Bluetooth Beacon | LBS technology on trial for most companies

Source    : searchcrm.techtarget
By        : Lauren Horwitz
Category  : Beacon Technology

It's the age of the customer, and companies are contorting themselves to make customers happy, address their grievances expressed on Twitter and give them deep discounts when pricing or inventory information is inaccurate. But many are also finding that they need to dig deeper into customer data to make the transaction go right.

Enter location-based services (LBS), which use mobile devices such as smartphones, hardware such as beacon sensors and software applications such as marketing automation to communicate with customers based on their location. The idea is that companies can use data on a customer's location to more accurately divine his or her' needs and close the sale. Companies also like LBS technology because they can use it in tandem with other technologies and concepts, including customer personalization tools and mobile wallets. If location can be a proxy for needs and wants, companies are betting on it to be an accurate proxy.

The movie-theater operator is considering beacon technology for its chain of movie theaters, but it's treading carefully. Timing the message properly is a key factor.

Proper timing could help companies realize LBS' ultimate objectives: enhancing customer experience and increasing sales. Take the high-end retailer Nordstrom, based in Seattle, which is experimenting with beacons in its dressing rooms with a technology-enabled mirror. The mirror lets customers browse items as they stand before their image. Customers can price items, look for alternate sizes or see complementary items available in the store, augmenting and enhancing the service of in-store sales associates.

Most of these examples are still on trial. Why? The reality is that LBS technology has a long way to go in truly appealing to customers. According to some data, customers are inclined to divulge their location on a smartphone in exchange for a product discount, but other data indicates that consumers have essentially surrendered to the tidal wave of encroachments on their data profiles. They seek discounts because they're resigned to the idea of their data being used for business insight. And that's not the attitude companies want to instill in their customers.

(Read More: searchcrm.techtarget.com/opinion/LBS-technology-still-on-trial-for-most-companies)