1. Beacon Street Partners presentation on iBeacons
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2. 1. What are iBeacons?
2. How do they work?
3. Why are they important?
4. Do they work on every device?
5. Who’s using them
6. Industry statistics
7. Bonus
3. Beacons are small devices that broadcast a
BluetoothSmart radio signal to trigger alerts or
messages on consumers phones. You could see
them as the next version of GPS.
Instead of using satellites to triangulate your
position in the world as GPS does, beacons
transmit a low energy signal from a device with a
radius of 50-100 meters to provide
unprecedented location services that can
accurately measure positioning down to inches.
4. 1. What are iBeacons?
2. How do they work?
3. Why are they important?
4. Do they work on every device?
5. Who’s using them
6. Industry statistics
7. Bonus
5. Almost all of the logic behind a beacon
deployment is through the supporting software on
the devices (e.g. beacon aware apps on
smartphones).
6. The distance between transmitting beacon and
receiving device can be approximated into 3 distinct
ranges:
Immediate: Within a few centimeters
Near: Within a couple of meters
Far: Greater than 10 meters away
7. The only role of the beacon is to notify the
smartphone of its existence at the physical
location. Beacons come in a lot of shapes forms
and sizes.
8. 1. What are iBeacons?
2. How do they work?
3. Why are they important?
4. Do they work on every device?
5. Who’s using them
6. Industry statistics
7. Bonus
11. 1. What are iBeacons?
2. How do they work?
3. Why are they important?
4. Do they work on every device?
5. Who’s using them
6. Industry statistics
7. Bonus
12. Beacons work with both Android and iOS. They
were initially introduced in iOS7 and are
compatible with every Android version > 4.3
This puts beacon functionality in 300 million +
devices!
13. 1. What are iBeacons?
2. How do they work?
3. Why are they important?
4. Do they work on every device?
5. Who’s using them
6. Industry statistics
7. Bonus
14. American Airlines
Major League Baseball
Nivea
Marriott
Coca Cola
Tesco
Virgin Airlines
Hammerson
Walgreens
Levi's
Orlando Magic
Duane Reade
Philips
Apple
Oscar Mayer
And then some..
15. 1. What are iBeacons?
2. How do they work?
3. Why are they important?
4. Do they work on every device?
5. Who’s using them
6. Industry statistics
7. Bonus
16. There will be about 4.5 million active beacons
overall by year end 2018, with 3.5 million of
these in use by retailers.
Source: BI Intelligence Estimates
17. Half of the top 100 retailers in the U.S. are
testing beacons this year, and we expect them
to have this new technology installed in one-
third of their stores by the end of 2016.
Source: BI Intelligence Estimates
18. Beacons are compatible with about one-third of
active smartphones globally and nearly all
iPhones.
Source: BI Intelligence Estimates
19. It makes sense for retailers to open up their
beacons so that outside apps can use them to
send alerts and notifications to their users.
Source: BI Intelligence Estimates
20. Retailers will also be able to collect valuable
consumer data thanks to beacons, but privacy
issues need to be considered.
Source: BI Intelligence Estimates
21. Only 3% of retailers are currently able to
identify customers walking in store, but 72%
plan to do so within five years.
Source: BI Intelligence Estimates
22. Beacons can help retailers attract users to their
apps, retain those users, and increase
engagement on those apps.
Source: BI Intelligence Estimates
23. Adoption of beacons led to 16.5 times more app
usage in-store and 6.4 times increase in app
user retention.
Source: BI Intelligence Estimates
24. 1. What are iBeacons?
2. How do they work?
3. Why are they important?
4. Do they work on every device?
5. Who’s using them
6. Industry statistics
7. Bonus (Because consultants love graphs)
25. Percent of US Retail Locations with Beacons
(Top 100 retailers)
8%
92%
32%
68%
85%
15%
2014 2015 2016
Source: BI Intelligence Estimates
26. Global active smartphones compatible with
Bluetooth Low Energy (May 2014)
90%
(259 million)
288 million
iOS
24%
311 million)
1.3 billion
Android
Source: BI Intelligence Estimates
27. Mobile commerce initiatives to improve the
customer experience in stores
(North America, March 2014)
28% 62%
Use mobile marketing
16% 63%
Collect real-time data from POS
3% 72%
Identify customers walking in store
Have today Plan to in 5 years
Source: BI Intelligence Estimates