Discover how this new technology will improve the customer experience and encourage customers to buy more.

1. The ABC of Beacon
technology: What is it
and how can it benefit
retailers?
Discover how this new technology will
improve the customer experience and
encourage customers to buy more.

2. What is Beacon technology?
“Beacons are a low-cost piece of hardware — small enough
to attach to a wall or countertop — that use battery-friendly,
low-energy Bluetooth connections to transmit messages or
prompts directly to a smartphone or tablet.””
Business Insider

3. How does it work?
Shoppers need to have downloaded your
app (or a third party app) to receive and
respond to the beacon signal. You choose
how wide you set the range.
Apple is championing the way with its iBeacon
implementation. Apple has built iBeacon into devices
and operating systems. Many third party manufacturers
have built beacons that can send iBeacon messages to
Apple devices.

4. This technology has the
potential to re volutionise
indoor communication .

5. Warning! What’s the difference between
Beacon technology and NFC?
50m 20cm
Beacon technology is not to be confused
with Near Field Communication (NFC).
In-store Beacons have a range of up to 50
metres and tend to be promotionally led,
whereas...
...NFC operates within 20 centimetres
and is, primarily, a way to transfer data
and enhance payment technology (i.e.
contactless payment cards and Oyster
cards).

6. How does Beacon technology work?
The in-store Beacon technology provides retailers with the opportunity to enhance the
shopping experience, often with special offers and discounts.
Beacons can help the retailer upsell to the
customer by directing them to specific
sections of the shop and suggesting
products.
They can also provide further product information and display store guides. They also
have the capability to allow shoppers to share products through social media, save
products for later and even call for assistance in-store!

7. Will Beacon technology benefit my
business?
In-store Beacons have proved to be particularly effective in the US, driving brand
engagement and driving an increase in purchases.
They also provide retailers with
useful information about who
uses their stores - eg, their age,
gender and what they looked at.
That said, it’s crucial to get ‘buy in’ on
beacon technology from your staff to
encourage them to promote it in-store.

8. Over a 30-day period in April-May 2014:
Interactions with advertised products increased by 19 times for
users who received a beacon message.
In-store app usage was 16.5 times greater for users who
received a beacon message.
Shoppers who received a beacon message were 6.4 times more
likely to keep an app on their phone, versus those who did not.

9. It’s not just retailers trialling beacon technology… Pure plays are also getting in on the
action.
Vouchercodes parent company RetailMeNot
is trialling Beacon technology in US malls –
working with retailers to drive people into stores
with relevant voucher codes.

10. Beacon technology in the UK
UK retailers are still pretty wary about Beacon technology! However, several retailers
such as Mothercare, Tesco and Waitrose are all undertaking or planning trials of the
technology.
Mothercare hopes to
use the technology “To
engage with customers,
rather than for
promotional messages.”
Tesco plans to launch a
new Clubcard app.
Waitrose is testing
Beacon technology
in its concept store
in Swindon, trialling
marketing messages to
extend its relationships
with customers beyond
the checkout.
House of Fraser is also engaging with customers when
they approach mannequins in their Aberdeen store. It
is also trialling the technology in their shop windows,
so people can ‘shop around the clock’.

11. Beacon technology gets personal...
Beacons are expected to become an integral part of every physical retailer’s customer
relationship management armoury. Retailers have access to data about customers,
such as location and buying behaviours, that can help increase personalisation.
Some customers worry that this
technology is too immediate
and intrusive. However,
signs are that consumers are
receptive if the technology
enhances their shopping
experience...

12. ... But your customers are in control.
Customers can choose to turn off the settings on their mobile, keep the app closed and
keep Bluetooth switched off. Ultimately, your customers decide if they engage with
you.
The retailer’s greatest challenge is
encouraging people to download and
engage with the application that contains
the Beacon connection.

13. Key Beacon technology take-aways:
Beacon technology will drive brand engagement and encourage new
customers.
You will be able to upsell to customers in-store and increase revenue.
You need to create an engagement strategy to appropriately promote
Beacon technology and encourage your customers to use it.

14. Beacon technology uses apps, which
indicates technology is becoming
ever more important to retailers.
Find out which other technologies,
channels and devices you need to
invest in by downloading your free
eGuide:
What is Omni-Channel?
What is Omni-Channel?
What is Omni-Channel?
A successful omni-channel strategy penetrates every aspect of a
every aspect of a
channel strategy omni-retailer’s penetrates successful business.
A retailer’s business.
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