Boost Loyalty With In Store Beacons
Today it’s tiny, in a few years…mainstream.
Business Insider’s BI Intelligence report shows that only three percent of retailers are using some sort of in store recognition software but at least 72% of large retailers will be using something within 5 years.
Why is this important? Well for starters, gone are the days of stacking the loyalty tabs on a key chain. But more importantly remembering the loyalty card even on your phone is a problem, retailers need to make it a friction-less experience. This is where beacons come in to play…if customers have your app you can automagically reward them for just being them (in your store of course). Okay, that’s pretty basic but here is the real meat: According to Business Insider, beacon-triggered messages may have directly influenced up to $4.1B of the total U.S. store sales this year, with that figure growing to $44.1B in 2016 (percent of total U.S., store sales).
Here’s how beacons and loyalty apps can work together to reward customers in real time.
Beacon technology makes it easier for stores to send relevant messages to the customers in real time; for example, after a customer enters a grocery store and heads to the liquor aisle, a beacon placed on that aisle will trigger the loyalty app to display the push notification. The push notification will read as, “Buy Stoli Vodka and get triple points today”. Simple implementation and provides a crucial sense of urgency that Stoli would be more than likely willing to pay for.
The point of any loyalty platform is almost always redeeming the earned points for something tangible. Now take that concept and let customer redeem for in-store discounts. Instead of going to your .com site, the customer can buy a discount with their points once the beacon recognizes they are in store. This provides a subtle nudge for the customer to spend a bit more than they would without the location based discount.
Another use of the beacon technology is to get customers to parts of the store that don’t receive as much foot traffic. For example, at a sporting goods store a customer can be sent a push notification once they enter the store informing them that if they visit the fishing section today they will earn 500 pts. A part of the store that typically doesn’t get the traffic it deserves. Playing the numbers game they’ll get a handful of transactions that will offset the cost of the points.
Sometimes customers forget they have your loyalty app or that they even have loyalty points. At this point they are likely disengaged with your program but need to get something urgent from your store. At this point you’ve exhausted your come back, we miss you emails and notifications. By having beacons and recognizing the customer is entering your store you can send them a surprise and delight push notifications letting them know they have xxx points available for redemption.
This is just a starter kit for using beacons and there are certainly more advanced use cases we will document in 2016. We are able to build complete loyalty solutions around the use of beacons, leading the industry to a place it needs to be. Shoot us a note to get started.