Revealing the Secrets of Customer Behaviour

November 2, 2015
Romet Kallas
Account Executive

It is not a coincidence that beacons have become the main investment when choosing proximity technology. The proximity marketing directory Proxbook, covers over 30 proximity use cases and the vast majority of them are related to beacons.

Most of the successful retailers already foresee the Internet of Things changing the way how companies do business and according to MediaPost, 70% of largest growing retailers see beacons, as the go-to technology with the highest value.

So why beacons?

Here are some of the use cases from Proxbook that demonstrates why proximity beacons have turned out to be so popular:

How Mc’Donalds app benefited from proximity beacons

McDonald’s sought to bring more customers in store and boost sales. The food chain decided to build and deploy a mobile solution that would engage San Francisco Bay Area customers over a mobile app. Marketing managers used Mowingo’s platform to draw customers to the store and raise incremental sales. Redemptions, sales ROI, and other important KPI’s were tracked on a real-time analytics dashboard. Mowingo proximity platform increased sales and customer engagement. There was a 17% higher order amount in locations where the app was installed. Stores that used beacons to trigger targeted, real-time and location-aware offers experienced a 250% higher engagement rate. Restaurants, where McDonald’s app was deployed, experienced higher incremental sales, larger order sizes, and highly engaged and satisfied customer base.

How World Congress Event app benefited from proximity beacons

The average interaction rate of mobile apps for events did not satisfy the World Congress event organizers. Therefore, they turned to proximity to enhance the attendee experience during the event and to gather insights on visitor behaviour to improve future events. The Mobile World Congress 2015 lasted for 4 days and gathered 93,000 attendees from 200 countries, 48% of them downloaded the app. With the help of Moca proximity platform and Kontakt.io beacons, 47% of mobile users interacted with the app, which is 240% more than the best usage rate of mobile apps. It is worth noting that 79% of mobile users turned on GPS and only 2% received a notification. Compared to 60% who had bluetooth turned on and an astonishing 48% received a beacon triggered message. Beacons reached 17 times more mobile users compared to GPS, proving to be the most accurate and best suited technology for delivering real-time location-aware notifications.

How Ole Miss Rebel Rewards benefited from proximity beacons

Ole Miss University created the Rebel Rewards mobile application, but after a little while they stumbled upon some fundamental issues. The system for checking-in was not convenient enough to use, users had hard time following their loyalty points, adoption rate was rather small and the program didn’t allow messaging users to attend less-attended sports events. With Spark Compass proximity platform and Gimbal beacons the university was able to solve these setbacks. Now when a user attended the event, loyalty points were recorded automatically in real-time thanks to beacons. The feature to measure dwell time, helped to avoid abusing the system by simply stopping by to gain points. To increase engagement, Spark Compass added real time contextual messaging, award redemption and analytics to the app. Due to these additions, app adoption was up over a massive 400% and attendance at sporting events increased 20%.

How SAIL Amsterdam benefited from proximity beacons

Sail Amsterdam is the biggest nautical event in the world and the most recent 2015 edition had 2.3 million visitors over a 5 days period. The event organizers were seeking tools to analyze and therefore improve the future events, by offering a unique experience for visitors at the same time. Inbeacon had an answer with their proximity platform and proximity beacons from Radius NetworksGlimworm beacons and other partners. The project involved 232 beacons and 3 different apps, which served over 8 million beacon interactions. The solution made possible to make analytics on visitors per location, visitors per day/hour, how many attendees visited the event more than once and to see the popular routes. The SAIL app served real-time notifications based on the location of the visitors, which had an average open rate of 22%. It is worth noting that the open rate was 4% higher, when the visitors were standing still looking at the sailing by ships, rather than walking around. Also, a very interesting finding was that, when the notification sound was set to a custom ship horn sound, there was a massive 27% increase in open rates.

Visit and sign in to Proxbook: www.proxbook.com

It is not only the ability to serve the right message at the right time that is the reason beacons are increasingly receiving more interest from innovative companies. It is equally their ability to help in understanding the customer. Dwell time, popular routes and real-time interactions are essential insights into customer behaviour.

And when we understand the customer, only then we can actually improve the customer experience. In other words, beacons and proximity platforms help us answer the three most important questions, “what”, “when” and “how”.

Or as Nimmity Zappert, head of sales and partnerships at Localz, commented in a recent Geomarketing article, “The retailer who gets real-time marketing right, wins.”