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Only 8% of retailers use beacons today according to Forrester Research. But this untapped technology has massive potential to drive meaningful engagement. So what are they and why should you care?
Beacons are palm-size gadgets that can send digital messages to smartphones through Bluetooth or via apps. At home in airports, restaurants, stadiums and resorts, digital beacons are an intelligent messaging technology.
1. Beacon usage is booming Apple launched its iBeacon in 2013, setting the groundwork for location-based marketing. There are currently 8.2 million active beacons worldwide, with this number expected to grow to 500 million by 2021 according to ABI Research. 2. Uses for mobile beacons are growing Sports fans and travellers are prime customers for beacon technology. Unlike in retail where customers may not take out their smartphones, stadiums, airports and smart cities are natural encouragers of mobile use. Meanwhile restaurants are adopting the technology to let consumers order ahead, to offer tailored coupons or to notify customers of special offers. Find out more about using location-based triggers to drive restaurant footfall. 3. Software is simplifying beacon technology Software used to manage and set up beacons is becoming more sophisticated, making the technology more cost effective. There’s no need to plaster walls and ceilings with the devices when you have a multichannel messaging platform from which to distribute notifications. Want to get started with location-based triggers? Discover Eagle Eye Engage for distributing digital messages across multiple channels without the need for beacon devices.
If I were to highlight one strategic trend from the headlines this year, it is that retailers are finally starting to shift their digital transformation efforts up a gear. In August, Ofcom underlined why retail must redouble its efforts in following the customer online when it revealed near ubiquitous levels of UK smartphone penetration. One-to-one marketing is now a potential reality, not a dream.
The results are in for Black Friday and it’s not good - even with potentially large price discounts, consumers still didn’t respond well, with like-for-like sales down 0.5% last month and footfall dropping 5.5% post Black Friday – almost double the decline of the previous year. Lessons from 2017 also proved that cutting prices simply cut margins and profitability, without increasing customer demand.
To achieve lasting, in-depth customer loyalty, retailers must develop keen insights into their customers, understand their behaviors and preferences, and deliver valuable, relevant offers and communications to customers based on those insights. To do that, they need connected customer data.