Wednesday, September 17, 2014

The Untapped Potential of Beacon Technology

While interest in beacon technology is rising rapidly among retailers, few are ready to truly use it effectively. Beacons are devices installed in brick-and-mortar locations that can beam information, such as coupons and branded content, to nearby smartphones through an app. Beacons can target down to the specific section of a store a shopper is in, potentially allowing retailers to influence shoppers exactly where and when they are deciding whether to buy an item or not.

However, many retailers currently using beacon technology are not using it to its full potential, choosing to simply push advertisements and coupons to customers. This is a huge missed opportunity for these retailers, as beacon technology has the potential to truly transform the customer experience. Rather than rush to adapt beacon technology and focus only on simply pushing coupons and deals, marketers should pursue a more long-term strategy. If a retailer is serious about beacon technology, they should invest enough resources to ensure that a customer’s interaction with beacon technology truly personalizes the shopping experience. They can do this by ensuring their beacon technology apps take into account not only location but also the customer’s preferences, tastes, past purchases, and even their previous walking patterns around the store. Doing so will ensure that customers view beacon technology and its associated apps as tools that enhance and personalize their shopping experience. 

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