How to use beacon technology and sell more?

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BEACONS IN E-COMMERCE – how to use them and

achieve success

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MARKET DATA AND TRENDS

OMNICHANNEL

33% of consumers buy using multichannel

31% consumers visit shop before going online

34% consumers use online information before buying offline

51% consumers use mobile devices

Source: Deloitte Report - The Omnichannel Opportunity, 2013

OMNICHANNEL CLIENTS

Źródło: Deloitte Report - The Omnichannel Opportunity, 2013

They buy more than regular buyers

They are influenced by

63% consumers use multichanneling when they shop and they spend more than £100 in average

ONCE PER WEEK

Share in retails – more than 70%

They buy non-food articles

They use multichanneling more often

Visits in the real shop

Opinions, price comparison sites

Mobile apps

Social Media, blogs

£0.00

£20.00

£40.00

£60.00

£80.00

£100.00

£120.00

£140.00

£81.00 £83.00£93.00

£126.00

£99.00

£118.00

OMNICHANNEL AND BASKET VALUE

source: Deloitte Report - The Omnichannel Opportunity, 2013

online research and

online shopping

offline online offline + research during the shopping

offline + research online

BEFORE the shopping

ROPO

Source: Deloitte Report - The Omnichannel Opportunity, 2013

0% 5% 10% 15% 20% 25% 30% 35% 40%

21%

22%

23%

23%

25%

34%

35%

77% expect some benefit after the check-in

Source: Swirl Networds, 2013

SMARTPHONE DURING SHOPPING

Finding local shop

Taking a picture of the product

Price comparison

Scanning the barcode of the product

Localization and local offers

Online opinion research

Information about the product - research

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BEACONTECHNOLOGY

Beacon is a small device that is able to exchange information with other mobile devices equipped with the suitable application. It is based on the Bluetooth 4.0 Low Energy.

It allows you to communicate and locate devices even in closed spaces with an accuracy of several centimeters.

BEACON TECHNOLOGY

The beacon can be based on multifunction devices such as iPad.

Dedicated solutions are quite frequent. Companies like Estimote, Roximity, Twocanoes offer beacons ready to go.

Price of a Beacon device depends on the manufacturer. It is +/- 10-50 USD per unit.

BEACON TECHNOLOGY

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APPLICATION SCENARIO

1. Joanna is sitting at the bus stop and checking news on Facebook

2. She sees that her friend downloaded the fashion app from the store X, her favorite brand of clothes and she received a 25% discount on additional purchases of products of this brand

3. Joanna also wants to have a discount, so she downloads the application.

4. She receives 30 points as a reward for installing the application. In addition, the application informs her up to date on current news and promotions, so Joanna is happy.

APPLICATION SCENARIO

5. Time passes by…

APPLICATION SCENARIO

6. Joanna goes to the cinema in the shopping center in the city.

7. On the way she passes by various shops, but do not shop.

8. Passing salon "Pull & Bear" she receives a notification on her smartphone.

APPLICATION SCENARIO

9. She stops at another salon to read the notification.

10. It turns out that today is the promotion of "-25% on dresses" in her favourite shop X.

11. She looks up and she stands in front of the entrance to the shop X .

12. She clicks on the notification and goes to the store to see what dresses are in promotion.

APPLICATION SCENARIO

13. It turnsout that one dress is in promotion so decides to buy it.

14. At the checkout she notices that she can register her purchase in the application and receive more points.

15. Joanna scanns the code and receives more points on her account.

APPLICATION SCENARIO

16. During the random visit in the shopping mall, Joanna buys a nice dress at a promotional price and earns on the purchase a large amount of points.

APPLICATION SCENARIO

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DIFFERENT USES OF BEACONS

The customer in the store can be informed about products complementary to the product which is stationary.

UPSELLING

The customer can have access to the map of the store and quickly discover a product at a promotional price, the products from the online wishlist, etc.

STORE NAVIGATION

The customer can receive points for entry into the dressing room area.

POINTS FOR ENTERING FITTING ROOM

If a product, that customer tries on, doesn’t meet his or hers requirments, the application can present alternative products and indicate where they are placed in shop.

ALTERNATIVE PRODUCTS

The customer may report the need of assisstance to which employees will be able to respond.

CUSTOMER SERVICE

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MORE INFO

On the market for over 10 months (09.2013 - iOS7)Pilot implementations:

• Apple implemented iBeacons in 254 stores in USA • Safeway and Giant Eagle implemented beacons in 150

stores in USA • American Eagle – implementation in 100 stores in USA• Macy’s - implementation in 2 shopping malls in USA• Superbowl 2014 on the Time Square• Tesco – pilot in store in Great Britain• London Heathrow Airport• SXSW festival• ….

BEACON SO FAR

Source: http://mashable.com/2014/03/07/ibeacon-sxsw-2014/

Sales increase by:

• Increasing the number of inputs to the local store • Helping customers navigate in the store • Personalization of the advertising messages • Speeding up the process of receiving the order from store (system

check-in) • Up-selling (suggesting complementary products) • Creating a heatmap of the shop (the most popular places) • Collecting information about consumer behavior • Speeding up the purchasing process - with the integration of the

payment system

Building customer loyalty through:

• Strengthening modern brand image • Personalization of the advertising messages • Facilitating the purchase process • Improving the user experience

POSSIBILITIES

• In-depth research on the Polish market • Concept creation of the loyalty program based

on multi-channel (with the support of beacon technology)

• Concept creation of acquiring data on consumer behavior in multi-channel (with the support of beacon technology)

• Conducting a pilot study with users in one of the establishments using the prototype of the loyalty program and beacon,

• Creating a loyalty program and the application supporting action beacon in stores

• Designing sources of data on consumer behavior.

WHAT NEXT?

Contact us for more:

dwinkowski@divante.cowww.divante.co