Beacon messaging can increase shopper interactions 45 percent more than traditional push messaging, but overuse of beacon technology can backfire and cause app usage to plummet more than 300 percent, according to a new study.
In a survey sourcing 1,500 inMarket shoppers conducted in September, more than two-thirds (68 percent) find in-store reminders from their shopping apps more helpful than out-of-store reminders. Those who receive a branded message at an opportune time are 7.5 times more likely to seek out the product at the shelf than those who do not, and interaction rates jump 45 percent over traditional messages received without a location context.
"These stats clarify that beacons are a powerful tool that can alter the user experience depending on how they are deployed," said Todd Dipaola, CEO of inMarket. "Blanketing people with pop-ups on their phone is a sure-fire way to lose an audience, but reaching the right person with helpful info at the perfect time causes enormous lift. Simply deploying beacons is not enough, and misusing beacons can have the opposite of the intended effect."
Three months later the results are even more promising for retailers building out in-store beacon networks.
A similar study by InMarket in April and May of 2014 revealed that shoppers who use the platform's Mobile-to-Mortar enabled apps in-store. In-store app usage was 16 times higher, interactions with advertised products increased 19 times for users who received a beacon message, and app retention was 6.4 times higher for those same shoppers.
Because beacons can backfire if overused.
In a small controlled test meant to determine how often to communicate with shoppers, inMarket discovered that over-saturation and irrelevant beacon pushes caused app usage to decline and apps to be deleted. Sending more than a single beacon push per location caused a 313 percent drop in app usage among shopping app users.
A growing group of shoppers are now mobile-only for research purposes, mobile coupon use is up 45 percent and shoppers report willingness to trade privacy in exchange for messages about deals and discounts.
But they apparently don't want to be told more than once.
-See this inMarket press release
Beacons increase mobile ad engagement 500%
41% of shoppers actively use mobile apps in stores
In-store app usage 16x higher with beacons
One-third of shoppers now use mobile only
Retail sales up 168% from mobile-optimized sites