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How to Prove the ROI of Mobile Beacons?


Chances are you have already heard of mobile beacons. The technology has been around for quite some time, unless you are hearing about Bluetooth or more precisely Bluetooth Low Energy (BLE) which is part of Bluetooth 4.0 specifications

However the term got popularized among iOS development companies and marketers with the introduction of iOS 7 by Apple. It quickly become clear that mobile beacons were to become the next emerging advertising channel particularly for B2C industries such as retail outlets or service centres whose business model depends on real time visits of those outlets.

Ever since there are multiple examples and success story of using mobile beacons to trigger attention and purchase intent for newcomers who visit your shop from a nearby location. What particularly arises as challenge is proving the ROI of mobile beacons in front of your CEO. It is cool and modern mean of advertising. But does it actually work? Can you prove cause and effect with mobile beacons?

Example of proving ROI with mobile beacons

Let’s assume that you who read this have a retail store in multiple locations in Paris where your top performing store is store #45 located in the centre of the city of light.

You deploy 5 cute looking iBeacons on 5 different spots inside your store – store entry (beacon 1), women’s pants (beacon 2), women’s shorts (beacon 3), men’s polos (beacon 4), and men’s pants (beacon 5). The initial plan is to show various offers to customers as they move around these five areas within the store and see how many customers engage and redeem the offers shown.


Thanks for the sweet image Adobe 

Each beacon contain minor identifier to separate it from the rest in the expected report. The beacon “proximity trigger” can be used to increase or decrease the distance from the beacon to the mobile device that has a beacon-aware app. In the illustration above, we can see the various proximity triggers (based on the size of the cir­-cle) for the respec­-tive bea­-cons.


With the beacons deployed and analytic data being gathered, with the help of the dedicated SDKs for iOS and Android respectively, you as an owner or analyst of store #45 can analyse the conversion from “Offers Shown” to “Offers Touched” to “Offers Redeemed” as shown in the report below:

analyst of store

Voila. Now your CEO will have plenty of love for you especially after presenting the report above. The table clearly identifies:

  • Beacons with most push notifications sent. If you ignore the largest beacon #1 whose number is biggest because it is the first one to capture and send push notification to walkers near the store you can easily spot that those who have come inside have been most interested in the woman’s sports (809 offers shown).

You can easily compare this with previous analytics data especially paid advertisement report.  Are you running PPC featuring women’s shorts with invitation to buy from the nearest store? This could easily explain the positive ROI those campaigns could deliver for offline conversions. Is this data leaving you completely mind blown and confused? Perhaps you should reconsider going back and analysing your niche, your product optimization page, to see who your most frequent visitor is and what product pages got the most visits. Is the Woman’s sports catalogue page marking increase in visits? This could explain the growth of interest for this particular category within your physical store as well.

  • While most of your visitors have been moving around the Woman’s sport section, the one which actually delivered highest number of conversions (redeems) is the Woman’s pants section. Dissect the offer and examine the kind of deal offered and language. You may find a winning formula to replicate to the offers delivered from the remaining 4 beacons as well.

As you see, the following report now only directly proves ROI (once you calculate the value of purchases resulted from offers redeemed) but also provide actionable insights of fixing something which may be broken in your entire online marketing strategy.

Do you need a strategic assistance or consulting over setting up a mobile beacon strategy for your sales outlets or iOS mobile app? Let us know and get a chance to enrol for the free consulting hour provided by our mobile marketing specialist here at Mobiloitte. The luckiest 10 will be contacted with further next steps.

The rest of you are welcomed to share their thoughts on how mobile beacons shape the way stores connect with prospective buyers. Feel free to share practical examples as well..