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Proximity Notification Campaigns Reach More Customers

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Contents

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Kontakt.io

Preface Summary

Proximity notifications What are proximity notifications App requirements What are Beacons? How proximity transforms expectations Bluetooth powers new opportunities

Beacon-based use cases Retail Museums, parks, and zoos Public Transport Service providers

Getting started with a proximity notification campaign 7 steps to success Push vs. Physical Web Beacon infrastructures

Beacons: a rapidly evolving industry

Ready to reach your customers?

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Kontakt.io empowers businesses by bridging the gap between

real and digital. We are pushing the Internet of Things revolution

forward by connecting proximity-aware devices to the cloud.

Future IoT solutions will be built on beacons, and Kontakt.io is

proud to be a thriving leader in that space. We want to share

our best-in-class beacon infrastructure solutions and expertise

to empower every organization on the planet to realize its full

potential.

The Internet of Things will fundamentally change the way we

interact with the world. The digitalization of the physical world

will help firms create better strategies and optimize the way they

do business. Increased monitoring opportunities will make data-

driven decision-making possible. Companies and consumers

alike will benefit from this increased informatization. However,

this development is a double-edged sword. While there are

significant opportunities, companies must successfully navigate

the new and dynamic technological landscape in order to survive.

This report introduces the many practical and concrete

ways a firm might choose to implement IoT-based proximity

solutions. It will draw on real-world use cases in order to offer

an extensive overview of proximity notifications and their many

applications. This information will inform managers and decision

makers on the modern IoT ecosystem and describe how the

latest innovations and standards are revolutionizing marketing

campaigns.

We will look specifically at applications for BLE-based notification

systems in retail, museums, zoos, transport systems, and

usages in other organizations like gyms, tourism agencies, and

universities.

Preface

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Summary

Recent technological developments have turned Bluetooth

beacons into a competitive tool for proximity-based alerts and

notifications. Used in proximity notification campaigns, BLE

beacons present significant opportunities for companies to

connect with their customers at the moment of choice. Beacons

have applications in a diverse array of industries including

retail, museums, and transport. By enabling managers to

communicate with visitors, proximity will contribute to better

customer experiences, higher foot traffic, and increased loyalty

and engagement rates. When implemented effectively, it will

maximize the time companies spend engaging with customers

and strengthen competitiveness.

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The Internet of Things (IoT) represents the connectivity of

modern technology and the growing network of smart devices

that are able to communicate with one another. As technology

becomes better and more affordable, the digital ecosystem will

only continue to grow. The digitalization of the physical world will

open up new and revolutionary management opportunities for

firms in all sectors.

Proximity-based interactions have always been a core capability

of beacon technology. In the past, QR and NFC codes sought

to fill this space. However, their limitations make it difficult to

connect naturally with customers.

Bluetooth, a wireless technology standard for exchanging data,

has the potential to effectively and naturally engage customers.

In recent years, Bluetooth has evolved to become the global

standard for the IoT revolution. Energy efficient Bluetooth Low

Energy (BLE) technology has made a number of completely

new technological applications possible. One major disruptor is

the Bluetooth beacon. The functionality of Bluetooth beacons

is relatively simple. They send out a signal that is picked up

by Bluetooth devices in the area. This signal indicates the

Bluetooth user’s proximity to that beacon and, subsequently,

the approximate location. Additional beacons can be installed

to accurately identify an individual’s position down to meter

level. Compared to other technologies, BLE beacons are very

affordable. The technology is also easily integrated with other

systems and everyday devices due to the existing widespread

adaptation of the Bluetooth standard.

The low cost of the technology makes it applicable in settings

where highly advanced systems might not have been otherwise

feasible. The growing popularity of proximity notifications will

lead to new use cases, and the replacement of--or integration

with--older, less sophisticated systems like QR and geofences.

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Proximity Notifications already have applications in a number of industries and settings:

When implementing a proximity campaign, managers will need

to consider a number of different factors. Successful deployment

starts with a solid understanding of possible systems, and

efficient system maintenance planning will affect long-term

success. The rapidly evolving ecosystem for beacons means

Vertical Application Use case

Retail Pushing personalized deals Stores in a mall are outfitted with beacons. As shoppers pass a location rel-

evant to their purchasing history, they receive a notification about the given

store’s latest products.

Museums Relaying interactive information Students visiting a museum can engage with exhibits through smart devices,

automatically receiving age-appropriate content, images, videos, and sched-

ule changes.

Transport Aiding in navigation Travelers on public transportation are able to set their destination in an app

and receive notifications about arrival times and schedule changes.

Services Generating feedback Managers can give customers the option to offer feedback quickly and easily

via mobile, making visitors more likely to engage.

Events Sharing real-time guides Visitors can receive instant and proximity- based information about popular

stages, water stations, updated schedules, and stand locations.

different hardware and software providers vary significantly.

Creating long term partnerships with experienced software and

hardware providers is an effective and essential way to eliminate

risk.

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What are proximity notifications?

Out-of-Home marketing has exploded in recent years in part

due to technological advances. Now that technologies are

becoming more affordable and developed, businesses are much

more willing to integrate a smart solution into their marketing

efforts. Proximity marketing is a method of communicating

with shoppers and visitors when they are at the right location,

often in sight of a given product or store. Without this element

of proximity, notifications would be sent haphazardly or at

impractical times. For example, sending discounts when a buyer

has already paid and left the store.

There are several proximity solutions that are not technology-

based. Physical signage and banners are commonplace in

all kinds of locations. From grocery stores to sports stadiums,

brands regularly utilize physical signage to speak with customers.

Now, there are also more advanced methods. QR codes, NFC

tags, and Bluetooth infrastructures all address the same problem

but with different capabilities. Proximity notifications create value

for executives and managers by sending out messages at the

right time, building relationships, and creating better returns.

They also aid visitors by providing contextual information, often

via mobile, when they need it most.

Proximity notifications

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What are beacons?

Beacons use Bluetooth technology to connect a specific physical

point like a shopper in a mall with the Internet of Things, a

physical mesh of ordinary items all embedded with electronics,

softwares, and sensors. Beacons utilize the IoT to communicate

with smartphones, both up close and across a room. Each

beacon sends out a short-range radio signal regularly. In fact,

they can transmit these signals ten times or more in a second.

Bluetooth-enabled devices, like smartphones, pick up these

signals when in range.

A beacon’s capabilities depend heavily on what their owner

has programmed the infrastructure to do. Some signals might

trigger a notification, like a sales promo or packet of product

information. Others could automate actions like opening a

lock. Once the smartphone using the relevant app picks up the

beacon signal, the next step is automatically triggered.

App requirements

Notifications are always delivered to visitors’ smart devices

via a Bluetooth-enabled mobile app. There are several ways

companies are creating and using apps in the space. Large

businesses may create their own specialized app in-house,

leveraging the Kontakt.io API and SDK. Other businesses may

outsource the app development process or choose a solution

provider that offers a ready-made app. A museum, for example,

may choose a solution provider that already has a working

museum app and system for beacon deployment. Finally, some

companies are coming together on large, popular apps like

RetailMeNot. As beacons become increasingly popular, there

will likely be a growing number of apps and solution providers

readily available.

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How beacons work?

The signal is detected by nearby smart devices via Bluetooth Smart™.

A Beacon is a small wireless device transmitting a continuous radio signal.

The result? You're more engaged with the store and get the perfect bags you never knew you needed!

There is a Beacon placed next to the bags section.

Let’s try an example.

Say you're walking by your favorite clothing store and they're having a sale on bags.There is a beacon placed next to the bags section that alerts you to the sale when you pass by.

$Your smart device thensends that ID number to the cloud server.

The server checks what Action is assigned to that ID number & responds.

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The signal tells your smart device “I’m Here” by giving its ID number.

What could that response be? That’s up to you.

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Going mobile. “70% of smartphone owners who bought

something in a store first turned to their devices for information

relevant to that purchase. And when people search on mobile,

it tends to lead to action: 92% of those who searched on their

phone made a related purchase.”1

Google's VP of marketing, Lisa Gevelber, shared statistics on how

consumers are changing. Shoppers can filter out irrelevant stores,

products, and services through their smartphone. Phones can

also delivers updates on a rolling basis. When a shopper needs an

answer, they can immediately turn to their smart device and find

it. This has led to changes in many industries where customers no

longer want to seek out sales representatives. It has also put an

emphasis on objective information; while a salesperson may

try to sweet talk and upsell, objective information leads to better

decision making.

86% of consumers say personalization plays a role in their

purchasing decisions.2

Customers are accustomed to receiving special treatment,

deals, and opportunities. They are also accustomed to using

mobile devices in stores and during the decision making process.

These devices are key in helping brands interact with patrons.

Technology enables companies to interact with hundreds of

users at once, sending targeted and personalized messages

to each one as needed, and it is having an effect on customer

interaction.

How proximity transforms expectations

The signal is detected by nearby smart devices via Bluetooth Smart™.

A Beacon is a small wireless device transmitting a continuous radio signal.

The result? You're more engaged with the store and get the perfect bags you never knew you needed!

There is a Beacon placed next to the bags section.

Let’s try an example.

Say you're walking by your favorite clothing store and they're having a sale on bags.There is a beacon placed next to the bags section that alerts you to the sale when you pass by.

$Your smart device thensends that ID number to the cloud server.

The server checks what Action is assigned to that ID number & responds.

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The signal tells your smart device “I’m Here” by giving its ID number.

What could that response be? That’s up to you.

2. Rethinking Retail. (2013). Infosys. Pg 3

1. Gevelber, Lisa. How Mobile Has Changed How People Get Things Done: New Consumer Behavior Data. (2016 September) Think with Google

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Proximity Notifications already have applications in a number of industries and settings:

WiFi

Hotspots can facilitate browser

notifications to logged in users

NFC

Near Field Communication can

be active or passive, sending

information after being tapped

Bluetooth

Connects beacons to smart

devices with Bluetooth,

delivering in-app notifications

or URLs

Geofencing

Creates a virtual barrier using

a combination of technologies

tosend notifications within a

predefined barrier

Range Energy consumption

Cost Penetration rates Usages Features

WiFi Average up to 150 feet

(46 m)

High High Most phones are

equipped

Multiple High detection ratio of total

visitors

NFC Very short range (20cm) Low Low Not all phones are

equipped

Specific labels Cannot send push notifica-

tions or measure distance

BLE Up to 330 feet (100 m) Low Low Most phones are

equipped

Multiple Has widespread existing

ecosystem

Geofencing More accurate in out-

door areas

Varies Varies Most phones are

equipped

For entering an

area

Works with WiFI, RFiD, GPS,

and more

TM

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Bluetooth powers new opportunities

There are several technologies that are used for proximity

notifications; however, there is no one perfect standard or

solution. NFC tags offer strong solutions for customers who are

willing to engage and get up close. Such solutions, however,

rely on customers regularly interacting with the technology.

They must actively approach a trigger in order to receive the

targeted message. This is not entirely effective for marketing

purposes as many customers will choose not to engage and

miss opportunities. Further, these cannot be targeted to specific

viewers. Managers must opt for either more general targeting

via SMS or store geofencing for extremely specific, short-range

messages.

In recent years, improvements in wireless technology have

brought new solutions in proximity technology. While WiFi has

long been on the market, a new Bluetooth standard, Bluetooth

Low Energy, has become a symbol for the IoT revolution.

When used for proximity notifications, Bluetooth utilizes

beacons, small devices that work by sending out a signal that

can be picked up by other Bluetooth devices and indicate

proximity to a particular beacon. By adding more beacons,

an object’s position can be accurately estimated down to the

meter level. Due to the widespread adaptation of the Bluetooth

standard, BLE beacons are affordable and easy to integrate with

other systems and devices.

Range Energy consumption

Cost Penetration rates Usages Features

WiFi Average up to 150 feet

(46 m)

High High Most phones are

equipped

Multiple High detection ratio of total

visitors

NFC Very short range (20cm) Low Low Not all phones are

equipped

Specific labels Cannot send push notifica-

tions or measure distance

BLE Up to 330 feet (100 m) Low Low Most phones are

equipped

Multiple Has widespread existing

ecosystem

Geofencing More accurate in out-

door areas

Varies Varies Most phones are

equipped

For entering an

area

Works with WiFI, RFiD, GPS,

and more

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The cost of wifi-based campaigns

WiFi has become one of the most widespread platforms, and

it is one obvious answer in proximity marketing. It has great

penetration rates, and customers and managers alike are already

comfortable with it.

WiFi, however, does not necessarily offer the best foundation for

proximity notifications. They can be costly to install and are also

less accurate than some systems.

When WiFi is implemented solely for notifications, the cost,

in some cases, can be almost exorbitant in comparison to

Bluetooth. One comparison found that a WiFi system would cost

a total of $13,280, while the same installation could be achieved

with beacons for about $1,000. For this and many other use

cases, Bluetooth completely changed ideas about the cost of an

asset tracking system While WiFi seems to be less complicated

than other hardware, its costs include routers, service charges,

electricity, installation, and maintenance in order to function.

Beacons, on the other hand, can run on batteries for several

months, or even years, before needing to be replaced.

Item Cost # of Units SUM

Router $120 40 $4,800

Installation $80 40 $3,200

Internet service1year / device

$20 480 $4,800

Electricity $1 480 $4,80

Item Cost # of Units SUM

Beacon $25 40 $1,000

WiFi Costs

Total

Total

$13,280

$1,000

Kontakt.io Smart Beacons

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The importance of opting-In

WiFi is undoubtedly tempting for shoppers and visitors.

Bluetooth, on the other hand, does have a barrier in this area,

often requiring users to enable Bluetooth and sometimes even

specific apps. This means it can be much easier to track and

communicate with smart devices in the area with WiFi. However,

WiFi also removes the opportunity of the user to actually opt-

out. For users, this can be a huge problem. Customers are often

willing to share their data with companies, but simply taking it

is not only in poor form it could also lead to problems. Data has

already sparked ample information ethics debates, and multiple

surveys reflect a general uneasiness about data collection. One

survey in Canada found that 24% percent of respondents

felt they had no control over what businesses did with their

information; a further 64% report concern over what businesses

do with their personal data.3

Regulations will continue to develop, and users will continue

to have a better grasp on what it means to be tracked by

companies. Giving consumers the choice to use a technology

and be tracked is paramount to building better relationships

and avoiding future data issues. A well-structured proximity

campaign should be persuasive enough to engage customers

and convince them to willingly engage without force.

WiFi Costs

Kontakt.io Smart Beacons

3. Harris, R. How Canadians feel about data and privacy (Survey).(2016, March 15). Marketing Mag.

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Beacon-based use cases

A successful proximity notification campaign relies on identifying

an organization's particular needs, goals, and possibilities

and carefully crafting targeted solutions. To this end, different

solution providers are developing systems focused on specific

use cases and industries.

In this section we will look specifically at applications for BLE-

powered proximity notifications in the retail industry, museums,

zoos, transportation, and other service providers like gyms,

hotels, universities, and tourism agencies.

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Bluetooth technology has opened a new set of possibilities for retailers. The

technology’s high penetration rates ensure that nearly every customer can be quickly

hooked up and looped into a given marketing campaign. The ability to effectively

communicate with customers is central to every retailer’s core work. Until recently, this

was achieved through physical signage, email, and sometimes proximity tools like NFC

or QR codes. None of these, however, have achieved personal and deeply pertinent

messaging strategies. Bluetooth-based programs are much more active, allowing an app

to connect the user’s position with data. By targeting customers based on their actual

location and background, retailers greatly increase the chance of turning a single, well-

informed message into a sale.

Email and other digital messages are highly valuable, but they are not effective at

reaching shoppers in those seemingly minor moments where they are most capable

of generating a sale. Similarly, short-distance proximity tools are great at relaying

specific data to customers, but they are not capable of reaching out to deliver valuable

messages. Though a retailer may scatter great deals throughout their store or

include meaningful images and information that would affect a shopper, much of that

information will go unseen as the shopper will not think to engage with it.

Retail

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4. Bloom, L. 4 Solutions to Retailers Top Mobile Engagement Issues. (2016, July 25). SessionM.

Targeted promotions

Vinyl signs and cardboard cut-outs are one way to advertise

a product in-store, but, in a sea of physical advertisements, it

is easy for customers to be overwhelmed. SessionM surveyed

12,000 US shoppers and found that 90% of retail customers are

using their phone in stores. 4 Product pyramids and banners

cannot compete with games and social media. Retailers must

add more digital components to their campaigns. To succeed,

they must understand what the customer wants, make it readily

accessible and carefully tailored. Using digital content and more

specific proximity information, retailers can send promotions to

customers that fit their in-store behavior and position.

Loyalty programs

Rewards programs and loyalty cards are commonly used to

keep customers engaged, interested, and coming back to

the same store. Many programs, however, suffer from a lack

of transparency. It can be difficult for a customer to know at

any given time just how many points they have accumulated.

Beacons can be used to deliver that information in a timely and

meaningful way. Some stores use physical signage to indicate

existing rewards programs or possible points that can be

collected. With beacons, a customer can be sent a notification

the moment they enter the store. Moreover, instead of simply

reminding them about the program, the customer’s data can

be accessed in order to create a personalized experience. A

customer can instantly be informed that they are 25 points away

from hitting their next reward goal. Just by entering the store, the

user can collect points. Customers can be given targeted tasks

to receive more points, gamifying and expanding the loyalty

program.

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Shop Now! With ELLE

ShopAdvisor and ELLE teamed up to install beacons across 803

locations. They used proximity technology to trigger targeted

notifications to shoppers using the ShopAdvisor app. These

notifications combine with past purchase history and data

to deliver not only general offers and editorials but specific

promotions tailored to individual shoppers. ELLE’s program drove

over 21,000 store visits with beacon technology.Deliver useful information

Up to 90% of shoppers use their mobile devices in store, which

is leading retailers to move more ads online. However, 54%

of shoppers use those devices to perform price comparisons.

Shoppers even use smartphones to read reviews and product

details. This speaks to more than a reliance on technology; it

reflects a sense of distrust. Sharing real, solid information with

customers will generate more purchases in the long run by

creating a sense of transparency. Businesses should aim to send

more than just specs and deals. They should consider including

impartial reviews or ratings to help the customer on their journey

and perhaps even offer further information that would enhance

the product. Instead of just sending a deal for a particular food

product, an app could suggest relevant recipes.

On top of combining beacons with a Point of Sale system, a

proximity-enabled app could inform customers about products

in stock. Shoppers can instantly see what other sizes or colors are

available for any given product.

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Modern museums are actively vying with smart devices for visitors’ attention. Visitors will

continue to engage with their phones regardless of how engaging an exhibit is. Instead

of fighting against this development, museums must choose to leverage smart devices

to deliver a better customer experience. Proximity notifications keep visitors engaged

and create an environment that is more personalized and conducive to learning.

Museum settings are a common use of proximity notification technology due in part

to the beacon’s ability to make information quickly available. Beacons can be utilized

to gamify the usually analog setting and give visitors a brand new way of interacting

with exhibits. Any institution designed to deliver content and experiences to visitors,

whether it is a zoo, park, or museum, can benefit from adding proximity technology to its

toolkit. Moreover, solution providers like Xponia offer comprehensive programs and apps

designed to be quickly and easily implemented.

Museums, parks, and zoos

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Better, more creative promotions

Once a visitor has seen the exhibits they planned to see, they

may be heading for the exit. Well-timed promotions, however,

can turn a quick exit into a far longer, and more meaningful,

dwell time. Beacons can send a visitor a discount for the cafe as

they approach the final exhibit. The museum experience can also

be gamified, where the visitor must visit certain locations or take

quizzes in order to receive a discounted return ticket.

Exhibit information

Traditionally, museums have relied on physical signage attached

to exhibits or headset-based audio guides to relay gallery

information to visitors. Proximity technology can be leveraged to

recognize where a visitor is located and automatically connect

them with the relevant information. Because this all occurs

digitally, the content can include images, videos, quizzes,

multiple languages, and even multiple level options to cater to

younger school children, professionals, and other demographics.

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Exhibit notifications

Zoos, parks, and museums often hold small daily events like

enrichment programs or designated feeding times. These can

be difficult for visitors to track especially in large, spread-out

locations. Proximity notifications can assist visitors by informing

them of nearby events as they occur. This means visitors need

not be glued to pamphlets or maps. They can receive automatic

reminders and updates related to their current location.

Kew Gardens

The Kew Royal Botanic Gardens is one of the world’s oldest

botanic gardens and receives about 1.3 million visitors annually.

They used beacons to make their campaigns more proximity-

aware and deliver better notifications.

Kew found that beacons offered 90+% savings over similar WiFi-

based systems5.

5. Gąsiorek, A. Beacons at Kew Gardens Save 90+% over WiFi for Proximity Engagement. (2015, June 12). Kontakt.io.

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Transportation providers are in a highly unique position wherein nearly every aspect of

beacon technology and proximity notifications can drive incredible value. Travelers are

often on the lookout for local information and offers as well as transit time information

and schedules. Beacon infrastructures also offer navigation capabilities.

London, Moscow, and Tokyo transit systems are already testing with proximity

technology. The ability of a beacon infrastructure to deliver proximity notifications on top

of several other capabilities at an affordable price will continue to drive the number of

beaconized stations in the world at an increasing rate.

Public transport

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Updates

There are few industries outside of transit where up-to-date

information is so highly valued. Up to the minute or even second

data can completely revolutionize a visitor’s experience. Time is

incredibly valuable for travelers. When entering a new station,

beacons can give the traveler instant access to maps and

schedules. Proximity notifications can inform them that a given

bus is currently pulling up to the curb or is five minutes late.

Wayfinding-related notifications

Whether a passenger is on a new route or taking a daily trip,

proximity notifications can make the journey easier. By indicating

their destination, a traveler can be notified as the bus or train

approaches the appropriate stop. This means less stress and

more time to spend with branded content.

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Deliver tips and info

Managers and employees know the ins and outs of their

establishment. Proximity technology can help customers benefit

from this knowledge. It is not possible for every customer to

receive the complete attention of staff all the time. Notifications

push useful information to visitors the moment they enter a

defined area. When a new gym member enters the weight area,

an app sends them trainer tips to help them make the best of

their time. Similarly, another member can sign up to be notified

about nearby fitness courses or training sessions. Beacons also

work for employees, sending information about customers

entering a space. Names, purchase history, or any recorded

ratings can all be seen automatically.

Service providers

Any institution that provides a service to customers can utilize

proximity technologies to do so more effectively and drive better

returns. Most importantly, proximity notifications give better,

more up-to-date information to visitors, creating an infinitely

more personalized and comfortable customer experience. Gyms,

hotels, banks, tourism agencies, and universities all have unique

and beneficial possibilities with proximity notifications.

For retailers or museum owners, there are very clear use cases for

proximity notifications; however, for gyms, hotels, universities,

tourism agencies, and others, a huge list of untapped

possibilities remain. Many common use cases are already being

put into action, but innovative providers should also consider

unusual and unprecedented ways to connect with customers

through proximity notifications.

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Drive engagement where needed

Is a particular room always packed at

dinner time? Looking to drive traffic in

off-peak hours? Push notifications can

speak directly to those passers-by as

they enter the space. Managers can offer

deals or tips as necessary, benefiting

both customers and businesses.

Request feedback

Though nearly every customer will have

feedback to give, they are rarely given

the chance to do so. By prompting

visitors to rate services before exiting,

companies are opening up a new,

digitized way to keep track of what

they are doing right and what they

could do better. Unlike pen-and-paper

reviews, entering feedback via mobile

is quicker and easier, making it more

likely that customers will respond. This

also removes the need to look after or

chase down physical reviews as they are

created and stored digitally.

Events, schedules, classes

Whether it is around town or in a gym,

beacons can push notifications about

upcoming events. Instead of being glued

to signage or schedules, visitors can be

told instantly about what is going on in

their proximity. This means fewer missed

opportunities and better engagement

rates.

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MyStop

Proxama and Mapway outfitted dozens of buses in London with beacon technology utilizing

a partnership with Exterion Media, Europe’s largest privately owned out-of-home advertising

company. With travelers spending an average of 17 minutes on a given bus, proximity

notifications and beacons helped brands to engage more efficiently with travelers. Proxama

found that beacon-triggered real-time travel update notifications received a 44% click-through rate.6

“With 2.3 billion passenger journeys made on London buses a year, the partnership creates

an innovative platform for brands that want access to this hard-to-reach audience exclusively.

The partnership also provides consumers with relevant, timely, and engaging content in an

unobtrusive way.”7

Jason Cotterrell, Managing Director at Exterion Media UK.

Houston Dynamo

The Houston Dynamo soccer team uses beacons to interact with fans. On top of keeping them

engaged, the campaign also pushed fans reminders to post their photos as part of a marketing

campaign. This connected fans and the sponsors in a more fun and personable way. Kimberly

Sutton, Senior Service Specialist of the Houston Dynamo explains.8

“The goal is to provide more value to our sponsors and interaction with our fans which they

hope to have become their customers".

8. Dusing, J. Houston. Dynamo Engage Fans and Sponsors with Custom Rewards and FanMaker Beacons. FanMaker.

7. Proxama, Mapway and Exterion Media launch UK’s largest iBeacon consumer transport experience on London buses. (2016, May 16). Proxama.

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When building a system for proximity notifications, companies

need to consider which technology to use. WiFi offers similar

capabilities, but, with recent improvements to Bluetooth,

Bluetooth Low Energy has become a prefered choice for many

firms.

Bluetooth benefits from wide adaptation rates, and development

has made the technology cheap and affordable. Furthermore,

it can be easily integrated into other devices. The Bluetooth

ecosystem already includes several billion devices. Even as

it develops, with increasingly powerful data collections and

range, it will continue to be the standard at the core of the IoT

revolution.

Getting started with a proximity notification campaign

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7 steps to success

Prepare an ecosystem (integrate apps, campaigns, signage) A proximity notification campaign does not work in a vacuum. It

must be mindfully integrated into existing programs, apps, and

even physical signage. This could require different kinds of skills

than a business uses on a day-to-day basis.

Pinpoint the problem

A beacon infrastructure will be able to deliver the proximity

notifications you need. The difficulty is determining exactly what

a campaign needs. Managers must first understand the specific

problems they face before determining a goal and course of

actions.

Focus on ROI for you and your customer

Determine what information or scenarios would be most ben-

eficial to the company and its customers. Customers need to be

prepared to buy into a campaign, and managers need to be able

to measure success.

Look for examples

In the beacon space, nearly every proximity notification use case

has already been pioneered. Businesses must locate other com-

panies who have used beacons in the desired way and had posi-

tive results. This can help inform best practices through a real-

world experience.

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7 steps to success

Identify partners

Businesses do not need to start from scratch. Infrastructure,

software, and apps can all be done in cooperation with existing

companies with experience in the field. Start by locating firms

that operate with your desired field or use case.

POC

A well-planned and analyzed POC is one of the single biggest

factors in constructing a successful proximity notification cam-

paign. It must be able to demonstrate that a design will work

when fully rolled out.

Prepare for data/future iterations/look ahead

Beacon infrastructures have numerous capabilities. Managers

should be on the lookout for signs of success and also missed

opportunities. It is likely that a new campaign will benefit from

tweaking and optimization.

5

6

7

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Push notifications

When a phone dings and a message actively pops up, that is a

push notification. These can be much more useful for companies

looking to gather data or to interact regularly with customers. For

existing apps with a strong user base, notifications that “push”

the customer might also be more practical. Push notifications

can wake up the device or app even when a user is not

interacting with it, making it highly useful for marketers to speak

to customers at a specific moment.

Physical Web

The Physical Web is a project, and app, from Google designed

to make the world, in the long run, more interactive. It does not

require users to download individual apps. Instead, it connects

a smart device to all existing Eddystone URL content in the area.

This content, however, does not automatically pop up on a user’s

smartphone. It is up to the user to access it. This makes many

users feel more comfortable as they do not have to worry about

being overwhelmed with push notifications.

Push vs. Physical Web

Modern beacon users are given one more new, powerful capability: the choice between active

and passive notifications. Notifications need not always be pushed. Depending on the vertical,

infrastructure, and particular use case, managers can decide which direction to go in. Many

will choose to leverage both. For companies with a full existing infrastructure and app, adding

Physical Web capabilities can be easy.

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Point-based

In lean applications, proximity notifications use proximity

technology through a point-based system, allowing for the

measurement of proximity to a single beacon. This system can

be calibrated for different distances but does not have the

capability to determine a location with extreme accuracy. For

museums or businesses that focus on specific Points of Interest,

this system can be both simple and effective. A point-based

system can also be integrated with a grid system and work

as a “golden standard” verifying that a person is in a specific

room. The primary benefit of theses systems is the simplicity of

deployment and maintenance. The downside, however, is that

the infrastructure is often limited to the specific application for

which it was designed.

Grid-based

In order to determine position more accurately, infrastructure

might be installed as a grid system. This means that position can

be calculated depending on the relative proximity to a number

of beacons. These systems are more complex but also more

accurate, which could prove invaluable in some scenarios. Grid-

based infrastructures also benefit from being “future proof” as

the same infrastructure can be used for a number of different

applications. However, for specifically proximity notification-

centered projects, a grid-based system is not necessary.

Beacon Infrastructures

When used for proximity notifications, beacons are usually employed in one of two ways.

Companies deploying a BLE beacon network must first decide what level of accuracy they need

to best track their assets. Highly precise systems are more complex and more expensive but can

offer a higher degree of flexibility for the future.

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The beacon industry’s rapid evolution in the last three

years has brought it into the mainstream spotlight. While

Bluetooth has been around for more than a decade, it was

the introduction of the Bluetooth 4.0 standard in 2010

that opened the door to practical beacons. The new, more

energy-efficient technology has proved itself useful in all

kinds of applications. Endorsement by Apple and Google in

the last year has only furthered the industry’s development.

Protocols are incredibly important to beacon technology.

They represent different methods for exchanging data over

a computer network. There are two major protocols in use

today: Eddystone (Google) and iBeacon (Apple), but open-

spec protocols like AltBeacon (Radius Networks) are also

available.

Beacons: A Rapidly Evolving Industry

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iBeacon is today the most commonly used protocol, but the

gap is closing. More and more companies are drawn to the

functionality of Eddystone and the openness of AltBeacon.

iBeacon is, today, supported by 90% of companies in the

industry, and Eddystone, launched only a year ago, is already

supported by 45% of companies.

Initial use cases for BLE beacons were very simple. Companies

first moved into the space with different ideas of what the

technology should be used for. Initial applications were targeted

either toward early adopters or simple applications. Typical

applications included marketing apps and audio guides for the

visually impaired, but, as the industry has grown, applications

have become increasingly sophisticated. In this way, beacon

technology has made a very clear, contemporary example

of how disruptive innovation looks in the real world. Created

for a set of niche applications, the technology has grown to

encompass applications in a vast number of industries, and

Bluetooth beacons now offer the most reliable and extensive

technology for proximity notifications.

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