In the industry, this is old news: the official introduction of iBeacons took place last year at Apple’s developers conference (WWDC). Most users have this technology active on their phones, yet very few are aware of it. One thing is certain, though: iBeacon technology will transform the retail landscape in a very near future.
What is iBeacon Technology?
iBeacon Technology enables your phone to emit and receive location-related information using bluetooth.
iBeacon Technology is a location service that uses bluetooth to notify an app on a user’s phone that it is entering or exiting a location (or perimeter). All users of iOS7 have it active on their phone, under Settings > Privacy > Location Services. As of last year, the location services encompass iBeacon Technology.
iBeacons Uses
Although fairly recent, the iBeacon Technology has already been adopted by a few innovative brands. As is the case for many new technologies, early adopters are trying to define how this new product category can best be utilized in order to deliver business value. Here are a few ways in which the iBeacon technology has already been adopted.
Retail Promotions
American Eagle was amongst the first retailer to tap into the potential of iBeacons; the American chain launched an iBeacon promotional app in 100 flagship stores across the USA to help users chose their jeans and see the discounts available to them. Upon approaching the jeans section, the iBeacon technology detects the visitor and launches promotions to lure them into a purchase. This is the most commonly imagined use for iBeacons in tomorrow’s society.
American Eagles adopts iBeacon Technology
Better Retail Service
In December 2013, Apple introduced the iBeacon Technology in 254 US Apple Stores in order to give users a better customer service. The app enabled users to receive notifications for their online orders, to see events taking place in the store and to have a look at reviews and product information while browsing the store. It’s like having a personal assistant while shopping!
Apple store introduces iBeacons in selected stores (December 2013)
Another example of better service is the Major League Baseball’s application, launched in February 2014, which aims at improving the flow of traffic in the stadium. The app also adds in some tailored advertising, knowing where you are located enables the app to feed you deals regarding concessions and loyalty programs. Apps will vary according to each stadium.
Exclusive Experiences
Virgin Airline also has shown interest in integrating this technology in the famous Heathrow Airport for its passengers. ” In one use case, passengers would receive an offer on their phone for no-fee currency exchange as they near that place of business. The program, which will utilize Apple’s iBeacon technology and the Passbook iOS app, follows a trial in which airline employees donned Google Glass as they greeted first-class passengers upon entering the airport “.
Virgin integrates iBeacon technology in Heathrow Airport
Future Trends
All apps having access to a user’s location are theoretically able to push on content on a person’s phone using iBeacon technology. As this is a fairly new technology, consumers are not yet bombarded with ads and messages from third parties. But as the technology grows more and more established, and the novelty wears off, this technology might become an equivalent to SMS, with the ability to turn on and off communications. In an over-saturated world with television advertising, the iBeacon technology offers a useful alternative in the short-run. The advertisers and retailers will, however, need to become increasingly customer-oriented and offer more content of interest over time, as the phone space will also become crowded with competing advertisers using the iBeacon Technology.
An interesting note should be made on a new app that has recently entered the marketplace, called Launch Here. For the moment, this app is very primitive and simply sends an SMS signal to a user’s phone when approaching an object, but it is rumoured that future versions will enable Launch Here to launch actual apps (such as the iPhone’s Timer when you are near the kitchen stove) upon nearing iBeacons placed and determined by the user in his home. This would bring a commercial technology in the consumer’s home for everyday use.
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