Beacons have been generating a lot of buzz since June 2013, when Apple first introduced iBeacon technology at WWDC (Worldwide Developers Conference). News of beacons being used in everything from retail stores to malls, to events and museums have not died down ever since. Infact, these are becoming more frequent as months roll on.
These are exciting times and there’s a genuine belief that beacons will bridge the gap between online and offline, enhance customer engagement and help generate more revenue for businesses.
Yet, there is also this ongoing debate on the value and viability of iBeacon technology:
– ‘Are beacons worth the hype they are getting?’
– ‘Are there results to prove that beacons are actually beneficial for businesses?’
– ‘Are there numbers to substantiate claims about beacon implementations?’
These are some of the most frequent questions we hear about beacons.
So I did some digging and came across these 10 interesting (and powerful) stats on beacons in retail. In my view, these are 10 stats that prove that beacons are the future of retail! Let’s take a look:
i) Retailers to invest $2.5 Billion in IoT within 5 years. Much of that investment will be for beacons and RFID tags. (Source: Juniper Research)
ii) Beacons will drive $44 billion in retail sales by 2016, up from $4 billion this year. (Source: Business Insider Report)
iii) (Source: 2015 Store Operations Survey by Retail Touchpoints)
iv) 82% customers make purchase decisions in-aisle (Source: Forrester Research)
In the ‘2015 Store Operations Survey’, the fourth annual study comprising a survey of 100 retail executives by Retail TouchPoints, retailers were asked: “What benefits have you seen since implementing beacon technology?”. The results:
vi) 65% feel they are able to target customers down to the aisle level
vii) 59% feel customers are more engaged in the store
viii) 53% retailers feel they are able to create more relevant and compelling offers in the store
ix) 24% retailers saw an increase in sales
x) 24% retailers saw an increase in offer redemption
Those are some staggering numbers! Another important stat is that – 400+ million beacons are expected to be shipped within 5 years. Most of these will be used in retail. (Source: ABI Research)
Also, when 74% retailers believe that developing a more engaging in-store experience is going to be business critical, there’s no doubt that beacons are very much here to stay. We are sure to see a lot more of beaconing happening around us. Let’s watch out for some great use cases in retail!
If you are planning a beacon pilot, take a look at Beaconstac, that includes everything you need to get started. Using Beaconstac you can set up your own campaign, without a developer’s help!