Are QR Codes Making A Comeback?

You might recall several years ago when these funny looking Quick Response or "QR" codes started showing up all over the place? On packaging, at the store, on products, in magazines and advertisements. It wasn't a bad idea to use them, just bad timing.

A few roadblocks stood in the way back then that have since changed. Let me explain.

1. User Experience- You had to overcome big hurdles to access the content behind the codes. This caused many people to give up and never try a QR code again. It went something like this: First, you had to downloaded a QR reader app (due to slow mobile speeds it seemed to take forever) and then find the app you just downloaded, open it and then figure out how to scan the code...which when successful, dropped you into a URL (in most cases not optimized for mobile viewing) that turned out to be the product website. Bad UX + Clunky + Frustrating = Won't do that again!
2. Speed- Mobile devise speed was much slower than today and so the content sitting behind the QR code displayed very slowly. Most people gave up after this step. They did not have time or patience to wait for it...wait for it...wait for it...nope, lost me, moving on.
3. Content- Serving up a product website or a landing page to collect your e-mail address so they can "provide you more information" was a poor attempt at engaging with you. Brands needed to deliver engaging content first and they didn't. You scratch my back, I'll scratch yours.

TECHNOLOGY!

Fast forward to today.... 4G and now 5G networks are here! Edge computing allows content to be delivered more efficiently. Blockchain can provide encrypted protection and supply chain legitimacy. Mobile phone speed and screen resolution are the best they've ever been and getting better with each new devise.

Furthermore, UX designers and developers have been putting in the overtime developing unique content including Augmented Reality (AR) and Virtual Reality (VR). Other engaging content like video, product provenance and storytelling, promotions/couponing and how to recycle information are also being incorporated. This, my friends, is why the QR code is making a comeback! Advancements in technology have led to better, more advanced platforms, code scaleability, exceptional content and UX designed to deliver unique experiences consumers WANT to engage with!

DO I HAVE TO USE A QR CODE?

In addition to QR, there are other "triggers" you can use to bring people into these experiences like Near Field Communication (NFC), Radio Frequency ID (RFID), Bluetooth, and Facebook Codes or Snap Codes (see below example from Wendy's) among many others but these can be costly to a brand especially if the trigger needs to go directly on each and every package. The QR code seems to be the most widely used trigger for a "connected packaging" strategy where 1st party data is one of your primary objectives.

Here are a few other reasons why QR codes are coming back in the US.

1. By using a QR code on pack, you transform your packaging into a 24/7 "owned" media channel. The "connected packaging" or "smart packaging" projects I've worked on are delivering much higher engagement rates than traditional TV viewing or online browsing. Also, the redirect can be updated whenever you want? Simply change the URL in the connected platform and you're live! You can change by season, year, each day, each promotion, etc. Once the code is printed on the packaging, it doesn't have to change.
2. 1st party data (this is the gold dust) can be measured across the product journey from creation, to the supply chain, to the retailer, to the consumer and all the way to recycling. That's a lot of data points marketers have never had before. All owned by you!
3. Consumers can now natively scan a QR code using their phones camera. Here is a video to show you how to do this. NO additional app, NO fumbling to find it, NO problem! Apple also made QR code scanning native to their camera in the iOS 10 update and Android users on most devises can now turn on QR scanning in their settings after a recent update they released. That's got to tell you something about where they think this is going!

In the US alone, QR scanning rates have increased 32% in the last 12 months (www.statista.com) and its only going up! Asia and Europe have been at it for some time already and per usual, the US is playing catch up BUT, that's all starting to change.

HOW DO I START?

There are several companies out there helping to develop this space. EVRYTHNG - They are the market leading internet of things (IoT) SaaS platform for consumer product companies and CPGs, managing billions of unique digital identities in the cloud. They apply data science intelligence on an item by item basis, driving new digital applications, gaining visibility into supply chains and helping brands better engage with their customers and consumers. The Augmented Reality (AR) and creative studio ZAPPAR is making it easier and more affordable for brands to develop engaging content that sit behind these QR codes. They've also developed a WebAR platform which delivers an AR experience on your smartphone without additional applications or redirects. This wasn't possible 6 months ago! Its all changing so fast!

Ramping up a "connected experience" on packaging or products within a large company will take some time. If you haven't started to think about how this will transform your business, you're already 1-2 years behind. And with technology changing faster and faster, starting today is not only recommended, it's critical to future business success.

I'm excited to see QR codes make a comeback now that they deliver engaging brand experiences I'd actually enjoy! Every time I see one I just have to scan it to see whats going on behind that code!

What do you think about QR and the opportunities that are ahead for brands through "connected packaging" or "smart packaging?" Please share your comments below and use the hashtag #connectedpackaging in your comment. And if I can help you connect the dots in this space, please let me know.

Cheers!

Eric Schultz is a brand design and packaging technology consultant with 20 years experience working with start-ups, major CPG brands, retailers, manufacturers and converters. Having worked on both the agency and client side of the table, Eric has a very unique perspective on the "connected" space. Please follow Eric on LinkedIn and Twitter as well! @eric_schultz19.