how beacons and proximity technology are shaping the retail industry

© 2015 Openbravo Inc. All Rights Reserved

How Beacons and Proximity Technology are Shaping the Retail Industry

July 24, 2015

Click here to go to the recorded webinar in Brighttalk

https://www.brighttalk.com/webcast/12131/164961




Víctor Gaspar Country Business Manager (Colombia)

Victor-Gaspar

More than 10 years experience in IT sector

Computer Science, MsC. PMP for the Project

Management Institute

In GMV since 2011 Project Manager

Country Business Manager in Colombia

Today’s Presenter

https://www.linkedin.com/pub/xavier-places-cano/0/a6b/b33?domainCountryName=&csrfToken=ajax:6608645611679850545





Elena Martinez Retail Specialist

Elena-Martinez

More than 10 years experience in IT sector

M.Sc. Telecommunication Engineering, M.Sc.

Master in Information, Communication and

Audiovisual Media Technolgies

International Project Manager, Researcher

In Openbravo since 2008 International Project Manager

Retail Specialist

Today’s Presenter

https://es.linkedin.com/in/emartinezhndz






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Introduction

Retail Proximity Context & Technologies

Beacons

Success Story using Beacons

Challenges and Best Practices

Key Takeaways

Q&A

Agenda and Goals


Trusted Vendor

6

World leader in the Professional Open

Source Enterprise Software Space

Focused on helping midsize to large

organizations to achieve superior

competitiveness

Present on all continents

Pure channel organization with a

distribution network of authorized

Openbravo Partners

Offices in India, Mexico, France and

Spain


About GMV

7

Multinational conglomerate founded

in 1984, roots tied to the Space and

Defense industries

Private capital and over 1.200

employees all over the world

Offices in Spain, Poland, USA,

Germany, Malaysia, India and

Colombia

Currently operating in Aeronautics,

Space, Defense, Security,

Transportation, Healthcare and ICT

industries


The Digical Transformation

The big change in business today is the combination of digital and

physical elements to create together new value

Source: The Phygital.com

Source: MIT Dynamic Display Source: Real life Instagram

Photoshop going physical

Source: Google X


Retail Proximity

is about marketing to your customer

at the right place, at the right time,

with highly relevant and

personalized notifications.

Bridge to connect the online with the

offline, with relevant information

How the whole range of proximity

platforms could transform commerce?

We encounter some barriers like the

consumer privacy concern…


Be informed of

products on sale or offers in-store

Some Examples

Receive additional

product information

Proximity payments


A cellular phone being in a particular cell

A Bluetooth or WiFi device being within range of a transmitter (ex Beacons)

An Internet enabled device with GPS enabling it to request localized

content from Internet servers

A NFC enabled phone can read a RFID chip on a product or media and

launch localized content from internet servers

Technologies Used

Source: Made.com showroom in London using CloudTags Technology

Example: A shopper can obtain more information

about a piece of furniture on display by

tapping the item's RFID tag with one of

the tablets that the company makes

available to visitor


The Year of the Beacon

“Beacons will directly influence $4 billion in

sales at top retailers in 2015. It expects that

number to increase tenfold to about $44

billion in 2016”

Source: mibeacon.net

Considered as the

most effective tools

that can help

brands generate

higher ROI with

ease


Benefits for Retailers

Customers get highly

targeted promotions for

the things they want

Retailers can collect

valuable data on their

customers’ buying habits.

So one step closer to

tracking the customer’s

journey from initial

research to final purchase

Source: Forbes.com


Beacons Technology

Early adopters

Application scenarios

Success Story

Developed PoC

Results obtained

Issues found and future work

Second Part


Beacons Technology

Bluetooth 4.0 (o BLE)

Identified radiofrequency signal

Distance 50m

Advantages:

Low cost

Autonomy

Easy to use


Early Adopters

Many leading companies are adopting Beacons:


Application Scenarios

Early retail success stories that others can replicate

Source: Carrefour, bbc.com

Source: Macy’s

Source: Walmart

Source: House of Fraser

Source: Facebook


Success Story

Leader financial institution on mobile banking and innovation

+5000 offices in Spain and retail banking leader

PoC to understand the business opportunities of the technology

Final users:

Business continuity dpt

Marketing and sales dpt

Security dpt


Success Story

Uses cases:

Support to the personnel relocation in the case of a business continuity event

Support to the customer identification and sales targeting

Access control to restricted area

Challenges for a big organization:

Heterogeneity of platforms and manufacturers

Wide variety of types of events and business logics


Developed PoC (I)

Platform functionality:

Horizontal and centralized platform

Event processing and aggregation to complex business events

Interfaces to consume business events by vertical applications


Developed PoC (I)

Vertical solutions developed

Business continuity. Personnel relocation to backup workplace

Marketing and sales. Customer identification and relevant product notification

Security. Two factor access control to restricted area


Results Obtained

Low-cost physical and contextual environment information

Easy to use and deploy

Applicability to different business areas

Interest for the corporate Bigdata strategy


Issues found and Future Work

Low precision for indoor navigation

Integration with other indoor technologies (GMV – Wipode)

Incompatibilities with Windows Phone

Solved from 8.1 version

Lack of security mechanisms

Some manufacturers now integrate security mechanisms

Privacy concerns

Data respectful organizations


Challenges Faced


Challenges Faced

To Enhance Relationships

Brands Must Translate

Value and Foster Trust


Challenges & Best Practices

1) Privacy concern and security: limits customer engagement → BP: Ask your customer’s permission first of all




2) Match consumer preference

There is a huge gap between the type of proximity marketing

messages preferred by shoppers and the type of messages

served in-store → BP: to generate valuable content, take your notifications

contextually relevant, which implies to gain deep insights into

consumers behavior first

→ BP: and avoid being overwhelming

Source:

Mobile Audience

Insights Report




2) Match consumer preference

There is a huge gap between the type of proximity marketing

messages preferred by shoppers and the type of messages

served in-store → BP: to generate valuable content, take your notifications

contextually relevant, which implies to gain deep insights into

consumers behavior first

→ BP: and avoid being overwhelming

3) Mobile and app dependency → BP: retailers need to educate customers about the benefits this

technology

Source:

Mobile Audience

Insights Report


Data Integration Challenge


Beacons and your Commerce Solution


Key Takeways

Key

Takeaways


Key Takeaways

Technology with

tremendous potential

Requires a well defined

strategy plan There are big barriers to

overcome

Security

Infrastructure management

Data integration challenge The need of flexible

technology platform where

to integrate Beacons and

the other data sources


Web: www.openbravo.com/contact

Email: [email protected]

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Mexico Office: +52 559171 1841

Thank you very much

for your attention

Next Webinar

From Clicks to Bricks: Why Physical

Stores Matter Today More than Ever

Aug 06 2015 11:30 CET

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