When it comes to location-based marketing and proximity-marketing, more often than not, marketers seem fascinated by the beacon technology.
With 82% of shoppers making their actual purchasing decision in-aisle, it’s no wonder that vendors are betting on beacons and indoor positioning systems to help marketers interact with consumers in real time.
A year ago, Forrester warned of the hype around beacons. Despite huge interest and numerous successful pilots, we have yet to see very many successful commercial rollouts. This is not so much about the technology (even though battery life and operational deployments raise technology issue), but primarily because reach is limited today and because few marketers can deliver smart contextual messages at scale. They must also define engagement scenarios and automated rules to deliver relevant messages to individual customers.
Location data alone is dumb. Sending someone a coupon to redeem in a nearby store just because they’re passing by isn’t enough. For ads and messages to be relevant, firms must combine location data with insights like past behaviors, preferences, needs, and situations. It is also likely they will have to combine multiple technologies to reduce the complexity of in-store operational deployments and boost the accuracy of location data.
There are many more opportunities than just pushing marketing messages in real-time. Using location data is more important than just capturing the attention of nearby smartphone owners — it’s about powering contextual marketing.
In particular, marketers should fuel contextual marketing with location data to:
Increase brand preference by delivering personalized experiences
Improve the customer experience on location
Advertise more efficiently
Unlock audience targeting and offer intention data
Beacons have a great deal of disruptive potential as they bridge the digital and physical worlds. I quite like this quote from Steve Cheney, SVP at Estimote: “Beacons as a platform are really a wedge into ‘appifying’ the physical world. They give context to a physical space. They are a way of actually extending the network intelligence to the edge again, something that has been missing since the desktop era. Beacons are truly a way of giving your smartphone eyes—place dumb signs around you and let your phone discover and read them.”
Beacon technology offers new opportunities for marketers across a wide range of industries and verticals. In particular, they enable marketers to:
Engage consumers in their mobile moments via in-app interactions.
Improve the customer experience.
Understand customer behaviors by leveraging analytics.