Beacons Splash Now

Over the last couple of years I have discussed the need of retailers to communicate directly to consumers in their brick and mortar stores, along with the need of retailers to provide Internet access to consumers while in their stores.  It seems now that beacons and beacon technology is coming into its own to address at least one side of the equation.  Beacon technology is breaking out into the retail world to help merchants to communicate directly with their customers.  The challenge now is how will the merchants use the capability?

My fear is that merchants will simply use this new technology as another type of billboard in the store.  As customers pass through areas of the store these beacons can flash special offers based on many criteria, including membership in frequent shopper programs.  I see this as starting with simple sales offerings electronically distributed to customers as they pass within proximity of the beason.  In other words simply electronic signage in the store.  I see this then expanding to take into account shopper program membership to provide more focus on customers based on past shopping habits.  

I suspect that for most retailers this will be the extent of their offering for quite some period of time.  In fact I would guess that most retailers will stop at this phase until they are forced to change.  The question is how long will it take industry leaders to expand the use of these tools into a capability that engages consumers and becomes a retention tool?  The true value of beacon technology will be the ability to engage consumers in a conversation and developing a relationship with the individuals.  This will take shopping to a new level and provide an opportunity for industry leaders to focus on retention and lifetime purchase habits.

One thing that I’ve realized and truly believe is that consumers are searching for a relationship and they have been utilizing the tools available to them to develop this relationship. Mobile technology provides consumers with the technology that allows them to connect at any time and any place with their friends.  It provides a collaboration platform that allows consumers to a wealth of information at their fingertips to help in decision making, from where to eat to what to wear and where to go.  Retailers must tap into the collaborative relationship in order to succeed and I don’t think it will be too far into the future where this will simply be the cost of entry in the market.

Beacons and the technology provide a means for merchants to communicate and collaborate with the consumer and should not be wasted on simple sale notifications within the store.  Consumers will flock to the merchant that communicates directly to them and merchants will be missing a great opportunity to take advantage of the opportunity and explore communication and collaboration methods.

 

And now for the audience participation portion of the show…

ECommerce will have wide ranging impacts on both the retail and manufacturing sectors.  How can you focus these abilities to improve the consumers’ experience?  Improving the consumers experience will require a re-evaluation of the sales channels, the manufacturing channels and practices and the supply chain channels and practices from the raw materials to the consumers’ homes.  In order to ensure and maintain success in this new reality you must harness the tools and capabilities in many new areas.  How can you support these continuously changing requirements?