Beacons are wireless, small broadcasting devices transmitting a data signal to be received by a Smartphone. Once the Smartphone and beacon connect a service provider or retailer, it can instantly deliver a discount or welcome message.
Owing to this versatility, it is expected by the 2018 end, there will be nearly 4.5 million beacons installed in the United States, is expected and nearly 3.5 million users will include the brick and mortar retailers. Now, understanding how beacons work is important. Right now iBeacon of Apple and Eddystone of Google are the developers.
Employing BLE, Bluetooth low energy signal, an app is triggered such that it delivers the targeted offers meant to promote customers into buying more as they visit the retail store, business or restaurant. Beacon marketing can be used to deliver useful and promotional content to customers as they wait for service or they wish to shop or even to reward frequent visitors.
Where are beacons used?
Beacons can be used where there is value created by delivering digital information or content relevant to a particular location. This is applicable to stadiums, museums, trade shows, conferences, inside offices and banks, where there is more of walk-in traffic.
What results does it produce?
Major retailers such as McDonalds inform that they can see 30 % purchase rates and 60% engagement rates for beacon promoted offers sent to shoppers of in-store and messages. Shoppers who received mobile content that was beacon promoted revealed that there was an increase in the likelihood of purchase during the visits. However, more shoppers also informed that the campaigns of beacon marketing also are a reason to visit a store often and to spend money, and this means beacon is driving the sales revenue up.
What is the tech cost?
The beacon transmitters are actually inexpensive, retailing for $20 – $40. The actual expense for the businesses depends on the software licensing cost and the media expense that is associated with paying for third-party app providers to deliver and create the messages to their mobile users. The actual costs for this mobile advertising new form are sure to be comparable to other investments of marketing such as digital advertising and email platforms.
The owners of small business should stay alert on the developments, as the beacons development is just in the infancy. It is matter of time that the technology and costs are being reasonably affordable to small businesses. This is also a fact of time that the customers are conditioned to anticipate an offer to be received on their phone the moment they walk in the door.