Craig Smith resented at Evigo's Omnichannel Forum 2015 in Warsaw, Poland on 23rd June 2015 on the subject of retail innovation with proximity technologies. This is the presentation from that conference.

1. BEACONS & PROXIMITY TECHNOLOGY IN RETAIL
RETAIL | DIGITAL | END TO END

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C O N T E N T S
• ABOUT ME
• THE DIGITAL & MORTAR LANDSCAPE
• SUMMARY OF THE POPULAR PROXIMITY BASED TECHNOLOGIES
• THE DIGITAL & MORTAR USE CASES
• PROXIMITY MARKETING
• NAVIGATION
• BROWSING
• PAYING
• OTHER SERVICES
• SUMMARY

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I’m famous for putting digital in store at M&S in the UK
20% of all M&S orders now taken on these new digital channels
I run a popular retail innovation blog
ABOUT ME

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DIGITAL STORES INTERNATIONAL
DIGITAL STORES UK
CATEGORY SPECIFIC INNOVATIONS
M&S.COM REPLATFORM (UK)
MY WORK AT MARKS & SPENCER

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MY FAMILY ARE BEHIND THE POPULAR UK RETAIL
CYCLE RETAILER EVANS CYCLES

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THE DIGITAL & MORTAR
LANDSCAPE

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THE WAY PEOPLE BUY IS RAPDILY CHANGING
• There is an adjustment taking place in the
market between bricks & digital.
• UK store footfall has been declining.
• Digital influence on purchase continuing to
rise and mobile/tablet main drivers. Usage
continuing steep trajectory.
• Delivery costs rising and online pure-play
retailers going out of business.
Source: BI Intelligence
Device usage growth

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Reduce staff
turnover
FOOTFALL
Increase Net
Promoter Score
Increase customer
satisfaction
Improve product availability
Increase staff on shop floor
Increase conversion
Increase time spent
in store
Increase average
basket size
Improve staff
productivity
Increase visitors
into store
HOW SHOULD YOU PRIORITISE YOUR INVESTMENT?
AVERAGE SPEND COSTS PROFIT

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Attracting
the customer into
store
Create great customer
experience
Convert the opportunity
THE KPIs FIT INTO 3 STAGES OF THE JOURNEY

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SUMMARY OF THE
POPULAR PROXIMITY
BASED TECHNOLOGIES

11. Bluetooth Low Energy (BLE) / Beacons
• Beacons broadcast
messages and devices
listen
• Works up to 50m.
• Uses:
– Geo tracking / Way-
finding indoors
– Marketing
messages/notifications
– Get details

12. WI-FI
• Initiated by logging into a
WIFI network with a
device.
• Works up to 20m
• Can be networked.
• Uses:
– Geo tracking / Way-finding
indoors
– Marketing messages

13. Near Field Communication (NFC)
• Reader transmits radio
signal which
activates(powers) the tag
which in turn sends
response
• Communication is 2 way
• Works up to 10cm
• Device reads data from a tag
• Uses: -
– Payment
– Access control
– Service initiation

14. Radio Frequency ID (RFID)
• Reader transmits radio signal
which activates(powers) the
tag which in turn sends
response
• Communication is 1 way
• Works up to 100m
• Can be written to
• Can be sown into clothing
• Uses: -
– Item inventory counting
– Inventory movement /
tracking
– Item identification

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THE DIGITAL & MORTAR
USE CASES

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PROXIMITY MARKETING

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Proximity marketing
is the localised
wireless distribution
of advertising
content associated
with a particular
place

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PROXIMITY MARKETING EXAMPLES
MCDONALDS IN RESUATRANT OFFERS
(BEACONS) OFFERS IN BUS SHELTERS (NFC)
TIMBERLAND IN STORE OFFERS
(BEACONS)
PHLIPS LED LIGHTING (BEACONS)

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Macys have used
beacons to notify
customers of
offers and reward
loyalty

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Video removed. Go here for video:
http://retail-innovation.com/ibeacon-trial-at-macys/

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McDonalds have used
beacons to alert
customers of offers
and information as
they arrive at the
restaurant

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Video removed. Go here for video:
http://retail-innovation.com/mcdonalds-broadcast-offers-via-beacons-in-store/

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Meat Pack have used
mobile location to
hijack customers from
a rival stores by
offering a discount
which counts down
every second until you
arrive in store

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Video removed. Go here for video:
http://retail-innovation.com/mobile-app-that-hijacks-you-from-a-rival-store/

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BROWSING

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SHOPPING EXAMPLES
HOUSE OF FRASER (BEACONS) MADE.COM – GET PRODUCT INFO (NFC)
POWATAG (AUDIO CODES)NEW BALANCE (RFID)
C&A – GET PRODUCT INFO HANGERS
(RFID)

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In Hointer stores you
can tap an NFC tag
on a product to get
your size sent
straight to the fitting
room to try on

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Video removed. Go here for video:
http://retail-innovation.com/us-retailer-hointer-uses-robots-to-deliver-your-selections-to-the-fitting-room/

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At Carrefour you
can tap an NFC
shelf edge label
to get product
information

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Video removed. Go here for video:
https://www.youtube.com/watch?v=n8v8RZ9ZnXs

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At Rebecca Minkoff
they use RFID to
identify products
brought into store to
help customers make
the right choice

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Video removed. Go here for video:
http://retail-innovation.com/digital-changing-room-and-interactive-mirrors-at-rebbecca-minkoff/

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Every millisecond counts.
Greater integration into
mobile handsets is key to
greater customer adoption
of in store assisted
shopping apps

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PAYING

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Mobile payments
is poised to
transform the way
consumers pay for
everything they
buy

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PAYMENT EXAMPLES
PAY BY WATCH PAY BY PHONE
CHECK-IN & PAY

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Apple Pay is
about to kick-
start the mobile
payment
revolution in
Europe

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Video removed. Go here for video:
http://retail-innovation.com/apple-pay/

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OTHER SERVICES

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OTHER (LOCATION BASED)
TELEFONICA MONITORING THE CROWD GOOGLE LOCATION HISTORY
NAVIGATION AT MACYS (WI-FI)

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Facebook are providing
beacons to retailers to
enable stores to tie in
user generated content
with the store the
customer is standing in

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Video removed. Go here for video:
http://retail-innovation.com/facebook-in-store-shows-shares-from-other-visitors-via-beacons/

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Knowledge of
where you are
gives retailers a
powerful location
targeted
marketing
opportunity

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SUMMARY

45. KEY TAKEAWAYS
• Digital is disrupting in store retail and proximity based
technology & mobile are two of the main disruptors.
• The four most popular types of proximity technology
available today are BLE, NFC, WI-FI and RFID.
• Greater integration of NFC into handsets key to making a
better shopping experience with mobile.
• Mobile payment is poised to disrupt the way we buy in
store.
• Knowledge of where you are gives retailers the power to
target you at your location and at that moment in time.

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MY COMPANY
• Worldwide company; 180 employees. We’re a
specialist in bringing digital into store
• Critically - we understand e-commerce and we
understand the store
• We’ve been innovating in the digital in store space
longer than anybody.
• We work with around 50 retailers worldwide
including: -

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MY BLOG

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FOLLOW ME / CONTACT ME
@craigwsmith
craig.smith@replgroup.com
Retail Innovation
repldigital.com
retail-innovation.com

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BEACONS & PROXIMITY TECHNOLOGY IN RETAIL