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CMO Guide to iBeacons and Push Notifications


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Mobile device usage has increased drastically in the past few years. iBeacon is gradually becoming one of the most trending ways of mobile marketing for CMOs right now and is promising to be the next big thing.

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CMO Guide to iBeacons and Push Notifications

  1. 1. Case Studies for CMOs on iBeacon and Push Notifications
  2. 2. Writen by: Case Studies for CMOs on iBeacon and Push Notifications Learn how to use them correctly for your mobile app Nicolas Costa Mario Tatis &
  3. 3. Case Studies for CMOs on iBeacon and Push Notifications 01 We are witnessing how everything is slowly becoming “mobile”… especially our shopping habits. We are in the midst of a shopping revolution thanks to mobile devices. Actually, every third consumer in the US admits that smartphones are their most essential shopping tools; some of the popular destinations include redlaser, groupon, cnet, retailmenot, and the find. Nowadays, there are quite a few ways to mobile market with things like gamification, wifi, apps, responsive sites, wearable technologies, etc. Among all the options of boosting sales through mobile phone engagement are iBeacon technologies. The percentage of consumers who would use mobile phones inside shops to improve their shopping experience is as high as 80%. obile device usage has increased drastically in the past few years. iBeacon is gradually becoming one of the most trending ways of mobile marketing for CMOs right now and is promising to be the next big thing. M Back in 2012, it was 62%; so, over the past two years there was an 18% growth and the number keeps increasing. Therefore, it is not a matter of doubt whether you should bring your instore marketing experience onto a mobile platform as well, but rather a reasonable step. The consumers are eager to make the most out of your mobile offers while at the store, so why not give them the opportunity?
  4. 4. To further understand the mobile usage trends in US and worldwide, here are some common reasons for using mobile devices while shopping: Comparison shopping - 59% Searching for coupons - 48% Product reviews - 47% Obtaining additional information - 29% Retail stores are not the only ones who should pay more attention to mobile marketing. Even though they are the most popular revenues when it comes to the onplace usage, CMOs of restaurants, financial institutions and servicerelated venues should overlook their strategies as well. The research has shown customer mobile activity at mentioned revenues as follows: 02 Retail stores - 31% Restaurants - 21% Service-related venues - 19% Financial institutions - 15% Case Studies for CMOs on iBeacon and Push Notifications
  5. 5. 03Case Studies for CMOs on iBeacon and Push Notifications Preferred locations of mobile use by US smartphone owners USA 0 25 50% 75 100 Home Work On-the-go In a store Restaurant Cafe or coffee shop Doctor’s office Airport At a social gathering/fuction/event Public transport School Somewhere
  6. 6. 04Case Studies for CMOs on iBeacon and Push Notifications It is also important to scrutinize the behavior pattern of smartphone usage throughout buyers’ purchasing journey: at the beginning of shopping; looking for ideas or inspiration - 29% in the middle of the shopping; evaluating the products - 22% at the end of shopping; the purchase - 6% after purchase - almost zero activity throughout whole shopping experience - 12% As the mobile shopping trend becomes more popular, consumers seem to be more informed than many stores’ staff about certain products. According to VP of client strategy for Somo, Emma Crowe, “50 % of shoppers believe they are better informed than sales staff and store associates, in part because of what mobile connectivity allows them to do.”
  7. 7. Imagine you just walk into a shop and check your phone before making a purchase to make sure that you are getting the best price. Quite convenient and useful, is it not? As we have already mentioned, there are several ways of transforming instore shopping into a mobilebased experience for your customers, iBeacon being one of the most innovative ones. If you have not incorporated it in your business yet, there is no better time than right now to do so. All in all, beacons have overcome the common limitations of GPS and WiFi signals indoors. Major League Baseball (MLB) recently demonstrated a successful use of iBeacon. Fans that had the relevant app installed on their smartphones had a pretty interactive experience; they were able to receive different useful info, for example the stadium map, eversion of their ticket, team information and retail offers. First of all, let’s understand what iBeacon is all about. Beacon itself is a small and inexpensive hardware that can be easily attached to a countertop or wall. It has the ability to transmit targeted information to a consumer’s mobile device; once the smartphone with an enabled app is in the transmittable area the user is alerted about the offer. 05Case Studies for CMOs on iBeacon and Push Notifications So, how does it work??
  8. 8. 06Case Studies for CMOs on iBeacon and Push Notifications One of the things to keep in mind though is that iBeacon is designed in a way that it does not disturb its users, leaving them annoyed. The CMOs are also responsible for this part. Yes, push notifications can be an extremely powerful way to engage customers, but overusing them will only drive them further away. Incorporation of beacons makes it possible to send locationspecific push notifications through iBeacon technology, therefore allowing CMOs to target specific locations and demographics. There is a much bigger chance of engagement when the information is actually targeted and isn’t spammed out. To better understand the benefits of iBeacon technology let’s have a look at a specific example: imagine you have the Best Buy app installed on your smartphone and walk by a storefront or instore display; as you do, a push notification advertising a flash sale “30% off LCD TVs” will be triggered. If used correctly push notifications can greatly affect the revenue of your business and overall client engagement. We are talking about a 50% increase in open rates compared to email. What potential do iBeacon and push notifications have?
  9. 9. 07Case Studies for CMOs on iBeacon and Push Notifications Before you start “push notifying” your customers make sure that they want to be notified by asking them to opt in to push notifications. You can do this upon app installation or after their first use of an app. You can highlight the advantages that you will be offering later on to increase the chances. Also, make it clear that they will be able to opt out later. As mentioned, one of the best features of iBeacon technology is that it allows CMOs to precisely target the audience; hence, batch & blast technique has to go. Annoying the consumer will cause them to opt out before realizing all the benefits of beacons. Here is an example of a bad blast: How to practice push notifications correctly
  10. 10. 08Case Studies for CMOs on iBeacon and Push Notifications And a targeted message: The DMA has shown that 78% of consumers would instantly delete the app or opt out of the notification if they did not find the push notifications relevant or satisfying. This shows how important it is to accurately tailor the messages and avoid spamming; try to make your push notifications sound useful, rather than promotional. And, of course, keep the timing in mind. No one likes to be woken up by an advert, no matter how good it is. All research that has been conducted so far regarding push notifications has shown that consumers are truly responsive to them. Research revealed that 68% of users have enabled push notifications for apps. And the same was found by the DMA; they surveyed 1,000 consumers and 7 in 10 (69%) were positive towards push notifications. Further findings in the CrossChannel Marketing Report 2014 have revealed that iBeacon technology has the potential to become a rather effective marketing channel.
  11. 11. 09Case Studies for CMOs on iBeacon and Push Notifications Consumers are continuing to drift towards mobile based shopping experience more and more every day. There is nothing surprising here; it has never been easier to use or any more flexible. Beacons and iBeacon technology are a step into the future of incorporation of technology for analytics, engagement, and marketing in retail and beyond. A research from Econsultancy discovered that 20% of companies have incorporated mobile push notifications into their mobile marketing strategy. According to Data from Urban Airship, push messages increase engagement by 40% and retention by as much as 116%. As for the Localytics, they found out that consumers who opt in tend to have 3 times as much of a retention rate as those who do not; the data was gathered from 28,000 apps. The numbers are truly striking. It has to be noted that the 2015 Sales Force State of Marketing showed that since last year, mobile marketing has increased by 200%, but still not even half of the CMOs use that to their advantage. For some reason, not many brands are using iBeacon technology yet, but one thing is for sure, it is a rising marketing channel that no CMOs should allow to sit idle.
  12. 12. 10 Next Steps This white paper has discussed how to use iBeacon and push notifications. For help utilizing these to create a stronger mobile presence, Case Studies for CMOs on iBeacon and Push Notifications Click here to contact us and tell us more about your project!