The Power of QR Codes (a different perspective)
Recently, Avery Segal, a researcher at Andreesen Horowitz, published an article called: The Power of QR Codes in which he outlines all of the ways in which Chinese consumers' lives have been transformed by QR codes. Almost all of the examples are transactional or convenience related and all speak to the benefits for the consumer, but arguably he has missed the big story here.
While everything he says is accurate - QR codes are ubiquitous and have transformed life in China, however the Power of QR codes is in the data that can be encoded and collected by the entities sitting behind them.
Three years ago, I began to push our China organization to support the thesis that “Every consumer interaction with our brand, whether the product itself, in the on-trade or on the shelf, is an opportunity to create a digital connection (and to collect the associated data).”
In 2017, we shipped 40m unique QR codes under the cap (UTC) with Harbin and in 2018 we shipped over 500m cans/bottles of Budweiser with UTC. Each scan launched a digital user journey to engage consumers, enhance their experience with the product and brand, rewarded them for their choice and invited them to opt-in to our loyalty program.
Imagine the insights for a CPG from knowing exactly when (time stamp) and where (location), individual consumers were consuming your products as well as knowing who are your most loyal consumers.
Our Promo Girls working in night life were using QR codes for trade promotions, however with a few tweaks, we added SPR name, POC name, SKUs, Quantity, in addition to time stamps and location information, all of which became part of an individual’s data record, which of course, would grow over time and sit in our CRM.
QR codes are super-powerful, but even more so when seen through the data lens.
I love seeing an organization like Andreesen Horowitz getting the QR Code religion, but to be honest, this shows how Silicon Valley is lagging China, both in terms of thinking and execution!
It’s fun being first…