how to use beacon technology and sell more?
DESCRIPTION
Beacon technology might change the way we connect online and offline commerce. Have a look on our examples. Follow us on http://divante.co/blogTRANSCRIPT
1
BEACONS IN E-COMMERCE – how to use them and
achieve success
2
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
7
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
10
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
17
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
23
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?
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