July 31, 2024 Guest opinion piece
Barcodes made their debut on products in US supermarkets 50 years ago this year, but they’ve had their heyday, it’s time to handover to the new-ish kid on the block, QR codes.
Replacing barcodes with a single QR code gives brands the opportunity to declutter packaging and create a streamlined consumer experience. Industry is increasingly recognising the benefits of this new technology and QR codes powered by GS1 are set to explode onto supermarket shelves this year.
Transitioning to a unified code system simplifies packaging and fosters effective communication between brands, consumers, and retailers. It also opens doors to rewards, discounts, and educational content creating positive customer relationships.
Connected packaging
QR codes open a raft of new possibilities for brands through connected packaging experiences, which provide an opportunity for brands to engage directly with consumers at their convenience.
A recent survey we carried out shows that a third (33 per cent) of respondents will spend between $15,000 to $30,000 on connected packaging this year, with the majority (88 per cent) planning a connected packaging campaign in 2024.
With 80 per cent of respondents citing that connected packaging will be increasingly important to the packaging industry in the next 12 months and beyond.
Marketing campaigns can also be carried out via connected packaging to inform new product development or help improve an advertising campaign.
It can be used as a loyalty card and to collect and redeem sampling vouchers.
It’s an incredibly versatile media channel – as well as being agile, responsive and delivering customer data in real-time.
Connecting directly with customers
Connected experiences accessed by mobile devices can deliver a raft of brilliant direct to customer experiences. From a simple questionnaire or a game, to a fully connected experience, brands can now transform packaging into a media channel or online publisher.
Used to communicate brand messages and educate customers, connected packaging can connect with and build deeper customer relationships, harnessing the rich data behind those messages. We typically see engagement times of around three minutes, not only improving brand loyalty but opening a two-way dialogue with consumers. This enables the brand to establish a stronger brand presence, gather valuable insights, as well as create enhanced user experiences that increase product engagement.
By scanning a product trust is developed. Secure QR codes have been created to track products, their use and offer solutions for anti-counterfeiting. The most common use is what's called a serialised QR code. This is when each and every product or item has a unique QR code, also known as a digital identity, to curb counterfeit products. Patented technology has also been developed in the US that helps identify whether packaging is original or counterfeit.
Measuring & tracking
Tetra Pak claims that connected experiences deliver a 20 per cent increase in sales. Connected packaging campaigns regularly generate a 14 per cent scan rate/click-through rate (CTR), much higher than a digital advertising campaign usually around 0.01 per cent CTR.
It’s not only impactful, but also cost effective. The average cost per digital advertising click is £1.50, whereas a ‘click’ or scan on packaging is technically ‘free’, giving brands a compelling reason to use connected packaging.
We measure the success of a campaign using several key metrics. These can include real-time interaction, such as buying habits, product preferences, average engagement time, age, location, scan rate, number of visitors, return visitors and social media shares. GDPR-compliant personal data is included to enable the brand to optimise its marketing and better understand consumers.
The key metrics for success are engagement time, rise in sales and scan rate.
Engagement time indicates how long users interact with the content, providing insights into the effectiveness of the campaign.
Adopting innovation
At our Global Connected Packaging Summit last year, Phil Archer, director of web solutions at GS1, shared his views on the expanded capabilities offered by the GS1 Digital Link standard and the potential of these next-generation barcodes to transform packaging practices for a more informed and efficient future.
The global transition from traditional barcodes to two-dimensional barcodes, is a shift driven by the increasing demand for additional data by both retailers and consumers. Industries from retail to healthcare and construction are being impacted by this change.
These two-dimensional barcodes allow brands to offer consumers more information about their products, such as sustainability data, origin details, instructions, recipes and more. It can also help guide consumers to specific information according to their needs, such as different language versions or accessibility tools, all from scanning a single QR code.
Jenny Stanley, MD at Appetite Creative
While the potential of connected packaging is immense, brands must overcome certain challenges. Understanding the purpose and value of connected packaging, integrating it seamlessly within existing systems and managing supply chain complexities are critical steps. Starting with pilot projects and gradually scaling implementation allows brands to learn, optimise and overcome barriers on their journey toward widespread adoption.
Brands that effectively integrate connected packaging solutions into their strategies will be well-positioned to meet evolving consumer demands and drive future growth. As brands navigate this dynamic landscape, embracing innovation and leveraging data analytics will be key to unlocking the full potential of connected packaging and creating a more sustainable future.
Jenny Stanley is MD at Appetite Creative, for more information visit: appetitecreative.com.
