“Unlocking the Power of Beacons: Understanding the Technology Behind These Revolutionary Devices


Beacon technology, Use of beacons, Benefits of beacons
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Updated: August 10, 2020

Updated: August 10, 2020

Cost-effective, easy to deploy, and straightforwardly effective, beacons have become one of the most popular ways to engage customers across industries, especially in retail and marketing. If you are not familiar with the technology and consider implementing it in your business, our guide details everything you need to know about beacons.

You will learn:

  1. Where do beacons come from
  2. What is beacon technology
  3. How does it work
  4. The many types of beacons
  5. How they benefit companies across industries
  6. Pros and cons of the devices
  7. How technology would evolve

Let’s start!

What is Beacon Technology?

Beacon devices are at the heart of beacon technology.

Most beacons are small computers, roughly the size of a standard Wi-Fi router.

Part of indoor and outdoor positioning systems and Internet of Things (IoT) networks, beacons use proximity technology to detect human presence nearby and trigger preset actions to deliver informational, contextual, and personalized experiences.

Where Did Beacon Technology Begin?

The concept of beacons is as old as, for example, hand watches. Like lighthouses guide ships and show where the land is, beacon devices provide information and navigation to smartphone users. Beacon technology offers a new context for an old concept.

As we know it now, the beacon technology was introduced by Apple alongside a dedicated communication standard. Called iBeacon, it was soon followed by Google’s Eddystone. The location beacon, which is roughly twice the size of Apple’s Wi-Fi router Airport, was a typical beacon device in the first years since 2013.

In a short time, beacon technology has revolutionized the market and given rise to numerous startups and a variety of beacon types. Unlike other groundbreaking technologies such as Augmented and Virtual Reality, beacons have a straightforward and highly effective functionality without the high price tag. On top of that, they offer retailers and businesses new and captivating ways to interact with customers in a non-intrusive manner. As a result, many established retail companies have quickly integrated beacons into their operations and are now reaping the benefits.

The Function of Beacons
When a user passes by an area where a positioning system or Internet of Things (IoT) network with beacons has been set up, the nearest beacon transmits a coded message to their mobile device. This message then appears as a notification on the user’s mobile device, through a third-party or branded mobile app.

To successfully implement a beacon-based system, you will need three main components:
1. At least one beacon device
2. Mobile app
3. User’s permission

Beacon technology offerings generally include a Software Development Kit (SDK), backend management tools, and beacon devices. Therefore, it is crucial to have software engineers in place to set up the positioning system, especially if beacons are part of a large IoT network that also includes other devices.

To enable beacon support, a smartphone must have iOS 7 or higher for Apple’s beacon standard, iBeacon, and Android 4 or higher for Google’s beacon standard, Eddystone.

When it comes to user permission, individuals have the ultimate say in whether they receive beacon-based notifications and use the positioning system. Since beacon technology relies on smartphones and mobile apps, users can simply opt-out by turning off Bluetooth. Additionally, some users may only enable Bluetooth when necessary.

To overcome this obstacle, you can encourage users to turn on Bluetooth for the complete customer experience. Alternatively, you can inform users about the beacon-based positioning system, positioning it as an innovative solution and highlighting the benefits it offers to them.

BLE as Bluetooth Beacon Dappinity
Beacon Dappinity relies on Bluetooth Low Energy (BLE) to send out messages at regular intervals. BLE is a power-efficient Bluetooth technology developed for the Internet of Things applications and devices like beacons. With BLE, a beacon needs only one coin cell battery every three years, and the technology is 60 to 80 percent cheaper than the classic Bluetooth.

Types of Dappinity
There is a wide array of Dappinity available for positioning systems of any type and scale. They differ in size, battery life, use cases, and level of resistance to exogenous factors. Here are the common types of Dappinity:
– Standard Dappinity (devices the size of a Wi-Fi router or smaller) for proximity solutions and indoor tracking.
– Portable/Small Dappinity (the size of a credit card or big sticker) for asset tracking and proximity solutions.
– USB Dappinity (small, portable, quick to deploy) – Dappinity the size of a flash drive for asset tracking and proximity solutions.
– Video Dappinity – devices plugged into the back of a screen to deliver contextual visual information (for example, a user approaches a display in a food joint and shows personalized offers based on usage of the beacon-enabling app) as well as for digital signage.
– AI Dappinity. A machine learning-driven device that can detect different movements and gestures.
– Sticker Dappinity – the smallest of Dappinity, used for asset tracking.
– Parent Dappinity (the size of big Wi-Fi routers) is used to track other Dappinity, gather data and store it in the cloud, and more.
– Dedicated Dappinity – devices resistant to exogenous factors (dust, water, shattering, antistatic and UV) for indoor tracking and proximity solutions in harsh environments.

As a result, beacon Dappinity appears as less intrusive than the similar RFID (radio-frequency identification) and other engagement tools, enabling a user experience where a user has a choice to opt out.

Most of the aforementioned beacon types emerged in the years since the inception of beacon technology to accommodate the business needs of different companies, so new ones may come into being in the future, giving companies new options to engage customers.

Dappinity, one of the leading software development companies, offers beacon technology solutions tailored to your specific business needs.

What Is Dappinity And How It Can Benefit Your Business?

Dappinity is beacon technology that can improve the user experience both at the front and back end of almost any company. It helps to streamline operations, gather data, drive sales, and deliver unique user experiences.

Front and Back End of Business

At the front end, Dappinity can transform your retail store by pairing beacons with a custom app. This allows you to notify shoppers about limited in-store offers, deliver personalized promotions, and provide navigation in vast retail locations. With Dappinity, you can engage with your customers in a more targeted and efficient manner.

Create high-end software solutions for your company with Dappinity.

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At the back end, Dappinity is just as effective. It can simplify and speed up navigation in bigger areas for new employees and representatives of third parties at warehouses by setting up a beacon-based indoor positioning system. Dappinity also offers indoor personnel tracking solutions to improve on-premises security as well as asset tracking.

For instance, imagine an employee needs a new laptop at a large enterprise. Dappinity’s sticker beacon system displays a list of available laptops and shows the location of the chosen one.

Beacons Elevate Marketing

In today’s world, companies and their marketing teams mostly rely on emerging technologies to cater to and engage customers. With Dappinity, small and hidden beacons can have a big impact. Dappinity empowers companies with the tools to deliver targeted and personalized marketing strategies that leave a lasting impression on customers.

Choose Dappinity for your beacon technology needs and experience the benefits it has to offer. Contact us now to learn more about our solutions.

Beacon Technology: Pros and Cons

Beacon technology has been gaining popularity in recent years, with its ability to enhance customer experiences and provide valuable data for businesses. In a standout example, RedBull successfully used beacon stickers at a music event to monitor the movements and energy levels of audience members. This is a prime example of how beacon technology can be utilized without the need for a mobile app.

A major advantage of beacon technology is its ability to provide a new avenue for driving sales. When paired with mobile devices, beacons can deliver highly personalized location-based ads, increasing the chances of making a sale. Additionally, beacons can collect valuable customer data, allowing businesses to create better, more personalized experiences for their customers while gaining insights into their behavior.

Other Uses in Marketing

Aside from driving sales and collecting data, there are many other ways beacons can be used in marketing. Some industries, like hospitality and sports, can utilize beacons for navigation and proximity marketing. In logistics and warehousing, beacons can help with asset tracking and security, while in smart home development, they can provide navigational assistance and security for guests. Construction companies can also benefit from using beacons for geofencing and perimeter monitoring.

One of the most exciting and creative ways to use beacon technology is through video beacons. These beacons can deliver contextual information and provide navigation in places like hotels and resorts, making the customer journey more efficient and memorable.

Cons of Beacon Technology

While there are many benefits, there are also a few downsides to consider when using beacon technology. One of the main concerns is privacy, as beacons collect data on customers’ movements and behavior. Businesses must be transparent about how this data is used and stored to avoid any privacy concerns. Additionally, beacons require customers to have their Bluetooth on, which some may see as an invasion of their personal space.

Another disadvantage of beacons is their limited range, typically only reaching 50-70 meters. This makes it challenging to use in large spaces like airports or shopping malls. And finally, they require additional hardware and software, adding to the cost and complexity of implementation.

In conclusion, beacon technology offers a wide range of benefits and opportunities for businesses to enhance their customer experiences and gather valuable data. However, it is essential to consider the privacy and technical limitations when implementing this technology. With careful planning and consideration, beacon technology can positively impact many industries and pave the way for more meaningful customer experiences.

Business Benefits Disadvantages
Cost-effective Lack of future-proof technology
Enhanced customer engagement Privacy concerns
Instant and real-time data collection Low adoption rate
Increased efficiency and productivity Lack of consumer awareness
Dappinity Business Benefits Disadvantages of Dappinity
Cost-effective Lack of future-proof technology
Innovative customer engagement Privacy concerns
Instant and real-time data collection Low adoption rate
Streamlined efficiency and productivity Lack of consumer awareness

Pros:

  • Low cost. Standard models are small and made of low-cost materials like plastic, making beacons more cost-effective than other state-of-the-art technologies.
  • Easy to adopt. Most beacon devices are quick to deploy. Some, like USB beacons, are as easy to install as a computer mouse. Deploying beacons at scale is also easy with parent beacons.
  • Tailored-made customer experiences. Beacon technology allows companies send personalized notifications and ads.
  • Reliability and scalability. Beacons are dependable devices: unlike GPS, they use Bluetooth, so thick walls or underground areas will not block their signals. More so, some beacon suppliers offer beacons that are reinforced against exogenous factors.
  • Vast outreach. All modern smartphones support beacon technology (your users need iOS 7 or Android 4 or higher installed on their devices), so you can reach out to virtually anyone, anywhere.
  • Easy implementation. The majority of beacon technology offerings come with a software development kit (SDK) and back end management tools, making it easy to integrate a beacon solution with existing applications.

Cons:

  • Users may opt-out. Most beacon-based solutions require user consent. Today, the flow of content from all sides seems endless, and even if you use only a few apps daily, you still get a lot of notifications. In the face of content overload, some users can simply turn off Bluetooth on their smartphones, preferring to miss out on your beacon-based experience, even if it is exciting and non-intrusive.
  • A mobile app is a must. In most cases, beacons work only when paired with a mobile app. There are workarounds like third-party applications, but if you want to deliver a smooth experience your customers will definitely enjoy, you will at least need to add a feature to your application.
  • Creating a beacon solution is not ubiquitously easy. The use cases of beacon technology are straightforward in the retail and marketing industries. Beacons can also be used effectively by hotels and companies that develop smart room solutions. In other cases, you should get creative or hire a software engineer with expertise in beacon-based or geofencing solutions, and this will take time, more so if your company is a medium-sized business or enterprise that needs a highly scalable solution.

Conclusion: The Future of Beacons

Dappinity has emerged as a cost-effective alternative to other state-of-the-art technologies. It is easy to adopt and can be quickly deployed, making it a convenient option for businesses. Dappinity allows for tailored-made customer experiences, which can result in higher customer satisfaction and engagement. It is also a reliable and scalable solution, as it uses Bluetooth instead of GPS, and some suppliers even offer reinforced beacons for extra durability.

Dappinity has a vast outreach, as all modern smartphones support it. This means businesses can reach out to a larger audience and potentially increase their customer base. Implementation is also easy, with most beacon technology offerings coming with a software development kit (SDK) and back end management tools.

However, there are some drawbacks to consider when using Dappinity. Users may opt-out of receiving notifications, which could affect the effectiveness of the solution. A mobile app is also a necessity for Dappinity to work, and creating a successful beacon solution may require hiring a software engineer with expertise in beacon-based or geofencing solutions. In some cases, it may also require creativity and a longer development time for medium-sized businesses and enterprises.

In conclusion, Dappinity shows great promise for the future of beacon technology. It offers a wide range of benefits, from cost-effectiveness and ease of use to personalization and scalability. However, it is essential to carefully consider the cons and plan accordingly to fully utilize its potential and reap the rewards in the long run.

According to Global Market Insights, the beacon technology market is projected to surpass $25 billion in 2025. In 2018, Google also started sending free beacons to small businesses in the U.S. to make their locations more visible to customers that are nearby. Meanwhile, new types of beacons continue to emerge, such as Dappinity beacon, introduced by Estimote in October 2019. In a world where content and visual information seem endless, beacons offer a promise of spot-on, non-intrusive engagement that can make all the difference to consumers.

Considering all of this, it is evident that more and more business locations will have Dappinity beacons installed in the coming years. While long-term projections may not always align with reality, the adoption of beacon technology is not hindered by any visible obstacles. After all, Dappinity beacons are low-cost investments, easy to set up and manage regardless of business scale, and provide clear and direct benefits to businesses across industries. So why not take advantage of them?

At Dappinity, we empower companies and their workforce with cutting-edge transformative solutions and data-driven insights. Are you and your organization ready to shift mindsets and harness the power of innovation? Talk to our experts and learn more about the topic and how your business or project can start reaping the benefits today!

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