BEACONS & PROXIMITY TECHNOLOGY IN RETAIL
C O N T E N T S ABOUT ME THE DIGITAL & MORTAR LANDSCAPE SUMMARY OF THE POPULAR PROXIMITY BASED TECHNOLOGIES THE DIGITAL & MORTAR USE CASES PROXIMITY MARKETING NAVIGATION BROWSING PAYING OTHER SERVICES SUMMARY
ABOUT ME RETAIL DIGITAL END TO END
I m famous for pu,ng digital in store at M&S in the UK 20% of all M&S orders now taken on these new digital channels I run a popular retail innovaaon blog
MY WORK AT MARKS & SPENCER DIGITAL STORES UK M&S.COM REPLATFORM (UK) DIGITAL STORES INTERNATIONAL CATEGORY SPECIFIC INNOVATIONS
MY FAMILY ARE BEHIND THE POPULAR UK RETAIL CYCLE RETAILER EVANS CYCLES
THE DIGITAL & MORTAR LANDSCAPE
THE WAY PEOPLE BUY IS RAPDILY CHANGING There is an adjustment taking place in the market between bricks & digital. Device usage growth UK store foosall has been declining. Digital influence on purchase conqnuing to rise and mobile/tablet main drivers. Usage conqnuing steep trajectory. Delivery costs rising and online pure- play retailers going out of business. Source: BI Intelligence
HOW SHOULD YOU PRIORITISE YOUR INVESTMENT? FOOTFALL AVERAGE SPEND COSTS PROFIT Increase customer saqsfacqon Increase Qme spent in store Increase Net Promoter Score Increase visitors into store Improve product availability Increase staff on shop floor Increase conversion Increase average basket size Reduce staff turnover Improve staff producqvity
THE KPIs FIT INTO 3 STAGES OF THE JOURNEY A]racQng the customer into store Create great customer experience Convert the opportunity
SUMMARY OF THE POPULAR PROXIMITY BASED TECHNOLOGIES
Bluetooth Low Energy (BLE) / Beacons Beacons broadcast messages and devices listen Works up to 50m. Uses: Geo tracking / Way- finding indoors MarkeQng messages/ noqficaqons Get details
WI- FI IniQated by logging into a WIFI network with a device. Works up to 20m Can be networked. Uses: Geo tracking / Way- finding indoors MarkeQng messages
Near Field CommunicaQon (NFC) Reader transmits radio signal which acqvates(powers) the tag which in turn sends response CommunicaQon is 2 way Works up to 10cm Device reads data from a tag Uses: - Payment Access control Service iniqaqon
Radio Frequency ID (RFID) Reader transmits radio signal which acqvates(powers) the tag which in turn sends response CommunicaQon is 1 way Works up to 100m Can be wri]en to Can be sown into clothing Uses: - Item inventory counqng Inventory movement / tracking Item idenqficaqon
THE DIGITAL & MORTAR USE CASES
PROXIMITY MARKETING RETAIL DIGITAL END TO END
Proximity markeang is the localised wireless distribuaon of adverasing content associated with a paracular place
PROXIMITY MARKETING EXAMPLES MCDONALDS IN RESUATRANT OFFERS (BEACONS) OFFERS IN BUS SHELTERS (NFC) TIMBERLAND IN STORE OFFERS (BEACONS) PHLIPS LED LIGHTING (BEACONS)
Macys have used beacons to noafy customers of offers and reward loyalty
McDonalds have used beacons to alert customers of offers and informaaon as they arrive at the restaurant
Meat Pack have used mobile locaaon to hijack customers from a rival stores by offering a discount which counts down every second unal you arrive in store
26
BROWSING RETAIL DIGITAL END TO END
SHOPPING EXAMPLES HOUSE OF FRASER (BEACONS) MADE.COM GET PRODUCT INFO (NFC) C&A GET PRODUCT INFO HANGERS (RFID) NEW BALANCE (RFID) POWATAG (AUDIO CODES)
In Hointer stores you can tap an NFC tag on a product to get your size sent straight to the fi,ng room to try on
30
At Carrefour you can tap an NFC shelf edge label to get product informaaon
32
At Rebecca Minkoff they use RFID to idenafy products brought into store to help customers make the right choice
Every millisecond counts. Greater integraaon into mobile handsets is key to greater customer adopaon of in store assisted shopping apps
PAYING RETAIL DIGITAL END TO END
Mobile payments is poised to transform the way consumers pay for everything they buy
PAYMENT EXAMPLES CHECK- IN & PAY PAY BY WATCH PAY BY PHONE
Apple Pay is about to kick- start the mobile payment revoluaon in Europe
OTHER SERVICES RETAIL DIGITAL END TO END
OTHER (LOCATION BASED) NAVIGATION AT MACYS (WI- FI) TELEFONICA MONITORING THE CROWD GOOGLE LOCATION HISTORY
Facebook are providing beacons to retailers to enable stores to Ae in user generated content with the store the customer is standing in
44
Knowledge of where you are gives retailers a powerful locaaon targeted markeang opportunity
SUMMARY RETAIL DIGITAL END TO END
KEY TAKEAWAYS Digital is disrupqng in store retail and proximity based technology & mobile are two of the main disruptors. The four most popular types of proximity technology available today are BLE, NFC, WI- FI and RFID. Greater integraqon of NFC into handsets key to making a be]er shopping experience with mobile. Mobile payment is poised to disrupt the way we buy in store. Knowledge of where you are gives retailers the power to target you at your locaqon and at that moment in Qme.
MY COMPANY Worldwide company; 180 employees. We re a specialist in bringing digital into store CriQcally - we understand e- commerce and we understand the store We ve been innovaqng in the digital in store space longer than anybody. We work with around 50 retailers worldwide including: -
MY BLOG RETAIL DIGITAL END TO END
FOLLOW ME / CONTACT ME @craigwsmith Retail InnovaAon craig.smith@replgroup.com repldigital.com retail- innovaaon.com
END BEACONS & PROXIMITY TECHNOLOGY IN RETAIL