SHOPPING IN MOTION HOW POSITIONING, INDOOR NAVIGATION AND PERSONALIZED MOBILE MARKETING SET STATIONARY TRADE IN MOTION.

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1 SHOPPING IN MOTION HOW POSITIONING, INDOOR NAVIGATION AND PERSONALIZED MOBILE MARKETING SET STATIONARY TRADE IN MOTION.

2 Nowadays customers are provided with various channels for shopping and for getting information about the desired product in advance. Just as the number of brand and customer touch points in the B2C area has multiplied in comparison to predigital times. Walking into a shop is, considering Amazon and co and Same Day Delivery, no more a necessity en route to the desired product and satisfaction of needs. All the more important for stationary retailers to be aware of their strengths and to expand them specifically: customized service and a unique shopping experience. Although we may be increasingly buying online, we go to the store in order to have a unique experience. Christiaan Rikkers, CEO JosDeVries

3 Concerning the shopping experience retailers should learn from newest studies about customer loyalty: Especially millennials appreciate good service as well as personalized offers and products. Furthermore from importance is the belief that their personal data and information are safe with the retailer. Also around one third of the more than worldwide interviewed consumers feel loyal against retailer who provides them with a shopping experience for more than one sense, e. g. by using virtual reality or augmented reality. Also here ecommerce is an innovation driver, from whose strengths stationary trade can learn. Amazon founder Jeff Bezos understood what counts for all companies in retail: Our customers are loyal to us right up until the second somebody offers them a better service. Jeff Bezoz, CEO Amazon.com

4 Christian Rikkers names a way for stationary trade to offer customers independent from the type of customer something better. Simplification and enhancement. Meant by that is on the one hand to make the shopping experience more comfortable by services like product search or indoor navigation, but also create an inspiring new shopping experience with the help of technology. PLEASE ASK FOR CASE STUDIES AND DATA! Simultaneously the use of new technologies implies a way for retailers to obtain reliable customer data and to be able to optimize business operations and marketing activities based on insights into customer flow, behavior, space management etc. SERVICES AND SCENARIOS FOR DIFFERENT TYPES OF CUSTOMERS THE FUNCTIONAL SHOPPER A functional shopper wants something immediately. He already decided about product and brand. He doesnʼt need any further information about the product at the store. What counts for this type of shopper is speed of action. Typically this kind of shopper can be found in food retail. He has his shopping list, wants to get quickly into the store and quickly back out. Shopping app Indoor navigation Product finder Recipe navigation Payment feature Case study As first supermarket in Germany an Edeka in Düsseldorf-Bilk is utilizing a LED-lighting system by global market leader for lighting, Philips Lighting, which is able to do much more than just illuminating aisles and shelves. Combined with a smartphone and an app where the customer enters his shopping wish, he is individually lead through the market. The app can also be used to show information about the storeʼs range of goods and latest sales. Navigation by light requires except the LED-lights no further investment into additional hardware. Technology Positioning and indoor navigation are based on the special characteristics of the installed LED-lights. Their light points are transmitting an individual code that can be detected by a smart phone camera but not by the human eye. Similar to navigation via GPS the app can determine the smartphoneʼs latest position with an accuracy up to 30 cm by the received light signals and compare it with the target coordinates. For that neither a WiFi- nor a mobile phone connection is necessary.

5 THE FUN SHOPPER A second category are fun-shoppers. For them shopping resp. walking through the different stores only counts as leisure experience, they want fun, inspiration and ideas and are open for purchase impulses at the point of sale. Shopping App Location-based push notifications Loyalty features Positioning Flash offers Case study British commercial real estate operator Hammerson provides shopping apps with store finder, customized notifications and offers, indoor navigation and more features up to now for 20 shopping centers with a store space of 1.5 million square meters to optimize impulse buying and convey an up to date shopping experience. Technology Positioning and indoor navigation are realized via Bluetooth Beacons installed at the shopping centers. The shopping app is a white label solution, which is only branded for the respective shopping center and has not to be developed newly for every of the centers in UK, France or Ireland. New features are updated regularly. WATCH THE VIDEO THE CONFIRMATION SHOPPER A confirmation shopper has a vague idea about what he wants to buy. He is open to suggestions and further information about product groups. For this type of customer advice and information about the product have priority. Typical representatives of confirmation shoppers are for example customers, who want to buy a hiking shoe at a specialist store or specialist department or customers, who are searching for an appropriate pre-owned vehicle. App Indoor navigation Store finder Location-based content Physical web applications Feature to call staff for help Case study Audiʼs used car dealership in Munich is using an app which provides customers with a seamless user experience from online to offline retail. Customers are able to choose the used cars they want to see via app and are led to the store and inside the store directly to the favored car. The feature is very important on a space of square meters and a stock of up to 1000 cars to get a first impression on oneʼs own e. g. on Sundays. The app integrates augmented reality features and makes it possible to not only display the position of the desired car on screen but to get also further information about the car: principally the whole multi-media range of content including interactive 3-D animations can be displayed. Technology Navigation works via GPS and indoors via a novel beacon based indoor navigation system. With this the positions of the cars as well as of the customers can be determined and the way to the car can be shown on the screen. For that the used car dealership center was equipped with a Bluetooth beacon infrastructure. Additionally more than 600 cars in stock were equipped with beacons. The software that interprets the signals and makes the services possible was integrated via SDK into an app.

6 POSITIONING IS FUNDAMENTAL A precise positioning is the core of all services. Only that enables a working indoor navigation. By indoor navigation the user is shown is say to the product or his gate directly on his smartphone or tablet screen via comfortable turn-by-turn navigation. No search for staff, no confused wandering around. The issuing can be done in any language. Beyond that it is possible to location and time based trigger any action recorded in the app before based on the position. That means that in a defined position a before defined action can be triggered on the smart phone e. g. the display of further information. All logic connections are thinkable and manageable: and only this feature enables the desired relevance for the customer and the suitable impulse at the right place and at the right time. Only 10 minutes remaining until your film starts. bluloc big bay beacon bluloc beacon controller bluloc blackwell beacon Welcome Mrs. Smith. This is the fastest route to the cinema.

7 Indoor navigation is always very useful for the end-user when he is offered a more efficient use of time, a more of information and increased comfort. Reduced to the core indoor navigation means efficiency and information. At the same time indoor navigation enables the gathering of data PLEASE related to customer behavior ASK FOR CASE and to use it for optimization. STUDIES AND DATA! Wireless technology and technological approaches that enable indoor navigation or positioning are: Bluetooth low energy (BLE) and ibeacons RFID (Radio-Frequency Identification) and NFC WPS / indoor positioning via WLAN Ultra wide band VLC In an estimation, Opus research assumes consumer expenses of 10 billion dollars till the year 2018 which are directly influenced by indoor navigation ibeacon Due to their many advantages compared to other possibilities beacons have been established as standard. Beacons are small Bluetooth transmitters. In defined time frames they send a signal that can be interpreted by the correct receiving unit. In most cases the device is a smart phone with the related app. Inside the signal, an ID is transmitted, with which every beacon can be identified. ID what for? To be precise it is not only one ID, but three: UUID, Major and Minor. The so called Universally Unique Identifier (UUID) identifies a main group of beacon, the Major ID a sub group of beacons and the Minor a single beacon. Imagine every Media Market (or any competitor) is going to be equipped with beacons. Due to the UUID the smart phone knows: the beacon belongs to Media Market group (and not to DB or REWE group). The Major ID tells: I am at Media Market Bamberg (and not at Media Market Bayreuth). The Major finally tells: I am exactly the one beacon at the TV department. This trisection is important: Imagine you want to display the same advertisement in all Media Markets or just at Media Market Bamberg or just in the TV department. According to that the respective IDs are selected. How does the smartphone know how far away it is from a beacon? The signal a beacon transmits, looses strength with increasing distance. At a distance of one meter it is very strong, 100 meters away it is rather weak. Imagine a stone thrown into water. The farer away the waves are from the impact site, the lower they are. A smartphone can measure and interpret the strength of the waves. When the smartphone receives the signals of at least three beacons due to the strength of signal every point in a room can be precisely determined. For a better understanding it is important to know that the ibeacon is only used to determine the position where an action is supposed to be triggered, the ibeacon itself does not send any content!

8 INDOOR NAVIGATION VIA RFID AND NFC That often used in logistics technology can not enable a true navigation. A RFID system consists of one transponder and one reader. The transponder also called radio tag or RFID tag is able to store data. These can be used for orientation e. g. by passing target coordinates deposited on a staff badge to an output device of a building control system, for example a touch screen terminal. On that depending on the location a static route in terms of a way description can be displayed. Concerning the typical use cases for RFID like access control or stocks and logistics the range is typically between 0.5 and 3 meters. Similar to RFID NFC (Near Field Communication) is also a radio technology for wireless data transmission on short distances. The range is with maximum ten centimeters even lower. Flexible navigation and way finding is also not possible with NFC. ULTRA WIDEBAND (UWB) UWB is a wide band signal that can be used for positioning. In fact an accuracy up to 10 to 30 centimeters can be reached, but the near field radio technology needs special expensive hardware (Locator Tag and Anchor) to enable positioning resp. the display of a position. For the positioning the locator tag determines the distance to several Anchors and passes the data back to the Anchors which in turn pass the data via a third element a node to a server-based backend. Only now the position can be displayed. The display of a positioning on a device e. g. on a smartphone is not possible. For a flexible indoor navigation, able to be used by a wider general public, this technology is due to the additional hardware need alone not suitable.

9 VISUAL LIGHT COMMUNICATION (VLC) The Indoor Positioning System (IPS) uses LED-lights for local navigation and information transfer. Their light signals transmit a for every light individual coding, that is perceptible for the smart phone camera but not for the human eye. Similar to navigation with GPS the app is able to determine the current position of the smartphone with an accuracy of up to 30 centimeters and compare it with the target coordinates. For that neither a mobile radio connection nor a WLAN connection is needed. To use VLC for navigation there has to be a constant visual contact between smart phone camera and light source. Plus: with pure VLC the data stream is a one way road. That means, no data about customer movement can be gathered. Philips therefore went to combine VLC with Bluetooth technology. INDOOR POSITIONING VIA WLAN The greatest advantage of this technology is that in most cases a WLAN infrastructure consisting of WLAN access points and for example network compatible devices like cash systems is already in use and no new infrastructure has to be implemented. This advantage however is outweighed by a lot of disadvantages. For example smart devices with ios version 4.3 or higher do not support the location via WLAN. By now operating system version is in use. So a high number of users is already excluded by the technical requirement. The calibration of the positioning has to be done by reference measurement beforehand, which makes the implementation extremely complex. For an indoor navigation the smart device orients itself by the strength of the WiFi signals (Received Signal Strength Indication RSSI). The accuracy is between five and 15 meters. But even human bodies turn out as significant disturbing factors. That is due to the bodiesʼ high rate of water (over 70 per cent) and the resonance frequency of water, which is ca 2.4 Ghz, the same frequency which a lot of wireless local networks are run on.

10 Location accuracy Range Indoor / outdoor Battery drain Mobility Data collection GPS Global Positioning System is a global navigation satellite system for geolocation. globally under the open sky GSM Global System for Mobile Communications (previous Groupe Special Mobile): Standard for fullydigital mobile phone networks, that is mainly used for telephony. few km WiFi (Synonym for WLAN, Wireless local area network) local radio network often misleading used as synonym for WLAN hotspots. up to 150 m Beacon (Synonym for Apple Inc.ʼs ibeacon) Standard for navigation in confined spaces based on Bluetooth Low Energy. up to 75 m VLC Visual Light Communication uses light signals for data transmission unperceptable for the human eye. up to 75 m RFID (Radio-Frequency IDentification) Technology for automatic and touch free identifying and locating. up to 8 10 m NFC (Near Field Communication) transmission standard for contactless data exchange by radio technology with very short distances. up to 0.3 m

11 SAN FRANCISCO JENA BAMBERG FAVENDO WORLDWIDE An der Spinnerei Bamberg Germany Phone: Goethestraße 3 B Jena Germany Phone: Market St STE 488 San Francisco CA Phone: