How beacons — small, low-cost gadgets — will influence billions in US retail sales (2024)

FAQs

How beacons — small, low-cost gadgets — will influence billions in US retail sales? ›

Beacons help in location-based advertising. Say, if you are passing by a retail store, whose's app you have already downloaded, then such and such a retail store would be able to send beacon-powered promotional messages to you, enticing you to enter the store. The messages would be in the form of push notifications.

What is beacon technology in retail? Beacon technology in retail is a type of Bluetooth low energy (BLE) technology that lets retailers send location-based notifications to customers' smartphones when they are in close proximity to a store.

Beacons allow advertisers to deliver customized messages on-site aimed at improving the shopping experience. Message customization is based on a consumers' preferences, previous shopping habits, location, and other data.

As a proximity marketing strategy, retailers use mobile beacons that can both gather information about customer movements and send alerts to customers' phones to optimize and personalize the in-store experience. Information on discounts, promotions, events, and more can be sent directly to customers' phones.

For example, a drug store can remind a shopper to pick up a prescription or a grocery store can prompt someone to buy a food item they bought once before. Plus, the insights a brand gathers from tracking consumer in-store locations can be used to place merchandising and products.

With beaconing, marketers can lead and direct customers to specific areas and products within a store or mall. As a point of technical accuracy, the beacon itself does not really contain messaging; rather it sends a unique code that can be read only by certain mobile apps.

Beacon technology contributes to increased revenue and sales by enabling retailers to deliver personalized messages, discounts, and promotions on customers' smartphones based on their location proximity, purchase history, and shopping preferences.

Risk of unlawful surveillance

The location data submitted by beacons can be used not only by legitimate software applications, but also by malware programs which can provide criminals with information about the location of individuals.

Technical issues such as battery life, signal interference, compatibility, and accuracy of beacons and mobile devices can affect the performance and reliability of location-based marketing.

The Road Ahead for Beacon Marketing

Customers get instantaneous and highly personalized recommendations and offers directly to their phones and business owners get valuable insights into their customers' behavior and preferences which they can use to appeal to them most effectively.

Can you sell products on beacons? ›

Selling digital products in your creator store on Beacons is a smart way to diversify your income as a creator. You invest time and resources at the start, and then you keep making money with minimal upkeep.

In retail, smart beacons are used for personalized marketing, sending promotions to customers based on their location in-store.

Macy's, Urban Outfitters, CVS, Lord & Taylor, Target, Timberland, and many other major retailers already use beacon technology to take their shopping experiences to the next level.

BLE beacons allow apps to detect users precisely, even in locations with limited internet access such as underground stations. Another advantage when compared to other types of mobile ticketing is that beacons allow for seamless detection, without the user having to use or even touch their smartphone.

Established in 2015 and based in Brisbane and Cairns, Queensland, Beacon Strategies is a mission-based health and social services consultancy supporting organisations to plan, design, implement and evaluate their work. Find out a little bit more about who we are and how we work below.

Using beacons, you can implement several features, such as sending advertising push notifications based on location and detailed visitor analytics for certain areas in the building. The location where the promotional notification is sent is customizable based on the user's interests.

Beacons in retail involve small hardware devices that transmit Bluetooth signals to nearby smartphones. In a retail store, these Bluetooth beacons communicate with shoppers who have Bluetooth enabled and the relevant retail app downloaded on their smartphones.

Beacon technology essentially provides contextual information to its users, allowing businesses to actively engage with their customers. It works in accordance with indoor and outdoor navigation systems.

Beacon devices can be used to monitor machines and touchscreens, for staff clocking in and out, or to send push notifications with important updates. This can be especially valuable in factories, manufacturing and other settings.