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1
BEACONS IN E-COMMERCE
– how to use them and
achieve success
2
MARKET DATA AND TRENDS
OMNICHANNEL
33% of consumers buy using multichannel
31% consumers visit
shop before going
online
34% consumers use
online information
before buying offline
51% consumers use
mobile devices
Source: Deloitte Report - The Omnichannel Opportunity, 2013
OMNICHANNEL CLIENTS
Źródło: Deloitte Report - The Omnichannel Opportunity, 2013
They buy more than regular buyers
They are influenced by
63% consumers use
multichanneling when they
shop and they spend more
than £100 in average
ONCE PER
WEEK
Share in retails – more than 70%
They buy non-food articles
They use multichanneling more
often
Visits in the real shop
Opinions, price comparison
sites
Mobile apps
Social Media, blogs
£81.00 £83.00
£93.00
£126.00
£99.00
£118.00
£0.00
£20.00
£40.00
£60.00
£80.00
£100.00
£120.00
£140.00
OMNICHANNEL AND BASKET VALUE
source: Deloitte Report - The Omnichannel Opportunity, 2013
online
research and
online
shopping
offline online offline +
research during
the shopping
offline +
research online
BEFORE the
shopping
ROPO
Source: Deloitte Report - The Omnichannel Opportunity, 2013
21%
22%
23%
23%
25%
34%
35%
0% 10% 20% 30% 40%
77% expect some benefit after the check-in
Source: Swirl Networds, 2013
SMARTPHONE DURING SHOPPING
Finding local shop
Taking a picture of the product
Price comparison
Scanning the barcode of the product
Localization and local offers
Online opinion research
Information about the product - research
7
BEACON
TECHNOLOGY
Beacon is a small device that is able to exchange
information with other mobile devices equipped
with the suitable application. It is based on the
Bluetooth 4.0 Low Energy.
It allows you to communicate and
locate devices even in closed
spaces with an accuracy of several
centimeters.
BEACON TECHNOLOGY
The beacon can be based
on multifunction devices
such as iPad.
Dedicated solutions are quite
frequent. Companies like
Estimote, Roximity, Twocanoes
offer beacons ready to go.
Price of a Beacon
device depends on
the manufacturer. It is
+/- 10-50 USD per unit.
BEACON TECHNOLOGY
1
APPLICATION SCENARIO
1. Joanna is sitting at the bus stop
and checking news on Facebook
2. She sees that her friend
downloaded the fashion app
from the store X, her favorite
brand of clothes and she
received a 25% discount on
additional purchases of products
of this brand
3. Joanna also wants to have a
discount, so she downloads the
application.
4. She receives 30 points as a
reward for installing the
application. In addition, the
application informs her up to
date on current news and
promotions, so Joanna is happy.
APPLICATION SCENARIO
5. Time passes by…
APPLICATION SCENARIO
6. Joanna goes to the cinema
in the shopping center in the
city.
7. On the way she passes by
various shops, but do not shop.
8. Passing salon "Pull & Bear"
she receives a notification on
her smartphone.
APPLICATION SCENARIO
9. She stops at another salon
to read the notification.
10. It turns out that today is the
promotion of "-25% on dresses"
in her favourite shop X.
11. She looks up and she
stands in front of the entrance
to the shop X .
12. She clicks on the
notification and goes to the
store to see what dresses are
in promotion.
APPLICATION SCENARIO
13. It turnsout that one dress is
in promotion so decides to
buy it.
14. At the checkout she
notices that she can register
her purchase in the
application and receive more
points.
15. Joanna scanns the code
and receives more points on
her account.
APPLICATION SCENARIO
16. During the random visit in
the shopping mall, Joanna
buys a nice dress at a
promotional price and earns
on the purchase a large
amount of points.
APPLICATION SCENARIO
1
DIFFERENT USES OF
BEACONS
The customer in the store can
be informed about products
complementary to the
product which is stationary.
UPSELLING
The customer can have
access to the map of the store
and quickly discover a
product at a promotional
price, the products from the
online wishlist, etc.
STORE NAVIGATION
The customer can receive
points for entry into the
dressing room area.
POINTS FOR ENTERING FITTING ROOM
If a product, that customer
tries on, doesn’t meet his or
hers requirments, the
application can present
alternative products and
indicate where they are
placed in shop.
ALTERNATIVE PRODUCTS
The customer may report the
need of assisstance to which
employees will be able to
respond.
CUSTOMER SERVICE
2
MORE INFO
On the market for over 10 months (09.2013 - iOS7)
Pilot implementations:
• Apple implemented iBeacons in 254 stores in USA
• Safeway and Giant Eagle implemented beacons in 150
stores in USA
• American Eagle – implementation in 100 stores in USA
• Macy’s - implementation in 2 shopping malls in USA
• Superbowl 2014 on the Time Square
• Tesco – pilot in store in Great Britain
• London Heathrow Airport
• SXSW festival
• ….
BEACON SO FAR
Source: http://mashable.com/2014/03/07/ibeacon-sxsw-2014/
Sales increase by:
• Increasing the number of inputs to the local store
• Helping customers navigate in the store
• Personalization of the advertising messages
• Speeding up the process of receiving the order from store (system check-in)
in)
• Up-selling (suggesting complementary products)
• Creating a heatmap of the shop (the most popular places)
• Collecting information about consumer behavior
• Speeding up the purchasing process - with the integration of the payment system
POSSIBILITIES
• In-depth research on the Polish market
• Concept creation of the loyalty program based
on multi-channel (with the support of beacon
technology)
• Concept creation of acquiring data on consumer
behavior in multi-channel (with the support of
beacon technology)
• Conducting a pilot study with users in one of the
establishments using the prototype of the loyalty
program and beacon,
• Creating a loyalty program and the application
supporting action beacon in stores
• Designing sources of data on consumer behavior.
WHAT NEXT?
Contact us for
more:
dwinkowski@divante.co
www.divante.co

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How to use beacon technology and sell more?

  • 1. 1 BEACONS IN E-COMMERCE – how to use them and achieve success
  • 3. OMNICHANNEL 33% of consumers buy using multichannel 31% consumers visit shop before going online 34% consumers use online information before buying offline 51% consumers use mobile devices Source: Deloitte Report - The Omnichannel Opportunity, 2013
  • 4. OMNICHANNEL CLIENTS Źródło: Deloitte Report - The Omnichannel Opportunity, 2013 They buy more than regular buyers They are influenced by 63% consumers use multichanneling when they shop and they spend more than £100 in average ONCE PER WEEK Share in retails – more than 70% They buy non-food articles They use multichanneling more often Visits in the real shop Opinions, price comparison sites Mobile apps Social Media, blogs
  • 5. £81.00 £83.00 £93.00 £126.00 £99.00 £118.00 £0.00 £20.00 £40.00 £60.00 £80.00 £100.00 £120.00 £140.00 OMNICHANNEL AND BASKET VALUE source: Deloitte Report - The Omnichannel Opportunity, 2013 online research and online shopping offline online offline + research during the shopping offline + research online BEFORE the shopping ROPO
  • 6. Source: Deloitte Report - The Omnichannel Opportunity, 2013 21% 22% 23% 23% 25% 34% 35% 0% 10% 20% 30% 40% 77% expect some benefit after the check-in Source: Swirl Networds, 2013 SMARTPHONE DURING SHOPPING Finding local shop Taking a picture of the product Price comparison Scanning the barcode of the product Localization and local offers Online opinion research Information about the product - research
  • 8. Beacon is a small device that is able to exchange information with other mobile devices equipped with the suitable application. It is based on the Bluetooth 4.0 Low Energy. It allows you to communicate and locate devices even in closed spaces with an accuracy of several centimeters. BEACON TECHNOLOGY
  • 9. The beacon can be based on multifunction devices such as iPad. Dedicated solutions are quite frequent. Companies like Estimote, Roximity, Twocanoes offer beacons ready to go. Price of a Beacon device depends on the manufacturer. It is +/- 10-50 USD per unit. BEACON TECHNOLOGY
  • 11. 1. Joanna is sitting at the bus stop and checking news on Facebook 2. She sees that her friend downloaded the fashion app from the store X, her favorite brand of clothes and she received a 25% discount on additional purchases of products of this brand 3. Joanna also wants to have a discount, so she downloads the application. 4. She receives 30 points as a reward for installing the application. In addition, the application informs her up to date on current news and promotions, so Joanna is happy. APPLICATION SCENARIO
  • 12. 5. Time passes by… APPLICATION SCENARIO
  • 13. 6. Joanna goes to the cinema in the shopping center in the city. 7. On the way she passes by various shops, but do not shop. 8. Passing salon "Pull & Bear" she receives a notification on her smartphone. APPLICATION SCENARIO
  • 14. 9. She stops at another salon to read the notification. 10. It turns out that today is the promotion of "-25% on dresses" in her favourite shop X. 11. She looks up and she stands in front of the entrance to the shop X . 12. She clicks on the notification and goes to the store to see what dresses are in promotion. APPLICATION SCENARIO
  • 15. 13. It turnsout that one dress is in promotion so decides to buy it. 14. At the checkout she notices that she can register her purchase in the application and receive more points. 15. Joanna scanns the code and receives more points on her account. APPLICATION SCENARIO
  • 16. 16. During the random visit in the shopping mall, Joanna buys a nice dress at a promotional price and earns on the purchase a large amount of points. APPLICATION SCENARIO
  • 18. The customer in the store can be informed about products complementary to the product which is stationary. UPSELLING
  • 19. The customer can have access to the map of the store and quickly discover a product at a promotional price, the products from the online wishlist, etc. STORE NAVIGATION
  • 20. The customer can receive points for entry into the dressing room area. POINTS FOR ENTERING FITTING ROOM
  • 21. If a product, that customer tries on, doesn’t meet his or hers requirments, the application can present alternative products and indicate where they are placed in shop. ALTERNATIVE PRODUCTS
  • 22. The customer may report the need of assisstance to which employees will be able to respond. CUSTOMER SERVICE
  • 24. On the market for over 10 months (09.2013 - iOS7) Pilot implementations: • Apple implemented iBeacons in 254 stores in USA • Safeway and Giant Eagle implemented beacons in 150 stores in USA • American Eagle – implementation in 100 stores in USA • Macy’s - implementation in 2 shopping malls in USA • Superbowl 2014 on the Time Square • Tesco – pilot in store in Great Britain • London Heathrow Airport • SXSW festival • …. BEACON SO FAR Source: http://mashable.com/2014/03/07/ibeacon-sxsw-2014/
  • 25. Sales increase by: • Increasing the number of inputs to the local store • Helping customers navigate in the store • Personalization of the advertising messages • Speeding up the process of receiving the order from store (system check-in) in) • Up-selling (suggesting complementary products) • Creating a heatmap of the shop (the most popular places) • Collecting information about consumer behavior • Speeding up the purchasing process - with the integration of the payment system POSSIBILITIES
  • 26. • In-depth research on the Polish market • Concept creation of the loyalty program based on multi-channel (with the support of beacon technology) • Concept creation of acquiring data on consumer behavior in multi-channel (with the support of beacon technology) • Conducting a pilot study with users in one of the establishments using the prototype of the loyalty program and beacon, • Creating a loyalty program and the application supporting action beacon in stores • Designing sources of data on consumer behavior. WHAT NEXT?