{"id":1673472,"date":"2014-11-11T14:29:51","date_gmt":"2014-11-11T22:29:51","guid":{"rendered":"http:\/\/www.retailpro.com\/News\/blog\/?p=1673472"},"modified":"2014-11-11T14:29:51","modified_gmt":"2014-11-11T22:29:51","slug":"dont-forget-the-customer-when-implementing-beacons","status":"publish","type":"post","link":"https:\/\/www.retailpro.com\/News\/blog\/index.php\/2014\/11\/11\/dont-forget-the-customer-when-implementing-beacons\/","title":{"rendered":"Don&#8217;t Forget the Customer When Implementing Beacons"},"content":{"rendered":"<p>Beacon technology can help a retailer understand a shopper&#8217;s buying patterns while he or she is\u00a0in the store \u2014 pretty valuable information especially when it comes to understanding why certain items fly off the shelves, and others seem to grow roots. It\u2019s also helpful in learning why some shoppers rarely\u00a0buy anything at all. But the shopping experience is two way, and if there is anything technology adoption has taught us, it\u2019s that the customer must also perceive a benefit from any implementation.<\/p>\n<p>Ideally, a retailer can, through Beacon technology, offer a shopper targeted discounts and other rewards based on his or her store history. Perfect, right? It could be a win-win for both parties. The trouble, however, is that customers are hesitant to hand over access to their personal information. With recent well publicized retail POS breaches, retailers\u2019 mobile security systems are under close scrutiny.<\/p>\n<p>In \u201c<a href=\"http:\/\/opusresearch.net\/wordpress\/pdfs\/Place2014_NYC_BeaconSecurity_StickNFind.pdf\">Best Practices: Beacon Location and Security and Encryption<\/a>,\u201d James Buchheim, CEO of Stick and Find agrees that care should be taken when deploying beacons to ensure their infrastructure cannot be used by unauthorized third parties. He suggests:<\/p>\n<ul>\n<li>Using a non-deployer unique UUID<\/li>\n<li>Ensuring Major (which identifies location) and Minor (which identifies location within a location) schema is not decodable by 3rd parties (random)<\/li>\n<li>Change Major and Minor frequently (example: once per minute)<\/li>\n<li>Deploy and configure with a secure, private password<\/li>\n<\/ul>\n<p>Retailers should also consider adding data encryption to their beacon solutions. And, applications that trigger value transactions should use encrypted beacons. Of course, publicizing this to shoppers is critical for customer buy-in.\u00a0A recent <a href=\"http:\/\/bostinno.streetwise.co\/2014\/09\/22\/mobile-to-mortar-company-inmarket-finds-that-over-saturation-can-bring-down-beacon-technology\/\">study on Apple\u2019s iBeacon<\/a> found that while the technology can be quite effective when implemented well, over saturation and irrelevant messages can be &#8220;disastrous&#8221; for a brand.<\/p>\n<p>For retailers to realize beacon technology\u2019s full potential, customers have to embrace it. Buchheim offered four excellent tips:<\/p>\n<ol>\n<li>Always offer customer value in return for knowing their location. Only two years ago, many retailers dismissed the value of discounts, coupons, etc., with their shoppers. They (erroneously) believed that customers would simply adopt technology for its own sake. What happened was shoppers brought their own technology into the store and started comparison shopping online. Today\u2019s savvy retailers know that customer incentives must be part of their approach.<img loading=\"lazy\" decoding=\"async\" class=\"alignright size-medium wp-image-1673473\" src=\"https:\/\/www.retailpro.com\/News\/blog\/wp-content\/uploads\/2014\/11\/Beacons_by_jnxyz.education_13570744845-300x200.jpg\" alt=\"Beacons_by_jnxyz.education_(13570744845)\" width=\"300\" height=\"200\" srcset=\"https:\/\/www.retailpro.com\/News\/blog\/wp-content\/uploads\/2014\/11\/Beacons_by_jnxyz.education_13570744845-300x200.jpg 300w, https:\/\/www.retailpro.com\/News\/blog\/wp-content\/uploads\/2014\/11\/Beacons_by_jnxyz.education_13570744845-449x300.jpg 449w, https:\/\/www.retailpro.com\/News\/blog\/wp-content\/uploads\/2014\/11\/Beacons_by_jnxyz.education_13570744845.jpg 800w\" sizes=\"auto, (max-width: 300px) 100vw, 300px\" \/><\/li>\n<li>Ensure customers fully understand how their location data used\/recorded. No surprises. Customers will perceive retailers as \u201cspying\u201d on them if there is not full disclosure.<\/li>\n<li>Take steps to protect live or historical data in mobile app or other platform. Market your commitment\u00a0to security.<\/li>\n<li>Do not share user location data with 3rd parties without permission(s). A no-brainer, but always good to reiterate.<\/li>\n<\/ol>\n<p>Bottomline: It\u2019s always important that an IT solution address a particular problem or challenge. But with beacon technology \u2014 in which information is pushed to customers based on their personal shopping habits \u2014 that need is even more acute.<\/p>\n","protected":false},"excerpt":{"rendered":"<p>Beacon technology can help a retailer understand a shopper&#8217;s buying patterns while he or she is\u00a0in the store \u2014 pretty valuable information especially when it comes to understanding why certain items fly off the shelves, and others seem to grow &hellip; <a href=\"https:\/\/www.retailpro.com\/News\/blog\/index.php\/2014\/11\/11\/dont-forget-the-customer-when-implementing-beacons\/\">Continue reading <span class=\"meta-nav\">&rarr;<\/span><\/a><\/p>\n","protected":false},"author":12,"featured_media":0,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[49,45],"tags":[53,31],"class_list":["post-1673472","post","type-post","status-publish","format-standard","hentry","category-retail-customer-business-intelligence","category-specialty-retail-industry-trends","tag-beacon","tag-retailers"],"aioseo_notices":[],"aioseo_head":"\n\t\t<!-- All in One SEO 4.9.8 - aioseo.com -->\n\t<meta name=\"description\" content=\"Beacon technology can help retailers understand shoppers\u2019 buying patterns at the point of sale, the trick is getting the customer to trust the technology.\" \/>\n\t<meta name=\"robots\" content=\"max-image-preview:large\" \/>\n\t<meta name=\"author\" content=\"Jennifer Bosavage\"\/>\n\t<meta name=\"google-site-verification\" content=\"XyKE57WkYbCwHXt3SDA4qQs7vJvHa7b7TGPfm56nHC0\" \/>\n\t<meta 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