Understanding How Beacon Technology Is Aiding The Retail Industry
Beacon technology has advanced significantly since its introduction by Apple in 2013 and is expected to continue to expand. According to Global Market Insights, the beacon technology market will exceed $25 billion by 2024. It’s safe to say that the technology has a lot of potentials and will have an impact on the marketing landscape in the coming years.
Beacons are small, battery-powered wireless devices that send Bluetooth signals to smartphones nearby. When your smartphone’s Bluetooth setting is set to “On,” and you are within the broadcasting range of a beacon, your apps can receive the beacon’s unique ID. Once connected, the beacon will perform the function for which it was programmed.
They are among the most recent advancements in location technology and proximity marketing. In simple terms- they connect and transmit data to smart devices, making location-based searching and interaction more convenient and accurate.
This means that, in the future, advertisers can set about examining the path customers take through their stores in order to optimise store organisation and, as a result, optimise advertising as shoppers pass through brick-and-mortar locations. They can also initiate understanding the dwell time in order to target customers based on where they are in the store and how long they are there.
“ The primary advantage of beacon technology is proximity marketing. Eventually, it aims to improve the customer experience within a mobile app.”
With the majority of stores reopening for business following Covid, retailers will continue to optimise their advertising to best reach shoppers when they are in the right mindset and most likely to convert.
Why an interest in beacon technology?
- You can deliver targeted information and discounts based on a customer’s in-store movement by tracking their in-store movement
- As they move, their location changes in real-time, indicating whether they are getting closer or further away from their desired item
- Retailers may plan in-store events such as free makeup tutorials or a free gift-wrapping demonstration. By utilising beacon technology, marketers will be able to incentivize customers to make purchases or visit shops they are already nearby, that they would otherwise pass by
- Beacons can be used to alert passersby to special offers in order to entice people to visit their shops
- Sending smart advertisements to customers while they are in-store is a novel way to boost conversion rates.
- Beacon technology can be used to collect data on customer behaviour, which will be invaluable when targeting your ads.
Until 2016, retail beacons were only of limited use because they required the user to have a mobile app pre-installed in order to interact with the beacon. But with Google announcing “Project Beacon” in 2016, beacon technology was released that could be used without the need for a pre-installed mobile app.
The success of beacon technology is due to the increased use of smartphones in stores. Beacons have a significant advantage over other technologies for the fact that they are relatively inexpensive, allowing businesses of all sizes to adopt the technology with little risk.
Mobile app development is constantly evolving, and as a retailer, you must be equally tech-savvy in order to maintain customer relationships both online and offline. By combining beacon technology and social media, you will be able to engage with customers online even when they are in-store, increasing your customer base.
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