BEACONS & PROXIMITY TECHNOLOGY IN RETAIL

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C O N T E N T S• ABOUT ME• THE DIGITAL & MORTAR LANDSCAPE• SUMMARY OF THE POPULAR PROXIMITY BASED TECHNOLOGIES• THE DIGITAL & MORTAR USE CASES

• PROXIMITY MARKETING

• NAVIGATION

• BROWSING

• PAYING

• OTHER SERVICES

• SUMMARY

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I’m famous for putting digital in store at M&S in the UK

20% of all M&S orders now taken on these new digital channels

I run a popular retail innovation blog

ABOUT ME

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DIGITAL STORES INTERNATIONAL

DIGITAL STORES UK

CATEGORY SPECIFIC INNOVATIONS

M&S.COM REPLATFORM (UK)

MY WORK AT MARKS & SPENCER

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MY FAMILY ARE BEHIND THE POPULAR UK RETAIL CYCLE RETAILER EVANS CYCLES

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THE DIGITAL & MORTAR LANDSCAPE

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THE WAY PEOPLE BUY IS RAPDILY CHANGING

• There is an adjustment taking place in the market between bricks & digital.

• UK store footfall has been declining.

• Digital influence on purchase continuing to rise and mobile/tablet main drivers. Usage continuing steep trajectory.

• Delivery costs rising and online pure-play retailers going out of business.

Source: BI Intelligence

Device usage growth

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Reduce staff turnover

FOOTFALL

Increase Net Promoter Score

Increase customer satisfaction Improve product availability

Increase staff on shop floor

Increase conversion

Increase time spent in store

Increase averagebasket size

Improve staff productivity

Increase visitorsinto store

HOW SHOULD YOU PRIORITISE YOUR INVESTMENT?

AVERAGE SPEND COSTS PROFIT

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Attractingthe customer into

store

Create great customer experience Convert the opportunity

THE KPIs FIT INTO 3 STAGES OF THE JOURNEY

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SUMMARY OF THE POPULAR PROXIMITY BASED TECHNOLOGIES

Bluetooth Low Energy (BLE) / Beacons

• Beacons broadcast messages and devices listen

• Works up to 50m.• Uses:

– Geo tracking / Way-finding indoors

– Marketing messages/notifications

– Get details

WI-FI

• Initiated by logging into a WIFI network with a device.

• Works up to 20m• Can be networked.• Uses:

– Geo tracking / Way-finding indoors

– Marketing messages

Near Field Communication (NFC)

• Reader transmits radio signal which activates(powers) the tag which in turn sends response

• Communication is 2 way• Works up to 10cm• Device reads data from a tag• Uses: -

– Payment– Access control– Service initiation

Radio Frequency ID (RFID)

• Reader transmits radio signal which activates(powers) the tag which in turn sends response

• Communication is 1 way• Works up to 100m• Can be written to• Can be sown into clothing• Uses: -

– Item inventory counting– Inventory movement / tracking– Item identification

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THE DIGITAL & MORTAR USE CASES

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PROXIMITY MARKETING

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Proximity marketing is the localised wireless distribution of advertising content associated with a particular place

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PROXIMITY MARKETING EXAMPLES

MCDONALDS IN RESUATRANT OFFERS (BEACONS) OFFERS IN BUS SHELTERS (NFC)

TIMBERLAND IN STORE OFFERS (BEACONS) PHLIPS LED LIGHTING (BEACONS)

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Macys have used beacons to notify customers of offers and reward loyalty

20

VIDEO

Video removed. Go here for video: http://retail-innovation.com/ibeacon-trial-at-macys/

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McDonalds have used beacons to alert customers of offers and information as they arrive at the restaurant

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VIDEO

Video removed. Go here for video: http://retail-innovation.com/mcdonalds-broadcast-offers-via-beacons-in-store/

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Meat Pack have used mobile location to hijack customers from a rival stores by offering a discount which counts down every second until you arrive in store

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VIDEO

Video removed. Go here for video: http://retail-innovation.com/mobile-app-that-hijacks-you-from-a-rival-store/

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BROWSING

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SHOPPING EXAMPLES

HOUSE OF FRASER (BEACONS) MADE.COM – GET PRODUCT INFO (NFC)

POWATAG (AUDIO CODES)NEW BALANCE (RFID)

C&A – GET PRODUCT INFO HANGERS (RFID)

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In Hointer stores you can tap an NFC tag on a product to get your size sent straight to the fitting room to try on

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VIDEO

Video removed. Go here for video: http://retail-innovation.com/us-retailer-hointer-uses-robots-to-deliver-your-selections-to-the-fitting-room/

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At Carrefour you can tap an NFC shelf edge label to get product information

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VIDEO

Video removed. Go here for video: https://www.youtube.com/watch?v=n8v8RZ9ZnXs

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At Rebecca Minkoff they use RFID to identify products brought into store to help customers make the right choice

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VIDEO

Video removed. Go here for video: http://retail-innovation.com/digital-changing-room-and-interactive-mirrors-at-rebbecca-minkoff/

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Every millisecond counts. Greater integration into mobile handsets is key to greater customer adoption of in store assisted shopping apps

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PAYING

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Mobile payments is poised to transform the way consumers pay for everything they buy

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PAYMENT EXAMPLES

PAY BY WATCH PAY BY PHONE

CHECK-IN & PAY

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Apple Pay is about to kick-start the mobile payment revolution in Europe

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VIDEO

Video removed. Go here for video: http://retail-innovation.com/apple-pay/

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OTHER SERVICES

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OTHER (LOCATION BASED)

TELEFONICA MONITORING THE CROWD GOOGLE LOCATION HISTORY

NAVIGATION AT MACYS (WI-FI)

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Facebook are providing beacons to retailers to enable stores to tie in user generated content with the store the customer is standing in

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VIDEO

Video removed. Go here for video: http://retail-innovation.com/facebook-in-store-shows-shares-from-other-visitors-via-beacons/

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Knowledge of where you are gives retailers a powerful location targeted marketing opportunity

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SUMMARY

KEY TAKEAWAYS

• Digital is disrupting in store retail and proximity based technology & mobile are two of the main disruptors.

• The four most popular types of proximity technology available today are BLE, NFC, WI-FI and RFID.

• Greater integration of NFC into handsets key to making a better shopping experience with mobile.

• Mobile payment is poised to disrupt the way we buy in store.

• Knowledge of where you are gives retailers the power to target you at your location and at that moment in time.

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MY COMPANY• Worldwide company; 180 employees. We’re a

specialist in bringing digital into store

• Critically - we understand e-commerce and we understand the store

• We’ve been innovating in the digital in store space longer than anybody.

• We work with around 50 retailers worldwide including: -

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MY BLOG

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FOLLOW ME / CONTACT ME

@craigwsmith

craig.smith@replgroup.com

Retail Innovation

repldigital.comretail-innovation.com

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BEACONS & PROXIMITY TECHNOLOGY IN RETAIL