The retail industry has been buzzing about beacons. While there have been some exciting potential use cases and tests, however, many retailers are still struggling to determine if and how they should be investing in the technology.
Social media behemoth Facebook is trying to boost adoption by offering free beacons to retailers that ask for them. The devices will reportedly help merchants connect mobile consumers to their branded Facebook pages.
But will Facebook’s strategy truly drive retailers to bet on beacons? The RTP editorial team shares their thoughts:
Debbie Hauss, Editor-in-Chief: I think offering retailers free beacons will definitely draw more attention to the technology and motivate some to start testing it, but I also think many retailers are hesitant to make the move to beacon marketing. When some major retailers complete their test phases and show a good ROI, then others will be more likely to jump in. Many still are unsure of the best use cases: Should they link it to the loyalty program? Should they deliver push messaging and offers? How much will be too much when it comes to beacon strategies?
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Alicia Fiorletta, Senior Editor: I can see this panning out one of two ways: It generates buzz and excitement (for both retailers and consumers) because Facebook is behind it; or it’s not executed or marketed properly and it becomes a huge flop. Retailers that take advantage of the free beacons need to market the benefits to consumers online and in-stores. They also need to think of how they can expand their capabilities beyond Facebook. And Facebook isn’t in the clear either: The company needs to think of how it can expand beyond Places and integrate its other platforms and services. For example, Facebook has great apps under its belt: Instagram, WhatsApp and Businesses on Messenger. I find the additional services and value propositions to be especially exciting. Hopefully Facebook capitalizes on these opportunities.
Rob Fee, Managing Editor: Although the promise of free beacons from Facebook sounds like a great offer, I’m not sure that retailers will be able to use the technology to its fullest in this form. For example, shoppers will only see a notification if they happen to be looking through their Facebook news feed while shopping. Also, there isn’t much that retailers can currently do with these beacons aside from point to a Facebook page. A promising move from Facebook, but it needs to add a bit more functionality to be truly useful to retailers.
Glenn Taylor, Associate Editor: I can largely see it being beneficial to retailers with younger audiences, ones targeting the 18-30 demographic given their purchasing habits and mobile usage. There is an overwhelming amount of people who utilize Facebook, and I imagine many of them activate it on their phone even as they walk through stores. It’s clear that Facebook is trying to break through in the commerce world, and working with retailers might make the most sense to accomplish that. I’m more interested in seeing if they ever go through with the push notifications beyond the Facebook app/page, which would be more widespread than most individual store apps.
Brian Anderson, Associate Editor: I definitely believe that Facebook’s move into the beacon space will have a positive impact on beacon adoption, especially if they are able to meet retailers’ expectations. However, the rate of adoption is still in control of the customers, to an extent. Customers will still be able to opt out of receiving the company information via Facebook, and it looks like push notifications are not immediately available. This means that customers have to be on Facebook, looking at their news feed, as they walk past a beacon. The move can be beneficial for both retailers and Facebook; but if location-specific ads and push notifications are not ready for the near future, the ROI might be slow.
What do you think of Facebook’s decision to offer free beacons to retailers? How will it drive in-store mobility – and the general beacon industry – forward? Share your thoughts and feedback in the comments section below!
