Target tests beacons, plans nationwide rollout
Earlier this week, Target announced plans to test beacons at stores in markets across the country, including Chicago, Denver, Minneapolis, New York City, Pittsburgh, Portland, San Francisco and Seattle. Stores deploying the beacons will beam special deals and recommendations through the retailer’s mobile app to customers as they shop.
"We’re excited to start using beacon technology to offer real-time, relevant content and services that can help make shopping at Target easier and more fun," said Jason Goldberger, president of Target.com and Mobile, in a statement. "This is another way Target is bridging mobile and stores, and using digital to enhance the in-store shopping experience. We look forward to seeing how our guests respond to what we’ve built."
Target management is aware of the potential for the technology to become irritating to customers. To avoid this, only those shoppers who opt-in will receive messages, limited to two per shopping visit.
Source: Target
While not available in the initial version, Target also plans to use beacon technology in the future to improve customer service. According to A Bullseye View, Target’s blog, customers will be able to request the help of store associates by using their phones. "Think of it this way: Beacons + Target app = Red-and-Khaki to the Rescue," reads the site.
According to TechCrunch, Target plans a nationwide rollout of the app by Christmas. Target also is working on updating its Android app to work with beacons, as well.
- Testing, Testing, 1,2,3: Beacon Technology Arrives in 50 Target Stores – A Bullseye View
- Target Launches Beacon Test in 50 Stores, Will Expand Nationwide Later This Year – TechCrunch
- Target testing beacons to provide in-store shoppers coupons, recommendations – Minneapolis Star Tribune (tiered sub.)
Discussion Questions
Do you expect Target mobile app users to embrace or reject messages beamed to them via beacons while they shop in the chain’s stores? What do you think about Target’s planned use of beacon technology to facilitate customer service in the future?
Poll
BrainTrust
Jason Goldberg
Chief Commerce Strategy Officer, Publicis
Ryan Mathews
Founder, CEO, Black Monk Consulting
Unsolicited messages for deals (what I like to call “GeoSpam”) are not likely to be popular, and we’ve already seen data that shoppers tend to turn off the apps after the second unwanted message. I don’t think “GeoSpam” is what Target intends, however.
Beacons have great promise to make more mobile experiences in-store more contextually relevant. If features like “Target Run” help shoppers complete their shopping trips more successfully, and help guests discover new products that truly are personalized and relevant to them, then the program will be a success. If it offers discounts on dog food to non-pet owners because they happen to walk through the pet aisle on the way to grocery, then it’s not going to work.
Thank goodness that Target is aware how irritating beacon technology can be. Unless the deals being offered are meaningful and significant, and in the case of Target, the items are actually in-stock, beacon technology is an annoyance.
I hate to be cynical, but will a call to a Target store associate quickly bring that associate to a customer? Will this actually improve Target’s traditionally poor customer service? I doubt it.
Target should keep their eyes and efforts on the basics: clean stores that are well-stocked and manned by enough associates to make the shopping experience meet or exceed customer expectations.
I applaud the controlled use (customer opt in) of beacon technology. It is not the Internet which changed the world, it’s the smartphone! Beacon technology maximizes the use of the smartphone as a two-way communications device.
Millennials check their smartphones 45 times a day. Eighty-six percent of Americans state that their smartphone is their primary mobile device. My smartphone is now my smart button. The newest concept is BYOS: Bring Your Own Screen.
Since it is a two way system, this technology should be well-suited to address customer service issues while the shopper is in-store.
Of course it all depends on the offer, don’t it? If the deals are attractive enough, customers will say they love beacons. If they aren’t, shoppers will see them as intrusive digital noise.
Not sure I can translate the explanation in the article into a understandable offering BUT if it means that you are standing in Target tapping your app in order to get some help, then I think you have larger problems to deal with like, for example, having enough employees on the floor in the first place to make app tapping unnecessary.
But, as I say, I don’t have a clue what, “Beacons + Target app = Red-and-Khaki to the Rescue” means.
It will be interesting six months to a year from now to see research about the trial, adoption and abandonment numbers for this. As others have noted, the program’s pluses are it is opt in and limits the number of notices to two per trip. However, none of that matters if the offers are not meaningful to the customers.
I saw nothing that indicates this is tied to a database of the customer’s prior purchases. Without that it would seem that simply walking through an area of the store would trigger an offer.
It’s an awful lot of effort to reach a tiny slice of shoppers. A better, scientifically designed layout of the store and merchandise would reap a lot more benefits for at least 50 percent of their shoppers, rather than the 5 percent they are chasing with this.
Beacon technology will become a powerful vehicle to communicate with shoppers before during and after their shopping journey. The mobile app that is required is the barrier to broader acceptance and usage. There is new innovative technology available that uses beacon technologies that are not encumbered or constrained by the need to open and interface with a unique mobile application. This technology still requires the shopper to opt in and control their experience but is much quicker to present relevant brand messaging and content.
This alternative will provide both the retailer and brand with creative methods to convey more relevant and timely messaging that is tied to local merchandising initiatives. The need to interface with a mobile app will significantly slow the speed-to-market as well as limit the flexibility to act locally, both being expectations of the digitally empowered shopper.
If they remain adaptable and modify the plan as they get customer feedback this could work. As a person who already gets too many notifications and marketing emails, they better be delivering a good incentive or value add if they’re interrupting me while I’m trying to shop and get out.
I just checked my phone. The Target app doesn’t exist on it. Whew!
Beacons are an interesting technology and some people may actually enjoy getting deals sent to their Target app while shopping. But unless the consumer has opted into receiving such messages, I don’t think they will be welcomed. Putting the Target app on a phone doesn’t mean “Send me messages while shopping.” Unwanted messages might even prompt shoppers to delete the Target app.
Target is going to try to make this initiative work because consumers will have to opt in. I don’t think it will take long to determine how many then opt out. That’s when the research can kick in to determine why.
If shoppers think the deals are worth their effort, they’ll stick with it. But if the deals are no different from the ones available to non users of the mobile app, I doubt the program will last long.
I don’t have a Target app and I checked around the office this morning and found no one here has, or wants, or plans to get, a mobile app for Target, even though we all shop there.
For years I have frequently observed that a particular large department store chain regularly issues announcement type press releases just to get their name in the papers and search engines for free publicity. With the store name change for some locations announcement from Target Corp earlier this week, and now with this limited “beacon test,” it seems Target may be following in those footsteps.
This feels more like PR than a merchandising or customer service initiative to me. I doubt it will have much impact on either the stores’ bottom lines or customer in-store activity, and I expect the test to die a quiet and unmourned death in short order.
Beacon-type technology has been around for a long time. I mean, what you can do with beacon you could achieve with Bluetooth and WiFi. Beacon makes it an easier, better experience for the customer. However, fundamentally it’s the same. Pushing content to mobile users. Technology is not the reason why this kind of mechanism for delivering content to users has not been successful. The failure has been due to poor planning and execution. Target and other retailers looking to leverage beacons need to make the use of beacons exciting, fun, and integrate social media so they can enjoy it with friends.
We have 7 flavors of beacons in test and have been hammering on them for quite some time. Most retailers are VERY wary of them and the potential negative impact they could have. Others have a tough time understanding the potential value equation for the shopper. Regardless, they are more of a novelty with huge potential. However, as with all technologies, the make or break will be in the value exchange for the user.
Target took the 100% correct approach with this public announcement. They hit it right up front that they are seeking to improve the store experience and make it more FUN. They are very clear on the opt-in/opt-out methods. They are very clear on the experience the user will have (even showing UX/GUIs to make it as real as possible). And they don’t shy away from saying these deals are going to be really good, not marginal and ho hum.
I have the Target app and don’t use it; if they ever get this to test in Atlanta, this may change. Done right, this “could” be the ultimate app catnip to get people fired up about firing it up (it’s all in the Fear of Missing Out notion). Regardless, I am thrilled that a huge retailer has unabashedly come out saying yep, we’re doing this and here’s how and what you’re going to get.
This is about testing innovation everyone, and Lord knows our industry needs a lot more of these brave test and learn initiatives. It’s okay if some of it doesn’t work. It’s tech—optimize it to a better experience and march ahead!
There you have it ladies and gents, a 21st century high technology blue light special. Popups really set off smart phone and tablet users. This should have been tested a bit more or maybe just thrown out at the first suggestion.
I think the ups and downs of Beacons was well vetted here.
My gut says beacons provide a new and exciting alternative way to add dimension to the shopping experience. And I think merchants and operators will dumb it down.
I have both the Target app and Cartwheel on my phone and found them confounding. One aspect was the arcane use of terms retailers use for categories. I was looking for a nalgene water bottle. Ugh. Then I wanted to know if it on sale. Ugh.
Wrestling with the apps and then receiving unexpected messages (love GEOspam) will be an interesting test. I look forward to outcome.
Something tells me this is for the shopper who wants to spend a lot of time in the store. Maybe more a “Target stroll” vs “run.”
I just read the accompanying articles and I have a different take on the role of the beacon. Among the challenges facing retailers and aggressive off-price promoters is generating awareness of the promotions across the store. This is due to the dwindling newspaper subscriptions/readership.
Beacons are an alternative channel. Over time shoppers can be trained to expect the deals once in the store. These can be localized to a specific store.
I am still wary that beacons become a problem, like so many stores falling into being over signed.
Again, looking forward to hear how this turns out. Anyone have insights into the Safeway beacon trials?