What are Beacons?

Five reasons small retailers should consider using beacon technology.

​Beacons are small, Bluetooth-enabled devices that attach to a wall or countertop inside a store. Beacons are proximity-based, meaning they send Bluetooth signals to a customer’s smartphone once she is within 50-100 feet of the device, automatically triggering personalized coupons, special offers, and loyalty rewards. Beacons can also enable contactless payments, which speed up the checkout process. 
​

1. Customer convenience. Consumers use mobile apps to comparison shop in-store, so divert their attention away from competitors by triggering a discount or loyalty reward offer while they are in your store & ready to buy. 
2. Enhance shopping experience.  Merchants need to move away from a transaction mindset to one focused on enhancing the shopping experience, giving c
3. more than they expect. Beacons do that by providing personalized coupons, offers, and rewards.
4. Affordability. The low-cost use of beacon technology makes it affordable for most any small business.
5. Compete with large retailers. Typically, technologies like beacons are something only larger retailers can afford. Your ability to use them helps level the playing field.
6. Customer intelligence. Beacon-enabled apps collect data on customers’ spending habits and product preferences, enabling you to create more personalized, targeted offers.

​

---

Large retailers like Macy’s, Target, and Urban Outfitters began experimenting with beacons this year and the trend is catching on with many others.

Smaller retailers have yet to make use of beacons for the most part, but that could change, based on factors that include their low cost, relative ease of implementation, and growing consumer preference toward the use of mobile phones while in stores — a practice known as “showrooming.”

The growing trend toward consumer use of mobile phones to comparison shop while in the store may drive its adoption. Forward-thinking small businesses, faced with competition from their big-box counterparts as well as other main street businesses, may want to experiment with beacon technology, due to its low-cost.

Typically, one beacon is needed for every 5,000 square feet of store space. The devices use batteries but rely on Bluetooth’s low-energy requirements to provide longevity.