WHAT IS BEACON TECHNOLOGY?
One of the latest developments in location-based content and technology, beacons are affordable and small wireless transmitters that use Bluetooth Low Energy technology to send signals to other devices nearby. They can connect and transmit data to smart devices while improving location-based searching and interaction.
Beacon technology offers higher accuracy than GPS within a narrow range and can be used in multiple environments. Beacons are typically comprised of three parts:
- Batteries
- A central processing unit (CPU)
- A radio
Individual beacon devices have a unique ID number that is broadcasted to a receiver, like a mobile device, via Bluetooth, and the application on the receiver will provide proximity data to the broadcaster.
WHERE DID BEACON TECHNOLOGY BEGIN?
Beacon technology is not a new concept, but rather a modern take on a well-known idea. Similar to how lighthouses serve as a beacon to ships to help them find land, beacon technology provides information and location services to users with smart devices.
Apple first introduced beacon technology with the iBeacon in 2013, designed to support the retail industry by simplifying the payment systems and pushing on-site offers. Only a couple of years later, Google released the Eddystone, which was similar to the iBeacon but had fewer restrictions.
In the past decade, beacon technology has grown as new types of beacons have been created. Beacons are simpler than most new technologies, as they are straightforward, effective, and affordable. Beacons became popular as they provided retailers with a modern way to engage with customers without being obtrusive.
HOW DO BEACONS WORK?
When a user with a smart device is in the same area as a positioning system with beacons in place, the nearest beacon will send a code and message to the smart device. The message will then appear as a notification on the smart device via a mobile app. For beacons to work, there needs to be:
- At least one beacon device
- A mobile app, whether it’s your own or a third-party app
- The user’s permission
When purchasing beacon technology, the package will typically include a software development kit, management tools, and beacon devices. To set up the devices, you will likely need the knowledge and skills of a software engineer to set up the positioning system.
When downloading the mobile app, the user will have the option to receive notifications and to connect to the positioning system via Bluetooth. So in order for beacons to work for the user, they must allow notifications, agree to use the positioning system, and keep Bluetooth turned on.
BEACONS AND IOT
The Internet of Things (IoT) is a solution that connects mobile devices, sensors, and other digital products that can collect and analyze data. The use of IoT can be found across many industries, such as law enforcement, corporate office buildings, and the home ecosystem. IoT will also be found in more obvious settings, such as smart businesses, smart homes, and smart government services.
In smart home ecosystems, beacons can be used for surveillance and to notify homeowners of any activity. In transportation services, beacons can be utilized to keep users updated on transit schedules and notify them of any delays.
TYPES OF BEACONS
There are many types of beacons in the market today to accommodate the business needs of different industries. These beacons come in different sizes, durability, and battery life based on how they’ll be used. Here are just some of the beacon types available today:
STANDARD BEACONS
Standard beacons are typically the size of a Wi-Fi router and are primarily used for indoor tracking and proximity solutions. They are fairly simple beacons that are typically utilized by retailers. For example, retailers can use these beacons to gather data on how customers navigate the store to improve product placements and store layouts.
PORTABLE BEACONS
These beacons are smaller than standard beacons, typically around the size of a credit card. Portable beacons are used for proximity solutions and asset tracking. An example is when retailers use these beacons to ensure the products are being delivered to their final destinations.
USB BEACONS
USB beacons are about the size of a flash drive and intended for asset tracking and proximity solutions. Retailers can use these beacons by connecting them to a point-of-sale system to send customers promotion codes, coupons, or receipts while the customer checks out.
VIDEO BEACONS
These beacons are devices that are plugged into the back of the screen to deliver targeted content and build connections with nearby individuals using data collected by a beacon-enabled app. Video beacons are typically used by retailers, transportation, and hospitality. An example is when you approach a display screen in a fast food restaurant, and it changes to show customized offers based on the beacon packet.
AI BEACONS
AI beacons are driven by machine learning algorithms that can identify movements and gestures. They can record, analyze, and house interactions between the user and the screen. These beacons can be used by retailers to gather data on specific customers to send targeted notification messages that are tailored to that customer.
DEDICATED BEACONS
Dedicated beacons are resistant to extreme conditions, such as debris, water, UV, and shattering. They are intended for indoor tracking and in harsh environments to reduce lags and ensure the data isn’t lost. This particular beacon can be used by construction companies on-site, as they are built to work in harsh conditions.
HOW ARE BEACONS BEING USED?
Beacon technology is used to enhance the customer experience, support the simplification of operations, and collect data to deliver personalized customer experiences. That being said, the industries that most benefit from beacon technology are retail and marketing. Here are some other industries that utilize beacon technology:
- Sports and Events – proximity marketing, ticketing, schedule notifications
- Smart Home Ecosystems – security, surveillance, leak detection
- Warehouse and Logistics – security, asset tracking, humidity and temperature sensors
- Construction – instant risk warnings, security, surveillance
WHAT ARE BEACONS BEING USED FOR?
After taking a look at how beacons are being used across multiple industries, let’s review what they are being used for.
ENGAGEMENT
When used with smart devices, most beacons can trigger multiple events. For example, automatic sensor lights that turn on as you enter the room, or a coupon being sent to your mobile device when you enter a retail store.
DATA COLLECTION & ANALYSIS
With the accuracy that beacon technology provides, you’re able to accumulate reliable data to learn how your customers navigate your retail store. You have the ability to use the data to improve your business practices, product placements, and store layout. You can also use this data to influence your marketing strategy to effectively appeal to your consumer base.
ASSET TRACKING
An incredibly practical use of beacons is to use them in warehouse manufacturing and transporting. By attaching beacons to product shipments, managers can track where their products are at any point in the warehouse or in transit.
WHY BEACON TECHNOLOGY IS THRIVING
While beacons were first introduced into the market by Apple in 2013, they have only started to become popular in recent years. Beacon technology has the potential to impact several applications and industries, but the appealing functions were dependent on advancing technology. Here are a few more identifiable reasons beacon technology is thriving:
PROXIMITY MARKETING & SMART DEVICES
Using beacons for proximity marketing allows you to send customers relevant and personalized notifications to their smart devices at the right place and time. As a mobile app is necessary for beacons to work, the advancement of mobile and Bluetooth technology has allowed more businesses to include beacons in their marketing strategy.
COST-EFFECTIVE SOLUTIONS
With the low cost of Bluetooth beacons, low energy usage, and a wide range of potential applications, beacons are an effective solution to adopt. They can be applied to various industries, including construction, manufacturing, healthcare, and transportation.
EMERGING ECONOMIES
Emerging economies and markets around the world can benefit from using beacon technology. With supermarkets that have digital ecosystems and transportation networks that are making the transition to digital scheduling and ticketing systems, beacons are a logical tool to improve operations.
ADVANTAGES OF BEACON TECHNOLOGY
There are many advantages to using beacons, but let’s take a look at just a few of the benefits your business could experience with beacon technology.
PROXIMITY MARKETING
By setting up beacons in stores and event locations, businesses can deliver targeted notifications to nearby consumers with coupons or sale details. This technology can also help businesses understand their consumers’ behaviors and use that additional data to provide a unique experience.
SIMPLE & AFFORDABLE
Standard beacon models are small and are not made of expensive materials, which makes them more affordable than other modern tech devices. In addition to being small devices, they are also built with Bluetooth low energy, which provides a long battery life. They are also simple and quick to deploy, with many beacon devices being small and easy to install.
IMPROVES PRODUCTIVITY & MARGINS
Businesses can improve productivity with the insights provided by the data gathered with beacon technology. Beacons can also monitor machines and devices used by employees clocking in and out, and to send any important news or updates via push notifications. This is a considerable advantage for factories, warehouses, and manufacturers.
DISADVANTAGES OF BEACON TECHNOLOGY
Before deciding to incorporate beacons into your business, it’s important to look at a couple of disadvantages to determine if it’s the right move for you.
A MOBILE APP IS NECESSARY
In the marketing, retail, and hospitality industries, incorporating beacons into business strategies is a simple decision. To properly use beacons, a mobile app is necessary. If you don’t want to create a mobile app, there are third-party apps that can facilitate this need. However, to provide a seamless experience for your customers, hiring a software team to build an app is an ideal solution.
IT’S CUSTOMER DEPENDENT
For retail and marketing strategies, setting up Bluetooth beacon technology doesn’t guarantee success. There are many external factors that can cut off the use of beacons, many of those factors being in the hands of the customers.
Customers have to download an app, allow Bluetooth access, and enable notifications for beacons to successfully work. Many customers might keep Bluetooth off on their mobile devices, or they may turn off notifications to reduce disturbances.
THE FUTURE OF BEACONS
We live in a digital age, and with the large amount of visual content customers are exposed to, beacons have the appeal of offering a non-intrusive style of engagement. Knowing this, many businesses will take advantage of this technology to incorporate it into their marketing strategy.
There are also new types of beacons hitting the market, and with their uses expanding, it’s easy to anticipate a bright future for beacon technology. With their affordable cost, simple setup, and countless benefits, more businesses will begin investing in beacons.
If your business is looking to incorporate beacons, reach out to Geneca today to explore your options with a commitment-free consultation!
