Digital Retail with Beacons

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Overview

• Introduction to Beacon technology

• Beacons: Transforming Retail

• How Beacons work?

• Sample Implementation

• Beacons: Retailers Acceptability

• Beacons: Implementation Projections

• Smartphones supporting BLE

• Beacons: Prospective use in Retail

• Successful Beacon Implementations

• Proposed Offering

• Possible Application Components

• Key Benefits

• Expected challenges in Beacon implementation

• Digital Moments

• Suggested Rollout and Engagement


Introduction to Beacon Technology

What?

• A transmitter at known location emitting

continuous radio signals with limited content.

How?

• Location Identification: Bluetooth, Wi-Fi & RFID.

• User’s device enters Beacon Area

• Installed apps subscribing to this unique identifier

are notified


Beacons: Transforming Retail

Beacon Technology enables the Retailers to leverage from ‘Internet

of Things’ in conjunction with Consumer Mobile Devices to

Personalize their Shopping Experience on a Real Time basis


How Beacons Work

Beacons are tiny computers that

have a powerful processor, memory,

Bluetooth Smart module. Powered

by a coin battery, they broadcast

radio signals through built-in

antennas.

Smart devices in range receive

those signals and compatible

installed apps can then respond.

Beacons and Cloud tie everything

together. They grant applications

with full access to metadata,

price, object type, and precise

location,


Sample Implementation1 2

3 4

New Collection of Shoes has arrived.

Check it out in first case

Shoes at 50% Flat

off

Women section upstairs! Discounts

Upto 40%

Women’s winter wear on right side


Retailers Acceptability for Beacons

18%

36%28%

17%

Currently Using BeaconsPlan to use Beacons in near futureNo plans to use Beacons in near futureNot Sure

Reference: http://offers.adobe.com/en/na/marketing/landings/_56961_mobile_marketer_maturity.html

• Adobe’s Mobile Marketing Survey

• Location: United States

• Key Findings

• 18% Currently use beacons

• 36% Shall use beacons in next 12 moths

• 28% No beacon plans in next 12 months

• 17% Not sure if beacons are for them

Over 50% of respondents are using or are inclined

towards using beacons to transform their Business

http://offers.adobe.com/en/na/marketing/landings/_56961_mobile_marketer_maturity.html


Beacons: Implementation Projections

8%

32%

85%

92%

68%

15%

0%

20%

40%

60%

80%

100%

E2014 E2015 E2016

With Beacons Without Beacons

Reference : Business Insider

• Location: United States

• Nearly 1/3rd of all retail locations are

expected to implement beacons by end of 2015

• Beacons are expected to exist in most retail locations

in US (Over 85%)

Retail markets will have beacons as key components

in transforming in-store retail experience


Source: Business Insider

Smartphones supporting BLE

• Over 19% Android devices in year 2014 were BLE

compatible

• Over 47% iOS devices in year 2014 were BLE

compatible

• Over 26 % of devices in year 2014 were BLE

compatible

Appropriate consumer hardware penetration to

support beacon implementation in retail spaces


Beacons: Prospective use in Retail

Retail

• Delivering in-store coupons via beacons to

customer phones

• Running personalised loyality programs and

ad campaigns

• In store traffic management

• Combating Showrooming threat by pushing

relevant incentives enticing users to convert in-

store.

Analytics

• Metrics related to merchandise movement

within the store

Store layout

• Optimizing store layout based on store

merchandise movement

Payments

• Make payments effortless so that payment is

automatically triggered when a person leaves a

specific location or store.


Successful Beacon Implementations

Walmart tested iBeacon by using

beacon-equipped GE light bulbs in

stores

Virgin Atlantic runs an iBeacon trial at

London’s Heathrow Airport

Walgreens rolls out iBeacons in select

Duane Reade stores

Lord & Taylor stores implement

beacon tech in stores across North

America


Beacon Implementation

& ConsultationNative Mobile

Applications

API Integration with Store

CRM

Smart Retail

Beacons Strategy & Use

Cases

Hardware Acquisition

Business Analysis and

user stories

Beacons layout and

micro-fencing

Stores

Customers

Manufacturers &

Suppliers

Integrating beacons with

Store CRMs

Proposed Offering

API Integration with

Suppliers CRM

Integrating beacons with

Supplier CRMs


Customers Store

Possible Application Components

Available deals in stores

Merchandise Information

Guidance + Positioning of

Merchandise

Shopping List Creation

Checkout

Counter less

e-payments

Pre-payments + Pickup

Integration with e-store

Customer Welcome +

Resource Allotment

Customer Profile +

Shopping Checklist

Traffic Management

Deal + Special Offers

announcements

Automated billing

Beacons on products

Virtual Wall

Interactive screens


Key Benefits

Trend Analysis

• Store Performance

Projection

• Inventory Movement

Projection

• Demand and Supply

Projection

Analytics & Reporting

Dashboard

• Reporting Widgets and

Dash lets

• Custom Reporting

• Consolidated multiple

location reporting

Offers across

multiple locations

• Manage offers across

multiple locations

• Program beacons

centrally

Stores Traffic

Analysis

• Real time in-store

traffic management

• Program Beacons real

time to regulate traffic

1 2

3 4


Expected challenges

Beacon Security Concerns:

• By nature BLE Beacons are open and can be read by any

device compatible with it. Manipulating the UUID value of the

beacon using the SDK is as easy as copying it.

Beacon Detection Challenges

• Connectivity Issue: hindrances to beacon signal strength


Digital Moments

Critical moments of engagement where marketers and customers

meet along the customer journey. This essentially is the experience a

user gets while in the buying process. It could be when someone visits

your store, browses through the website or app or when someone

opens up a promotional email.

A user while in store could get a notification for an offer on a particular

product based on his previous purchase history.


Suggested Rollout and Engagement

Create Digital Moments’ in couple of stores using Bluetooth Beacon Technology

• Implementation methodology: Two resources (business analyst and technology manager) to be

deployed at Client location on T&M basis for the initial requirement gathering phase to:

Study and understand the existing business processes at one of the client’s store

Suggest ways for Beacon implementation and applications that need to be developed

around that

Effective and planned documentation

• Benefit: Enhanced user experience would help increase sales and promote customer loyality



Test defined digital moments

• Implementation methodology

Propagate download and use of application in customers while in store. This could be

done by providing incentives to customers for using the app.

Sending customer centric personalised offers to customers.

• Benefit: Increased customer interactions with the product



Evaluate defined digital moments

• Implementation methodology

Check effectiveness of defined digital moments by looking at the analytics.

• Benefit:

Improve store layout based on store merchandise movement metrics.

Recreate digital Moments as needed.


Thanks!

Digital Retail with Beacons

Technology

Transcript of Digital Retail with Beacons