“Half the money I spend on advertising is wasted; the trouble is I don’t know which half.” Does that sentiment resonate with you and your retail business?
John Wannamaker, the retailing pioneer credited with creating the first department store in 1875, offered up that nugget on retail marketing. Fast-forward to today, and a few easy technology applications would make Wannamaker’s diagnosis much easier.
The simplest technologies to deploy include Bluetooth Smart beacons, also known as Bluetooth Low Energy (BLE) or, in Apple parlance, iBeacons. RetailNext helps retailers measure marketing campaigns by combining beacon interaction metrics with other traffic, engagement, sales, conversion, demographic, staffing, queue, and lifestyle profile metrics.
First, a bit of background: Bluetooth Smart beacons are small, battery-powered devices that constantly announce their presence. That’s it; they simply announce “I’m here” over and over again. When a beacon-enabled app on a mobile device “hears” that announcement, the app reacts by displaying specific content associated with that beacon. Among other use cases, retailers often deploy beacons to:
- Provide expanded product information
- Advertise complementary products
- Offer a discount or coupon on an item
For example, if a shopper stops to examine a dress shirt, the presence of a beacon tucked under the shelf or attached to the fixture could prompt the app to display a promotion for a necktie to pair with it. Beacons make delivering contextually relevant messaging via mobile apps easier and more effective. With beacons, retailers can determine which “half” of their in-store marketing dollars are working, and revise their campaigns to better capture the other half. Using the dress shirt and necktie example, a retailer could measure the effectiveness of a “buy one, get one free” necktie offer versus just advertising the fact that the store also sells neckties.
Beacons do more than just deliver an ad, product info, or coupon to shoppers in their moments of decision, as they can also measure shoppers’ traffic patterns through the store. Every time a mobile device with a beacon-enable app comes in proximity to beacons deployed through the store, that interaction can be measured.
Want to see which product display or fixture is most effective? Perform A/B testing by installing beacons at each display to measure dwells, dwell length, and then combine that data with other in-store analytics to see how it impacts sales. In RetailNext’s experience, retailers typically see 20-22% sales growth through merchandising testing alone, and 18-25% lift through fixture optimization after implementing our solution. Additionally, since you will know which beacons, and in what order, your shopper came into contact with, your beacon layout will provide you an accurate shopper path analysis.
RetailNext gathers all of this proximity data, marries it with data from other sources (video cameras, POS systems, Guest Wi-Fi, staffing systems, weather, etc.), to provide the most comprehensive set of insights into shopper behavior, store performance, and marketing campaign effectiveness.
If Wannamaker were making retail marketing and operations decisions today, he wouldn’t have to wonder what’s working and what’s not. Rather, as a leading retailer, he would quickly and easily use deep analytical insights to make data-driven decisions and implement strategies that generate increased traffic and maximize profits per shopper.
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