book - Beaconstac

Why Proximity Marketing is the Next
..... 2
Big Thing
Why Context is King
..... 3
How Proximity Marketing works
..... 4
What to keep in mind when setting up
..... 7
your iBeacon trial
Common Mistakes in Proximity
..... 12
Marketing Campaigns
Brands that are doing Contextual
..... 15
Marketing right
Do-It-Yourself: DIY Proximity
..... 23
Marketing Worksheet
Proximity Marketing
is the Next Big Thing
Over the past year, we have seen a number of brands ranging from casinos
to theme parks, begin to dip their toes into proximity marketing by running
beacon trials. Infact, according to a recent Adobe research, 18% of marketers
are reported to be actively testing and deploying beacons, and the numbers
are expected to double in 2015.
However, most brands are still unsure about how to leverage beacons and
integrate iBeacon into their mobile strategy. Even those marketers who
are well aware about proximity marketing and its ability to help drive
sales, aren’t sure about where to begin or the kind of campaigns they can
implement with beacons.
Proximity Marketing to take hold in 2015
This ebook will cover everything, right from how proximity marketing
works to tips on how to kickstart your proximity marketing campaign
to pitfalls that brands must avoid to how marketers can use beacons to
their full potential.
In today’s fast-paced marketing
race, creating personalised,
is King
consumer-tailored experiences
is the only way for brands
ahead. So much so that, many
marketers are touting the slogan
“If content is king, then context is
emperor”. By opting for contextual
consumer experiences, brands
can customize notifications to the
needs and preferences of each
So, what exactly represents
better design? Contextual
Consumer experiences
work better when they
are contextual
consumer experiences revolve
around consumer interests and
behaviours that hold the key to
accurate contextual awareness.
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Gaining deep insights on what
your consumer is currently doing,
what he or she is interested in
or what he or she might need in
the immediate future will give
you invaluable data points around which engaging notification can be
Further, with consumers wanting a centralized experience where apps
merely sit in the background and keep pushing relevant content forward,
contextual notifications are the way ahead when it comes to app design.
How Proximity
Marketing works
Proximity marketing with
1. First of all, the consumer
beacons involves setting up
should be using a Bluetooth
a bluetooth enabled mobile
enabled mobile device at the
device at a particular spot
location where the proximity
within the range of the beacon
marketing technique is being
and passing information in the
form of text, images or video
via the respective mobile app.
2. A beacon must be deployed
There are a number of must-
in the area where the consumer
haves required to employ this
is currently located, in order to
marketing technique. They are:
send out and receive marketing
messages or other information.
3. The targeted consumer should
What are the 3 musthaves for proximity
have downloaded the relevant
mobile application and installed
it on his or her phone that
is capable of receiving push
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Again when it comes to beacon deployment there are a number of
factors to consider, starting from available power arrangements
to choosing the right kind of beacon. Once deployed, beacon
communication occurs in 3 quick steps. They are:
Device detection
A beacon scans for bluetooth enabled mobile devices in its proximity
range while it broadcasts its ID number (which is unique to a particular
beacon in that location) at regular intervals. The proximity-aware
mobile app will also carry a list of ID numbers of all the beacons that
have been activated and will associate them with their location. Once
the device matches a beacon’s ID with the ID held in the proximityaware mobile app, it lets the app know that the beacon is nearby.
Permission request
For each bluetooth enabled mobile device
detected within the proximity range of the
beacon, the mobile app will send requests to
consumers seeking permission to communicate
with their mobile device.
Content upload
Once the consumer grants permission, it will then notify him/her with
a message alert that has been configured in the app. Tapping on the
message, opens the app and displays personalized marketing messages
in the form of text, images, audio or video. These messages are mostly
centered around products found at the spot chosen for promotion or
around complementary products found one aisle away.
What to keep in mind
when setting up your
iBeacon trial
There has been a lot of hype about what beacons are capable of and how
businesses can use these devices to enhance customer experience, and to
generate more revenue. What is surprising is that inspite of all the hype,
there is very little ‘actionable information’ when it comes to deploying
beacons in the real world. Here are some pointers that will help you get
started with your iBeacon trial and move ahead in the right direction.
Choose a beacon that suits the interior
design and aesthetics of the venue
With beacon manufacturers busy creating a new generation of these little
devices, choosing the right beacon that suits the needs of your business
has become far more complicated.
For example, in the case of a museum, marketers might want to opt for a
beacon that aesthetically blends in with their interior decor. On the other
hand, in the case of a outdoor event, marketers might want to look for allweather beacons which are more sturdy than general indoor beacons.
To solve such challenges related to deciding the right beacons for
your business, refer our one-stop source for all things beacons: the
Interactive Beacon Hardware Guide.
1. Filter and search for beacons
2. Learn more about each beacon
3. Rate, review and recommend a beacon
4. Submit a beacon
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A Beacon Hardware Guide that helps you make
a ‘data-backed’, informed decision in no time!
Give some thought to the available power
When it comes to purchasing beacons, it is highly crucial that
marketers take into account the power arrangements available at the
area where the beacons are being deployed. Majority of the beacon
hardware currently available in the market are battery-powered.
Therefore, when it comes to large-scale deployments in particular,
battery life and on-time battery replacements are two crucial factors
that will matter a lot.
An easy way of opting out of these set of challenges is to go for
alternatively powered beacons. For example, if you have a USB hub that
is easily accessible then you can just plug in USB-enabled beacons and
use them. Here again, if you plan to deploy beacons in an outdoor setup,
then chances are that arranging for some USB ports might be a problem.
In this case, you could easily opt for an ambient electromagnetic-wave
powered beacon.
Why available power arrangements matter when
choosing the right beacon
How to employ Proximity Marketing without
depending on overused mobile marketing efforts?
According to a recent inMarket study, beacons when used along
with apps that have utility are reported to drive 500% increase in
interactions compared to standard push notifications with location
relevancy. Here are a few tips that will help you increase customer
engagement over time with effective and impactful proximity
1. Integrate with your customers’ wishlist and social-networking
accounts Beacons can help you bridge online and offline shopping, by syncing
your customers’ online wish list or social-networking accounts in
real-time with the app.
2. Add some utility to your app When it comes to beacon marketing, one of the most crucial aspects
is that it requires retailers to understand each step in the customer
journey and accordingly provide notifications that customers are
likely to benefit from.
Read more about effective proximity marketing tips
How to keep your Customers Happy using Beacons
Common Mistakes in
Proximity Marketing
Though, there has been a lot of buzz around beacons, most marketers
are still unaware of how to launch their own proximity marketing
campaigns. This has resulted in a number of disappointing beacon
trials too. So, what does it take to implement a successful beacon
rollout? How can brands capture the attention of their consumers and
get them engaged using beacons? Here are 2 mistakes that marketers
should avoid in their beacon campaigns.
Proximity marketing campaign mistakes that
marketers should watch out for
Not setting rate limits at which
messages will be sent
According to a recent study by inMarket, too many irrelevant push
notifications can nudge consumers to uninstall the brand’s app. So
much so that, with every other push notification that is delivered per
store visit, marketers risk a whopping 313% drop in app usage.
To avoid this, brands need to strictly follow certain rules of engagement.
For example, brands can use beacons to detect the ‘threshold’ time for
each section at their store, by tracking consumer dwell time at different
sections. The average dwell time of consumers at a particular section
of that store, when they are interested in buying products from that
section, is then termed as the ‘threshold’ time.
For example, if a store has set four minutes as the threshold time, it
indicates that there is a higher chance of a customer buying a product,
if he or she spends more than four minutes at a particular aisle. This
approach will help brands ensure that they don’t spam their consumers
with irrelevant offers.
Limiting beacon use cases to merely pushing
While brands all over are busy leveraging beacons to bridge the offline
and online worlds, it’s crucial that they understand that by merely using
beacons to push marketing notifications, they are contributing to a bad
user experience. According to a recent eMarketer report, consumers
have begun to expect more of personalized offers and services rather
than mere blanket discounts from brands. Therefore, going ahead,
customer loyalty programs will reward consumers for their actions and
engagement, rather than just purchases.
There is more to beacons than merely pushing
What lead to the failure of Arts Centre Melbourne’s
beacon trial?
During the Melbourne Festival in October, Arts Centre Melbourne
leveraged beacons to promote its cafes and bars and ultimately drive
sales by alerting visitors about food and beverage offers at the venue.
One of the biggest mistakes made by Arts Centre Melbourne in this
beacon campaign was that they tried to replicate a retail approach in
a cultural arena.
What lead to the failure of Arts Centre
Melbourne’s beacon trial?
A theatre experience isn’t all about buying beverages or food at the
venue, it essentially revolves around performances showcased at the
centre. Therefore, unless you leverage beacons to add value to the
visitor experience at the cultural institution, there is bound to be a
Read more about how they could have avoided a disappointing
beacon trial
Brands that are doing
Contextual Marketing
Nivea’s bluetoothenabled wrist
band tracks kids
at the beach
Image Source: dma
Nivea’s famous magazine ad campaign called the “Ad Shield” was a
print ad that could be ripped out of a magazine and be used as a childtracking wristband that warned parents if their kids strayed too far
The magazine ad, made with special moisture-resistant paper and a
built-in locator device, needed to be synchronized with the Nivea Sun
Protege application. A parent could thus program the distance they
chose, and when their child exceeded the distance limit, the application
issued an alert right to the parent’s smartphone. The brand won the
Mobile Grand Prix award for this campaign and is (arguably) one of the
best beacon implementations till date.
How Nivea’s bluetooth-enabled wrist band won
customers’ hearts
Levi’s taps iBeacon technology to
engage customers even outside of
their stores
While most of the use cases and
current trials around beacons
focus on interacting with
consumers by sending a push
message as they come into
proximity of a beacon, there are
brands that are thinking beyond
“in-store” offers.
Levi’s recently deployed beaconenabled billboards prompting
How Levi’s
leveraged iBeacon
technology to
engage customers
outside of their
customers with an offer and driving
them into nearby stores. It was
an attempt by the brand to see if
customers who visit brick and mortar
stores actually saw the billboard
posters, or that they visited the store,
but then actually purchased the
product through the website.
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Japan Airlines uses beacons to
improve customer service at airports
Image Source:
Japan Airlines started a beacon trial earlier this year in Tokyo’s Haneda
Airport. Staff were provided smartwatches that worked in conjunction
with Bluetooth Low Energy. This was to help management assign
staff more efficiently and respond more swiftly to customer requests.
Beacons placed at the terminal’s boarding gates were used to pinpoint
the exact location of each JAL staff equipped with the BLE-enabled
Using this information, managers could send assignments to the
frontline staff best placed to respond swiftly to a need. Their ground
staff could also get updates on company information and flight status
updates on their smartwatch. The airline thus used iBeacon technology
to actually improve business processes instead of using it to send
offers and product information to customers.
House of Fraser’s beacon-enabled mannequins
help drive customer engagement
Image Source:
House of Fraser recently deployed beacons in one of their stores located
in Aberdeen. In order to take advantage of any proximity marketing
campaign involving beacons, shoppers at the House of Fraser must
have the app from Iconeme downloaded on their smartphones before
they are able to receive content- specific notifications.
When shoppers are within the 50-metre range of mannequins, the
beacons will provide shoppers with further information on items the
mannequin is wearing via the app. Some information may include
price, size and whereabouts of where they can find the product in store.
Customers can then go on to extend their shopping experiences by
sharing products they find in store with friends via social media.
Carrefour uses beacons to track
shopping carts
Image Source:
Carrefour , a multinational retail chain operator attached beacons to
shopping carts and throughout the ceilings at three of their stores in
Madrid to track a shopper’s journey around the store. The data collected
from the interaction between the moving beacons and the fixed ones
could be analyzed and used to identify opportunities to improve the
overall flow on the floor.
This is done by doing a number of things such as customizing the
product selection for each store, optimizing product placement,
highlighting and pairing relevant items, providing access to off-site
inventory, as well as enabling easy access to feedback from peers for a
more social retail experience across channels.
Tips to use Proximity marketing to its full potential
1. Integrate your app with other third party apps
Brands that are looking to make the most of contextual experiences
will have to look for relevance beyond their own doors. For example,
by integrating the airline app with a car-rental service, airlines can
help travelers book airport transportation with ease.
Contextual integrations with third party apps
will be big in 2015
2. Account for more than your user’s location in the messaging
Not personalizing notifications beyond where a consumer’s current
location can often result in lack of contextualization. To avoid this
brands first need to gain deep insights into their consumer behavior.
This can be done by integrating beacons with your customer loyalty
Read more about how to make the most of proximity marketing