The Internet of Things (IoT) represents the connectivity of modern technology and the growing network of smart devices that are able to communicate with one another. It can fundamentally change the way we interact with the world!

What is Proximity Marketing?

Proximity marketing is a more granular version of location Marketing. Simply, it’s communicating with customers at the right place, at the right time with relevant, personalised messages. This could be a personalised greeting at entrances, special offers in store aisles, or announcements at events.AvenirDigital_BG_Beacon

IoT technology is already being used by some of the World’s top organisations, including Macy’s, Paypal, Google and McDonalds.

For these organisations, beacon technology has proven to be effective as the bridge between their physical locations and customers constantly on their phones.

A successful proximity marketing campaign relies on identifying an organisation’s particular needs, goals, and possibilities and carefully crafting targeted solutions. Gone are the days when retailers could only rely on print, TV, and radio ads to drive customers into their stores.  In today’s digital world, context is king!

The Power of Personalisation

Just as Amazon and other ecommerce platforms offer their customers personal shopping recommendations based on previous purchases, IoT solutions can do this in the context of your stores. Everything from vouchers, special offers, and product recommendations can be tailored to individual customer preferences and shopping habits.

Proximity will contribute to better customer experiences, higher foot traffic, and increased loyalty and engagement rates. When implemented effectively, it will also maximise the time your organisation spends engaging with customers while strengthening competitiveness.

Accessing Data

Tracking shopping habits and preferences allows organisations to access insightful consumer data. For example, retailers can analyse what day of the week and time of day shoppers are more likely to download and use certain vouchers. From there, they can take a look at demographics, and other connecting points, such as what other items are purchased on the same shopping trip.

Use Cases

The City of Sydney recently launched an iBeacon trial aimed at driving audience engagement with its new public artwork – Yininmadyemi – Thou didst let fall sculpture, a seven-metre high World War II sculpture honouring Aboriginal and Torres Strait Islander diggers.

As a part of this beacon program, four beacons were installed around Hyde Park South, where the sculpture is situated to push notifications to users of the city’s Sydney Culture Walks App asking the if they are interested to listen to the story that inspired the artwork. 

Campaign – Heineken entered into a collaboration with mobile shopping app Ibotta. Heineken’s beacon project aimed to drive purchase intent, in-store sales, and brand awareness in conjunction with the release of the 2015 James Bond movie Spectre. The brand leveraged multiple collaborations with mobile leaders and roped in beacons to ensure that its products were top-of-mind for grocery shoppers. Heineken drew in-store supermarket shoppers to an interactive display via beacons.

Results – Heineken had an estimated revenue of $320,000 from the campaign with 200,000 in-store and points-of-sale engagements. The purchase intent of customers increased by 7 times, with an increment in revenue on investment by 6.2 times. The alcohol marketer received nearly one million shopper impressions as a result of the beacon implementation.

Campaign – Allrecipes deployed beacons at Marc’s grocery stores in Ohio. These beacons targeted shoppers with recipe suggestions at a time when they were likely to be interested in the content.

They pushed beacon notifications with meal recommendations and recipes that required the featured products on sale. This addressed two major concerns for the customer – firstly, helping them decide what to cook for dinner and second, managing the grocery bill.

Results – Allrecipes’ mobile view went up to 26M – 35.9M per month by utilising beacons for location-based marketing.

Campaign – They defined a strategy that consolidated them into one mobile app that had a strong focus on engaging their customers and leveraging promotions and loyalty rewards to drive foot traffic into their stores and ultimately increase conversions. Partnering with MobileBridge, they built an integrated, engaging mobile app that has seen dramatic organic growth in usage and ultimately has driven business to each of their 400+ locations in Russia.

Results – Their strategy worked. They have seen promotion redemption exceed 34% after 90 days, driving additional traffic into the restaurants. Additionally, survey completion rates were a remarkable 85%+ for the same time period, indicating their users are engaging with their app and open to providing more information for a more personalised experience. As customers engage with the mobile app more and more, Burger King is building a more comprehensive profile of each individual customer and planning for additional, more personalised campaigns to their advocates moving forward.

Customers who had the Macy’s App, were prompted to download the digital scratch and win app. They were then sent push notifications if they entered a store on Black Friday. The department store saw that on-premise targeting drove the most amount of foot traffic, while proximity targeting had the highest reach, which was likely as it ran the longest.

The University of Lodz installed beacons across 38 buildings and dormitories to help 1,200 international students find their way around. When a student passes a beacon, they trigger information about where they are, what they can do there, and how to get to common destinations.

 

Results – Though international students were the initial driver of this campaign, wayfinding around university areas, libraries, and facilities benefits parents and ordinary students as well.

SmartUni launched in April 2015. To date, 80% of international students downloaded the app. For these 7 months beacons triggered over 200.000 messages. Users engaged with 47.5% of them – that’s 99 interactions per user.

The app’s usability, gained international recognition. SmartUni won second prize in the EUPRIO Awards, the prestigious contest for the most innovative projects focused on student communication in Europe.

The entire tourism industry relies on visitors being able to find the right location with ease, yet one key pain points for tourists is simply finding their way on a daily basis. In 2015, a project was implemented at the famous Spanish wine route, Ribera del Duero, to help tourists get around the area. Beacons helped users answer questions like “where am I?” or “what am I looking at?”

This new communication campaign helped grow the number of visitors from 83,000 visitors in 2010 to 269,000 in 2015. Not to mention, this also meant millions of euros in extra annual revenue and the creation of several jobs in Ribera del Duero.

The HIAQatar app of Hamad International Airport aims to deliver immersive and connected experiences to passengers. The airport has installed 700 beacons across various areas of the airport in order support this initiative.

Passengers at the airport will simply need to scan the boarding pass and opt-in for location detection in order to receive real-time information with regards to flight schedules, baggage claim and, boarding gates.

Provides passengers with alerts about the latest promotions directly on their smartphones, as they walk past the duty free stores of the airport.

The IoT ecosystem is expanding at an impressive rate. It’s striving to effectively comply with high standards of customer convenience and beacons are proving to be a catalyst for this change.

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