As a follow up from last week’s class, here is a short write up on why iBeacon technology could succeed and why it could potentially fail.
iBeacons is an Apple brand name for the micro-location technology in that is transmitted using Bluetooth Low Energy (BLE). BLE allows linked devices to transmit signals to each other without using too much of the device’s battery life, which makes it more appealing than less energy-efficient GPS and wi-fi alternatives. BLE signals can be transmitted via compatible devices but also via third-party hardware, commonly known as beacons. With respect to digital marketing, this means that content (offers, product alerts etc) can be pushed straight to mobile devices, providing they have the brand’s app installed (and bluetooth switched on).
Sounds like a pretty good plan but why would it fail? My thoughts as follows:
1. Spamming
With som much potential, retailers could deploy beacons nearly in every part of their retail store. This means that customer is going to get a notification on his/her phone everything he/she enters a new zone. In a time where we are moving towards customer experience, this could potentially ruin the experience instead on enhancing the shopping experience.
2. Need for app and Bluetooth
Firstly, in order for beacons to interact with customers, they need to have their bluetooth on their smartphones switched on. Let’s just say we manage to get the customer to do this. That’s just half the battle won. If we want a user’s device to do something interesting when this beacon is detected, like pop up a coupon for a store, or unlock a video, we need an app. Beacons only send signals and in order to have some action, the customer must have the specific app or a generic app like Shopkick installed on their phone.
Now for why iBeacon has potential to be successful:
1. Positioning System
Beacons are not just meant for marketing. They are essentially indoor positioning systems which can help the user navigate a large store such as a hypermarket. One such use case will be when a customer has selected some supplies to pick up at the store. Using the iBeacon technology, the app can help navigate this customer through the store so as to be out of the store in the shortest possible time. This can help drastically improve customer experiences in huge stores.
2. Bluetooth
As discussed before, intrusive marketing might not be very useful. However, iBeacon requires the use of bluetooth which means the customer must make a conscious decision to switch on bluetooth which in other words mean he/she is willing to receive offers. This could potentially be more successful than other location based marketing as there might be no need for a customer’s action before receiving offers and notifications.
Lastly, here are some examples of how iBeacon is being used: https://econsultancy.com/blog/64626-five-examples-of-how-marketers-are-using-ibeacons/