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© 2015 Openbravo Inc. All Rights Reserved
How Beacons and Proximity Technology are Shaping the Retail Industry
July 24, 2015
Click here to go to the recorded webinar in Brighttalk
© 2015 Openbravo Inc. All Rights Reserved
Víctor Gaspar Country Business Manager (Colombia)
Victor-Gaspar
More than 10 years experience in IT sector
Computer Science, MsC. PMP for the Project
Management Institute
In GMV since 2011 Project Manager
Country Business Manager in Colombia
Today’s Presenter
© 2015 Openbravo Inc. All Rights Reserved
Elena Martinez Retail Specialist
Elena-Martinez
More than 10 years experience in IT sector
M.Sc. Telecommunication Engineering, M.Sc.
Master in Information, Communication and
Audiovisual Media Technolgies
International Project Manager, Researcher
In Openbravo since 2008 International Project Manager
Retail Specialist
Today’s Presenter
© 2015 Openbravo Inc. All Rights Reserved
Today’s presentation is available to download on
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Visit openbravo.com/retailers/resources/overview/
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© 2015 Openbravo Inc. All Rights Reserved
Introduction
Retail Proximity Context & Technologies
Beacons
Success Story using Beacons
Challenges and Best Practices
Key Takeaways
Q&A
Agenda and Goals
© 2015 Openbravo Inc. All Rights Reserved
Trusted Vendor
6
World leader in the Professional Open
Source Enterprise Software Space
Focused on helping midsize to large
organizations to achieve superior
competitiveness
Present on all continents
Pure channel organization with a
distribution network of authorized
Openbravo Partners
Offices in India, Mexico, France and
Spain
© 2015 Openbravo Inc. All Rights Reserved
About GMV
7
Multinational conglomerate founded
in 1984, roots tied to the Space and
Defense industries
Private capital and over 1.200
employees all over the world
Offices in Spain, Poland, USA,
Germany, Malaysia, India and
Colombia
Currently operating in Aeronautics,
Space, Defense, Security,
Transportation, Healthcare and ICT
industries
© 2015 Openbravo Inc. All Rights Reserved
The Digical Transformation
The big change in business today is the combination of digital and
physical elements to create together new value
Source: The Phygital.com
Source: MIT Dynamic Display Source: Real life Instagram
Photoshop going physical
Source: Google X
© 2015 Openbravo Inc. All Rights Reserved
Retail Proximity
is about marketing to your customer
at the right place, at the right time,
with highly relevant and
personalized notifications.
Bridge to connect the online with the
offline, with relevant information
How the whole range of proximity
platforms could transform commerce?
We encounter some barriers like the
consumer privacy concern…
© 2015 Openbravo Inc. All Rights Reserved
Be informed of
products on sale or offers in-store
Some Examples
Receive additional
product information
Proximity payments
© 2015 Openbravo Inc. All Rights Reserved
A cellular phone being in a particular cell
A Bluetooth or WiFi device being within range of a transmitter (ex Beacons)
An Internet enabled device with GPS enabling it to request localized
content from Internet servers
A NFC enabled phone can read a RFID chip on a product or media and
launch localized content from internet servers
Technologies Used
Source: Made.com showroom in London using CloudTags Technology
Example: A shopper can obtain more information
about a piece of furniture on display by
tapping the item's RFID tag with one of
the tablets that the company makes
available to visitor
© 2015 Openbravo Inc. All Rights Reserved
The Year of the Beacon
“Beacons will directly influence $4 billion in
sales at top retailers in 2015. It expects that
number to increase tenfold to about $44
billion in 2016”
Source: mibeacon.net
Considered as the
most effective tools
that can help
brands generate
higher ROI with
ease
© 2015 Openbravo Inc. All Rights Reserved
Benefits for Retailers
Customers get highly
targeted promotions for
the things they want
Retailers can collect
valuable data on their
customers’ buying habits.
So one step closer to
tracking the customer’s
journey from initial
research to final purchase
Source: Forbes.com
© 2015 Openbravo Inc. All Rights Reserved
Beacons Technology
Early adopters
Application scenarios
Success Story
Developed PoC
Results obtained
Issues found and future work
Second Part
© 2015 Openbravo Inc. All Rights Reserved
Beacons Technology
Bluetooth 4.0 (o BLE)
Identified radiofrequency signal
Distance 50m
Advantages:
Low cost
Autonomy
Easy to use
© 2015 Openbravo Inc. All Rights Reserved
Early Adopters
Many leading companies are adopting Beacons:
© 2015 Openbravo Inc. All Rights Reserved
Application Scenarios
Early retail success stories that others can replicate
Source: Carrefour, bbc.com
Source: Macy’s
Source: Walmart
Source: House of Fraser
Source: Facebook
© 2015 Openbravo Inc. All Rights Reserved
Success Story
Leader financial institution on mobile banking and innovation
+5000 offices in Spain and retail banking leader
PoC to understand the business opportunities of the technology
Final users:
Business continuity dpt
Marketing and sales dpt
Security dpt
© 2015 Openbravo Inc. All Rights Reserved
Success Story
Uses cases:
Support to the personnel relocation in the case of a business continuity event
Support to the customer identification and sales targeting
Access control to restricted area
Challenges for a big organization:
Heterogeneity of platforms and manufacturers
Wide variety of types of events and business logics
© 2015 Openbravo Inc. All Rights Reserved
Developed PoC (I)
Platform functionality:
Horizontal and centralized platform
Event processing and aggregation to complex business events
Interfaces to consume business events by vertical applications
© 2015 Openbravo Inc. All Rights Reserved
Developed PoC (I)
Vertical solutions developed
Business continuity. Personnel relocation to backup workplace
Marketing and sales. Customer identification and relevant product notification
Security. Two factor access control to restricted area
© 2015 Openbravo Inc. All Rights Reserved
Results Obtained
Low-cost physical and contextual environment information
Easy to use and deploy
Applicability to different business areas
Interest for the corporate Bigdata strategy
© 2015 Openbravo Inc. All Rights Reserved
Issues found and Future Work
Low precision for indoor navigation
Integration with other indoor technologies (GMV – Wipode)
Incompatibilities with Windows Phone
Solved from 8.1 version
Lack of security mechanisms
Some manufacturers now integrate security mechanisms
Privacy concerns
Data respectful organizations
© 2015 Openbravo Inc. All Rights Reserved
Challenges Faced
© 2015 Openbravo Inc. All Rights Reserved
Challenges Faced
To Enhance Relationships
Brands Must Translate
Value and Foster Trust
© 2015 Openbravo Inc. All Rights Reserved
Challenges & Best Practices
1) Privacy concern and security: limits customer engagement → BP: Ask your customer’s permission first of all
© 2015 Openbravo Inc. All Rights Reserved
Challenges & Best Practices
1) Privacy concern and security: limits customer engagement → BP: Ask your customer’s permission first of all
2) Match consumer preference
There is a huge gap between the type of proximity marketing
messages preferred by shoppers and the type of messages
served in-store → BP: to generate valuable content, take your notifications
contextually relevant, which implies to gain deep insights into
consumers behavior first
→ BP: and avoid being overwhelming
Source:
Mobile Audience
Insights Report
© 2015 Openbravo Inc. All Rights Reserved
Challenges & Best Practices
1) Privacy concern and security: limits customer engagement → BP: Ask your customer’s permission first of all
2) Match consumer preference
There is a huge gap between the type of proximity marketing
messages preferred by shoppers and the type of messages
served in-store → BP: to generate valuable content, take your notifications
contextually relevant, which implies to gain deep insights into
consumers behavior first
→ BP: and avoid being overwhelming
3) Mobile and app dependency → BP: retailers need to educate customers about the benefits this
technology
Source:
Mobile Audience
Insights Report
© 2015 Openbravo Inc. All Rights Reserved
Data Integration Challenge
© 2015 Openbravo Inc. All Rights Reserved
Beacons and your Commerce Solution
© 2015 Openbravo Inc. All Rights Reserved
Key Takeways
Key
Takeaways
© 2015 Openbravo Inc. All Rights Reserved
Key Takeaways
Technology with
tremendous potential
Requires a well defined
strategy plan There are big barriers to
overcome
Security
Infrastructure management
Data integration challenge The need of flexible
technology platform where
to integrate Beacons and
the other data sources
© 2015 Openbravo Inc. All Rights Reserved
Web: www.openbravo.com/contact
Email: info@openbravo.com
Spain Office: +34 932 725 947
France Office: +33 (0)1 70 08 73 62
India Office: +91 33 4004 7358
Mexico Office: +52 559171 1841
Thank you very much
for your attention
Next Webinar
From Clicks to Bricks: Why Physical
Stores Matter Today More than Ever
Aug 06 2015 11:30 CET
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