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Case Studies for CMOs on
iBeacon and Push Notifications

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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
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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?

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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

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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

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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.”

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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??

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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?

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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

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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.

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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.

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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!