You’re being watched — drugstore tracks customers outside building, sends mobile coupon bait to lure them inside

Duane Reade, New York’s largest drugstore chain, has employed Apple’s newest micro-location technology, the iBeacon, to send personalized coupons and offers to the mobile devices of potential shoppers based on the individual’s proximity to the store and purchase history.

Naturally, this action isn’t done to everyone; rather, the technology is only able to recognize individuals who’ve downloaded the drugstore’s mobile app AND are close to a Duane Reade store. When the consumer approaches one of the stores piloting the program, the app will receive and display a notification on the individual’s lock screen, letting them know of a special coupon available if they go in and shop right at that moment.

The kicker: the coupon is specially tailored to the individual, as it’s based on previous purchases as well as product reviews.

The goal in using iBeacon, according to Duane Reade, is to enhance the customer’s in-store experience by providing the individual with information based on their location. Along with the coupons, the app also provides users with access to a loyalty program barcode, product locator, and instant Instagram 4×4 in-store prints.

“The Duane Reade app plays an integral role in our omni-channel customer engagement strategy,” Calvin Peters, PR/Digital Communications Manager for Walgreens (which owns Duane Reade) said in the company’s press release. “It is incredibly important for Duane Reade to be where our customers are, including on their smart mobile devices.”

From a technical standpoint, the iBeacon uses a Bluetooth low energy signal instead of the more commonly used longitude and latitude approach of trying to detect the proximity of an iOS device. When in use, it is able to track iPhone users’ movements and alert apps when a person either comes towards, or otherwise leaves a location; it can also monitor the individual’s movements within certain paramaters. 

This latter point is worth noting: being able to track an individual’s movements as they shop throughout the store offers an unprecedented live feed into customer behavior. Information like this has never been available in the retail industry, and the data it could provide companies like Duane Reade will allow them to specially tailor their marketing / sales approach to better encourage product purchases. 

Story via psfk.com