As the number of mobile shoppers continues to rise, retailers are looking for various ways to engage with their customers. According to Juniper Research: Coupons-Personalisation Goes Hyper, digital coupons are seen as the new tool that enables retailers to not only promote brands but also boost in-store traffic, drive transactions and enhance engagement with end-users. This is possible with beacon technology, which detects signals from customer devices in close proximity and notifies retailers about their location. The study projects beacon-triggered coupons to reach 1.6 billion in 2020.
Coupons are a well-known promotional tool which allow retailers to offer discounts to their customers. However, the research suggests that coupons, and in particular mobile coupons, can be used to not only promote products but also boost brand loyalty and in-store sales. By enabling retailers’ apps with beacon technology, digital coupons can be sent to a customer’s phone in real-time. As noted in the study, beacon-triggered coupons help retailers to enhance engagement with customers by sending individualised offers based on their purchasing history as well as their location. By tracking customers in-store and what they are looking at, retailers can analyse the success of promotional campaigns.
In the research, companies like Target, Macy’s and CTF (Chow Thai Fook) are mentioned as top advocates of beacons. Successful brands like these retailers set the expectations that other big brands are going to follow the effective coupons strategy. Therefore, Juniper Research predicts beacon-triggered coupons to reach 1.6 billion by 2020. This high projection number is a result of many factors such as the extension of beacons for Android phones in 2014 and the constant increase of customers shopping via their smartphones.
With the growing numbers of mobile shoppers, retailers need to be able to react, attract and retain customers. Beacon-triggered coupons enable retailers to send targeted and personalised messages in real-time. The term hypersonalisation, introduced in Coupons-Personalisation Goes Hyper, suggests that companies have to create bespoke, individualised engagement with customers across all brand offers. In turn, companies can expect to see their brand loyalty grow.
We can clearly see there is potential for growth in the beacon-triggered coupons market. It can also be used in conjunction with other location technologies such as geofencing, NFC and Wi-Fi. This makes the benefits even more a reason for companies to adopt the technology. Happier customers? We think so.