Are Beacons Really The Next Big Thing?

What are Beacons?

Beacons or iBeacons are proximity-based transmitters that can communicate with smartphones, tablets, wearables and the like. They use blue tooth technology and similar to NFC (near field communication) devices, can be used in a variety of settings. The beacons (like Estimote that lets you build apps along with it) "ping" to the nearest smartphone and can then deliver information, targeted marketing messages, etc.

Why are Beacons so exciting?

Proximity-based marketing and advertising has long interested marketers, for obvious reasons. The best time to trigger a purchase is getting the timing right. What better time to push a targeted message then when a patron is standing in front of your coming soon poster, or walking past concessions? But it is difficult to track every single customers path. Enter smartphones, tablets and wearables. While wearables are still emerging, smartphone penetration in the UK and Ireland is nearing the 60% mark. This level of penetration combined with, how inexpensive beacons are for brands to purchase and install, (Estimotes are unobtrusive stickers), means beacons can be deployed quickly and cheaply. What's more, smartphones now have all the inbuilt tech necessary to receive messages.

The barriers to beacons are very low. The big benefit here is of course being able to send targeted messages, promotions and information exactly when a customer needs/wants it. But perhaps even more importantly is the ability to gather valuable data on patrons (with the caveat that it all in compliance with EU directives). This will give a much clearer and broader picture into the full patron experience.

In a theatre, festival or club setting beacons could be placed throughout. As patrons walk around beacons will "ping" their phone and allow them to interact with the information or message. This allows you to track the path of patrons and see what interests them. This information is essential in providing a richer experience for customers.

This sort of tech also allows for a more content to be pushed at the right time. Beacons can also be attached to merchandise, giving customers more information or offers if required. Imagine festival goers passing a beacon giving them "up next on this stage" information, or patrons getting a reminder message about their intermission drinks. Or when leaving an ice skating venue, a customer might get a message with a discount on their next skate session. The possibilities are only limited by your imagination.

However . . .

There is still an unknown quantity here and that is patrons themselves. Will they find beacons annoying or worse creepy? There has been much talk of the coming Big Data Backlash amongst consumers, will beacons be shunned because of this?

Beacons are really exciting. They give a real opportunity to engage customers in meaningful, new ways. Knowing how much is too much with beacons will be important, as will ensuring that beacons provide actual valuable content and not just marketing and promotion messages. Companies such as Tesco and Waitrose are already trialling beacons, and companies such as Estimote make it easy for smaller organisations to try beacons for a reasonable price.

Have you considered beacons for your organisation? What do you think about beacons, are they appropriate for your organisation?