Proximity Marketing in Retail – Macy’s Integrates iBeacon Technology

Macy's are using proximity marketing in retail by employing beacons to engage customers as they receive exclusive offers.

After successfully trialing beacons last year at a few of their flagship stores, Macy’s has become the next example of proximity marketing in retail. Macy’s is a megastore with 850 department stores across the United States, the District of Columbia, Guam and Puerto Rico and are now using beacons to engage many of their customers as well as increase conversion rates and sales.

Macy’ s are implementing as many as 4,000 beacons into 786 of their stores thus enhancing shopping experiences by providing exclusive in-store sales promotions and discounts. Not only does beacon technology benefit customers; it drives in more sales profit for companies as customers end up spending more than they had initially planned. In fact, here’s what Kent Anderson, president of Macys.com said, “The customer who gets more engaged in more of the channels that Macy’s has to offer gives us more wallet share.”

How Macy’s are using proximity marketing in retail

The iBeacons will be placed in various departments in Macy’s to enable app users to receive personalized content that is relevant to their interests.

Those with the specific shopping app downloaded on their device will be reminded to open the app and opt for push notifications when they come in range with an in-store beacon.

Beacon-enabled apps support tracking technology; therefore shoppers must switch their Bluetooth on and activate location services to gain access to a range of promotions and exclusive discounts. However, those without the app on their smartphone will not get hold of such engaging content.

It is also important to note that beacon technology has the potential to create a vast impact on proximity marketing in retail settings. With big chain stores like Macy’s and Bloomsbury already using beacons, it’s possible that global retail stores will begin integrating beacons as a part of their location-based campaigns.  In the mean time, Macy’s will continue to utilize beacon technology in a great number of stores and reach out to an extensive number of customers.