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A Retailer's Guide To iBeacon Marketing

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ConsumerConnected
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A Retailer's Guide To iBeacon™ Marketing
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Panelists
 Debbie Hauss
Editor-in-Chief
Retail TouchPoints
MODERATOR
Adam Silverman
Principal Analyst
Forrester
Rob Murphy
VP of Marketing
Swirl Networks
© 2014 Forrester Research, Inc. Reproduction Prohibited 6
We are living in the “age of the
customer”

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A Retailer's Guide To iBeacon Marketing

  • 1. SERIES ConsumerConnected Session sponsored by Presented by #CCS14 A Retailer's Guide To iBeacon™ Marketing
  • 4. SERIES ConsumerConnected #CCS14 About Retail TouchPoints ü  Launched in 2007 ü  Over 28,000 subscribers ü  To provide executives with relevant, insightful content across a variety of digital medium Free subscription to our weekly newsletter: RETAILTOUCHPOINTS.COM/SUBSCRIBE
  • 5. SERIES ConsumerConnected #CCS14 Panelists Debbie Hauss Editor-in-Chief Retail TouchPoints MODERATOR Adam Silverman Principal Analyst Forrester Rob Murphy VP of Marketing Swirl Networks
  • 6. © 2014 Forrester Research, Inc. Reproduction Prohibited 6 We are living in the “age of the customer”
  • 7. © 2014 Forrester Research, Inc. Reproduction Prohibited 7 The past. Information Price Location Tech
  • 8. © 2014 Forrester Research, Inc. Reproduction Prohibited 8 Information Price Location Tech Today.
  • 9. © 2014 Forrester Research, Inc. Reproduction Prohibited 9 Source: RIS News Tech Investment Up At Nordstrom “The pace of change is accelerating faster than we anticipated a year ago” Blake Nordstrom, President of Nordstrom April, 2014
  • 10. © 2014 Forrester Research, Inc. Reproduction Prohibited 10 Agenda › The importance of mobile in an omnichannel world › Why location matters › Beacon marketing › Recommendations
  • 11. © 2014 Forrester Research, Inc. Reproduction Prohibited 11 Introducing the mobile mind shift The perpetually connected customer
  • 12. © 2014 Forrester Research, Inc. Reproduction Prohibited 12 Customers turn to digital technology Source: Forrester The State Of Consumers And Technology: Benchmark 2013, US
  • 13. © 2014 Forrester Research, Inc. Reproduction Prohibited 13 Customers turn to digital technology Source: Forrester The State Of Consumers And Technology: Benchmark 2013, US
  • 14. © 2014 Forrester Research, Inc. Reproduction Prohibited 14 This year 52% of all US retail sales will either be influenced by, or occur online
  • 15. No indoor malls built since 2006. 15% going out of business. Source: theatlanticcities.com, Financial Times. Image source: Flickr
  • 16. Footfall to European retail outlets in decline: Germany: -6.4% Italy: -6.2% UK: -2.9% Spain: -3.1% e: Forrester; “While Retail Footfall decreases, digital influence on Consumer shopping Behavior increases” 2/26/14
  • 17. © 2014 Forrester Research, Inc. Reproduction Prohibited 17 Source: ShopperTrak, CoStar Group, Wall St Journal US retail outlets also in decline
  • 18. © 2014 Forrester Research, Inc. Reproduction Prohibited 18 To satisfy changing customer behavior, the digital store must emerge › The store becomes an in-store experience platform to drive engagement and conversion… › …infused with technology, including location information › BUT – customers also expect associates to participate
  • 19. The digital store is built on a core set of technology: 1.  Common commerce layer 2.  Distributed order management 3.  Content & Campaign management 4.  Analytics 5.  Location
  • 20. © 2014 Forrester Research, Inc. Reproduction Prohibited 20 Agenda › The importance of mobile in an omnichannel world › Why location matters › Beacon marketing › Recommendations
  • 21. © 2014 Forrester Research, Inc. Reproduction Prohibited 21 Service & engagement are at the core of location services in retail Service Engagement Customer & retailer benefits
  • 22. © 2014 Forrester Research, Inc. Reproduction Prohibited 22 Service & engagement are at the core of location services in retail Insight Efficiency Differentiation Service Engagement Context Personalization Customer benefits Retailer benefitsCustomer & retailer benefits
  • 23. © 2014 Forrester Research, Inc. Reproduction Prohibited 23 Beacon technology is the connective tissue Insight Efficiency Differentiation Service Engagement Context Personalization Customer benefits Retailer benefitsCustomer & retailer benefits
  • 25. Engagement: Significant lift in app open rates and offer redemption rates
  • 26. Service: Hotel doors activated by beacon technology
  • 27. Service + Personalization: Alerts on availability of “click and collect” Pinpoints location of items on a shopping list
  • 28. Source: Retailnext Insight: Ability to understand unique in-store shopping behavior
  • 29. Efficiency + Service: Request for associate help within the aisle
  • 30. © 2014 Forrester Research, Inc. Reproduction Prohibited 30 Agenda › The importance of mobile in an omnichannel world › Why location matters › Beacon marketing › Recommendations
  • 31. Swirl is leveraging the power of mobile and iBeacon technology to reinvent the in-store shopping experience. For consumers: The smartphone becomes an integral part of the in-store experience, informing and motivating buying decisions when it matters most. For retailers and brands: A new way to drive sales by influencing consumers with actionable content and offers at the “moment of truth.”
  • 32. 32 General Location Location Profile Neighborhood Store Entry Department or Area of Store Verified Micro- Location* End Cap or POS Display •  Self-reported •  Mobile tracking •  Data modeling Technology Marketing Goal •  GPS/Geofence Mobile commerce & drive to store “Steer” to store Engage and influence purchase decisions in store *Other technologies include Wi-Fi, Check-in, Audio, Light, QR code, NFC Location-Based Mobile Marketing
  • 33. Poll Question 33 Location-targeted mobile ads. Are you . . . §  Currently using §  Considering/planning to use this year §  Not likely to use this year
  • 34. Poll Question 34 GPS/Geofence push messaging. Are you . . . §  Currently using with customers §  Considering/planning to use this year §  Not likely to use this year
  • 35. Poll Question 35 BLE/Beacon marketing. Are you . . . §  Currently using with customers §  Considering/planning to use this year §  Not likely to use this year
  • 36. Poll Question 36 Other in-store mobile marketing (Wi-Fi, QR codes, etc.) Are you . . . §  Currently using with customers §  Considering/planning to use this year §  Not likely to use this year
  • 37. Configuredsmartphoneapp listensforbeaconsignal,which triggersdeliveryoftargeted content&monitorsuseractivity Beacon Marketing – How it Works In-store beacons transmit location information MarketingConsole(CMS) allowsmarketertocreate, manageandanalyze campaigns CloudservicesandAPI’s providescalability,security, andplatform/database integration 37
  • 38. Why Beacons? §  Work indoors §  Precise, adjustable range (Tap – 100m) §  Passive/automatic for consumers §  Battery-powered (1+ yr. life) §  Easy set-up & maintenance §  Low infrastructure investment §  Work across iOS and Android §  Growing ecosystem momentum 38
  • 39. Beacon Marketing Offers Big Benefits to Retailers §  Increase mobile engagement §  Retailer-branded experiences §  Seamless and valuable for consumers §  Combat showrooming §  Influence buying decisions at right place/time §  Enhance in-store shopping experience §  Insights into in-store shopping behavior §  Key component of omni-channel strategy 39
  • 40. Smartphone Users are Ready for Beacon Marketing Have used a mobile shopping app while inside a store Would share their location in return for value Would purchase in-store after receiving a relevant offer while shopping 40 19% 58% 62% 78% 80% Ability to pay with mobile phone Loyalty program integration Content that is relevant to interests and location More tools for price comparisions, accessing lists, style guides Push notifications about sales/promotions Which mobile app features do they most want to use in-store? Swirl/Research Now survey of Smartphone users, Nov 2013 85% 77% 72%
  • 42. Poll Question 42 What is your current stage of BLE/Beacon marketing? §  In-store pilot underway §  Preparing for in-store pilot §  Evaluating technology in office/lab §  Still learning/exploring §  No plans for beacon marketing this year
  • 43. Alex and Ani - Reinventing Retail 43 Shopper satisfaction with beacon marketing experience In-store app open rate In-store conversion rate from visit to purchase “It’s the strategic and foundational investments like iBeacon that have enabled Alex and Ani to grow our customer-centric omnichannel strategy at record pace.” - Ryan Bonifacino, VP Digital Strategy, Alex and Ani How Alex and Ani Is Pioneering the Future of Retail 90% 75% 35%
  • 44. Alex and Ani Shoppers Love the Beacon Experience 44 “The fact that it follows me and synchs with the store location is genius. It takes out the struggle to awkwardly stand in a store looking for offers and information via the internet.” “. . . It felt like an exclusive shopping experience.” “It added a fun factor to my shopping experience.” 93%   90%   88%   88%   In-store mobile offers would increase my likelihood to buy In-store mobile offers would entice me to visit a store more frequently The in-store experience was intuitive and easy to use The in-store experience was useful/ valuable USER FEEDBACK (Top 2 Box Survey Responses) Shopper Feedback
  • 45. A New “Welcome” Experience §  Exclusive, Personalized Offers -  Usage/category stimulation -  Guide to “beaconized” depts §  Loyalty Program Integration -  Member rewards/recognition -  Sign-up incentives §  Auto-launch Mobile Features -  Store search/map -  Saved wishlist/shopping list -  Order status/pick-up §  Value-added Digital Content -  Store promotions -  Closeout specials -  Seasonal content/trends/tips -  New arrivals 45
  • 46. Department-Based Digital Experiences §  Promotions and Offers -  Exclusive, personal offers •  Upsell, cross-sell -  Existing store promotions -  Manufacturer rebates -  Closeout/open-box specials §  Auto-launch Relevant Mobile Features -  Full online inventory -  Product reviews -  Past purchases/specs -  Saved wishlist/shopping list §  Value-added Digital Content -  Buying guides, style tips -  Seasonal/regional/trending content -  Reordering recommendations 46
  • 47. More Beacon-Triggered Experience Ideas 47 §  Interactive end cap/POS display -  “Tap” for info/sweeps/offer §  Mobile rewards card displayed at checkout §  Post shopping engagement -  eMail address capture -  Shopper surveys §  The future of personalized service -  Clienteling system alerts -  Dept/fitting room assistance
  • 48. Remember the 3 C’s – Consumer, Consumer, Consumer §  Privacy concerns §  Data for Value equation §  Relevance is the price of entry §  Engaging vs. annoying §  Plan the lifecycle §  Personalization - key to long-term success §  A true omnichannel opportunity §  Test & learn NOW 48 Swirl/Research Now survey, Nov 2013 Not relevant to my interests or location 41% Did not provide enough value 37% Too annoying 16% Did not opt-in to receive them 6% Push Notification Turn-Offs
  • 49. Moving From the Test Lab to the Main Street §  Enterprise-class Beacons -  Data security, radio certifications -  Beacon network management §  Consumer experience -  Retailer/brand messaging -  Messaging control (push/pull, triggers, caps) -  Content richness/engagement -  Personalization -  Omnichannel integration §  Campaign management -  Retail marketer ownership -  Targeting based on profiles & behaviors -  Campaign measurement & analytics -  Testing & optimization §  Platform scaling -  Workflow/permissioning -  API’s and data integration 49
  • 50. © 2014 Forrester Research, Inc. Reproduction Prohibited 50 Agenda › The importance of mobile in an omnichannel world › Why location matters › Beacon marketing › Recommendations
  • 51. © 2014 Forrester Research, Inc. Reproduction Prohibited 51 #1 - Begin to build the digital store foundation Includes infrastructure to support location marketing and beacons
  • 52. © 2014 Forrester Research, Inc. Reproduction Prohibited 52 #2 - Choose a beacon marketing partner to increase agility and reduce complexity Those who test now will gain early insights into future deployments and use cases
  • 53. © 2014 Forrester Research, Inc. Reproduction Prohibited 53 #3 - Align your organization on the opportunity Leverage beacons to build meaningful experiences. This requires a coordinated effort from many teams.
  • 54. © 2014 Forrester Research, Inc. Reproduction Prohibited 54 #4 - Address privacy concerns Hands down this is biggest adoption barrier.
  • 55. SERIES ConsumerConnected #CCS14 Q & A // Panelists Debbie Hauss Editor-in-Chief Retail TouchPoints MODERATOR Adam Silverman Principal Analyst Forrester Rob Murphy VP of Marketing Swirl Networks
  • 56. SERIES ConsumerConnected #CCS14 9   Thanks for attending! Don’t miss today’s session: APRIL   Boos+ng  Revenue  With   Smarter  WFM   2PM  ET  /  11AM  PT   ccs.retailtouchpoints.com/2014