Picture the following scenario: You walk into your favourite apparel store and your smartphone beeps with a push notification “Welcome back Linda! Only for today, we are giving you a 20% discount on all skirts”. You decide to finally get that blue skirt you have your eyes set on for weeks and decide to take a stroll through the accessories section when you stop to admire a particular necklace, after a few seconds of contemplation, your smartphone beeps again with the message “Hey Linda! Get a necklace to match your outfit, we’ll throw in a 30% discount on any necklace of your choice”. You leave the store with a new skirt and necklace at a bargain.
You end up a happy customer, and the apparel store makes additional sales – a win-win situation for all involved.
The above situation may sound like a utopian future where the Internet of Things (IoT) have become a reality. However, the future is closer than we know it with the arrival of iBeacons by Apple in 2013 and Google unveiling Eddystone Beacons in July 2015.
What Are Bluetooth Beacons?
Beacons are transmitters which have the ability to sense nearby portable smart devices and “talk” to them via push notifications. Beacons are the most accurate form of locational based tracking device and may work with existing GPS and WiFi tracking capabilities to further enhance location tracking via triangulation.
How Do They Work?
Beacons use Bluetooth Low Energy (BLE) proximity sensing to broadcast universally unique identifiers (UUID) which are picked up by compatible apps and operating systems (OS). This means that users will need to have beacon-compatible apps (a relatively simple process can enable any app to be beacon-compatible) installed and have their Bluetooth switched on in order for their smartphones to interact with these beacons.
Why Would Users Leave Their Bluetooth Switched On?
This is a question which frequently surfaces during discussions with potential beacon adopters. It is true that a majority of smartphone users never and might even hesitate to turn on or leave their Bluetooth switched on due to the concern that the Bluetooth would contribute to a huge drain on their battery life.
That is until 2011 when the new BLE technology were incorporated into the new iPhone 4S smartphones and subsequently, all smartphones released after that period. With the new Bluetooth Smart standard, worries of Bluetooth drainage on phone battery life were a thing of the past as the power needed to power Bluetooth is now so low that it is negligible.
Other than that, most smart devices that are making their way into our everyday life such as smart wearables (e.g. Fitbit, Jawbone, Apple Watch), Bluetooth-enabled car audios, and smart kitchen appliances require the use of Bluetooth-enabled smart devices.
With over 10,000 Bluetooth-enabled products listed with Bluetooth SIG along with the immense growth (>100% in 2014) of the Smart Home, Consumer Electronics and Beacons markets, coupled with the growing number of users coming to understand the new Bluetooth technology as well as the growing need of users to have Bluetooth-enabled to run their everyday smart lifestyles, 24/7 Bluetooth-enabled devices will soon be a lifestyle choice much like the 24/7 WiFi-enabled devices which are part of everyday life now.
What It Means For Retail Businesses
With the ability to understand what interests consumers and know when they are in the proximity, brick and mortar retailers can now interact digitally with potential customers to encourage more foot traffic into their outlets and achieve higher sales conversion by sending the right message, to the right people, at the right time.
However, the use of beacons in retail businesses does not stop at pushing promotional messages and general information. With beacons, retailers are also able to provide a personalised shopping experience to each individual customer as seen in the aforementioned story above. Depending on the nature of the business, beaconised businesses will have a a plethora of uses for beacons such as, helping customers navigate a store and providing in-store concierge services by utilising the tracking abilities of beacons. Think shopping on Amazon or Zappos, but in real life.
The longer a retailer adopts the beacon technology, the more they will begin to understand their customers – who they are, what their preference is, where they like to shop, are they high or low spending customers. This is all possible as more and more data on these users are collected and analysed -allowing businesses to produce individualised ads and engage in behavioural retargeting.
With the arrival of beacon technology, retailers with physical outlets will finally be able to gather data on their customers in real life in real time and run the most effective and efficient campaigns to target the most relevant consumer segments while providing a highly personalised shopping experience. The future of retail globally, especially here in the South East Asian region and in Malaysia, is in beacons and any retailer slow to adopt this breakthrough tech as part of their arsenal will be at a huge disadvantage moving into the future.