iBeacons – Fad Or Trend? [RELOADED] 49 slides on the use-cases of Apple's BLE – Bluetooth Low Energy – beacon technology that allows for the first time to precisely locate a person within pre-defined proximity of a sensor and to communicate with that person contextually. But where's the beef? NFC, QR-codes and WLAN tracking were promising that before and never caught on. This improved slide-deck provides an answer to that question by addressing the most important use-cases as well as dealing with privacy and technologies issues of the (still) nascent technology.

1. beacon
technology
improve
your real world
retail sales

2. strategy, development, and deployment services
for your retail operation
www.beaconup.co.uk
a technology primer by
2

3. marketing
with beacons
3
Enhance your real world retail presence with a marketing utility unlike any other! Beacon technology
enables you to wirelessly locate, identify, communicate, and transact with each of your customers
individually as they discover and interact with — and as you encourage them to discover and interact
with — your products or retail environments.

4. 3
Beacon technology involves deploying inexpensive and practically invisible signal emitting
devices referred to as ‘beacons’. Positioned strategically, these small devices unobtrusively
broadcast location identifying information to you via your customers’ mobile devices using broadly
supported Bluetooth® technology — without requiring your customers to do anything beyond
installing your app.

5. It starts with beacons — either attached to your real world product or surrounding your real world
environment. As a customer approaches, their Bluetooth® enabled device invisibly receives signals
emitting from these beacons. Their device now knows that your product or shop is there.
5
and your
mobile app

6. 6
Completing the deployment is your mobile app — published to and available in the relevant
mobile app stores. With your app installed on your customers’ devices and receiving the signals
from your beacons, you can now individually locate, communicate, identify, and transact with these
customers who previously could not have known of your retail presence other than by past
experience, signage, or a published address.

7. the connection
necessary for
real world retail
to thrive in an age
of ecommerce
7

8. 8
With beacon technology, your mobile app connects your online marketing to your real
world presence. It enhances the information delivery and ecommerce capabilities of your web site
by incorporating these into a mobile app cognisant of and ancillary to your customers’ immediate
present. Dynamically presenting personalized information and fulfilling desired transactions relative
to whether a customer is near your shop or holding your product in their hands adds the
advantages of online shopping to the conveniences of real world retail. This makes your real world
presence a profitable and competitive advantage in an age of ecommerce — instead of the cost
centre it is quickly becoming.

9. 9
because ecommerce
has made real world
retail less important
to consumers

10. total retail visits in the US for the months
of November and December
Stores confront new world of reduced shopper traffic. Published by the Wall Street Journal, 2014 January 16. Data regarding retail visits was collected from 60,000 tracking
devices installed at shopping malls and large retail stores in the US (source: ShopperTrak). Data regarding the opening of retail spaces was compiled from 54 of the largest US
markets (source: CoStar Group). http://bit.ly/beacon-2014-01-16-001
amount of new retail space opened
in the US annually
40 billion visits
0
10
20
30
17.6
2010 2011 2012 2013
400 million square feet
0
100
200
300
43.8
2001 2005 2009 2013
10

11. who increasingly
choose to make their
purchases online
11

12. ecommerce as a percentage of US retail sales
The tipping point (ecommerce version). Published by Jeff Jordan, Partner, Andreessen Horowitz, 2014 January 14. Data collected by the US Census Bureau.
http://recode.net/2014/01/14/the-tipping-point-e-commerce-version/
20%
25%
0%
5%
10%
15%
2001
of all retail sales
media, sporting,
and hobby goods
electronics and appliances
furniture and home furnishings
clothing and accessories
health and personal care
food and beverage
total ecommerce
2003 2005 2007 2009 2011
12

13. consequently
the advantages of
real world retail
are being lost as
ecommerce grows
13

14. as consumers shift to online shopping your retail marketing loses:
14
the convenience of proximity
the potential for serendipity
the influence of salespeople
the persuasiveness of touch
the ability to give immediate gratification

15. 15
beacon technology
combines the best of
ecommerce with your
real world presence
and improves upon it

16. Though real world retail is quickly becoming a cost centre, its advantages are still
competitive assets. Instead of losing to your customers’ propensity for online shopping, you can
build upon the advantages of being physically there — and increase your real world sales.
People don’t walk past your web site, but they do walk past your shop, shelf, or product
display. Advertise a free mobile app. Once installed on the devices in their hands you can alert
these customers when they’re near, and give them reasons to discover each particular storefront,
product, or display you have — with personalized offers or discounts specific to each. By helping
them discover and giving them a reason to explore your real world presence, your real world traffic
will increase.
16
start by improving discovery

17. But increasing traffic is only a part of the objective. Beacon technology is also likely to
improve your customers’ experience of your brand by encouraging more regular and more frequent
and more personal relationships between you. Individually locating and identifying each and every
customer enables you to provide personalized information and purchase options for the products
they’re physically looking at; compete for every purchase decision in real time; upsell or suggest
alternatives; and expedite every sale by bringing the checkout counter to their device.
There’s no longer a reason to separate ecommerce from real world retail. Make it a part of
your real world presence with beacon technology. The scope of what’s possible is what you will
eventually use to improve your real world sales.
17
and finish by improving experience

18. 18
Come in today and get
20% off one of our fancy
shirts! It will look great with
the pants you bought from
us last week!
• proximity notifications
• personalization
Welcome back! You’ve
now got 20% off one of
our fancy shirts! See them
on display just five metres
to your right.
• personalization
• guidance
You’ve found our fancy
shirts! We think the red
shirt will match your pants
best. Also, check out our
outrageous neckties!
• proximity notifications
• contextual information
Ready to go?
PAY NOW
1 fancy shirt: $19
2 outrageous neckties: $58
• location aware
ecommerce

19. using simple
signal emitting devices
19
Beacon technology relies upon the placement of small, Bluetooth® signal emitting beacons
throughout your retail environment or within your product packaging. These are simple devices, the
essential features of which include a conveniently small physical size, significant and flexible signal
range, and one or more years of battery power.

20. significant and flexible signal range
a conveniently small physical size
one or more years of battery power
20
the essential
features including

21. at least
20 millimetres1
at least
3 millimetres1
Depending upon the design of the beacons you choose, the width and height of each beacon can
vary. The smallest measure just millimetres in both dimensions.
1. Actual size varies by manufacturer. These dimensions are the smallest that we know of currently available for a beacon featuring 1 year of battery life.
physical size
21

22. signal range
100 metres1
1. http://www.bluetooth.com/Pages/Fast-Facts.aspx
A single Bluetooth® signal can be detected at a range of up to 100 metres depending upon the
design of the signal emitting beacon, your customer’s mobile device, physical obstructions, and
radio interference in the 2.4 Ghz band.1
22

23. battery power
Beacons are small, battery-powered devices. Most models currently available run for one or
multiple years on a single coin cell battery.
Bluetooth®
Emitter
Coin Cell
Battery
23

24. 24
offering nearly
unlimited potential
With a handful of beacons and a well designed mobile app, you can make your real world
retail presence your most compelling marketing tool. Start by building upon the marketing
potential summarized here to ensure your brand delivers on the promise of beacon technology.
Then differentiate by developing more.

25. 25
for marketing
your retail presence
direct attention with proximity notifications
provide your customers with guidance
promote interest with contextual information
ensure relevance with personalization
improve convenience with location aware ecommerce

26. It’s often difficult for customers to find what they’re looking for in large retail spaces or shopping
centres. Give them guidance. With beacon technology, you can lead them directly to your product
or the product they’re looking for — whether or not a salesperson is present.
26
guidance

27. proximity notifications
Direct attention with proximity notifications. By defining a range around any particular beacon, you
can notify customers of where they are and what they’re near. Direct their attention to new products,
in-store promotions, or even just the fact that your shop is there.
27
Welcome to our shop!
The fancy shirt you are
looking at is on sale today!

28. product
or display
contextual information
28
ID ID
internet
Promote interest with contextual information. It’s often that not all of the information you want to
provide about a particular product is printed on its packaging or price tag. Instead of leaving
prospective buyers with questions — and losing those sales — use your beacons to provide
up-to-the-minute information about each and every product that catches their attention. On a mobile
device you’re not limited to just text and graphics!

29. Hello George,
your special offers for
today are:
Hello Jane,
your special offers for
today are:
Hello Mary,
your special offers for
today are:
personalization
Ensure relevance with personalization. Using beacon technology, you can individualize your retail
promotions to specific customers according to their purchasing patterns and in-store history.

30. location aware ecommerce
30
Improve service with location aware ecommerce. With stored credit card information and the
barcode or ID broadcast by a beacon, your customers can skip the checkout counter and make
their purchase as soon as the product is in their hands. If what they want isn’t in stock, sell it to them
anyway for later pick up at the shop with a beacon that instantly and automatically navigates your
ecommerce catalogue on their mobile device.
Thank you
This is your receipt.
details
Visit us online to see our new collection
of outrageous neckties that perfectly
match your new fancy shirt!
Ready to go?
Total: $19.00
1 fancy shirt
$19

31. 31
already installed
in the majority of new
smart mobile devices
Beacon technology is a feature of newer mobile operating systems. It capitalizes upon the ubiquity
of Bluetooth®, the wireless standard built into almost every mobile device in use today.

32. 32
970 million
of these have been updated to support beacon technology,
and every new device sold has support built in.
2.7 billion
As of June 2014, the number of Apple iOS and
Google Android devices in use worldwide exceeds

33. 1. Apple (Jun 2014) https://developer.apple.com/videos/wwdc/2014/#101 (video 44:42)
2. Apple (Jun 2014) https://developer.apple.com/support/appstore/
Google AndroidApple iOS
1,500
2,000
0
500
1,000
million devices in use
version 7 (released Oct 2013)
earlier versions
version 4.4 (released Sep 2013)
earlier versions
800million1
devices in use
with support for
beacon technology
89%2
1.9billion3
devices in use
with support for
beacon technology
13.6%4
3. Telecoms.com (Jan 2014) http://bit.ly/1kDA2yv
4. Google (Mar 2014) http://developer.android.com/about/dashboards/
worldwide support for beacon technology in consumer mobile devices
June 2014
33

34. unlike alternative
technologies
34
RFID NFC QR codes

35. An industry standard for inventory tracking and identification, RFID (Radio Frequency Identification)
is one of the predecessors of beacon technology. Beacons effectively wrap powered RFID signals
within the wireless Bluetooth standard, making RFID broadcasts capable of being detected and
used by mobile consumer devices.
35
RFID

36. NFC is a relatively new form of RFID, frequently marketed as a mobile payments solution. It offers
communication and data capabilities similar to beacons, but only within a 20 centimetre radius —
rendering it useless for geolocation. Unlike with beacon technology, users with NFC capable
devices must initiate (as opposed to allow) any interaction. No Apple® device nor any model of
iPhone currently supports NFC.
36
NFC

37. A type of barcode, QR codes use a printed or displayed image to store data and allow it to be
transmitted via optics — most commonly barcode scanners and cameras. Although capable of
storing a similar amount of data as beacons, in order for consumers to interact with that data they
must make a concerted effort to use their device’s camera to capture the barcode and process it
using barcode reading software.
37
QR codes

38. 38
achieve greater
retail success with
a beacon enabled
mobile app

39. A beacon enabled mobile app can be much more than a mobile version of your web site — and
should be. If well designed, it will unify your real world and online presence by using the location
relevant data made identifiable by your beacons.
standard web site with a beacon enabled mobile app
39

40. A beacon enabled mobile app can deliver your marketing both inside and outside your
retail environment, giving your customers a reason to keep your app on the home screen
and top of mind. Help them discover your shop, shelf, or product display. Create surprise and
significance in serendipitous moments with location sensitive coupons or promotions. Help them to
feel informed before and satisfied after each purchase decision. Instil loyalty by personalizing your
prices or product selection and delivering these with the immediate gratification that only real world
retail can offer. Make it easier for them to buy with location aware ecommerce — rather than
standing in line at the checkout counter, waiting for a clerk to run their credit card. By combining the
advantages of real world retail with the marketing potential of beacon technology, you’ll not only be
displaying your products on your customers’ devices — you’ll be providing them the encouragement
they need to make purchases that they may not have otherwise made, or thought to make.
40

41. that your customers
are ready to install
Consumer adoption of beacon technology is a given. Technically, anybody who carries a
modern mobile device has Bluetooth® built in and, if they update that device at least occasionally,
can already run apps designed to use beacon technology. But practically, to get your customers to
enable their existing beacon receptivity specifically for your brand, you will need to give them a
reason to install your mobile app, and — in the interest of providing them an experience that doesn’t
require your application to be open — allow it to display push notifications.
41

42. Modern mobile operating systems — including both iOS and Android — give people the option of
turning off Bluetooth®. This was done because of the now false perception that Bluetooth® is a
significant drain on battery life. Bluetooth® must be turned on for your beacons to have effect.
Although on by default, people who turn off Bluetooth® will need to be reminded that it should be
kept on in order for them to receive the benefit of interacting with your (and any other) real world
beacons. Push notifications may be used to provide such reminders.
ask them to keep bluetooth®
on
42

43. Because beacon technology gives you the ability to uniquely identify your customers and their
physical location, there are valid concerns regarding privacy that you will need to address. However,
any relationship requires some level of reciprocity. If you can reward your customers for placing their
trust in you, it’s likely that very few will have any concern about allowing themselves to become
known to you when they enter or approach your real world location.
consider their privacy
43

44. 44
after a few simple
steps your customers
will beacon with you
ask them to allow push notifications
ask them to install your app
ask them to keep Bluetooth® on
confirm that they can trust you with their privacy

45. 45
three factors to
be mindful of
Security, durability, and software design are three factors that you need to consider when designing,
deploying, and maintaining a mobile beacon application.

46. Beacons may be stolen. The signals emitting from your beacons uniquely identify you and each
of your beacons. If a beacon is stolen and not immediately removed from your system, your retail
presence could be misrepresented and your customers could be confused. The seriousness of this
depends upon the services and functionality you provide through your mobile beacon application.
Beacons are battery operated. The durability of any particular beacon is directly related to the
size of its battery. Although most beacons currently on the market are provided batteries sufficient
to power the device for one or more years, these batteries are not rechargeable, and it’s entirely
possible that malfunction or water damage could take any of your beacons out of service without
warning.
security
durability
46

47. Beacons interact with devices, not people. Because customers are likely to change devices or
even carry multiple devices, it’s necessary that your database can associate multiple devices with
each customer, and that your application can maintain a single session across those devices.
Correctly and securely identifying customers is particularly important, especially when enabling
ecommerce. Providing customers with personal accounts and giving them a reason to not create
more than one is crucial to achieving a reliable mobile beacon application.
software design
47

48. 48
are you ready
to start your
beacon technology
project?

49. Stefan Wolpers
stefan@beaconup.co.uk
www.beaconup.co.uk
BeaconUp™ offers expert strategy, development, and deployment services for retail beacons and
mobile beacon applications. To successfully transition your retail marketing to beacon technology,
talk to me.
This document is copyright ©2014 Stefan Wolpers. All rights reserved.