• BamBoo Smart Growth Blog
Beacons & Proximity Marketing

Beacons & Proximity Marketing – The ins and outs

13/08/2018 - Customer Engagement, Customer Retention, Marketing


2 Minute Read

One of the latest and growing strategies mobile marketers use to target customers is proximity marketing, which relies on the use of devices known as beacons. This technology is being heralded as the next big thing. And it’s easy to see why it is proving essential in helping retailers/restaurants increase footfall, whilst also boosting conversion rates and sales volume.

Beacons & Proximity Marketing Retailer

Customer engagement with offers and new season items

That’s all great and all, but what exactly is it and how does it all work?

Beacons are very small devices which send Bluetooth Low Energy (BLE) signals to nearby smartphones. Once they’ve been emitted and they reach the mobile phones in the surrounding vicinity, they interact with the installed applications on the phone. For instance, the signal triggers specific actions like location-based services.

The range for these beacons is roughly around 50 metres and in order to receive the signal from a beacon, a mobile app needs to be enabled to allow communication with it. Furthermore, it also requires users to enable Bluetooth on their device – so bear this in mind.

Beacons can emit BLE signals for around 5 years and can do so at a very little cost – just a few pounds a year. It doesn’t take any cost-benefit analyses to see that it could be a great asset to any retailer or restaurant.

Beacons & Proximity Marketing Restaurant

Drive footfall and boost sales with push messages to potential new customers

Providing a Location Based Experience

The total BLE beacon usage is expected to continue in its trend of growth. Why? Because retailers are becoming more and more focused on using this technology to aid in their ability to provide customers with a deeply personalised and timely user experience.

So, a beacon can trigger a location-based notification in apps on customer phones – great. What’s even better is that these notifications might inform customers about special promotions, discounts and new products, all in a personalised way.

These notifications can be used to invite customers to a nearby store, welcome them when they enter that store and even greet them when they leave by providing them with a token gesture like a discount or a treat that encourages them to return. The benefit of this can’t be underestimated after all retaining customers are significantly cheaper than acquiring new ones.

The strategies noted above are all exceptional tactics to drive footfall and also increase conversion rates and sales volume – what more could you want?

Data Collection

In their interaction with mobile applications on smartphones within range, beacons can be very useful in helping retailers track consumer behaviour, whilst simultaneously collecting relevant data regarding user’s preferences and their actions.

Knowing this sort of data can really help retailers as they can then use it to re-target customers with even more personalised marketing strategies.

The Success Story

Regent Street, London. This is a great example of how beacon technology can be used to great effect. Instead of customers having to use multiple apps, the governing board of the Crown Estate outsourced the work to a company named autoGraph in order to develop a single app that uses beacons to emit content from the 120 stores, based on the location the customer is on the street.

The Chief Operating Officer of Autograph has stated that the project has been a complete success, with customers staying in the area longer whilst also spending more money – excellent.

A really interesting topic here, have you made Beacons and Proximity Marketing part of your marketing strategy? Are you reaping the benefits with increased conversion rates and sales? We’d love to hear about your experiences.

Get in touch to explore this strategy further.

Be sure to take a peek at our other blogs.

Lenny Davies
BamBoo Smart Growth

By BamBoo Smart Growth - 13/08/2018 - Customer Engagement, Customer Retention, Marketing


Let’s Start A Project Together