BEACONS IN E-COMMERCE – how to use them and achieve success

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1 BEACONS IN E-COMMERCE – how to use them and achieve success

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OMNICHANNEL 33% of consumers buy using multichannel 31% consumers visit shop before going online 34% consumers use online information before buying offline 51% consumers use mobile devices Source: Deloitte Report - The Omnichannel Opportunity, 2013

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OMNICHANNEL CLIENTS Zrodlo: Deloitte Report - The Omnichannel Opportunity, 2013 They buy more than regular buyers They are influenced by 63% consumers use multichanneling when they shop and they spend more than ?100 in average ONCE PER WEEK Share in retails – more than 70% They buy non-food articles They use multichanneling more often Visits in the real shop Opinions, price comparison sites Mobile apps Social Media, blogs

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OMNICHANNEL AND BASKET VALUE source: Deloitte Report - The Omnichannel Opportunity, 2013 online research and online shopping offline online offline + research during the shopping offline + research online BEFORE the shopping ROPO

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Source: Deloitte Report - The Omnichannel Opportunity, 2013 77% expect some benefit after the check-in Source: Swirl Networds, 2013 SMARTPHONE DURING SHOPPING Finding local shop Taking a picture of the product Price comparison Scanning the barcode of the product Localization and local offers Online opinion research Information about the product - research

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Beacon is a small device that is able to exchange information with other mobile devices equipped with the suitable application. It is based on the Bluetooth 4.0 Low Energy. It allows you to communicate and locate devices even in closed spaces with an accuracy of several centimeters. BEACON TECHNOLOGY

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The beacon can be based on multifunction devices such as iPad. Dedicated solutions are quite frequent. Companies like Estimote, Roximity, Twocanoes offer beacons ready to go. Price of a Beacon device depends on the manufacturer. It is +/- 10-50 USD per unit. BEACON TECHNOLOGY

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1. Joanna is sitting at the bus stop and checking news on Facebook 2. She sees that her friend downloaded the fashion app from the store X, her favorite brand of clothes and she received a 25% discount on additional purchases of products of this brand 3. Joanna also wants to have a discount, so she downloads the application. 4. She receives 30 points as a reward for installing the application. In addition, the application informs her up to date on current news and promotions, so Joanna is happy. APPLICATION SCENARIO

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6. Joanna goes to the cinema in the shopping center in the city. 7. On the way she passes by various shops, but do not shop. 8. Passing salon "Pull & Bear" she receives a notification on her smartphone. APPLICATION SCENARIO

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9. She stops at another salon to read the notification. 10. It turns out that today is the promotion of "-25% on dresses" in her favourite shop X. 11. She looks up and she stands in front of the entrance to the shop X . 12. She clicks on the notification and goes to the store to see what dresses are in promotion. APPLICATION SCENARIO

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13. It turnsout that one dress is in promotion so decides to buy it. 14. At the checkout she notices that she can register her purchase in the application and receive more points. 15. Joanna scanns the code and receives more points on her account. APPLICATION SCENARIO

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16. During the random visit in the shopping mall, Joanna buys a nice dress at a promotional price and earns on the purchase a large amount of points. APPLICATION SCENARIO

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The customer in the store can be informed about products complementary to the product which is stationary. UPSELLING

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The customer can have access to the map of the store and quickly discover a product at a promotional price, the products from the online wishlist, etc. STORE NAVIGATION

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The customer can receive points for entry into the dressing room area. POINTS FOR ENTERING FITTING ROOM

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If a product, that customer tries on, doesn’t meet his or hers requirments, the application can present alternative products and indicate where they are placed in shop. ALTERNATIVE PRODUCTS

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The customer may report the need of assisstance to which employees will be able to respond. CUSTOMER SERVICE

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On the market for over 10 months (09.2013 - iOS7) Pilot implementations: Apple implemented iBeacons in 254 stores in USA Safeway and Giant Eagle implemented beacons in 150 stores in USA American Eagle – implementation in 100 stores in USA Macy’s - implementation in 2 shopping malls in USA Superbowl 2014 on the Time Square Tesco – pilot in store in Great Britain London Heathrow Airport SXSW festival …. BEACON SO FAR Source: http://mashable.com/2014/03/07/ibeacon-sxsw-2014/

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Sales increase by: Increasing the number of inputs to the local store Helping customers navigate in the store Personalization of the advertising messages Speeding up the process of receiving the order from store (system check-in) Up-selling (suggesting complementary products) Creating a heatmap of the shop (the most popular places) Collecting information about consumer behavior Speeding up the purchasing process - with the integration of the payment system Building customer loyalty through: Strengthening modern brand image Personalization of the advertising messages Facilitating the purchase process Improving the user experience POSSIBILITIES

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In-depth research on the Polish market Concept creation of the loyalty program based on multi-channel (with the support of beacon technology) Concept creation of acquiring data on consumer behavior in multi-channel (with the support of beacon technology) Conducting a pilot study with users in one of the establishments using the prototype of the loyalty program and beacon, Creating a loyalty program and the application supporting action beacon in stores Designing sources of data on consumer behavior. WHAT NEXT?

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Contact us for more: dwinkowski@divante.co www.divante.co