Question

In your new job as a retail store manager you decide to add mobile marketing to your promotional campaign. Describe how a Bluetooth Low Energy (BLE) beacon could increase sales in your store.

Answer 1

The Bluetooth Low-Energy technology (BLE) was first developed by Nokia back in 2001, laying the foundation for beacons. However, this technology didn’t really emerge onto the retail scene until 2013 when Apple announced their own BLE compatible protocol, the ibeacon. Apple rolled out the ibeacon in December 2013 across 254 retail stores nationwide, bringing the BLE technology to the masses. The ibeacon, which works in conjunction with Apple’s iOS software, allows your iOS device to constantly roam for BLE signals. When an iOS device comes within range of an ibeacon signal, it alerts the necessary apps — even if they are closed. Apple devices can also act as ibeacons themselves, emitting signals as well as just receiving them, and waking up relevant apps on other devices.

How Are Beacons Benefiting Retailers?
Beacons could revolutionize the way customers shop by creating a highly personalized retail experience. While purchases made at traditional brick and mortar stores still dominate total retail sales, more and more people are converting to online shopping from the comfort of their home or while on the go. In fact eMarketer predicts that 25% of retail purchases will be through e-commerce by the end of 2016. Beacons could help brick and mortar stores win back sales from ecommerce. Almost all customers nowadays that enter a store are carrying some kind of smart device, whether a smartphone or a tablet. If more stores implement beacons, customers could be alerted with personalized coupons and deals as soon as they enter a store. Business Insider expected beacons to directly influence over $4 billion worth of US retail sales in 2015 at top retailers with that number increasing tenfold in 2016. A select handful of retailers have already implemented beacon technology. Macy’s, Target, and Apple have rolled out beacon technology in stores across the US, with other retailers soon to follow suit.