iBeacon technology introduction (retail)

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“Half the money I spend on advertising (in the broad sense of marketing, customer engagement, etc.) is wasted, the trouble is, I don't know which half - J.Wanamaker”.
Using iBeacon technology, retailers can now target the right shopper, in the right place, at the right time, interactively engaging her in new ways, while learning in real-time from her movement patterns and behaviour.

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iBeacon technology introduction (retail)

  1. 1. iBeacon technology introduction Focus on Retail Version 1.1 Author: Andy Cavallini (andy.cavallini@gaia-matrix.com ) For the latest version of this document and for additional content about iBeacon technology, please visit http://www.gaia-matrix.com Feel free to download the “iBeacon Bible”, a valuable whitepaper about iBeacon technology from http://www.gaia-matrix.com 1
  2. 2. iBeacon technology introduction Table of Content Pain-point  Solution  Effects Micro-location & Interaction Distances: ranges/regions Let’s Recap Hardware & Software support Conclusion 2
  3. 3. iBeacon technology introduction Pain-point  Solution  Effects Pain-point Remember the wise words of John Wanamaker? “Half the money I spend on advertising(*) is wasted, the trouble is, I don't know which half” (*): in the broad sense of marketing, customer engagement, etc. John Wanamaker, father of modern advertising and a "pioneer in marketing" Solution Using iBeacon technology, retailers can now target the right shopper, in the right place, at the right time, interactively engaging her in new ways, while learning in real-time from her movement patterns and behaviour Effects iBeacon technology can greatly change how brands and companies interact with customers and improve their shopping experience 3
  4. 4. iBeacon technology introduction Micro-location & Interaction 2 iBeacon-enabled Apps are notified when the Mobile device moves in and out of range of iBeacons, allowing: • precise, indoor geo-location (often called “Micro-location”) • contextual interaction/engagement iBeacons broadcast a “I am here!” message approx. once per second using Bluetooth Low Energy standard 1 3 Proximity to a specific iBeacon can trigger some App functionality to perform a specific action on a specific Mobile device, at exactly a specific time and in a specific location 4 Interaction and engagement can be furthermore improved if the App is able to connect to the Net, for example to fetch the shopper’s shopping history, etc. Start iBeacons are tiny, low-cost, battery-operated, wireless transmitters 4
  5. 5. iBeacon technology introduction Distances: ranges/regions iBeacon-enabled Mobile App 5
  6. 6. iBeacon technology introduction Let’s Recap (1/2) Traditionally, shopper-behaviour can be realistically deducted only at the end of the shopping process, at payment time, when the loyalty-card and all purchased items are scanned by the cashier The big deal with iBeacon technology: Acquiring a wealth of information on in-store shopping behaviour prior to purchase in real-time Engaging the shopper with timely customized content and marketing initiatives related to specific products, when the shopper is in front of those products Integrating different sales-channels, improving shopping experience (for the shopper) and processes (for the retailer), regardless if purchasing takes place online or offline (in-store) 6
  7. 7. iBeacon technology introduction Let’s Recap (2/2) Traditionally, shopper-behaviour can be realistically deducted only at the end of the shopping process, at payment time, when the loyalty-card and all purchased items are scanned by the cashier The big deal with iBeacon technology: Acquiring a wealth of information on in-store shopping behaviour prior to purchase in real-time A shopper has checked an item in-store but did not purchase it; the retailer can offer the shopper a discount via email or directly on her smartphone the next time she enters the same store (or another store of the same chain) Real-time A/B testing can be run in-store (it’s a method very dear to online marketers that allows to directly compare the results of different marketing initiatives) Engaging the shopper with timely customized content and marketing initiatives related to specific products, when the shopper is in front of those products Integrating different sales-channels, improving shopping experience (for the shopper) and processes (for the retailer), regardless if purchasing takes place online or offline (in-store) The retailer can gather, for instance, if the shopper visited the same store or other stores of the same chain, which shelves/items she checked there, if she previously went online on the retailer's website to check out the same or different items, and so on. Abandoned online shopping-cart follow-up can be a realistic opportunity for brick-and-mortar stores Evaluate and act on conversion-rates to maximize ecommerce and in-store sales at the same time 7
  8. 8. iBeacon technology introduction Hardware & Software support Both Apple (with iOS and OS X) and Google (with Android) have committed to support for Bluetooth Low Energy (BLE). This means very broad availability (literally millions of devices are already iBeacons-enabled) and no danger of launching services that only target a single OS What about Microsoft? Microsoft appears to have recently added support for BLE in Windows 8 and Windows Phone 8. Nokia's recent Lumia WP8 phones are confirmed to include BLE hardware Apple’s iOS/OS X The following iDevices (running at least iOS 7) are supported: iPhone 4S or later, iPad 3 or later, any iPad mini, iPod touch 5th generation or later. Macs (equipped with at least OS X 10.9 Mavericks): mid-2011 MacBook Air, Mac mini, mid-2012 MacBook Pros. Earlier Macs can add Bluetooth 4.0 support through a third party USB dongle Google’s Android The first version of Android supporting iBeacons is 4.3 (Jelly Bean). Many Android devices already support BLE: Samsung Galaxy S3, Samsung Galaxy Note II, HTC One, Nexus 7 2013 edition, Nexus 4, HTC Butterfly, Droid DNA, etc. 8
  9. 9. iBeacon technology introduction Conclusion iBeacon technology is very powerful and flexible, so we (engineers, marketers, creatives, etc.) have the opportunity to create new important applications to improve the life of people and to create business value for big and small companies Some final notes: For the latest version of this document and for additional content about iBeacon technology, please visit http://www.gaia-matrix.com Feel free to download the “iBeacon Bible”, a valuable whitepaper about iBeacon technology from http://www.gaia-matrix.com Don’t hesitate to contact Andy Cavallini, the author of this document, via email: andy.cavallini@gaia-matrix.com 9

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