LAKEWOOD, Colo.—2015 may be the year “beacon” technology becomes widely used by retailers, with some credit unions and banks also turning to the same technology, according to two experts.
One of the experts added that he believes leveraging beacon technology will help smaller FIs get out ahead of large banks.
Beacons, low-powered, low-cost transmitters that use Bluetooth low energy to communicate with mobile devices to make proximity-based offers, have been gaining ground quickly. Mitek contends the technology will take off when combined with mobile imaging for data completion.
Jeff Kaufman, president of retail services at FirstBank here, said his organization has big plans for leveraging beacons this year.
“I don’t have the marketing dollars of Chase, Wells Fargo and US Bank, who we compete with daily,” said Kaufman. “If I can introduce technology ahead of my competitors and use it in unique ways, that plays well for FirstBank’s image as a technology savvy bank, and differentiates us.”
Proximity Marketing
Kaufman sees partnering with merchants on proximity marketing deals, including merchant-funded rewards, building deeper customer relationships.
“Ultimately I am delivering more value to customers,” said Kaufmann, who sees beacons increasing FirstBank’s card transactions and top-of-wallet status.
James DeBello, CEO of Mitek, San Diego, sees the use of proximity marketing increasing due to consumers’ mindset changing.
“Proximity marketing will pick up a great deal this year because consumers are not resisting the use of beacons as they have in the past,” offered DeBello, whose firm made the prediction in concert with several financial experts. “Consumers used to say they did not want to be tracked while they were in a store, but we are seeing less resistance to that—and I attribute some of this to the use of fingerprint biometrics with the iPhone. What consumers once saw as invasive is not seen as invasive anymore.”
A recent study by mobile marketing firm Swirl reveals that six-in-10 shoppers who receive a beacon-triggered message while shopping in a store open and engage with the content and 30% redeem beacon-triggered offers at the point of sale. The study also shows that 73% of shoppers believe that beacon-triggered content and offers increase their likelihood of making a purchase.
“We think there are lot of opportunities with beacon marketing campaigns,” said Kaufman.
Mobile Imaging Boosts Beacon Offers
DeBello sees mobile imaging making proximity marketing stronger.
“We think the combination of mobile imaging through the web—browser based—in concert with beacon offers in stores and in financial institutions, could materially impact the way consumers are treated, how offers are implemented, and how consumers accept offers.”
DeBello explained that proximity marketing offers that require the consumer to complete data fields, such as enrolling in loyalty programs, face a high rate of abandonment without the use of mobile imaging.
“Ever apply for a store card and have to stand in line and then type in all your information on a POS machine? With mobile imaging, once the beacon activates the offer the consumer can snap an image of their driver’s license through our mobile web imaging technology and begin the enrollment process with one keystroke. Accessibility and consumer experience are paramount. Keep the process simple and easy to accept the offer—eliminate keystrokes and consumer friction.”
Swirl added that retailers that employed beacon marketing this holiday season saw good results, not only in campaign sales but also in consumer data collected for use in future campaigns.