LAS VEGAS – Using beacons to send directed messages to customers while they are in the store is a goal of many convenience store retailers, but there are hurdles to clear and processes to develop. Panelists addressed these topics Monday in the educational session “Beckon Customer Dollars With Beacon Technology” at the NACS Show.
“There have been a lot of discussions on beacons for the last couple of years in retail, but there aren’t very many case studies on them within the convenience industry,” said Jeannie Amerson, session moderator. “Most retailers want to know how you can change consumer behavior while also enhancing their shopping experience. This includes determining traffic patterns within the store environment and driving customers into the store.”
The answer for many c-store retailers is using beacons, said Amerson, advertising and loyalty manager for Flash Foods. Joining her in discussing the use of beacon technology were Tory Williams, Zingon president, and Doug Middlebrooks, Coca-Cola assistant vice president of shopper marketing. A beacon is a Wi-Fi-enabled device strategically placed in a store that can communicate with a shopper’s smartphone, allowing retailers to send messages in real time based on where the customer is in the store.
Beacons also help track customer shopping habits and movements through a store. Research shows that 72% of consumers say they will respond to marketing messages they receive within sight of the retailer. “Despite the high interest in beacons, there’s a lack of education on what you need to do before adding them to your store,” Amerson said, adding, “Beacons by themselves are not going to change behavior for a significant segment of your customer base.”
“Also, a lot of time is going to be spent implementing the beacons, determining effective promotions and ensuring supplier support. Another key is collecting and analyzing data collected through beacons,” Williams said. Tools in optimizing the use of the data include beacon apps and program tools. He also discussed the cost related to deploying beacons, which includes reporting, measuring results and tracking purchase histories.
Beacons could have other applications for retailers, Middlebrooks said. They could be used to improve product awareness and customer engagement, secure promotional funding from suppliers and analyze sales growth.
“I think it can be a very successful tool,” Amerson said. “We’ve struggled as an industry with getting consumers from the pump inside the store. Beacons are an exciting addition to our resources, but I also feel you have to have somewhat of a robust app and diversified marketing elements to go along with that.”
The greatest potential beacons provide is a personalized push notification because the message will reach specific customers, which will encourage specific behaviors or purchases.
“You don’t have to have an existing loyalty program outside of an app to put beacons in place,” Amerson said. “I think most people are going to view it as an advantage to have a loyalty program in place, and then the beacons are an enhancement to what your overall strategy is for marketing within an app. But remember, beacons are not going to change consumer behavior by themselves, especially early on because there’s still a lot to be learned from and about this product.”