Introduction

Hong Kong’s mobile subscriber penetration rate has exceeded 230%, and mobile devices have become indispensable for Hong Kong people. In particular, it has become increasing prevalent for mobile device users to access information and use services through mobile apps. So we will enhance our Mobile App – Sogo Rewards with the beacons technology to enhance customer engagement and improve their in-store shopping experience.

Beacon

Beacons are low-cost, low-powered transmitters with Bluetooth Low Energy or BLE (Bluetooth 4.0 or Bluetooth Smart) that connect to customers through an application on their smartphones. Through such beacon-enabled application, we can push a wide variety of content such as promotions, navigation support, reward loyalty, store assistance and personalization. It is easy to use as consumers respond to notifications that are triggered on their smartphone when they are within the range of a beacon. Moreover, it is a highly accessible indoor location technology as beacons typically have a wireless range from a few centimeter to 70 meters.

Implementation Plan

The pilot test will be arranged in the first two months for Cosmetic, and Skin Care tenants since over 60% of our customer are female. Sogo will be responsible for the cost of the welcome offer. Conversely, our Cosmetic & Skin Care tenants need to provide us with the product offer. The structure of an organization’s offer will make or break the launch of the product (MacHabée 1). Cosmetics and Skin Care tenants need to make an irresistible offer. Sogo will centralize all the promotion messages and deliver them to the target customers. One of the primary goals of Sogo is to develop brand loyalty. According to Nesamoney (178), activities such as direct contact with customers and product promotion helps to increase brand loyalty.

Welcome Offer

Customer will be rewarded 1,000 Sogo Reward Point (equivalent to HK$5) when they check in our store specific locations. Beacon will be set at G/F, 6/F and 10/F and 1,000 points will be rewards to them daily from each location, which means that a customer can get a maximum of 3,000 points daily. Beacons can help to encourage non-mobile application customers to download our application, generates traffic for other non- beauty tenants and get insights into customer walking pattern. With Beacon, Sogo can offer customers with a truly personalized in-store experience.

Product Offer

Promotion theme will be changed on a weekly basis so that different kind of cosmetic and skin care products can be promoted. This strategy can increase the campaign attractiveness, increase the weekly traffic and stimulate sales. The increase in sales will help us market our products efficiently and optimize profits. For example, we will promote moisture product in week 1 and whitening product in week 2.

Beacon will be set at B1/F, G/F & 3/F within our Cosmetic & Skin Care tenants. Push message about product offers or highlights will be sent when the customer walks near related promotion counter. For instance, a customer can get notifications on cosmetic recommendations based on the cosmetic and skin care section he/she spends the most time. It can help to enhance shoppers’ experience and stimulate sales (Nesamoney 176). Customers can use beacons to get product information as they are browsing the shelves (MacHabée 1). Lastly, we will collect customers’ preferred product types and brand preference and arrange tailor-made promotion message to the specific customer in our promotion later.

Promotion Channels

We will use all the existing store free communication channels such as Instore Tent card, weekly highlights on SOGO NEWS, SOGO websites, SOGO Facebook account to announce this new promotion to our member and potential customers.

Also, we will partner with some popular online platforms like Cosmopolitan, Elle Magazine, U Magazine and Beauty Exchange to enhance customer engagement. A banner advertisement will be placed in Google display network. With remarketing, we can reach clients who have shown interest in our products by showing them relevant adverts. Moreover, the Google display network will reinforce the promotion message to the audience and increase the advertisement conversion rates. Therefore, the platform is a powerful means that we can use to match the right audience with the right message.

Conclusion

Beacon technology plays a significant role for retailers. Creative and early adopter of this technology such as Sogo will benefit from its transformation. We will enhance our Sogo Rewards with beacons technology to improve customer engagement and in-store shopping experience. The target audiences are shoppers and existing tenants. Beacons will help increase application download rate and generate traffic for tenants. We will use the various communication channels and online platform to dissemination information about beacons technology.

Works Cited

MacHabée, Guylain R. “How technology can enhance the customer in-store experience.” Retail Customer Experience, 24 February 2017, https://www.retailcustomerexperience.com/blogs/how-technology-can-enhance-the-customer-in-store-experience/

Nesamoney, Diaz. Personalized Digital Advertising: How Data and Technology Are Transforming How We Market. Old Tappan, New Jersey: Pearson Education, 2015.

 
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