How beacons - small, low-cost gadgets - will influence billions in US retail sales
Feb 16, 2015, 22:41 IST
- We expect beacons to directly influence over $4 billion worth of US retail sales this year at top retailers (.1% of the total), and that number will climb tenfold in 2016.
- Many early adopters who opt in to receive beacon-triggered messages will likely be coupon clippers. Half of beacon-triggered messages sent currently are some form of coupon, according to Shopkick. Mobile coupons are a significant part of this market. Mobile couponing app company RetailMeNot claims that its offers alone influenced $3.5 billion in retail sales in 2013.
- Loyalty programs will also be important drivers. Beacons and loyalty apps could be used together to reward customers for all sorts of location-based actions, even just walking into a store. Brick-and-mortar stores will use mobile payment apps and in-store technology to establish integrated online and offline loyalty programs among their own customers.
- Since beacon-powered apps will collect valuable data on consumers' in-store activity, they could result in highly personalized and targeted offers, which will reinforce the above programs. Once a consumer opens an app in-store, the data on their clicks and location can help retailers target them with offers customized to their location in a store, or based on past in-store shopping behavior.
- Some retailers are explicitly using in-store signs and promotions to encourage shoppers to download apps and opt in to beacon campaigns. GameStop is experimenting with prominently displaying beacons in stores, so that shoppers can voluntarily wave their smartphone in front of them to receive some type of offer or information.
- Provides an explainer of how beacons work, as well as access to a supplementary FAQ
- Shows a complete list of what factors are driving beacon adoption among retailers and shoppers
- Includes a dollar-figure market forecast of how many sales will be influenced by beacon-triggered messages this year and in 2016
- Looks at how much bigger sales influenced by beacons messages could be if retailers effectively harness the technology and convince consumers to opt-in to app-based beacon programs
- Gives detailed examples of how retailers are using beacons today, and how they might be used in the future, based on our conversations with beacon vendors
