The world has changed. Consumption has blurred into one seamless experience, both physical and virtual. The modern marketer needs to recognise that a consumer doesn’t distinguish between channels and that convenience, immediacy and availability are all that matters. The modern customer is embracing the internet of everything, and the key to marketing will be to take advantage of the technology available. In short marketers need to build a human relationship with their audiences. They need to remember that the art of conversation is still possible in an increasingly digital age.
The typical customer doesn’t like being marketed at, but they are willing to tell marketers what they want and when they want it, in return for better service. Brands need to pick up on what the customer is sharing and act accordingly. Luckily the technology exists to help marketers get to know their customer better and to find out what they really want. Beacon technology that tells a marketer when their customer visits a store; predictive recommendation technology that serves them up-to-the-second content at the precise moment they open their email or visits their site; and smart insights that effortlessly generate a truly personalised experience.
How can beacon technology help?
Beacon technology is a new innovation that is being rapidly adopted by retailers and businesses with a bricks-and-mortar presence. Beacons are basically low energy Bluetooth™ transmitters – sometimes known as iBeacons – that allow you to send real-time messages to customers’ smartphones when they are on the shop floor.
Unlike NFC, beaconing works with iOS, as well as Android and Windows devices. These small wireless units have a large range and can be placed anywhere in store to tag points around a location, which activate a notification for the user when they walk past. There is no need for an internet connection or a power source as the battery in a beacon will last for several years. While beacons have a range of up to 70 metres, they can also be accurate to within inches, which means that they can deliver micro-location-based messages to consumers.
Where are beacons being used?
In the UK, Meadowhall Shopping Centre in Sheffield used beacons to ring-fence hotspots around the complex. Shoppers activated offers from KrispyKreme, Hotel Chocolat, Cath Kidston and House of Fraser only by entering these hotspots with their smartphones.
The Airline Easyjet is using beaconing to help with checkin and boarding processes for passengers and Waitrose the supermarket is trialling in store promotions the technology.
Beacons allow retail marketers to control the content broadcast and ensures that shoppers aren’t bombarded with too many triggered messages when they enter the store. Apps will recognise customers as they walk through the door, ‘wake up’ the app and then deep-link to relevant content for that consumer at that time. It could be a customer-service message, a welcome message, or a targeted promotion.
What should retailers consider before including beacon technology in their marketing strategy?
There are two things that retailers must consider when looking to work with Beacons:
1. A crystal clear privacy policy and a decent customer incentive.
Brands must let customers know they are actively using sensors to enhance shopping experiences in store, and there must be a full opt-in process to back this up. Furthermore, the customer needs to be getting something in return for sharing their micro-location data. This does not have to be in the form of offers and discounts - VIP treatment and customer recognition also work, but there must be a balanced trade-off.
2. Connection to the wider digital marketing effort.
Mobile proximity marketing could easily create another data silo for a business. In-store micro-location marketing will soon become a staple part of the wider marketing mix, so it will pay now to integrate the channel into the digital strategy from day one. Combine beaconing with email, predictive analytics and social listening in order to get the best results.
The major benefit of using beacons in-store, other than the immediacy of communications, is the resulting data. Using beacons, a business can tag a physical store in the same way that they would tag the categories on their website.
Ultimately, this delivers the same level of accountability as measuring user journeys online.
By Jess Stephens, cloud business entrepreneur and Chief Product Officer at SmartFocus.
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