Geolocation beacons are a kind of hardware transmitter fueled either by Wi-Fi or Bluetooth Low Energy technology. Here’s what they do:
– broadcast one-way signal through a specialized application to nearby mobile devices like smartphones or tablets;
– trigger notifications with various information ranging from simple statements to special offers and personalized messages.
In a nutshell, Bluetooth beacons are very similar to lighthouses or loudspeakers. They transmit a signal (known as a universally unique identifier) into the ether and it can be caught by any prepared device in its proximity (i.e. one that has a compatible application).
Why beacons are good for business?
What makes beacons very attractive for location-based businesses, like retail commerce, is that they provide a simple and cost-efficient solution for delivering relevant information for customers while also engaging them with the brand.
It is a well-known fact that timely nudges increase the chances of purchase up to 20% through the power of basic reminders.
Beacons are also a good tool for personalized customer experience on the spot. With additional user data about purchases, beacon application can suggest other relevant products or present customers with discount promo codes and other loyalty benefits. This contributes to strengthening customer loyalty and increases the overall engagement rate with the brand.
With the help of beacons, you can gather such information as:
– how much time a particular customer has spent in a specific area of the store;
– which product section was particularly interesting for him;
Later on, this information is figured into advertising targeting that further perpetuates customer experience and improves the precision of product suggestions.