How Are CPG Brands Using QR Codes?

Quick-response (QR) codes have revolutionized being mere cryptic designs to tools for enhancing customer experience. Consumer packaged goods (CPG) brands are using QR codes to streamline their marketing efforts, reward their customers, and enhance their online presence. 

Let's take a look at how CPG brands are using QR codes.

 

How Are CPG Brands Using QR Codes?

QR codes enable CPG brands to streamline their marketing strategy. Besides, these codes are no longer monochromatic. So brands can be creative and grasp their customers' attention in many ways. Here's how most brands use QR codes.

1. To Get Free Coverage

When brands choose to advertise their products via TV or print commercials, they have to bear substantial costs. Though digital marketing is more affordable, it still leaves a dent in the wallet. QR codes, on the other hand, are significantly economical and easy to execute. 

2. To Link Video

In physical outlets, promoting your products through video and other multimedia elements isn't possible. But with QR codes, brands can leverage multimedia. They can attach a video to the QR code. So, when a customer scans the code, he or she'll be directed to the video. This way of marketing is more effective and economical than running expensive paid ads on search engines. 

3. To Offer Gifts and Attractions

CPG brands continuously use QR codes to encourage customers to receive gifts and other benefits. How many times have you seen a packaged product with a QR code at the back, along with the message "Scan QR code to receive..."

Businesses can offer benefits like cash back, discount coupons, etc. by linking the QR code to specific actions customers need to take to avail of the benefits. 

4. To Track Business Growth

Most stores, dealers, and markets sell products through QR code scanning. Therefore, brands can use QR code tracking to get real-time information about sales and customers. This data helps CPG companies devise data-driven and result-oriented marketing strategies. 

5. To Specify Product Details

Buyers have become more conscious than ever. They want to get down to the nitty-gritty of the product. Let's say you sell potato chips. You can add a QR code on the package which links to the list of ingredients your product contains. Customers can, therefore, check the ingredients and stay rest assured before buying from you. 

 

Some Benefits of QR Codes for CPG Brands

We just delved into how CPG businesses use QR codes. But how does it impact their bottom line? Let's find out. 

1. Avoid Information Overload

Take shampoo, for example. As discussed, customers want the finest details about the products they buy. When purchasing a shampoo, they would want to know whether the materials used are organic, what preservatives are added, and more.

The shampoo brand has two options. It could either display the entire product information on the package. The package would thus have a large chunk of text. Moreover, a pack of shampoo isn't enormous in size, so the text would be small. In all, the text will consume unnecessary space, and the customer won't be able to follow it. 

The second option is to discuss only the most important details on the package. Below the details, the brand can add a QR code that links to comprehensive product information. If shoppers want to know more, they can simply scan the code and read more. 

2. Connect with Customers

Connecting with customers is the key to success for CPG brands. With QR codes, brands have myriad opportunities to connect with their customers. For example, you can link QR codes to your social media accounts and take the conversation about your brand to social media. And since 54% of customers use social media to research products, CPG brands need to have a social media presence. 

In addition, you can link QR codes to marketing videos, product details, and a plethora of other destinations to enhance the customer experience. 

3. Reward Customers

Customers love being rewarded. In fact, 75% of customers are likely to stick with brands that offer rewards. QR codes make it easy for brands to provide gifts, offers, and discounts to their customers. You can generate a coupon QR code with a QR Code generator with logo. Customers can scan this logo and redeem the rewards without any hassles. 

4. Mobile Commerce

The increasing use of mobile devices is causing a paradigm shift in the CPG industry. Customers are shopping online. And even when they shop from the store, they take their post-purchase engagement on the internet. With QR codes, brands can deliver eCommerce and enhance their customers' experience. 

 

QR Code Use Cases: CPG Brands in Action

Though most CPG brands are using QR codes in some way or the other, some brands have taken their use to the next level. Let’s take a quick look at the best use-cases of QR codes by CPG companies. 

1. The Shift to Contactless Ecosystem

Brands like Sephora are providing contactless payments with QR codes and NFC technology. With the risk of virus transmission still persistent, contactless payments have emerged as a lifesaver. 

The same can also be said for BIPOIS (buy online and pick-up in-store). The post-lockdown era has witnessed a surge in curbside pick-ups. Several CPG businesses like Ulta and Kohl's have adopted BIOPIS. 

2. Direct-to-Customer Selling on the Rise

As COVID-19 continues to disrupt the supply chain, brands have begun pulling back from third-party channels like Amazon. PepsiCo, for example, is delivering products directly to its customers. The same goes for Nike, a footwear manufacturing company that has been stocking more than half of its product to sell through its own website and mobile app. 

With QR codes in the store, brands are directing customers to their websites and mobile apps to support DTC selling. 

3. A Rise in Hygiene Standards

COVID-19 is here to stay, so the brands need to adapt. And Soulful, a cereal brand, is doing just that. The brand has switched from in-store and eCommerce sales to direct-to-customer selling to reduce human contact. Soulful is using QR codes to direct customers to its website for DTC selling. It's also using QR codes to take customers to social media, where the brand is communicating its safety measures. 

 

Tips to Make Your QR Code Stand Out

Let's face it; most customers don't even notice a QR code. Therefore, brands need to take steps to ensure their QR codes are seen and acknowledged. 

Here are a few steps to get that done. 

1. Add Color

Stop using monochromatic codes. Personalize them by adding colors. You can also use different shades to denote different purposes of the QR code. For example, the black tone can send out a message to "donate," whereas the blue tone can be associated with our website. 

2. Call to Action

Don't just add a QR code. Your customers should know what the code is all about and where they will reach when they scan it. It's essential to have a clear call to action with your QR code. 

3. The Right Size

A QR code gives your brand a digital dimension. So make sure it's big enough so your customers can notice and scan it without any hassles. Ideally, 2x2 cm is the right size for a QR code. You can increase the size depending on the size of your package, but don't make it smaller. 

4. The Right Placement

Having a large QR code in the wrong place won't deliver. In addition to using the right size, you'll also need to place the code at a suitable location. Make sure you print it on a flat surface, so it's easy to scan. Also, it's advisable to have it on the front side of the packaging instead of the back. 

 

Wrapping Up

As the wrath of COVID-19 continues, CPG brands are embracing contactless technologies to deliver a safe and pleasant customer experience. And QR technology is playing a pivotal role in helping brands offer effective contactless service. As the shift to contactless continues, QR codes will be critical to CPG brands in the near future.