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Benefits of Proximity Marketing


  • 2014, the year beacons began to infiltrate our environment. 15% of retail companies try the new technology
  • 2015, beacon technology implementation exceeds the rate of Moore's Law. 46% of retail companies adopt proximity marketing with beacons. Profits generated by beacons exceed $4 billion.
  • 2016, beacon functionality explodes. Useful application discovery reaches a new high. 42% of companies use beacon technology, 39% more plan to adopt within 3 years. Estimated $44.4 billion in profits to be generated by beacons; a tenfold increase in one year.
  • 2017, beacon technology completely dominates proximity marketing. Resistance is futile. Holdouts are assimilated. Profits continue to reach record highs. Consumers experience an interactive environment nearly everywhere they go.


It may sound like science fiction but it's not, and neither are the numbers. They are real. Thankfully, beacons are beneficial. If beacons were a virus we would be looking at a worldwide epidemic.

Why is this technology growing faster than a prairie wildfire? It's very simple, beacons are versatile and they work.

Here are some of the benefits of beacons and proximity marketing:

  • Customers are already looking at their phones


75% of consumers use their mobile phones while they are shopping. Rather than hoping your ad is found on a busy social media feed, push notifications alert consumers when they are nearby and more likely to make a purchase. Here's some interesting numbers to consider.

(1) The average click through rate (CTR) for a Facebook ad is 0.119%, according to a recent Wordstream report

(2) The average click through rate (CTR) for an email is 1% to 3%, according to a recent report by Mailchimp

(3) The average click through rate (CTR) for beacon based push notifications can be as high as 80%, according to the data published by push notification technologist Kahuna

  •  Beacons drive immediate conversions

Proximity marketing encourages purchase behavior and brand relationships. People are more likely to make a purchase when they are nearby or in a store. In fact, 82% of customers make their purchase decisions while in the store. Notifications are considered "hyper-relevant" when they are related to products or services a potential customer is near. An example of this would be a notification offering a 20% discount on women's shoes transmitted to customers browsing the women's shoe aisle. Location based notifications increase sales rates where they are used, in some cases by as much as 24%.

  • Beacons are a direct connection to customers

Push Notification

Proximity marketing provides a means to place targeted messages in the hands of consumers, literally. It's the next best thing to actually walking up and putting a product in a customer's hands yourself. Customers might walk right by a sign and ignore it or scroll right past an ad in a social feed but a notification can't be overlooked quite so easily. Sending messages directly to nearby mobile users' phones increases engagement dramatically. Beacons drive promotions that are relevant to what clients are looking for, in real time, in places where it is easy for them to make a purchase.

  • The more beacons you have, the more touch points you can deliver

Multiple beacons in one location can send several relevant messages at once to customers. For example, one location might have a beacon transmitting a link to a discounted item for sale nearby while another links to the sign up page for the brand e-newsletter and another to the brand buyer rewards sign up page. The discounted item could help drive a sale while the rewards link ensures that the customer returns to shop again at a later date.

  • Proximity marketing analytics improves campaign strategies

With beacons managed by applications like BeaconSage, businesses can collect intelligent data on consumer behavior on site. This information can be used to improve campaigns and develop new strategies for future promotions.

  • Your competitors are already using beacons

42% of companies are already using beacons with another 39% expected to adopt the technology within the next 3 years. Nearby businesses may be stealing your customers by sending them notifications at storefronts which persuade them to walk in your competitor's door instead of yours. Don't watch customers walk into your neighbor's brick and mortar, send them your own message with beacons.


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