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Proximity Notification Campaigns Reach More Customers
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Contents
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Kontakt.io
Preface Summary
Proximity notifications What are proximity notifications App requirements What are Beacons? How proximity transforms expectations Bluetooth powers new opportunities
Beacon-based use cases Retail Museums, parks, and zoos Public Transport Service providers
Getting started with a proximity notification campaign 7 steps to success Push vs. Physical Web Beacon infrastructures
Beacons: a rapidly evolving industry
Ready to reach your customers?
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Kontakt.io empowers businesses by bridging the gap between
real and digital. We are pushing the Internet of Things revolution
forward by connecting proximity-aware devices to the cloud.
Future IoT solutions will be built on beacons, and Kontakt.io is
proud to be a thriving leader in that space. We want to share
our best-in-class beacon infrastructure solutions and expertise
to empower every organization on the planet to realize its full
potential.
The Internet of Things will fundamentally change the way we
interact with the world. The digitalization of the physical world
will help firms create better strategies and optimize the way they
do business. Increased monitoring opportunities will make data-
driven decision-making possible. Companies and consumers
alike will benefit from this increased informatization. However,
this development is a double-edged sword. While there are
significant opportunities, companies must successfully navigate
the new and dynamic technological landscape in order to survive.
This report introduces the many practical and concrete
ways a firm might choose to implement IoT-based proximity
solutions. It will draw on real-world use cases in order to offer
an extensive overview of proximity notifications and their many
applications. This information will inform managers and decision
makers on the modern IoT ecosystem and describe how the
latest innovations and standards are revolutionizing marketing
campaigns.
We will look specifically at applications for BLE-based notification
systems in retail, museums, zoos, transport systems, and
usages in other organizations like gyms, tourism agencies, and
universities.
Preface
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Summary
Recent technological developments have turned Bluetooth
beacons into a competitive tool for proximity-based alerts and
notifications. Used in proximity notification campaigns, BLE
beacons present significant opportunities for companies to
connect with their customers at the moment of choice. Beacons
have applications in a diverse array of industries including
retail, museums, and transport. By enabling managers to
communicate with visitors, proximity will contribute to better
customer experiences, higher foot traffic, and increased loyalty
and engagement rates. When implemented effectively, it will
maximize the time companies spend engaging with customers
and strengthen competitiveness.
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The Internet of Things (IoT) represents the connectivity of
modern technology and the growing network of smart devices
that are able to communicate with one another. As technology
becomes better and more affordable, the digital ecosystem will
only continue to grow. The digitalization of the physical world will
open up new and revolutionary management opportunities for
firms in all sectors.
Proximity-based interactions have always been a core capability
of beacon technology. In the past, QR and NFC codes sought
to fill this space. However, their limitations make it difficult to
connect naturally with customers.
Bluetooth, a wireless technology standard for exchanging data,
has the potential to effectively and naturally engage customers.
In recent years, Bluetooth has evolved to become the global
standard for the IoT revolution. Energy efficient Bluetooth Low
Energy (BLE) technology has made a number of completely
new technological applications possible. One major disruptor is
the Bluetooth beacon. The functionality of Bluetooth beacons
is relatively simple. They send out a signal that is picked up
by Bluetooth devices in the area. This signal indicates the
Bluetooth user’s proximity to that beacon and, subsequently,
the approximate location. Additional beacons can be installed
to accurately identify an individual’s position down to meter
level. Compared to other technologies, BLE beacons are very
affordable. The technology is also easily integrated with other
systems and everyday devices due to the existing widespread
adaptation of the Bluetooth standard.
The low cost of the technology makes it applicable in settings
where highly advanced systems might not have been otherwise
feasible. The growing popularity of proximity notifications will
lead to new use cases, and the replacement of--or integration
with--older, less sophisticated systems like QR and geofences.
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Proximity Notifications already have applications in a number of industries and settings:
When implementing a proximity campaign, managers will need
to consider a number of different factors. Successful deployment
starts with a solid understanding of possible systems, and
efficient system maintenance planning will affect long-term
success. The rapidly evolving ecosystem for beacons means
Vertical Application Use case
Retail Pushing personalized deals Stores in a mall are outfitted with beacons. As shoppers pass a location rel-
evant to their purchasing history, they receive a notification about the given
store’s latest products.
Museums Relaying interactive information Students visiting a museum can engage with exhibits through smart devices,
automatically receiving age-appropriate content, images, videos, and sched-
ule changes.
Transport Aiding in navigation Travelers on public transportation are able to set their destination in an app
and receive notifications about arrival times and schedule changes.
Services Generating feedback Managers can give customers the option to offer feedback quickly and easily
via mobile, making visitors more likely to engage.
Events Sharing real-time guides Visitors can receive instant and proximity- based information about popular
stages, water stations, updated schedules, and stand locations.
different hardware and software providers vary significantly.
Creating long term partnerships with experienced software and
hardware providers is an effective and essential way to eliminate
risk.
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What are proximity notifications?
Out-of-Home marketing has exploded in recent years in part
due to technological advances. Now that technologies are
becoming more affordable and developed, businesses are much
more willing to integrate a smart solution into their marketing
efforts. Proximity marketing is a method of communicating
with shoppers and visitors when they are at the right location,
often in sight of a given product or store. Without this element
of proximity, notifications would be sent haphazardly or at
impractical times. For example, sending discounts when a buyer
has already paid and left the store.
There are several proximity solutions that are not technology-
based. Physical signage and banners are commonplace in
all kinds of locations. From grocery stores to sports stadiums,
brands regularly utilize physical signage to speak with customers.
Now, there are also more advanced methods. QR codes, NFC
tags, and Bluetooth infrastructures all address the same problem
but with different capabilities. Proximity notifications create value
for executives and managers by sending out messages at the
right time, building relationships, and creating better returns.
They also aid visitors by providing contextual information, often
via mobile, when they need it most.
Proximity notifications
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What are beacons?
Beacons use Bluetooth technology to connect a specific physical
point like a shopper in a mall with the Internet of Things, a
physical mesh of ordinary items all embedded with electronics,
softwares, and sensors. Beacons utilize the IoT to communicate
with smartphones, both up close and across a room. Each
beacon sends out a short-range radio signal regularly. In fact,
they can transmit these signals ten times or more in a second.
Bluetooth-enabled devices, like smartphones, pick up these
signals when in range.
A beacon’s capabilities depend heavily on what their owner
has programmed the infrastructure to do. Some signals might
trigger a notification, like a sales promo or packet of product
information. Others could automate actions like opening a
lock. Once the smartphone using the relevant app picks up the
beacon signal, the next step is automatically triggered.
App requirements
Notifications are always delivered to visitors’ smart devices
via a Bluetooth-enabled mobile app. There are several ways
companies are creating and using apps in the space. Large
businesses may create their own specialized app in-house,
leveraging the Kontakt.io API and SDK. Other businesses may
outsource the app development process or choose a solution
provider that offers a ready-made app. A museum, for example,
may choose a solution provider that already has a working
museum app and system for beacon deployment. Finally, some
companies are coming together on large, popular apps like
RetailMeNot. As beacons become increasingly popular, there
will likely be a growing number of apps and solution providers
readily available.
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How beacons work?
The signal is detected by nearby smart devices via Bluetooth Smart™.
A Beacon is a small wireless device transmitting a continuous radio signal.
The result? You're more engaged with the store and get the perfect bags you never knew you needed!
There is a Beacon placed next to the bags section.
Let’s try an example.
Say you're walking by your favorite clothing store and they're having a sale on bags.There is a beacon placed next to the bags section that alerts you to the sale when you pass by.
$Your smart device thensends that ID number to the cloud server.
The server checks what Action is assigned to that ID number & responds.
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The signal tells your smart device “I’m Here” by giving its ID number.
What could that response be? That’s up to you.
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Going mobile. “70% of smartphone owners who bought
something in a store first turned to their devices for information
relevant to that purchase. And when people search on mobile,
it tends to lead to action: 92% of those who searched on their
phone made a related purchase.”1
Google's VP of marketing, Lisa Gevelber, shared statistics on how
consumers are changing. Shoppers can filter out irrelevant stores,
products, and services through their smartphone. Phones can
also delivers updates on a rolling basis. When a shopper needs an
answer, they can immediately turn to their smart device and find
it. This has led to changes in many industries where customers no
longer want to seek out sales representatives. It has also put an
emphasis on objective information; while a salesperson may
try to sweet talk and upsell, objective information leads to better
decision making.
86% of consumers say personalization plays a role in their
purchasing decisions.2
Customers are accustomed to receiving special treatment,
deals, and opportunities. They are also accustomed to using
mobile devices in stores and during the decision making process.
These devices are key in helping brands interact with patrons.
Technology enables companies to interact with hundreds of
users at once, sending targeted and personalized messages
to each one as needed, and it is having an effect on customer
interaction.
How proximity transforms expectations
The signal is detected by nearby smart devices via Bluetooth Smart™.
A Beacon is a small wireless device transmitting a continuous radio signal.
The result? You're more engaged with the store and get the perfect bags you never knew you needed!
There is a Beacon placed next to the bags section.
Let’s try an example.
Say you're walking by your favorite clothing store and they're having a sale on bags.There is a beacon placed next to the bags section that alerts you to the sale when you pass by.
$Your smart device thensends that ID number to the cloud server.
The server checks what Action is assigned to that ID number & responds.
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The signal tells your smart device “I’m Here” by giving its ID number.
What could that response be? That’s up to you.
2. Rethinking Retail. (2013). Infosys. Pg 3
1. Gevelber, Lisa. How Mobile Has Changed How People Get Things Done: New Consumer Behavior Data. (2016 September) Think with Google
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Proximity Notifications already have applications in a number of industries and settings:
WiFi
Hotspots can facilitate browser
notifications to logged in users
NFC
Near Field Communication can
be active or passive, sending
information after being tapped
Bluetooth
Connects beacons to smart
devices with Bluetooth,
delivering in-app notifications
or URLs
Geofencing
Creates a virtual barrier using
a combination of technologies
tosend notifications within a
predefined barrier
Range Energy consumption
Cost Penetration rates Usages Features
WiFi Average up to 150 feet
(46 m)
High High Most phones are
equipped
Multiple High detection ratio of total
visitors
NFC Very short range (20cm) Low Low Not all phones are
equipped
Specific labels Cannot send push notifica-
tions or measure distance
BLE Up to 330 feet (100 m) Low Low Most phones are
equipped
Multiple Has widespread existing
ecosystem
Geofencing More accurate in out-
door areas
Varies Varies Most phones are
equipped
For entering an
area
Works with WiFI, RFiD, GPS,
and more
TM
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Bluetooth powers new opportunities
There are several technologies that are used for proximity
notifications; however, there is no one perfect standard or
solution. NFC tags offer strong solutions for customers who are
willing to engage and get up close. Such solutions, however,
rely on customers regularly interacting with the technology.
They must actively approach a trigger in order to receive the
targeted message. This is not entirely effective for marketing
purposes as many customers will choose not to engage and
miss opportunities. Further, these cannot be targeted to specific
viewers. Managers must opt for either more general targeting
via SMS or store geofencing for extremely specific, short-range
messages.
In recent years, improvements in wireless technology have
brought new solutions in proximity technology. While WiFi has
long been on the market, a new Bluetooth standard, Bluetooth
Low Energy, has become a symbol for the IoT revolution.
When used for proximity notifications, Bluetooth utilizes
beacons, small devices that work by sending out a signal that
can be picked up by other Bluetooth devices and indicate
proximity to a particular beacon. By adding more beacons,
an object’s position can be accurately estimated down to the
meter level. Due to the widespread adaptation of the Bluetooth
standard, BLE beacons are affordable and easy to integrate with
other systems and devices.
Range Energy consumption
Cost Penetration rates Usages Features
WiFi Average up to 150 feet
(46 m)
High High Most phones are
equipped
Multiple High detection ratio of total
visitors
NFC Very short range (20cm) Low Low Not all phones are
equipped
Specific labels Cannot send push notifica-
tions or measure distance
BLE Up to 330 feet (100 m) Low Low Most phones are
equipped
Multiple Has widespread existing
ecosystem
Geofencing More accurate in out-
door areas
Varies Varies Most phones are
equipped
For entering an
area
Works with WiFI, RFiD, GPS,
and more
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The cost of wifi-based campaigns
WiFi has become one of the most widespread platforms, and
it is one obvious answer in proximity marketing. It has great
penetration rates, and customers and managers alike are already
comfortable with it.
WiFi, however, does not necessarily offer the best foundation for
proximity notifications. They can be costly to install and are also
less accurate than some systems.
When WiFi is implemented solely for notifications, the cost,
in some cases, can be almost exorbitant in comparison to
Bluetooth. One comparison found that a WiFi system would cost
a total of $13,280, while the same installation could be achieved
with beacons for about $1,000. For this and many other use
cases, Bluetooth completely changed ideas about the cost of an
asset tracking system While WiFi seems to be less complicated
than other hardware, its costs include routers, service charges,
electricity, installation, and maintenance in order to function.
Beacons, on the other hand, can run on batteries for several
months, or even years, before needing to be replaced.
Item Cost # of Units SUM
Router $120 40 $4,800
Installation $80 40 $3,200
Internet service1year / device
$20 480 $4,800
Electricity $1 480 $4,80
Item Cost # of Units SUM
Beacon $25 40 $1,000
WiFi Costs
Total
Total
$13,280
$1,000
Kontakt.io Smart Beacons
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The importance of opting-In
WiFi is undoubtedly tempting for shoppers and visitors.
Bluetooth, on the other hand, does have a barrier in this area,
often requiring users to enable Bluetooth and sometimes even
specific apps. This means it can be much easier to track and
communicate with smart devices in the area with WiFi. However,
WiFi also removes the opportunity of the user to actually opt-
out. For users, this can be a huge problem. Customers are often
willing to share their data with companies, but simply taking it
is not only in poor form it could also lead to problems. Data has
already sparked ample information ethics debates, and multiple
surveys reflect a general uneasiness about data collection. One
survey in Canada found that 24% percent of respondents
felt they had no control over what businesses did with their
information; a further 64% report concern over what businesses
do with their personal data.3
Regulations will continue to develop, and users will continue
to have a better grasp on what it means to be tracked by
companies. Giving consumers the choice to use a technology
and be tracked is paramount to building better relationships
and avoiding future data issues. A well-structured proximity
campaign should be persuasive enough to engage customers
and convince them to willingly engage without force.
WiFi Costs
Kontakt.io Smart Beacons
3. Harris, R. How Canadians feel about data and privacy (Survey).(2016, March 15). Marketing Mag.
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Beacon-based use cases
A successful proximity notification campaign relies on identifying
an organization's particular needs, goals, and possibilities
and carefully crafting targeted solutions. To this end, different
solution providers are developing systems focused on specific
use cases and industries.
In this section we will look specifically at applications for BLE-
powered proximity notifications in the retail industry, museums,
zoos, transportation, and other service providers like gyms,
hotels, universities, and tourism agencies.
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Bluetooth technology has opened a new set of possibilities for retailers. The
technology’s high penetration rates ensure that nearly every customer can be quickly
hooked up and looped into a given marketing campaign. The ability to effectively
communicate with customers is central to every retailer’s core work. Until recently, this
was achieved through physical signage, email, and sometimes proximity tools like NFC
or QR codes. None of these, however, have achieved personal and deeply pertinent
messaging strategies. Bluetooth-based programs are much more active, allowing an app
to connect the user’s position with data. By targeting customers based on their actual
location and background, retailers greatly increase the chance of turning a single, well-
informed message into a sale.
Email and other digital messages are highly valuable, but they are not effective at
reaching shoppers in those seemingly minor moments where they are most capable
of generating a sale. Similarly, short-distance proximity tools are great at relaying
specific data to customers, but they are not capable of reaching out to deliver valuable
messages. Though a retailer may scatter great deals throughout their store or
include meaningful images and information that would affect a shopper, much of that
information will go unseen as the shopper will not think to engage with it.
Retail
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4. Bloom, L. 4 Solutions to Retailers Top Mobile Engagement Issues. (2016, July 25). SessionM.
Targeted promotions
Vinyl signs and cardboard cut-outs are one way to advertise
a product in-store, but, in a sea of physical advertisements, it
is easy for customers to be overwhelmed. SessionM surveyed
12,000 US shoppers and found that 90% of retail customers are
using their phone in stores. 4 Product pyramids and banners
cannot compete with games and social media. Retailers must
add more digital components to their campaigns. To succeed,
they must understand what the customer wants, make it readily
accessible and carefully tailored. Using digital content and more
specific proximity information, retailers can send promotions to
customers that fit their in-store behavior and position.
Loyalty programs
Rewards programs and loyalty cards are commonly used to
keep customers engaged, interested, and coming back to
the same store. Many programs, however, suffer from a lack
of transparency. It can be difficult for a customer to know at
any given time just how many points they have accumulated.
Beacons can be used to deliver that information in a timely and
meaningful way. Some stores use physical signage to indicate
existing rewards programs or possible points that can be
collected. With beacons, a customer can be sent a notification
the moment they enter the store. Moreover, instead of simply
reminding them about the program, the customer’s data can
be accessed in order to create a personalized experience. A
customer can instantly be informed that they are 25 points away
from hitting their next reward goal. Just by entering the store, the
user can collect points. Customers can be given targeted tasks
to receive more points, gamifying and expanding the loyalty
program.
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Shop Now! With ELLE
ShopAdvisor and ELLE teamed up to install beacons across 803
locations. They used proximity technology to trigger targeted
notifications to shoppers using the ShopAdvisor app. These
notifications combine with past purchase history and data
to deliver not only general offers and editorials but specific
promotions tailored to individual shoppers. ELLE’s program drove
over 21,000 store visits with beacon technology.Deliver useful information
Up to 90% of shoppers use their mobile devices in store, which
is leading retailers to move more ads online. However, 54%
of shoppers use those devices to perform price comparisons.
Shoppers even use smartphones to read reviews and product
details. This speaks to more than a reliance on technology; it
reflects a sense of distrust. Sharing real, solid information with
customers will generate more purchases in the long run by
creating a sense of transparency. Businesses should aim to send
more than just specs and deals. They should consider including
impartial reviews or ratings to help the customer on their journey
and perhaps even offer further information that would enhance
the product. Instead of just sending a deal for a particular food
product, an app could suggest relevant recipes.
On top of combining beacons with a Point of Sale system, a
proximity-enabled app could inform customers about products
in stock. Shoppers can instantly see what other sizes or colors are
available for any given product.
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Modern museums are actively vying with smart devices for visitors’ attention. Visitors will
continue to engage with their phones regardless of how engaging an exhibit is. Instead
of fighting against this development, museums must choose to leverage smart devices
to deliver a better customer experience. Proximity notifications keep visitors engaged
and create an environment that is more personalized and conducive to learning.
Museum settings are a common use of proximity notification technology due in part
to the beacon’s ability to make information quickly available. Beacons can be utilized
to gamify the usually analog setting and give visitors a brand new way of interacting
with exhibits. Any institution designed to deliver content and experiences to visitors,
whether it is a zoo, park, or museum, can benefit from adding proximity technology to its
toolkit. Moreover, solution providers like Xponia offer comprehensive programs and apps
designed to be quickly and easily implemented.
Museums, parks, and zoos
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Better, more creative promotions
Once a visitor has seen the exhibits they planned to see, they
may be heading for the exit. Well-timed promotions, however,
can turn a quick exit into a far longer, and more meaningful,
dwell time. Beacons can send a visitor a discount for the cafe as
they approach the final exhibit. The museum experience can also
be gamified, where the visitor must visit certain locations or take
quizzes in order to receive a discounted return ticket.
Exhibit information
Traditionally, museums have relied on physical signage attached
to exhibits or headset-based audio guides to relay gallery
information to visitors. Proximity technology can be leveraged to
recognize where a visitor is located and automatically connect
them with the relevant information. Because this all occurs
digitally, the content can include images, videos, quizzes,
multiple languages, and even multiple level options to cater to
younger school children, professionals, and other demographics.
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Exhibit notifications
Zoos, parks, and museums often hold small daily events like
enrichment programs or designated feeding times. These can
be difficult for visitors to track especially in large, spread-out
locations. Proximity notifications can assist visitors by informing
them of nearby events as they occur. This means visitors need
not be glued to pamphlets or maps. They can receive automatic
reminders and updates related to their current location.
Kew Gardens
The Kew Royal Botanic Gardens is one of the world’s oldest
botanic gardens and receives about 1.3 million visitors annually.
They used beacons to make their campaigns more proximity-
aware and deliver better notifications.
Kew found that beacons offered 90+% savings over similar WiFi-
based systems5.
5. Gąsiorek, A. Beacons at Kew Gardens Save 90+% over WiFi for Proximity Engagement. (2015, June 12). Kontakt.io.
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Transportation providers are in a highly unique position wherein nearly every aspect of
beacon technology and proximity notifications can drive incredible value. Travelers are
often on the lookout for local information and offers as well as transit time information
and schedules. Beacon infrastructures also offer navigation capabilities.
London, Moscow, and Tokyo transit systems are already testing with proximity
technology. The ability of a beacon infrastructure to deliver proximity notifications on top
of several other capabilities at an affordable price will continue to drive the number of
beaconized stations in the world at an increasing rate.
Public transport
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Updates
There are few industries outside of transit where up-to-date
information is so highly valued. Up to the minute or even second
data can completely revolutionize a visitor’s experience. Time is
incredibly valuable for travelers. When entering a new station,
beacons can give the traveler instant access to maps and
schedules. Proximity notifications can inform them that a given
bus is currently pulling up to the curb or is five minutes late.
Wayfinding-related notifications
Whether a passenger is on a new route or taking a daily trip,
proximity notifications can make the journey easier. By indicating
their destination, a traveler can be notified as the bus or train
approaches the appropriate stop. This means less stress and
more time to spend with branded content.
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Deliver tips and info
Managers and employees know the ins and outs of their
establishment. Proximity technology can help customers benefit
from this knowledge. It is not possible for every customer to
receive the complete attention of staff all the time. Notifications
push useful information to visitors the moment they enter a
defined area. When a new gym member enters the weight area,
an app sends them trainer tips to help them make the best of
their time. Similarly, another member can sign up to be notified
about nearby fitness courses or training sessions. Beacons also
work for employees, sending information about customers
entering a space. Names, purchase history, or any recorded
ratings can all be seen automatically.
Service providers
Any institution that provides a service to customers can utilize
proximity technologies to do so more effectively and drive better
returns. Most importantly, proximity notifications give better,
more up-to-date information to visitors, creating an infinitely
more personalized and comfortable customer experience. Gyms,
hotels, banks, tourism agencies, and universities all have unique
and beneficial possibilities with proximity notifications.
For retailers or museum owners, there are very clear use cases for
proximity notifications; however, for gyms, hotels, universities,
tourism agencies, and others, a huge list of untapped
possibilities remain. Many common use cases are already being
put into action, but innovative providers should also consider
unusual and unprecedented ways to connect with customers
through proximity notifications.
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Drive engagement where needed
Is a particular room always packed at
dinner time? Looking to drive traffic in
off-peak hours? Push notifications can
speak directly to those passers-by as
they enter the space. Managers can offer
deals or tips as necessary, benefiting
both customers and businesses.
Request feedback
Though nearly every customer will have
feedback to give, they are rarely given
the chance to do so. By prompting
visitors to rate services before exiting,
companies are opening up a new,
digitized way to keep track of what
they are doing right and what they
could do better. Unlike pen-and-paper
reviews, entering feedback via mobile
is quicker and easier, making it more
likely that customers will respond. This
also removes the need to look after or
chase down physical reviews as they are
created and stored digitally.
Events, schedules, classes
Whether it is around town or in a gym,
beacons can push notifications about
upcoming events. Instead of being glued
to signage or schedules, visitors can be
told instantly about what is going on in
their proximity. This means fewer missed
opportunities and better engagement
rates.
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MyStop
Proxama and Mapway outfitted dozens of buses in London with beacon technology utilizing
a partnership with Exterion Media, Europe’s largest privately owned out-of-home advertising
company. With travelers spending an average of 17 minutes on a given bus, proximity
notifications and beacons helped brands to engage more efficiently with travelers. Proxama
found that beacon-triggered real-time travel update notifications received a 44% click-through rate.6
“With 2.3 billion passenger journeys made on London buses a year, the partnership creates
an innovative platform for brands that want access to this hard-to-reach audience exclusively.
The partnership also provides consumers with relevant, timely, and engaging content in an
unobtrusive way.”7
Jason Cotterrell, Managing Director at Exterion Media UK.
Houston Dynamo
The Houston Dynamo soccer team uses beacons to interact with fans. On top of keeping them
engaged, the campaign also pushed fans reminders to post their photos as part of a marketing
campaign. This connected fans and the sponsors in a more fun and personable way. Kimberly
Sutton, Senior Service Specialist of the Houston Dynamo explains.8
“The goal is to provide more value to our sponsors and interaction with our fans which they
hope to have become their customers".
8. Dusing, J. Houston. Dynamo Engage Fans and Sponsors with Custom Rewards and FanMaker Beacons. FanMaker.
7. Proxama, Mapway and Exterion Media launch UK’s largest iBeacon consumer transport experience on London buses. (2016, May 16). Proxama.
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When building a system for proximity notifications, companies
need to consider which technology to use. WiFi offers similar
capabilities, but, with recent improvements to Bluetooth,
Bluetooth Low Energy has become a prefered choice for many
firms.
Bluetooth benefits from wide adaptation rates, and development
has made the technology cheap and affordable. Furthermore,
it can be easily integrated into other devices. The Bluetooth
ecosystem already includes several billion devices. Even as
it develops, with increasingly powerful data collections and
range, it will continue to be the standard at the core of the IoT
revolution.
Getting started with a proximity notification campaign
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7 steps to success
Prepare an ecosystem (integrate apps, campaigns, signage) A proximity notification campaign does not work in a vacuum. It
must be mindfully integrated into existing programs, apps, and
even physical signage. This could require different kinds of skills
than a business uses on a day-to-day basis.
Pinpoint the problem
A beacon infrastructure will be able to deliver the proximity
notifications you need. The difficulty is determining exactly what
a campaign needs. Managers must first understand the specific
problems they face before determining a goal and course of
actions.
Focus on ROI for you and your customer
Determine what information or scenarios would be most ben-
eficial to the company and its customers. Customers need to be
prepared to buy into a campaign, and managers need to be able
to measure success.
Look for examples
In the beacon space, nearly every proximity notification use case
has already been pioneered. Businesses must locate other com-
panies who have used beacons in the desired way and had posi-
tive results. This can help inform best practices through a real-
world experience.
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7 steps to success
Identify partners
Businesses do not need to start from scratch. Infrastructure,
software, and apps can all be done in cooperation with existing
companies with experience in the field. Start by locating firms
that operate with your desired field or use case.
POC
A well-planned and analyzed POC is one of the single biggest
factors in constructing a successful proximity notification cam-
paign. It must be able to demonstrate that a design will work
when fully rolled out.
Prepare for data/future iterations/look ahead
Beacon infrastructures have numerous capabilities. Managers
should be on the lookout for signs of success and also missed
opportunities. It is likely that a new campaign will benefit from
tweaking and optimization.
5
6
7
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Push notifications
When a phone dings and a message actively pops up, that is a
push notification. These can be much more useful for companies
looking to gather data or to interact regularly with customers. For
existing apps with a strong user base, notifications that “push”
the customer might also be more practical. Push notifications
can wake up the device or app even when a user is not
interacting with it, making it highly useful for marketers to speak
to customers at a specific moment.
Physical Web
The Physical Web is a project, and app, from Google designed
to make the world, in the long run, more interactive. It does not
require users to download individual apps. Instead, it connects
a smart device to all existing Eddystone URL content in the area.
This content, however, does not automatically pop up on a user’s
smartphone. It is up to the user to access it. This makes many
users feel more comfortable as they do not have to worry about
being overwhelmed with push notifications.
Push vs. Physical Web
Modern beacon users are given one more new, powerful capability: the choice between active
and passive notifications. Notifications need not always be pushed. Depending on the vertical,
infrastructure, and particular use case, managers can decide which direction to go in. Many
will choose to leverage both. For companies with a full existing infrastructure and app, adding
Physical Web capabilities can be easy.
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Point-based
In lean applications, proximity notifications use proximity
technology through a point-based system, allowing for the
measurement of proximity to a single beacon. This system can
be calibrated for different distances but does not have the
capability to determine a location with extreme accuracy. For
museums or businesses that focus on specific Points of Interest,
this system can be both simple and effective. A point-based
system can also be integrated with a grid system and work
as a “golden standard” verifying that a person is in a specific
room. The primary benefit of theses systems is the simplicity of
deployment and maintenance. The downside, however, is that
the infrastructure is often limited to the specific application for
which it was designed.
Grid-based
In order to determine position more accurately, infrastructure
might be installed as a grid system. This means that position can
be calculated depending on the relative proximity to a number
of beacons. These systems are more complex but also more
accurate, which could prove invaluable in some scenarios. Grid-
based infrastructures also benefit from being “future proof” as
the same infrastructure can be used for a number of different
applications. However, for specifically proximity notification-
centered projects, a grid-based system is not necessary.
Beacon Infrastructures
When used for proximity notifications, beacons are usually employed in one of two ways.
Companies deploying a BLE beacon network must first decide what level of accuracy they need
to best track their assets. Highly precise systems are more complex and more expensive but can
offer a higher degree of flexibility for the future.
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The beacon industry’s rapid evolution in the last three
years has brought it into the mainstream spotlight. While
Bluetooth has been around for more than a decade, it was
the introduction of the Bluetooth 4.0 standard in 2010
that opened the door to practical beacons. The new, more
energy-efficient technology has proved itself useful in all
kinds of applications. Endorsement by Apple and Google in
the last year has only furthered the industry’s development.
Protocols are incredibly important to beacon technology.
They represent different methods for exchanging data over
a computer network. There are two major protocols in use
today: Eddystone (Google) and iBeacon (Apple), but open-
spec protocols like AltBeacon (Radius Networks) are also
available.
Beacons: A Rapidly Evolving Industry
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iBeacon is today the most commonly used protocol, but the
gap is closing. More and more companies are drawn to the
functionality of Eddystone and the openness of AltBeacon.
iBeacon is, today, supported by 90% of companies in the
industry, and Eddystone, launched only a year ago, is already
supported by 45% of companies.
Initial use cases for BLE beacons were very simple. Companies
first moved into the space with different ideas of what the
technology should be used for. Initial applications were targeted
either toward early adopters or simple applications. Typical
applications included marketing apps and audio guides for the
visually impaired, but, as the industry has grown, applications
have become increasingly sophisticated. In this way, beacon
technology has made a very clear, contemporary example
of how disruptive innovation looks in the real world. Created
for a set of niche applications, the technology has grown to
encompass applications in a vast number of industries, and
Bluetooth beacons now offer the most reliable and extensive
technology for proximity notifications.
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