Beacon technology has the potential to disrupt the way brands–particularly retail brands–think about the intersection of the physical retail experience and the mobile experience. Using beacons wisely, retailers will be able to play the part of a gracious, individually attentive host, combining the users’ interests, intent and physical location.

1. b e acon
tech nology
JUNE / 2014
What brands and
marketers need to know

2. Ever since Apple introduced
its own trademarked “iBeacon”
technology at their WWDC
conference in 2013, marketers
and retailers around the
world have been unable to
clear a persistent ringing
from their ears.
In most cases, though, they’ve
had trouble defining exactly
what that ringing is. So let us
clear the air and state it as
simply as possible:
that ringing is the sound of a
beacon-enabled future, one in
which communication between
brands and consumers is more
direct, and more physical,
than any technology has ever
before allowed.

3. however, the technology is
in its nascent stages. While
beacons themselves are
straightforward, the creative
potential and limitations of
beacon technology remain
unclear. Most important, there
has yet to be a well-defined
standard for a beacon-
triggered user experience.

4. The full potential of beacon
technology will take
experimentation
time
resources
creativity
It’s not going to be
“plug and play.”

5. what are beacons?
how do they work?

6. bea·con n. /|
bēkən/
small, low-powered
transmitters that communicate
with smart devices in a
predefined physical radius
The “iBeacon” nomenclature confusion arose in 2013, when Apple
took Bluetooth LE technology and packaged it into iOS7 and
all of their newest devices. Then, using their standard “i-Naming”
convention, Apple effectively branded their version of the
technology as “iBeacon.” While it is true that many beacon
manufacturers are indeed working with Apple’s trademarked
iBeacon technology, it should be noted that any Bluetooth
LE-enabled device, including devices running Android, can
interact with beacons.
Beacons tie physical location to content delivery,
allowing brands to effectively trigger messages,
promotional offers, or unique app experiences based
on a user’s precise physical location.

7. Beacon technology
was made possible
and practical by the
invention of Bluetooth LE,
a low-cost, low-energy,
proximity-based network
that allows Bluetooth-
enabled devices to
interact with other
devices without
draining the battery
of either.

8. GPS
beacon technology stands
in contrast to GPS – which
is what most location–
based services have used to
this point – in that it uses
proximity mapping rather
than satellites or cell tower
triangulation to identify a
user’s position. This means
that it can work effectively
indoors, and if multiple
beacons are employed at once,
can pinpoint a user’s location
down to centimeters.

9. NFC
Beacon technology also
contrasts with NFC in that
it can connect devices from
distances of more than a
few inches and does not
require the mobile device
to have an NFC chip. To give
some perspective: NFC chips
have found their way into
only a limited selection of
phones, Apple’s not included,
while Bluetooth is already
incorporated into most.

10. BASIC Beacon INTERACTION
A preprogrammed signal is emitted from one beacon – let’s
call it Device A – and whenever a second, Bluetooth-LE
enabled mobile device, Device B, comes within a predetermined
vicinity–whether it be one foot, five feet or fifty feet–Device A
triggers a notification on Device B.
A
B

11. The signals coming from Device A, and the action it triggers
in Device B, can be preprogrammed through a content
management platform and can be changed, tailored and
altered at any time.

12. The proximity at which an interaction is triggered can be pre-
programmed to various intervals ranging from a few centimeters
to nearly 50 meters, and the connection, in its most basic form,
does not require Wi-Fi or Internet access.

13. The beacon devices themselves are just small devices–cheap, around $30
to $60, and of varied size, depending on the manufacturer–that contain
computer chips. These chips emit a constant Bluetooth LE signal, which
can then be recognized by a Bluetooth LE-enabled mobile device.
30$
60$

14. how does the
mobile device
hear the beacon?

15. In order for a user’s mobile
device to receive the signal
from a beacon:
beacons may not be
the California gold rush,
but they present a golden
opportunity for brands
and marketers with an
explorative mindset.
1
2
3
the user’s device must have an app
listening for the beacon’s signal
Bluetooth must be turned on
the user must have granted the app
permission to receive push notifications

16. why is beacon
technology
revolutionary?

17. People are
already
comfortable
with the idea
of a content
strategy for
social [media],
and beacons
will simply
require a
new content
strategy for
your physical
space. Chad Rodriguez,
sonic notify,
beacon manufacturer

18. Beacon technology has the
potential to fundamentally
disrupt the way brands think
about the intersection of
physical retail experience and
mobile experience.

19. To date, user-specific content strategy has been relegated
to online environments like social networks, where the
brand can either target individuals based on preference
or use retargeting campaigns that use browsing behavior
to dynamically create ad units.
A proximity-triggered content strategy for beacon-
enabled environments will, therefore, resemble the
complex, highly segmented content strategies that brands
and marketers have already learned to develop for social
media.
Beacon technology effectively
adds a physical component to
an already-existing targeted
outreach strategy, allowing
brands to reach a user based
on their precise physical
location, in addition to every
other existing parameter.

20. Using beacons
wisely, retailers
will be able to
play the part
of a gracious,
individually
attentive host,
combining
the users’
interests, intent
and physical
location.

21. Retailers have become savvy at acquiring and cataloging an
endless amount of data on their customers’ browsing patterns,
areas of interest, and purchase intent.
Applied thoughtfully, beacons
will allow retailers to
leverage this data in a physical
environment, both to recognize
customers as they enter a store,
and to deliver custom-tailored
content, offers, and experiences
as they progress through the
aisles.
If a customer enters a physical space–retail or otherwise–
and a thoughtful, beacon-triggered message welcomes them
and anticipates their needs, it is likely that the customer will
enjoy the experience.

22. how are beacons
being used today?

23. s p o rts
ar e na s
R e tai l
S pace ai r p o rts
livi n g
s pace s m u s e u m s
e ve nt
ar e a sr e stau r ants

24. s p o rts
ar e nas

25. One of the most significant adopters of beacon
technology has been Major League Baseball,
which has implemented beacon technology in
2030of ballparks

26. it’s kind of
a no-brainer.
mobile and
digital
experiences
are paramount
to our fan
experience.
beacons
open up a
world of
possibility.Bill Schlough
Chief Information Officer
san francisco giants

27. The MLB’s beacons communicate to fans through
the MLB AtTheBallpark app, which, once installed,
encourages fans to check in at entry points in order to
unlock special offers.

28. e ve nt
ar e as

29. At SXSW Interactive 2014, beacons were featured
prominently, not only as a method of providing
information, but also as a way of fostering a sense of
community among festival attendees.

30. Users who downloaded the official SXSW app – powered
by Eventbase – were treated to a smattering of beacon-
enabled perks, depending on their location. For instance,
those in the vicinity of the registration area, typically a
dreaded waiting zone, were given access via beacons to
a Registration Quickcode, thereby expediting the tedious
process.
Beacons were also used to bolster a sense of community
and even initiate group conversations among attendees.
If, for example, a user walked into a particular session, a
beacon in the room would trigger an invitation to an in-
app “chat room,” in which all of the users within range
of the beacon could engage in conversation. Festival
attendees and bloggers–often a tough crowd to sell on
new technology–generally responded favorably to the
use of beacons at SXSW, and some even suggested that
Eventbase could have been more aggressive with its
notifications.
Some of the most clever usage of beacon technology
has been through the creation of large-scale interactive
events and exhibits. At CES 2014 in Las Vegas, for instance,
beacons formed the backbone of an interactive scavenger
hunt; and in May 2014, beacons were used to create a
New York City Beacon-Crawl–a clever take on the popular
pub crawl–in which beacons are scattered throughout
bars and restaurants within the city, and participants are
rewarded upon entry.

31. r e tail
s pace

32. The greatest opportunity for
beacons is within the retail
space, as the technology
unveils an ability greater
than we’ve ever had to
communicate with consumers
entirely based on where they
are located in a store.
Surprisingly though, this
is the area that has been the
slowest to grasp for the
technology.

33. Shortly after announcing iBeacon, Apple
introduced them into all 254 of their U.S.
brick-and-mortar stores, easily the most
expansive implementation of the technology in
the retail space. Upon entering an Apple store–
with Bluetooth enabled and the Apple Store
app installed–users are welcomed with links to
EasyPay, support, and gift recommendations,
all designed to make the shopping experience
both easier and more interactive.
However, outside sources have reported that
the technology’s implementation has been
far more sparse–and less creative–than one
might expect from the company effectively
pushing the technology. Additional retailers,
such as Macy’s and American Eagle, have also
introducedbeaconsintotheirstores,but,again,
their efforts have largely been on a trial basis
and have not made extensive creative use of
the technology.

34. what comes next?
how can marketers
push forward?

35. REDEFINING
HOW
CONSUMERS
AND BRANDS
THINK ABOUT
BLUETOOTH LE

36. Many brands
are concerned
that consumers
will, for fear
of battery
loss, disable
Bluetooth on
their devices.
And without
Bluetooth
enabled, a
brand’s app
can’t listen for
beacons.

37. However, it is likely
that Bluetooth
deactivation will
become irrelevant:
1
2
3
as consumers learn to disassociate its
activation with decreased battery life,
as Apple’s vested interest in being a
beacon leader matures.
as Apple – and perhaps Google as well –
makes it far more difficult for users to
disable Bluetooth, perhaps burying the toggle
deeper into the general settings of the phone,
or actively encouraging users to leave it
enabled.

38. a user-first
approach
to push
notifications

39. Brands also worry that
customers will be put
off, rather than pleased,
by an increase in mobile
notifications. The fear of
burdening consumers with
a tidal wave of unwanted
notifications is a genuine
concern, and marketers will
undoubtedly have to rely on
common sense when designing
their beacon environments.
Recent research indicates,
though, that as long as
notifications are kept
relevant, consumer friendly,
and creative, they will be well
received by consumers.

40. 72%
of consumers say that a
relevant mobile offer pushed
to their smart device would
significantly influence their
decision to make a purchase
67%
of consumers have received
a push notification to their
smart device over the past
six months
79% made at least one
purchase as a result
The mobile marketing platform Swirl conducted a
beacon study based on what we already know about
consumer behavior in a retail environment. Their findings
confirm that many consumers are open to notifications,
as brands can provide offers and perks that are relevant
to them and add value to their time in the store. A few
highlights from their study:
81% read or opened them
most of the time

41. 85%
of consumers realize that
online retailers track their
shopping behavior, but accept
that their doing so will result
in relevant offers/promotions
for the consumer
75%
of consumers prefer
that retailers use personal
information, so long as it
improves the shopping
experience.
Asimilar study from Monetate–which focused on online
retail but studied the same general behaviors–went
even further to show that consumers are generally open
to having retailers interact with them, so long as such
interactions play a positive or helpful role in their shopping
experience. As that study shows:

42. GETTING AN APP
IN THE CONSUMERS’
HANDS

43. After all is said and done, a Beacon interaction requires
a companion app on the user’s device. This has been
the most feared component of beacon technology for
large brands who, in order to benefit from the technology,
must first have a considerable audience of users on their
app.
Generally speaking, we know that branded apps from
retailers tend to see low usage, particularly in-store.
While they are often an excellent resource for engaging
customers at home (whether for browsing, gathering
product information, or compiling a wish list) retail-
focused apps have generally not shown their value in an
in-store context.
This is where beacons have the greatest potential, and
could not only change customers’ shopping experiences,
but could also lead to a more positive and sustained
engagement with a brand’s app. In a beacon-enabled
environment, a store’s app becomes the anchor for an
experience unlike any a customer has experienced in a
brick-and-mortar store. Assistance can arrive sooner,
offers can present themselves at only the most opportune
and relevant moments, and the checkout process itself
can be completely streamlined.
So to flip the argument on the app-doubters: if none of this
would be possible without the app, won’t customers want
to download the app just so that they can experience it?

44. KEY TAKEAWAYS
FOR BRANDS

45. Beacons are no longer on the
horizon. They have arrived.
Beacons are affordable and simple
to implement. They are also easily
scalable.
Beacons are the new mobile, and are
creating a new content platform
on which brands and consumers
can interact in a physical space.
Consumers are ready.
The winners of beacon technology
will be the ones who host their
customers rather than sell to their
customers.

46. written by
DANIEL CHARNESS
DAVID MARTINEZ
ZACH PENTEL
edited by
DANIEL CHARNESS
designed by
SCOTT MODRZYNSKI
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