IKEA relies on beacon technology

BEACON IKEA Austria is testing a new, innovative wireless way of communicating with customers: beacons. The Bluetooth-based technology was implemented by IQ mobile.IKEA Graz is the first store to test the technology. The test phase started in May 2015: beacons are small Bluetooth transmitters that send certain messages to customers who have made their cell phones receptive to them at predefined locations. They communicate with modern smartphones via apps.Beacons turn the IKEA FAMILY app into a modern shopping experienceAnyone who has installed the IKEA FAMILY app and activated its Bluetooth function will in future receive messages at IKEA Graz such as "Time for a break! For example, with a free coffee for IKEA FAMILY members and a juicy raspberry cake!", or "Hey! Show your IKEA FAMILY card when paying and take advantage of the benefits!"Together with IQ mobile, IKEA is constantly looking for innovative solutions in mobile customer communication: so far, a total of 28 beacons have been installed - at the moment mainly in the entrance area, in the restaurant and in the checkout area. Further stations are to follow. For example, the IKEA FAMILY stand, areas such as the kitchen or bedroom departments and the customer service area are being considered. "We have been working with apps, web planning tools, augmented reality and other innovative concepts for many years. Now we are offering a new, technically sophisticated form of customer information," explains Gudrun Hochwallner, Senior Digital Communication Specialist at IKEA Austria.Digital added value at the point of sale"We have been supporting IKEA with the implementation of its mobile marketing strategy since 2008. It is important to us to keep our finger on the pulse and to recognize early on what the customers of the future will need. Visitors to IKEA who are keen to innovate can now also be spoiled with new information on site and always be up to date. To this end, we have updated the IKEA FAMILY app we developed," says Harald Winkelhofer, CEO of IQ mobile, demonstrating how long-term partnerships and a long-term strategy are ideal for trendy innovations. "However, the use of beacon technology is just the beginning. The journey into the future of retail will certainly be accompanied by other topics and innovations such as wearables as shopping assistants."Pure transmission units - no data collectorsThe app recognizes that an IKEA FAMILY customer is in the IKEA store in Graz. The beacons therefore send them selected messages when they pass certain points in the store. At the checkout, the app then reminds them to pull out their IKEA FAMILY card. The virtual version of the card also opens immediately. IQ mobile project manager Peter Smejkal describes the functionality: "Technically, this works via the new Bluetooth standard 4.0, which is used in iPhones from iOS 7.0 and on Android from version OS 4.3. It requires significantly less energy than its predecessors. The beacons send out signals that can be received by activated smartphones. All users have to do is activate the location services and Bluetooth. "The technical advantage over the NFC standard, which is behind the wireless charging of devices, for example, is that beacons also work contactlessly over longer distances (in contrast to NFC, which allows a maximum distance of 5 cm between the chip and smartphone, beacons can reach up to 15 meters). They are purely transmission units, so they do not collect any data. They also do not initiate any downloads and do not access any data from the cell phone. Another advantage over GPS technology is that the beacons can be used inside buildings.IQ mobile has also implemented various mobile-optimized IKEA websites and the IKEA FAMILY app for iPhone, Android smartphones and Windows Phones for IKEA Austria, making shopping even easier. Here, IKEA FAMILY members can find offers from the IKEA store and stay up to date with dialog marketing activities such as push notifications.