Beacon Technology: A Game Changer

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Beacon Technology: A Game Changer
Mar27, 2024

Beacon Technology: A Game Changer

Today personalisation and customisation are key aspects that brands focus on to provide improved customer experience. To deliver that, businesses implement the latest technological trends. Beacon technology is one such technology that global brands have been relying on.

This is, however, not a recent innovation. It has been around for around a decade now. So, what is Beacon technology, exactly? Let’s find out more about it below.

What is Beacon Technology?

What is Beacon Technology
Definition of beacon technology

Beacon technology involves the use of tiny, wireless physical devices. These devices run on Bluetooth Low Energy or BLE. They transmit signals across nearby smart devices. With Beacon technology, compatible devices can exchange signals for location-based services or other interactions.

How Does Beacon Technology Work?

MobileS and other smart devices of a user receive the signals that small beacon devices emit. This happens when the user is near the beacon device. The beacon will send the exact location of the user and the device. Businesses can send personalised notifications to users as they come near the store location.

Brands can send personalised messages, deals, promotions, and offers seamlessly with Beacon technology.

Who Invented Beacon Technology?

Apple was the first to launch Beacon technology with the introduction of its iBeacon along with iOS 7. Later, multiple businesses incorporated Beacon-based solutions into their stores. Today, Beacon solutions are available from tech giants like Google, Samsung, Cisco and others.

When Was Beacon Technology Invented?

Apple introduced Beacon technology under the name of iBeacon in 2013. This coincided with their launch of iOS 7. Later on, this technology improved and more Beacon-based solutions were available in the market.

What Are the Pros and Cons of Beacon Tech?

Some major advantages include easy implementation, scalability, reliability, improved user experience and more. However, it has its downsides as well. Significant drawbacks include data security concerns, dependency on other apps and more.

What are the Pros and Cons of Beacon Tech
Pros and cons of beacon technology

Top advantages as in detail:

  • Smooth implementation: Manufacturers can easily customise the platform as per the requirements of the target audience or customers.

  • Reliable: Beacon is dependent on Bluetooth technology. It can work without the help of satellite-powered signals.

  • Multiple applications: Beacon finds its application for navigation, analysis, customer engagement and others.

  • Availability of valuable data: Businesses can gather crucial data about consumers, their tastes, purchasing patterns and more.

Drawbacks of Beacon technology as in detail:

  • Data security concerns: Beacons can collect user information, location data and more. There has been a growing concern about the associated data security risk with this technology.

  • Dependency on other apps: This technology requires other app support to function. It is in itself a Bluetooth-based technology.

  • Requires manual configuration: Implementing Beacons requires manual configuration. This can require substantial effort and time.

  • Needs a dedicated mobile app: The technology will function only with a compatible and dedicated mobile app. This app will be business-specific.

What is The Future Scope Of Beacon Technology?

What is the Future Scope of Beacon Technology
Future of beacon technology

Official LinkedIn data suggests, the Beacon technology market value is sized at $1.36 billion globally. However, it will witness substantial growth with increasing adoption in multiple industry verticals. It will reach over $5 billion by 2027, indicating a yearly compounded growth of 24.3%.

Wrapping up

Providing top-tier personalisation and higher customer experience is the main focus for businesses today. Naturally, Beacon tech will be at the centre of brand marketing efforts. Retail, healthcare, education, entertainment and multiple sectors are already using Beacon technology.

More sectors are planning to incorporate Beacon in future to upgrade their marketing strategies.


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