Photo by Mitya Ivanov on Unsplash
May 28, 2024
Is It Time for QR Codes To Become Mainstream in the US?
QR codes have transformed the global transaction landscape. This trend is exemplified across Asia, with platforms like WeChat Pay in China, PayPay in Japan, and Navar Pay in South Korea, showcasing the universal nature and ease of use of QR code-based payment systems. In India, through the United Payments Interface, QR code-based instant payment schemes facilitate seamless transactions around the clock every day of the year. Their widespread adoption has led to over 75% of retail transactions in India being conducted via QR code payments.
In the ever-evolving landscape of consumer packaged goods (CPG), brands are constantly seeking innovative ways to connect with consumers and enhance their experiences. QR codes are proving to be a powerful tool for CPG brands looking to engage with their audience on a deeper level.
A myriad of CPG brands have embraced QR codes to improve their marketing strategies. Nestlé, for instance, leverages QR codes on its food packaging to provide consumers with comprehensive nutritional information and insights into the product’s origins. Additionally, Nestlé also provides suggestions for portions and recipe ideas. Similarly, Coca-Cola has utilized dynamic QR codes on its products to seamlessly connect consumers with exclusive content and online communities through its aptly named “SmileWorld.”
In 2019, PepsiCo’s annual summer campaign featured QR codes on the bottles, unlocking augmented reality filters and stickers. Thanks to a collaboration with Instagram for #Summergram, scanning the codes granted access to summer-themed content.
Miller Lite introduced the “Miller Lite Offline Can,” available through a QR Code campaign at bars, in January 2020. Customers scanned QR codes on branded table tents and then set their phones down for 30 minutes. Upon completion, they received a complimentary “Dark Can,” promoting real-world connections.
Similarly, Jameson Irish Whiskey launched a QR Code campaign for its limited-edition bottle in 2020. Consumers scanned NFC tags or QR codes on the bottle’s neck to design custom labels on Jameson’s website. Winning designs earned personalized bottles, engaging consumers in an interactive experience.
L’Oréal, a global leader in the beauty industry, stands as a prime example of how QR codes can drive tangible results. By incorporating QR codes on its products, L’Oréal witnessed a remarkable 7% conversion rate, coupled with an impressive 80% increase in app downloads. This success story underscores the potential of QR codes to not only deliver essential product information but also to drive meaningful interactions with consumers.
Beyond the realm of product packaging, CPG brands are exploring innovative ways to integrate QR codes across various touchpoints. From print ads to social media campaigns, QR codes are bridging the gap between the physical and digital worlds, offering consumers a seamless and immersive brand experience. Dove, for instance, strategically placed QR codes near bus stops and outdoor venues, inviting consumers to engage with its products and access exclusive content.
QR codes have also become a pivotal tool for transparency in the consumer market, and regulatory bodies like the European Union and the FDA have even pushed for more transparency standards. Transparency is especially important for consumers who want to understand how sustainable a particular company or product is.
According to a survey by Specright, 80% of respondents said “they are more likely to trust companies that back up their sustainability claims with publicly shared data.” Additionally, about 71% of consumers are “more likely to believe a company’s sustainability claims if they are printed directly on the product or packaging.”
QR codes can help brands provide the level of transparency consumers expect regarding sustainability and other insights, like the manufacturing process of a product and the origins of ingredients. Companies can put these codes on product packaging or in-store displays, allowing consumers to access anything from videos and infographics to interactive guides.
For example, Daily Harvest, a farm-frozen food brand, started using QR codes on freezer doors in Kroger stores last October to more easily share information about sustainability and the brand with shoppers. At the time, Daily Harvest stated that it would contribute an extra $5 for each person who scanned and interacted with the QR codes to advance its efforts in supporting regenerative farms.
With endless possibilities for creativity, engagement, and transparency, QR codes are poised to play an increasingly integral role in shaping the consumer journey.
Discussion Questions
How might QR code utilization in retail evolve further, especially concerning consumer engagement and brand transparency? Can we expect innovations beyond what we’ve seen?
With QR codes providing both essential information and potentially overwhelming data, what emerging best practices can help strike the right balance for consumers?
Poll
Loading …BrainTrust
Jeff Sward
Founding Partner, Merchandising Metrics
Gary Sankary
Retail Industry Strategy, Esri
Dick Seesel
Principal, Retailing In Focus LLC
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QR code interaction is up strongly, partly driven by the pandemic when they were used more for things like menus and providing information. So, it makes sense for more CPG firms to jump on the bandwagon. On packaging, they can be used to provide more details and to get a customer to engage more deeply with a brand. Used in store, they’re a great way to furnish a customer with extra details that displays cannot accommodate and to get consumers to save information on their devices for future purchases. By customizing the QR codes in different stores, CPG firms can also track engagement. The best thing is that although the QR link remains the same, it is easy to change the content that the link points to: so CPG firms can quickly update things like promotions and offers.
The question I ask is QR codes have been around a while . and it looked like , some years ago, it was going to pick up steam and go mainstream. I think the customization piece is still prohibitive and the buy in just hasn’t been there. It’s almost easier to read a sign with romance language spelling out the salient points of an item or detailing a promotion for an item.
I’d say they are pretty mainstream now. Sure some people don’t like them. but they are commonplace across retail and foodservice and are regularly used.
It’s pretty easy to customize QR codes now – I do it with an inexpensive QR software package and it can easily scale. And, I think the buy-in has increased quite a bit – the expansive use during the pandemic really pushed adoption to a new level.
Yes, that’s my feeling on it too. They were everywhere during the pandemic, especially in restaurants. Lots more people got familiar with them.
I did not like the use in restaurants and neither did any of my dinner companions. I think the use and its benefit still needs to be explained clearly for the laymen to accept.
I do not like it either, but it exposed QR codes to a lot more people and aided other functions such as using QR codes to get more product information and signing up to mailing lists, etc.
QR codes are poised to revolutionize the way consumers access product information at the store and online, and are a low-cost no-brainer. That said, nothing is more depressing than a restaurant that has removed menus, and instead puts a QR code on the table.
Well, they did it during the pandemic. That made sense. Then they saw a cost savings, and that’s when things become unattractive.
Yes, QR codes have seen increased adoption over the last few years and are an easy way to provide dynamic links to content. I’m reading a book right how that has QR codes to illustrate content examples. Definitely time for them to be more universally used.
I would certainly scan a QR code for rich media instructions on how to use or maintain a product (Hello Nespresso, wouldn’t it be great if there was a QR code on the machine or on the descaler box that just took you straight to the video on how to do it since it’s complicated, it takes forever and I do it infrequently enough to remember it on my own?). And eBay just announced a new service that will let a fashion brand use a QR code for the consumer to validate provenance (this would be for high-counterfeit items). It also then shortcuts populating a listing on eBay when the owner decides it’s time for resale.
I guess that’s a long way of saying, I think the time is already here. As long as consumers know what the QR code is going to do for you, I think consumers are more than ready to scan it.
A solution in search of a problem? Yes, a QR code can make easily – or at least “with less difficulty” – available a wealth of information; but it can also be used to shuffle off into who-looks-there?Land what is currently readily available ‘cuz it’s printed right there on the package. (Translation: I view claims of transparency with some skepticism.) Of course that’s a rather cynical outlook: currently QSR seems to be developing at its own pace, and most are happy with that…only those who sell the technology, I suspect, want to hurry the process along.
The pandemic taught us that the simple QR code has many uses, and it doesn’t cost a fortune. As far as I’m concerned, it IS mainstream. What else would it take to call them mainstream? They’re in my tv, on ,y table in restaurants, in ads. Not sexy…just cheap and they work
The pandemic gave QR codes new life and now I see them everywhere: restaurants, commercials, TV ads, QVC & HSN, email marketing, social media, and in just about every ad. I saw plenty while visiting stores today, both inside and on store windows.
If QR codes aren’t already mainstream then I am in the Twilight Zone.
You and I think entirely too much alike!
I think you are right!
QR codes help brands go beyond limited label space to educate and captivate consumers. Details like allergens, brand certifications and even country of origin inform shoppers’ decisions. We will see more brands use QR codes to stand out with entertaining, interactive content, especially in the highly-competitive CPG space.
The great digital acceleration brought on by the pandemic was the fuel that QR capabilities needed to become a mainstream part of the retail, commerce, and hospitality sectors. Touchless commerce emerged before 2020. However, by necessity, QR codes were quickly leveraged as an engagement and payment solution. While QR code usage has been relatively mainstream in both the EU and across Asia, there were many stops and starts until the past few years in the US.
Leveraging QR codes has also enabled retailers and brands to engage with customers and bridge physical and digital shopping experiences. QR codes were invented in 1994 as a way to streamline automotive production. Once deemed a dying trend, QR codes weren’t leveraged in North America until 2017, when Apple’s iOS 11 update enabled its native camera app to scan QR codes instead of requiring a third-party app.
The adoption of QR codes by retailers is driven by several key benefits. Firstly, it allows them to establish direct connections with customers. Secondly, it enables the collection of valuable first-party data. Lastly, it facilitates the addition of attribution tracking to traditional advertising channels such as mailers and billboards, enhancing the effectiveness of marketing campaigns.
When QR codes evolved most consumers hated them and ignored them. However, a lot of good data indicates that some twenty years after they first appeared, they’re coming around as a late bloomer. In fact, 92.8 million people in the U.S. scanned a QR code on their mobile devices in 2022, a 27.3 percent increase from five years earlier.
With that in mind, QR codes are already becoming mainstream in the U.S. and the trend will continue until the next new technology evolves as a replacement. – Db
The trend will continue until the next new technology evolves as a replacement.
QR codes offer a tremendous range of shopper facing and back-end capabilities. Brands like 19 Crimes Wine introduced the talking wine labels years ago. The ability to deliver 3 -D animated imagery from a package offers both in-store activation and in-home experience. From an operations side, the tracking of product gives retailers and manufacturers incredible transparency in real-time. While the technology has been with us for over 20 years, the reduction of cost for Tags along with the advancement of “virtual shielding” has greatly expanded it’s application.
A long, long time ago, if a consumer product company wanted to provide consumers a way to get more information, they would share a website and even a phone number – seems almost archaic. Now all is needed is a QR code. With the now ubiquitous use of smart phones, the ability to scan a QR code opens up a whole universe of possibilities for brand-consumer interaction. From sharing basic product information, to raising the game in engagement and loyalty programs, it is time for all CPG companies to have a clear and defined strategy for use of QR codes, both on packaging as well as in store and in advertisements. As with typical website interaction, a consumer can have options for what they are looking for, and the level of interaction they are comfortable with.
QR Codes are mainstream. Virtually every digital and physical surface has a QR cod on it today.
The key, for brands, retailers, and CPGs, is what you use the QR for. The best are used for a combination of promotions, CRM, sales conversions, education, and an entry point for immersive content.
In 2019, I wrote that one of China’s biggest exports in the 2020s would be the wide adoption of QR codes. Five years later, ubiquity is real. I have been doing QR strategy since 2010 (starting in Asia) and am happy to discuss it at length with anyone interested in learning more.
QR codes are now almost an everyday experience for consumers. Our smartphones have made scanning codes easily without opening a special QR code reader app. With the exception of a few retailers like Starbucks, most retailers have not evolved into using QR codes for payments. As usual, Asian countries have become the early adopters of QR payments in retail. The next evolution beyond using QR codes on products, which is anonymous customer engagement, is to leverage QR codes on branded apps to identify customers in the store for personalization and payments.
A simple QR code can drive so many aspects of the business from balance sheet to income statement to consumer experience to eco-system partner strategies. These unique codes offer an unlimited array of consumer engagement opportunities. I’m especially drawn to the use case of sharing more information about how a brand/product will be used. For example, a consumer shops for a pair of golf shoes and snaps the QR code on the shelf tag. Immediately, the consumer is confronted with a series of simple questions about the shoe. What size do you wear, do you prefer lace up, do you want spiked or non-spiked, is a waterproof shoe important? Once this is completed, the site provides a preferred shoe with other options to consider, and then asks the shopper to buy in-store or buy + ship to home. All of this is geared to save the sale and offer the consumer a seamlessly welcoming experience. Importantly, on the back side of this is data collection that can be shared with golf shoe brands to refine inventory stocking levels and shoe preferences.
I use WeChat, the Chinese communication app. There are 1.4 billion users worldwide, and everyone has a personal QR code. I just returned from Italy and was surprised to see posters advertising AliPay, one of the chinese payment apps, advertised with a QR code. The Chinese retailer Hema, whose English name is Freshippo, is a high-tech supermarket designed around your smartphone. Every connection between the shopper and the retailers is made with a QR code. Where and when was that fish caught? Use your QR code.
Notably, three of the examples in today’s discussion are European companies. Nestlé, Jameson and L’Oreal. IMO, the first use of QR codes as an advertising vehicle by companies in the U.S. inhibits the wide adoption of this fantastic tool for communication. Make the QR code valuable to the user, not the company.
QR codes are a win on so many levels. Abundant information available with a couple of clicks. And it’s my choice as the customer. They are not intrusive. They’re just there and I can access the information, or not. It’s a great customer service without barraging my eyeballs with display screens or ads or coupons or……….
Amen. They are not intrusive.
QR codes are already mainstream in terms of consumer acceptance, but marketers’ use of them is still too erratic. Some restaurants let you pay by scanning a QR code but most do not (and I love this because it avoids the ritual delays associated with processing a credit card.) QR codes are becoming more frequent in TV commercials, but some advertisers post the codes so quickly that the viewer barely has time to grab a phone.
QR codes will become as commonplace as the smartphone itself, but only if their usage becomes more consumer-friendly.
I’d say that they’re already mainstream. This week, I’ve used them to look at a menu, access a brochure, see nutritional information in the aisle at the coop, and look at an event map. But, like everything, there’s a limit to my patience and interest. If I have to page through a 125-page document, though (Looking at you, Sony), I’m not going to engage.
Bottom line- content tied to QR codes needs to be concise to the point, and easy to navigate and read on a phone.
A QR code is just a portal into more information. Fancier and easier to use than just a web site URL, it gives (mostly) marketing teams a sronger creative canvas to convey information. All good–and further helped by the fact that most of us have smart phones to leverage this delivery.
So in these cases it really depends on the message being conveyed, a lot of which is not that interesting in my view. The apps that show promise are the use cases like payment. Smart phone delivery of a menu? Not so much. This is a brand by brand, use case by use case, dependent trend- a tool, if you will, nothing more.
Who doesn’t know how to use QR codes? The examples in this article are all excellent; however, consider what’s really happening. You can transport the customer to a completely different place. I’m in a grocery store and scan the QR code that takes me to a place that includes nutritional information, recipes, and more. The sky is the limit.
Having the QR code for the obvious is nice, but find ways to enhance a customer’s experience that makes them want to come back to the QR code. Perhaps a restaurant includes the recipe for a popular dish. The customer goes home and revisits the restaurant from their kitchen.
10-15 years ago QR codes seemed more like a novelty begging for solution. But marketers have nicely sped up integration with good content and customer uses, especially in the post-pandemic era.
A key area in retail and grocery needing further development is on the customer journey itself. Getting answers, helping make decisions and saving time has high upside, considering there’s often not enough service staff on hand. Customers should be able to further use QR codes to compare relative product quality levels, understand when product arrived in store (freshness and dating), food uses and links, product comparison for dietary issues or lifestyle, and how to order shelf out-of-stocks for home delivery.
The real question is why aren’t people “asking” for QR codes instead of packaging printed information or advanced bar codes? This is clearly a misguided “need” in the land of people who still desire flip-phones and use land lines. A large number of consumers don’t see a need or any value in QR codes when a simple paragraph of information on the back or bottom of a product is sufficient. We cannot “force” consumers to need an advanced technology like QR codes or non-flip phones, when they are perfectly satisfied (and happy) with the technology level they are currently using.
Although QR codes have been around for some time, it’s not surprising to find the US somewhat behind the global market in usage and adoption, consistent with other advancing commerce and retail technologies. Still, QR codes have demonstrated a strong ability to drive brand engagement and a rewarding consumer experience–impressively, without reliance on price. This alone, should be compelling enough for both brands and retailers to innovate beyond the the nascent steps we’ve seen in the US market.
Certainly, as QR Codes expand, brands and retailers should strive to avoid scanning fatigue, thereby ensuring a diminishing value of this technology. Instead, I encourage brands and retailers to focus on constructive use of QR codes that reduce friction along the shopper journey and make shoppers lives easier. To that end, we have a wealth of opportunity to use QR codes to make a difference in everyday life.
The QR code is dead (for restaurants), long live the QR code (for product information in retail).