Digital Transactions News Puts Apple’s iBeacon to the Test, And Finds It Works As Advertised

With 58% of U.S. consumers owning a smart phone, according to a report from the Pew Internet & American Life Project, it’s no wonder that retailers want some time and space on the small-screen mobile devices. Apple Inc., which according to the Pew report, has 25% of the smart- phone market, knows this.

This week, it debuted a Bluetooth-based scheme for sending offers and product information directly to consumers’ iPhones while they shop inside an Apple store. Dubbed iBeacon, the system uses a network of Bluetooth devices placed strategically within the store. They can detect when compatible iPhones using iOS 7, and that have Bluetooth turned on, are nearby and present notifications about products. The consumer can tap the notification to open the Apple Store app to learn more and, ultimately, scan and pay for an item.

The Associated Press reported last week that Apple equipped all 254 of its U.S. stores with iBeacon technology. Digital Transactions News tried the system today at a Chicago-area Apple store, and found it worked as advertised.

Upon nearing the entrance, a welcome message notification appeared on our reporter’s iPhone screen, without opening the Apple store app. While browsing inside the store, another notification appeared with suggestions for accessories. A tap of that notification opened the Apple store app to the accessories section.

Additionally, at the bottom of the app, above the standard navigation bar, rested another navigation bar specific to the store. From there, one can access a scanner to scan price codes on products and read reviews. Consumers also can buy the product through the app using Apple’s EasyPay feature. EasyPay allows iPhone users to walk into an Apple store, take an item off the rack, scan its bar code, enter an Apple ID and three-digit card-verification value to make payment, and walk out—all without dealing with a sales clerk. The app then stores an electronic receipt in an EasyPay folder .Only less expensive merchandise that does not have serial numbers, such as iPad cases or cables, are eligible for EasyPay.

These types of notifications are not possible with geo-location services that rely on GPS because that technology does not have the precision of Bluetooth. The AP says a beacon’s signal can be adjusted to a specific distance.

In all, iBeacon, which requires that in-store notifications be activated within the Apple app, made it easier to control the sales process by eliminating wait time for an available salesperson. As many consumers increasingly use their smart phones to shop, or to simply respond to texts and complete other activities on their devices, iBeacon could be a way to ensure a bit more engagement with them.