iBeacon Technology – Improving Customer Experience

  How are brands taking advantage of iBeacon technology?

With the advent of the iBeacon technology, big retail companies like Macy’s and Target have deployed the beacons. . Through iBeacons, companies can find out customer’s microlocation and their purchase behaviour.  Once a customer is in the vicinity of their stores, they receive personalised deals, discounts and recommendations based on past purchases and shopping patterns.

For instance, Sephora uses the technology to send birthday alerts to customers nearby via their app. The store also reminds them to pick up a special package, which is free with a purchase during birthday month. Use of this technology for campaigns like this help companies to engage with their customers and gain loyalty.

In-store pick up shops also leverage this technology to make collection more convenient for the customers. Pick up shops like Woolsworth use beacons to reduce the waiting time for the customers and improve experience. With beacons, the shops get notified that the customer is near the store. This way, customers’ order is ready for collection even before arrival.

Another innovative use of iBeacon Technology was done by a Danish Bank called Danske Bank with an aim to become a forerunner in future payments field . The bank partnered with various retail stores to accelerate the checkout process for customers. The bank integrated beacons with their mobile app ‘MobilePay’ and deployed the beacons at checkout counters of different retail stores. After customers scanned their items at the checkout, they could pay by waiving the smartphone over the beacon. This made it easier and more convenient for customers to make their payments.

This way, iBeacon can be used with other developed technologies to improve customer experience.

 Future of iBeacon?

With the rise in digital marketing, the need to develop unique marketing strategies, specifically local marketing strategies has increased to entice the customers. This is where iBeacon technology proves to be helpful as integrating this technology with local marketing strategies boosts efficiency and credibility.

Though, iBeacons have been lauded to revolutionize the retail industry, there still seems to be a barrier in this technology being fully utilised. The need to convince consumers to download an app and switch on the bluetooth makes it difficult for companies to take it’s full advantage. Therefore, it becomes necessary for the companies to stay relevant while sending beacon triggered messages.

The demand for contextually relevant experiences (online and offline) have increased remarkably over the last few years. According to a recent Google study, 82% of smartphone users turn to their smartphones to make a purchase decision. And as long as, smartphones remain influential in consumers’ purchase decisions, iBeacons are here to stay.

Deeksha Gautam