Using Bluetooth wireless networking to send information to nearby smartphones, beacon technology could transform how retailers engage with their customers. But customers will notice how their information is used to personalise these unsolicited adverts, and companies that fail to respect their privacy may get burned.
UK retailer House of Fraser is to introduce beacon-equipped mannequins to its Aberdeen store, which will deliver details about the clothes and accessories the mannequin is wearing to the smartphones of customers within 50 metres. In London’s Regent Street, around 100 stores have installed Apple’s iBeacons, able to send adverts to smartphones to entice passers-by to come inside.
A sort of precursor to the “internet of things”, beacon technology has great potential to enhance consumer experience: providing access to relevant information more quickly, or offering rewards and discounts for loyal shoppers. Some retailers may rearrange their store based on analysing data from customers’ shopping habits. It has uses outside of marketing too, such as providing contactless payments, tourist information at museums, or gate information at airports.