacon
technology
as
smarter,
indoor
GPS
using
Local
PosiGoning
Modules
instead
of
Global
PosiGoning
Satellites.
Low-‐powered
and
low-‐cost
beacons
are
small
computers
with
Bluetooth
transceivers
that
can
run
for
over
two
years
on
a
small
coin
baUery.
Placed
on
virtually
any
surface
(e.g.
walls,
shelves),
beacons
broadcast
and
receive
Bluetooth
Low
Energy
(or
BLE)
signals
from
a
range
of
two
inches
to
230
Z.
(~70
meters).
Smartphones
can
pick
up
these
signals
and
(using
a
beacon’s
unique
ID
tag),
calculate
the
distance
to
each
beacon
in
range—even
if
the
phone
is
locked
or
a
given
app
is
not
currently
running—
and
then
trigger
an
app
to
perform
various
funcGons.
WHAT IS BEACON
TECHNOLOGY?
FROM
GPS
TO
BLUETOOTH
3
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THE BEACON
BOOM
$40
BILLION
IN
SALES
While
many
restaurants
and
retail
stores
are
already
uGlizing
beacons,
widespread
adopGon
is
anGcipated
closer
to
the
end
of
2015
and
2016.
To
date,
the
primary
barrier
to
adopGon
by
consumers
has
been
a
lack
of
uGlizaGon
by
businesses,
but
that
chicken-‐and-‐egg
conundrum
is
about
to
be
cracked.
Tech
giants
like
Apple
and
PayPal,
as
well
as
startups
like
Kontakt.io,
EsGmote,
GeLo,
and
Swirl,
have
developed
a
range
of
hardware
and
soZware
to
engage
businesses
and
their
customers
like
never
before.
This
explosion
of
supply
has
lowered
the
price
and
increased
the
ease-‐of-‐
use
and
funcGonality
of
beacons
to
the
point
that
they
are
within
reach
for
even
small
restaurants.
With
more
than
90%
of
sales
sGll
occurring
in
physical
businesses
(as
opposed
to
online),
and
a
majority
of
consumers
using
their
mobile
devices
during
their
visit,
restaurants,
stores,
and
adverGsers
will
have
a
unique
opportunity
to
engage
and
influence
customers
where
and
when
it
maUers
most—on
premise
at
the
point
of
purchase.
Industry
analysts
have
predicted
beacon
ubiquity
within
a
few
years.
A
Business
Insider
Intelligence
study
predicts
that
U.S.
on-‐premise
sales
“influenced
by
beacon-‐
triggered
messages”
will
jump
from
$4.1
billion
in
2015
to
$44.4
billion
in
2016.
Research
firm
Gartner
states
that
“Internet
of
things
installed
base
will
grow
to
26
billion
units
by
2020,”
while
ABI
Research
one-‐upped
them
predicGng
that
“more
than
30
billion
devices
will
wirelessly
connect
to
the
Internet
of
everything
in
2020.”
2015 2016
$44.4
BILLION
$4.1
BILLION
ON-PREMISE
SALES
DRIVEN BY BEACONS
4
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MEET THE
EXPERTS
LIGHT
HARDWARE,
CUSTOM
SOFTWARE
Apple’s
entry
into
the
beacon
market
is
likely
the
Gpping
point.
Unlike
other
beacon
players,
they
do
not
manufacture
a
physical
beacon—they
put
it
in
your
hands.
iBeacon
is
already
built
into
over
200
million
iOS-‐
based
devices,
including
iPhones
and
iPads.
These
devices
not
only
interact
with
beacons
in
the
environment,
they
act
as
beacons
themselves
to
interact
with
apps
that
use
beacons
and
other
iBeacon
compaGble
iOS
and
Android
devices
in
range,
making
virtually
every
smartphone
a
beacon.
As
with
the
App
Store,
Apple
places
the
iBeacon
building
blocks
in
the
hands
of
third-‐party
developers.
On
the
hardware
front,
there
are
currently
at
least
sixteen
companies
vying
for
the
market.
Beacon
maker
Kontakt.io
offers
an
open-‐API
plajorm,
ships
devices
with
customized
configuraGons,
provides
impressive
baUery
life,
allows
for
cloud-‐based
operaGon,
monitoring
and
modificaGon,
and
even
supports
use
in
high-‐traffic,
outdoor,
and
underwater
environments.
EsGmote
beacons,
notable
for
their
small
size
and
beacon
sGckers,
are
designed
to
sGck
to
objects
“to
create
new,
contextually
rich
experiences.”
GeLo
has
targeted
the
museum
market
with
plans
to
expand
to
trade
shows,
naGonal
retail
and
transit
with
a
subscripGon-‐based
suite
that
provides
mobile
app
and
hardware
support
as
well
as
a
cloud
plajorm
to
manage
content.
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ENGAGEMENT VS.
SPAM
HOW
ARE
CUSTOMERS
RESPONDING?
Early
uses
of
beacons,
such
as
sending
unsolicited
coupons
to
users,
were
perceived
as
spam
by
customers
and
did
not
enhance
the
guest’s
experience.
However,
more
recent
examples
that
focus
on
entertaining
your
guests
have
proven
effecGve.
Global
beacon
leader
Kontakt.io
emphasizes
the
importance
of
creaGng
a
fun
customer
experience
to
encourage
adopGon.
“Using
beacons
for
more
than
just
coupons
is
key
to
standing
out;
whether
it’s
remembering
your
last
order
at
a
favorite
restaurant
or
making
it
easy
to
have
your
waiter
deliver
your
drink
in
a
crowded
venue,
beacons
make
the
restaurant
experience
more
magical,”
said
Szymon
Niemczura,
CEO
of
Kontakt.io.
“The
best
way
to
engage
customers
is
to
delight
them
with
a
memorable
experience,
and
beacons
allow
you
to
do
that
automaGcally
for
every
guest
that
walks
in.”
101%
Increase
in
engagement
if
music
or
entertainment
content
15%
Have
engaged
with
beacons
20%
Increase
in
purchase
intent
313%
Decrease
in
engagement
if
2+
same-‐store
coupon
alerts
20%
Increase
in
purchase
intent
Data
via
inMarket
study,
2015
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THE SECRET TO
PERSONALIZATION
THE
BEACON
GREETING
When
a
beacon
experience
is
fun
and
personal,
customer
engagement
soars.
A
great
example
is
the
mobile
greeGng.
Restaurant
music
plajorm
Rockbot
recently
deployed
its
beacon
soluGon
to
brands
such
as
Buffalo
Wild
Wings,
Schlotzsky’s,
Bagger
Dave’s,
and
Arooga’s,
as
well
as
leading
retail,
fitness,
and
desGnaGon
brands
including
Gap,
AnyGme
Fitness,
and
JetBlue.
As
described
by
TechCrunch,
the
beacons
automaGcally
welcome
a
customer
and
add
one
of
their
favorite
songs
to
the
restaurant’s
background
music.
Results
to
date
show
a
101%
increase
in
engagement
via
mobile.
“PersonalizaGon,
when
done
wrong,
risks
annoying
customers,”
says
GarreU
Dodge,
CEO
of
Rockbot.
“Brands
that
start
with
an
experience
that
delights
customers
can
then
use
that
to
build
trust
and
interacGon.”
Focusing
on
one
impacjul
use
case,
like
a
personalized
greeGng,
has
proven
to
drive
adopGon.
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FROM STORES TO
STADIUMS
BEACONS
BEYOND
THE
RESTAURANT
In
addiGon
to
restaurants,
high-‐traffic
areas
such
as
stadiums,
museums,
and
event
fesGvals
are
using
beacons
to
engage
patrons.
Popular
music
fesGvals
like
Bonnaroo
have
tapped
beacon
companies
like
Aloompa
to
create
a
real-‐Gme,
hyper-‐local
event
guide
for
fesGval
aUendees
and
“give
event
producers
insight
into
audience
behavior.”
For
organizers,
it
also
provides
data
on
where
and
when
aUendees
lingered.
While
businesses
realize
that
many
consumers
aren’t
familiar
with
beacons,
they
see
firsthand
each
day
how
much
their
customers
use
mobile
while
on
premise.
To
bridge
the
gap
between
mobile
and
beacon
use,
some
businesses
are
seeking
partners
to
help
them
engage
their
customer
bases
via
the
new
medium.
Beacon-‐
centric
markeGng
firms
such
as
Swirl,
Beaconstac
and
Aislelabs
have
developed
their
own
proximity
markeGng
plajorms
to
provide
restaurants
with
the
ability
to
create,
manage
and
analyze
proximity-‐based
campaigns
for
their
brands.
8
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YOUR BEACON
PLAN
TEST
IN
2015,
DEPLOY
IN
2016
So,
are
the
projecGons
of
industry
analysts
warranted?
Will
businesses
uGlize
beacon
technology?
Will
beacon-‐
influenced
sales
jump
$40.3B
in
a
single
year?
According
to
a
press
release
from
Hillshire
Farms,
the
answer
is
a
resounding
“Yes.”
A
Hillshire
Farms
beacon
campaign
delivered
a
20-‐fold
increase
in
purchase
intent
by
those
exposed
to
messaging—a
500%
increase
over
the
average
for
mobile
ad
engagement.
AddiGonally,
the
LocaGon
Based
MarkeGng
AssociaGon
(LBMA)
reports
that
45%
of
customers
are
more
likely
to
purchase
from
businesses
offering
personalized
recommendaGons.
Whether
it’s
Major
League
Baseball
using
beacons
to
sell
seat
upgrades
at
stadiums,
Starwood
properGes
enabling
hotel
guests
to
bypass
check-‐in
and
enter
their
room
via
smartphones,
or
GE
supplying
Walmart
with
beacon-‐
embedded
light
bulbs
throughout
their
stores
to
noGfy
shoppers
of
specials
within
their
stores,
beacon
technology
is
coming
soon
to
a
restaurant,
gym,
store,
and
almost
every
other
physical
locaGon
near
you.
We’ve
seen
how
exisGng
companies
and
app
developers
are
using
intelligent,
proximity-‐based
content
to
truly
personalize
the
customer
experience—not
just
for
coupons
and
offers,
but
also
for
greeGng
your
guests
upon
arrival,
providing
helpful
informaGon,
and
engaging
them
via
entertainment.
In
which
ways
will
your
brand
uGlize
beacons
to
delight
your
customers,
invite
interacGon,
and
personalize
the
guest
experience?
What
type
of
implementaGon
makes
sense
for
your
business?
37%
Of
Large
Retailers
to
Deploy
Beacons
in
2015
mCommerce
Daily,
April
2015
9
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QUESTIONNAIRE
(MARK
ALL
THAT
APPLY):
What
is
my
primary
objecGve
in
personalizing
the
on-‐premise
experience?
Engaging
guests
Customer
service
Offering
discounts
How
will
I
make
the
beacon
experience
fun
and
personal
to
avoid
being
perceived
as
spam?
GreeGng
Rewards
Entertainment
Which
of
my
on-‐premise
technologies
could
I
integrate
with
my
beacon
soluGon?
TV
screens
&
digital
signage
POS
system
Loyalty
program
How
much
value
is
there
to
my
brand
in
knowing
guests’
arrival
Gme,
length
of
stay
&
return
rate?
High
Moderate
Low
Who
inside
(or
outside)
my
organizaGon
will
monitor
my
beacon
network
and
success?
IT/InnovaGon
MarkeGng
Partner
GOALS & STRATEGY
10
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EASY NEXT STEPS
THREE
THINGS
YOU
CAN
DO
RIGHT
NOW
TO
CONVERT
THESE
INSIGHTS
INTO
ACTION
1. Email
your
IT
team
&
ask
them
where
beacon
implementaGon
falls
on
their
roadmap.
2. Schedule
a
meeBng
with
your
markeBng
team
to
learn
their
goals
for
beacon
usage
and
on-‐
premise
personalizaGon.
3. Request
consultaBons
with
3
leading
beacon
providers
and
ask
them
to
present
5
use
cases
for
your
business
type.
11
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THANK YOU
We
hope
the
ideas
presented
in
this
report
on
beacon
technology
for
restaurants
sparked
even
beUer
ideas
of
your
own.
If
you
haven’t
seen
how
Rockbot
is
enhancing
the
guest
experience
at
leading
restaurant
brands,
we
invite
you
to
learn
more
today.
“Rapidly
innovaLng
outdated
music
in
restaurants
with
an
exciLng,
social
experience
for
customers.”
–
NaGonal
Restaurant
AssociaGon
“Rockbot
is
the
most
innovaLve
and
relevant
music
soluLon
for
today’s
mobile
and
social
world.”
–
FastCasual.com
Learn
more
about
why
today’s
leading
brands
are
uBlizing
Rockbot:
rockbot.com/enterprise.
If
you
are
currently
a
Rockbot
customer,
contact
your
account
manager
to
purchase
Rockbot
beacons
for
your
locaGons.
Rockbot
uGlizes
beacon
technology
to
automaGcally
play
your
customers’
favorite
songs
when
they
walk
into
your
restaurant
and
send
them
a
personalized
greeGng
via
mobile.
Rockbot’s
enterprise
music
plajorm
includes
custom
background
music,
the
#1
jukebox
app
for
customers,
interacGve
digital
signage,
beacon
technology,
and
a
suite
of
markeGng
services.
WHAT IS ROCKBOT?
12