• March 24, 2016

Big Data is Watching: Why Location-Based Services Are the Future of Customer Engagement

This year’s Super Bowl 50 featured the newest National Football League stadium equipped with the latest customer engagement technology: location-based services. With a smartphone app interacting with 2,000 Bluetooth Low Energy (BLE) beacons dispersed throughout the stadium, the technology generates a rich and unprecedented customer engagement experience.

The system directs fans from the parking lot to their seats. It guides them to the nearest restroom. It alerts them when lines at concessions are short. During the regular season, it provides for remote food and beverage ordering with the option of delivery to your seat or express pickup. It also has the capability to stream instant replays to mobile devices from multiple camera angles. During the Super Bowl, it offered extras such as a “celebrity cam” and an option for fans to view Super Bowl commercials broadcast during the game.

Precise Location Data Yields Unprecedented Value

In its first season of operation in the 68,500-seat venue, the high-density, high-performance Wi-Fi system from Aruba, a Hewlett Packard Enterprise company, generated $2 million in additional sales. Those are explosive results. And performance like this will only accelerate. According to the mobile and digital tech analyst firm Juniper Research, the mobile context and location services market will hit $43.3 billion in revenue by 2019.

What’s driving this surging growth? As the digitization process encompasses people, places, and experiences, enterprises are quickly realizing they know much more about their customers online than they do offline. To generate richer, more insightful customer experiences, they need systems to bridge that gap; ones that merge the online and offline realms into a seamless whole.

Enter location services with the power of analytics. These systems bring the power of digital analytics to the physical world, enabling firms to continuously capture precise customer location and activities data. They offer unprecedented scale, focus, and visibility.

For example, Avocados from Mexico, a group that markets Mexican avocados in the U.S., installed 250 web-connected displays featuring beacons in grocery stores. The displays will help the organization promote its iAvocado app and spur customers with prompts and incentives while they’re in a supermarket parking lot or near the produce section. Orlando International Airport is using a special app that leverages 1,000 beacons to alert airlines when a passenger is stuck in security, and offer turn-by-turn directions to gates, concessions services, restrooms, and baggage claims.

Don’t Be Left Behind

Transactions occur most often in places your customers care about on devices they’re looking at several times per day. That’s why it makes sense to bring the analytics game down to the granular level right where your customers live and interact. Location-based services drive higher levels of customer attention and engagement while they help build stronger relationships and expand revenue streams.

Yet enterprises have been slow to adopt these strategies. That’s a big mistake. Those enterprises that embrace these technologies will possess a unique communication advantage. And a decided competitive edge in the race toward our expanding, rapidly evolving digital future.

Like this story? Read more about mobility and location-based services here.