What’s next in store for beacon tech?

It has been two years since the iBeacon protocol was introduced, making it a perfect moment to take a step back and find out where the technology
is headed. Though the technology is new, we can already provide some lessons learned. The big question, however: where is this all leading up to?

To prepare for the future one should understand the past

The Contextual Computing Revolution

Apple’s iBeacon protocol introduced the era of the Internet of Things to the general public. Some savvy Eastern European guys created tiny low-cost
battery powered Bluetooth devices called beacons that can be installed anywhere. The devices broad- cast a combination of three ID’s (UUID, Major and Minor) that allow connecting to and identifying virtually every object on the planet. This location-based information opened up a new world to
developers and companies that want to engage with users when it’s most relevant. User experience is lifted to a whole new level by surfacing the right
content at the right time, meaning user interfaces can be simplified or significantly reduced.

The Push play VS The Data Play

Every company raises the same question: “How many customers will we be able to reach?” In other words: “how many of our customers turn on Bluetooth and allow location services?”

Today this group proves to be a lot bigger overseas where they vary between 30 to 40%, whereas in Belgium we see an adoption rate of around 15 to 20%. While Bluetooth operability is more or less constant, apps that solve a real customer problem are more likely to be allowed access to location services.

Bluetooth still has a bad reputation for alleged battery drainage and privacy concerns are raised when apps start prompting to enable location
based services.

To win the customer’s heart, it’s important to make the on-boarding flow transparent and to advocate added value for the customer.

Most cases focus on delivering offers and coupons via push notifications. The trick to a successful campaign is adding an aspect of unpredictability and capping the amount of interactions. That way, you can truly
delight the customer. Say, for example, that Joe and his family visit Brussels Airport for the first time. Thanks to beacon data, we know that it’s
Joe’s first visit to the airport. You can now send Joe a push notification with a one-time guest pass for the VIP lounge.

A single, relevant action can surprise and delight the customer and keep your brand top of mind.

Creating value requires getting to know your customers.

And that’s exactly what the first step in a beacon campaign should be. Measuring entry logs, dwell time and flow analytics between beacon groups contributes to huge amounts of data that can be used to enrich the CRM and ultimately translates into superior segmented audiences. Major brands are now leveraging the rich contextual information that location pro-
vides to create highly-targeted audience segments, enabling them to strategically target consumers at specific points in their day, not just when
they’re within close proximity of a brand’s store or restaurant.

From serving ads to delivering service

It might sound strange to anyone that has experience with setting up beacon campaigns, but the opt-in model is part of the success. Yes, the customer is required to download an app and actively opt-in but in that perceived weakness lies the beacon’s strength.
Beacon technology forces companies to produce added value for the customer. For example: when a traveler returns from their holiday at Brussels Airport, it’s easy to detect their presence at the arrivals gate and a beacon can trigger in-app functionality to provide the conveyor belt info for
luggage retrieval…zero taps required.

Operational Value

The commercial value of beacon tech is huge, but the operational capabilities prove to be equally interesting. The raw data of
beacon entries provides insights that can help business set up their venue. Dwell time analytics can help to create new floor plans. Equip machinery with beacons to remind staff to perform a status check or other maintenance services. Heat mapping enables better user flows and help secure busy events.

From automating inventory control to optimizing fleet management to tracking livestock, the technology provides a cheaper and
fruitful alternative to other often-expensive tools for the enterprise industry.

It’s the backend, stupid!

Beacon technology is facilitating IoT, but this is just the tip of the iceberg. The devices can be equipped with more than just Bluetooth chips. Adding Wi-Fi and network capabilities are no brainers.

The next wave of sensors such as acceleration and temperature will generate even more data. More and more devices will be interconnected providing multiple endpoints that will enable people to interact with more and more things. They call it the digital mesh and if one thing is for sure, backend developers will have a hell of a job to connect all these platforms. Various protocols will need to be intertwined to provide a continuous user experience from device-to-device.

Web and app platforms will gather intelligence, and data scientists will have to create models to facilitate automated enterprise decisions.

The Physical Web

Another big revolution is the so-called ‘physical web’ that was launched with Google’s platform Eddystone. The Eddystone beacons are able to broadcast a fixed URL that can be detected by Chrome’s mobile browser, creating a path for ‘appless’ beacon usage. This allows organizations to reach or understand customers that have not yet downloaded the organization’s app. With all the major players aboard and many new pioneers entering the market these are very interesting times.