Beacon technology will deliver close to 1.6 billion coupons to shoppers by 2020, a dramatic increase from the 11 million delivered this year, according to a new study from Juniper Research.
Large national retailers have been testing beacons, including Macy's, Target and Walgreens, and new research indicates that in-store beacons are consistently generating high redemption rates. But the increase in proximity marketing also carries risks.
"The launch of Apple Pay dramatically increased public and retailer awareness of NFC. As contactless usage accelerates at POS (point of sale), retailers will then move to incorporate NFC at all stages of the customer lifecycle, including loyalty and engagement," noted the report's author, Windsor Holden.
However, the report cautioned that the use of beacon technology was very much a work in progress, and that retailers should be aware of excessive messaging and consumers' trepidation with new technology.
Excessive messages pushed by the beacon could be perceived as intrusive and damage their relationship with the customer, according to the report. Retailers should consider following the lead of Target, which limits the number of push notifications to two per visit.
-See this Juniper Research report
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