Media Markt could save sales if it used beacon technology! (BTP group #23)
As Media Markt strives to always introduce innovations and aims at being as customer-oriented as possible, it has to continually enhance its status as market leader in the consumer electronics retailers market. Not only does Media Markt offer its customers a rich assortment in brick-and-mortar locations, it also provides them with the opportunity to order online through their e-commerce website.
What is more, according to Media Markt representatives, the number of consumers who try products in Media Markt stores and then purchase them online with competing retailers has grown substantially in recent years. Among in-store shoppers, over 25 % of consumers intended to try out the products in-store and then buy online. Therefore, Media Markt has been looking for ways to increase in-store purchases by integrating the online channel with brick-and-mortar purchases.
Our Solution: enter (Estimote) Beacons!
Beacons are a low-cost piece of hardware — small enough to attach to a wall or countertop — that use battery-friendly, low-energy Bluetooth connections to transmit messages or prompts directly to a smartphone or tablet.
How would this work?
This technology offers more insight into consumer behavior. There is big potential here when data collected via Beacons is coupled with data from customer loyalty schemes. The Beacon device would allow Media Markt to target consumers in a more personalized and relevant way through the use of the collected data from smartphones.
Media Markt could offer:
- The value of offline store data. Media Markt will be able to track the journey of its consumers from their time of entry to time of exit from the retail store.
- Optimize store layouts and product placement
- Suggestions. Media Markt can exploit the opportunity of suggesting promotional offers to customers.
- Recommendations. In the application related to Beacon, Media Markt could allow its customers to develop their own shopping lists.
- Special offers. Digital coupons can be presented to consumers.
- Credit. Beacons can be utilized to authenticate a consumer’s device for digital payments.
Why would this work?
According to a recent Google study, 84 percent of shoppers use their smartphone during in-store shopping experiences, meaning that the reach and scale is high (Google, 2013).
In a recent survey, 33% of 1,300 smartphone owners considered that personalized, direct messages sent straight to their smartphone to ‘likely’ or ‘very likely’ influence their purchase decisions. Moreover, 78% of the surveyed mentioned that they would be happy to receive messages and would be ‘extremely willing’ or ‘somewhat willing’ for retailers to use this data if it meant more personalized messages for them (eDigitalResearch).
The problem is real and it influences a key aspect of every business, namely revenue. We strongly believe that with the increased usage and penetration of smartphones, beacons could be the next big thing in retail. This is why, if Media Markt were to gain a first-mover advantage, it could once again revolutionize the market!
For more information and references please feel free to contact us or leave a comment!