How Beacons Technology Can Remodel Retail Marketing

In my Marketing Analytics class, my Professor mentioned something related to beacon technology. First, I did not understand what does it stand for and how does this technology works? However, after he gave a brief explanation, I have become a little familiar with this concept. I thought it will be a great idea to write a blog about beacon technology in more details and its applications in the retail sector.

So, what is Beacon Technology?

According to iBeacon Insider, the definition of Beacon is:

Beacon is the name for Apple’s technology standard, which allows Mobile Apps (running on both iOS and Android devices) to listen for signals from beacons in the physical world and react accordingly. In essence, iBeacon technology allows Mobile Apps to understand their position on a micro-local scale, and deliver hyper-contextual content to users based on location. The underlying communication technology is Bluetooth Low Energy.

Beacon Technology and the Retail Industries:

Beacon technology is connecting the actual stores and digital technologies by using device  geo-location information to enhance the in-store shopping experience. For example, Beacons can send text messages via Bluetooth to a customer's smartphone to notify them about special offers or discount in any store they are nearby.

Also, connecting Beacon to a smartphone to provide consumers with useful information about the clothes, the available size, and the price will enhance the shopping experience as it makes it quicker and easier for customers to access the information about the products they are looking for, and deliver to them special offers or discounts. 

For the retailers, Beacon technology provides them with vast of data about their customers’ shopping habits and send customized and timely offers and coupons. With this huge amount of collected data, retailers can create marketing strategies to engage with their customers, to create personalized shopping experiences and to give loyal shoppers a reason to keep coming back.