How Does Beacon Technology Work?

 

Beacon technology is generating a lot of buzz by enabling new ways for people to communicate with others, as well as brands, through incredibly sensitive geo-specific technology. The way the technology works is fairly straightforward: beacons are equipped with familiar Bluetooth technology, which connects to smart devices (usually via app) when users are within proximity of the beacon. The app triggers any number of responses on the phone, including coupons, videos, or other high quality content.  

The utility of beacon technology is virtually limitless for retailers and developers. Retailers with limited shelf space can provide a more engaging customer experience by personalizing a shoppers experience before or after point of sale. This applies to broad merchandising situations like sporting events and theme parks. Further, beacons can connect people through smart networking in real-time, creating more value for the user and the budding technology. 

Once fully integrated, beacon technology is expected to provide the end user with access to more pertinent, up-to-date and persuasive content — a marketers dream come true! However, this supposes that companies are already developing in the mobile space. For the technology to achieve peak performance, the mobile content must be effective also. 

Studies suggest that smartphone usage is constantly increasing; brands unaware of this trend are expected to fall behind. However, there are other challenges faced by the proliferation of beacon technology. 

Currently, beacon networks are fragmented and closed. In this instance, retailers have to juggle the price of installing private network beacons with the time it may take for the technology to evolve and users to catch on. The price of being first to party may result in extra expenses for the retailer, who would have to spend more to switch networks down the road. 

The end user also suffers, as they will be forced to download a multitude of apps corresponding to the various private networks aligned with retailers. The result is cumbersome and arguably not worth the effort. 

To fully appreciate the powerful marketing tool, beacon networks should be open, widely assessable, and easy to implement. In this model, innovation will emerge more quickly and gain greater acceptance among retailers and end users. All constituents would benefit from an open system.  

Additionally, the prospect of this technology is preemptive to an entirely new era of collaboration between retailers and developers. Gaining timely, instant access to the intimate space of personal mobile devices is truly the final marketing frontier.