Is Beacon Technology Going to Change the Retail World?

Beacon technology incorporates the power of consumer-targeted advertising with location-based mobile marketing by installing small pieces of low-cost hardware within the shelves of retail stores. When customers enter a store with Bluetooth-enabled mobiles or tablets, the business can send customized advertisements directly to their devices thereby enhancing their shopping experience. While Beacons have only recently begun to appear in shops, the technology itself is already part of Apple devices since the 3rd generation of their products. And reports from the tech blogs are starting to take notice of the Beacon technology’s capabilities.

Mass Potential

Apple’s beacon system, called iBeacon, is automatically installed in all devices that use their current operating system, iOS 7. This means that, even if a mobile user knows little about how the iPad or iPhone works, they still have the infrastructure in place to benefit from Beacon technology. There could be as many as 190 million iOS devices currently capable of accessing iBeacons. Undoubtedly, this number showcases the unbridled potential of Beacon technology.

Current Barriers

There is a bit of a curve to this technology, though. An almost equal amount of the mobile and tablet markets use non-Apple products, which are less integrated with the Beacon infrastructure. Because the operating systems of non-Apple products tend to require updated versions of their OS, mobile marketers cannot rely upon these technologies for their Beacon-based advertising strategies.

Furthermore, Beacon technology requires mobile users to “opt in,” in a manner of speaking. First of all, customers will need to download the appropriate app for the business in question, and then they will have to activate it before entering the store. In addition, Beacons require ranging technology to function, which works in proximity of the devices using a mobile’s Bluetooth. The mobile will not receive any pushes or notifications, however, if a phone’s location is cloaked – the customer must allow the appropriate app to access its location for the Beacon to function properly.

The Future

In truth, Beacon technology is only beginning to get a foothold in the physical advertising space, and once it gains some traction, it will be here to stay. The unrealized potential of mobile location-based marketing is burgeoning, just waiting to be deployed. In the near future, we will witness customers taking advantage of flash sales and contactless payment options, as well as living in automated homes where temperature and lighting may be adjusted directly from mobile devices. The rule books have yet to be written. We do know that the key to capitalizing on Beacon technology will rely on corporations’ creativity and connectedness: sharing real-time information with customers to a mutual end and appealing to the changing temperaments of these individuals, all the while motivating these loyal customers in a direction – according to when and where – they want them to be.