Beacons: How Do You Go Beyond Telling Which Isle She's In?
Before we dive into it, let me ask you a question: what's so cool about beacons that everyone's talking about it? (Hint: It's not because it sounds like a type of nut.)
Image these 2 scenarios.
A: Jeff's having his day off at home. He's lying on your comfy couch, having a bowl of popcorns on his tummy, and enjoying a new episode of House of Cards. His phone beeps. It is a push notification from Hugo Boss: "15% off Spring Collection because it's finally here!"
Jeff watching House of Cards at home
B: Jennifer's out shopping for grocery. She's pushing her car filled with cereal, jam and eggs. As she walks past the display desk, her phone beeps. It is a push notification from Del Monte: "Try our new organic sweet corn at introduction price of 15% off!"
Who's more likely to act on the push notification? Is it Jeff at home or Jennifer at Whole Foods?
Jennifer shopping for grocery at Whole Foods
It's most likely Jennifer. The superpower of Beacons: high relevancy. If you are lingering around a certain isle in the supermarket or a certain section in the departmental store, you are probably interested in the stuff in those places. According to Swirl, a leading firm on beacon marketing, 73% of shopperssay that beacon-triggered offers increased their likelihood to purchase during their store visit.
Essentially, beacons technology, or iBeacon (Apple's version of it), is a GPS with magnifying glass. While you are indoor, it can pinpoint your exact location through your smartphone around 10m of the signal source. As the smartphone penetration rate reaches 75% in 2014, the ability to track the behavior of almost every retail customer become a reality.
Indeed, Lord & Taylor has deployed beacons in all of their retail locations in the U.S. and Canada. It was the first major retailer to invest on beacons at such a large scale. Coupling with it's App, push notifications will be send to shopper's mobile phone with relevant promotional messages.
Sample Push Notification for Lord & Taylor
However, when I get such notifications, it feels to me that somebody is tracking my every move in the store. That's a little creepy. Indeed, consent from consumer is the biggest barrier to beacon adoption. In order for me to receive a notification, I need to have downloaded the App from the specific retailer AND allow my location information to be shared. Who enjoys being followed as the shop? Definitely not me.
In this light, keep 2 things in mind if you are intending to deploy beacons around your retail stores.
1. Build an App
Not just any App. An app that creates value for the customers. The Proposal Pro by Helzberg that I discussed in my previous blog would be a perfect example. You can also refer to For Mobile Devices, Think Apps, Not Ads from Harvard Business Review for a complete guide.
2. Limit the number of messages
While it shows a 45% engagement if you beacon once, the App usage actually drops by 313% if you beacon twice. No matter how relevant your message is, no one wants to be reminded that they are being tracked and followed around the store. It's just part of human nature.
And your company will not be alone.
Estimate % of Beacon adoption from Business Insiders
In fact, the estimates line up pretty well with the reality. It is reported that 37% of large retailers plans to deploy beacons in 2015. The usage of beacon technology is yet to be optimized. I'm looking forward to see more brand engagement messages rather than promotion-oriented ones in the near future.
Yuwan: I just got a push notification that Greenies (his favorite snack) launch a brand new flavor! Let's get some!
Thank you for taking another bite!
James