How CPG Brands Are Leveraging QR Codes

May 25
05:00

2024

Apoorva Hegde

Apoorva Hegde

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QR codes have become ubiquitous, appearing on everything from beverage bottles to snack packages and skincare products. These codes are powerful tools for brands and marketers, enabling them to promote their products and maximize their reach. This article delves into how consumer packaged goods (CPG) brands are utilizing QR codes to enhance their marketing strategies and customer engagement.

Summary

Quick-response (QR) codes have evolved from simple cryptic designs to essential tools for enhancing customer experiences. CPG brands are leveraging QR codes to streamline marketing efforts,How CPG Brands Are Leveraging QR Codes Articles reward customers, and boost their online presence. This article explores the various ways CPG brands are using QR codes and the benefits they offer.

The Role of QR Codes in CPG Brands

Enhancing Marketing Strategies

QR codes allow CPG brands to refine their marketing strategies. These codes are no longer limited to black-and-white designs; brands can now customize them to capture customer attention creatively. Here are some ways brands are using QR codes:

1. Cost-Effective Advertising

Traditional advertising methods like TV and print commercials can be expensive. While digital marketing is more affordable, it still requires a significant budget. QR codes, however, are economical and easy to implement. According to a study by Statista, 11 million households in the U.S. scanned a QR code in 2020, highlighting their growing popularity.

2. Multimedia Integration

In physical stores, promoting products through videos and other multimedia elements can be challenging. QR codes solve this problem by linking to videos or other multimedia content. When customers scan the code, they are directed to the video, making this method more effective and economical than expensive paid ads.

3. Offering Rewards and Incentives

CPG brands frequently use QR codes to offer customers gifts and other benefits. For instance, a product package might feature a QR code with a message like "Scan to receive a discount." This approach encourages customer engagement and loyalty.

4. Tracking Business Growth

QR codes enable brands to track real-time sales and customer data. This information helps CPG companies develop data-driven marketing strategies. According to Forbes, businesses can gain valuable insights into customer behavior through QR code tracking.

5. Providing Detailed Product Information

Today's consumers are more conscious about the products they buy. QR codes can link to detailed product information, such as ingredients and nutritional facts, allowing customers to make informed decisions.

Benefits of QR Codes for CPG Brands

Avoiding Information Overload

Take shampoo, for example. Customers want detailed information about the products they buy, such as whether the ingredients are organic or what preservatives are used. Instead of cluttering the packaging with text, brands can use QR codes to link to comprehensive product information.

Connecting with Customers

Connecting with customers is crucial for CPG brands. QR codes can link to social media accounts, marketing videos, product details, and more, enhancing the customer experience. According to Sprout Social, 54% of customers use social media to research products, making it essential for brands to have a strong online presence.

Rewarding Customers

Customers appreciate rewards, and QR codes make it easy for brands to offer gifts, discounts, and other incentives. A study by Bond found that 75% of customers are likely to stick with brands that offer rewards.

Facilitating Mobile Commerce

The rise of mobile devices is transforming the CPG industry. QR codes enable brands to enhance their eCommerce capabilities and improve the customer experience. According to eMarketer, global eCommerce sales reached $4.28 trillion in 2020, highlighting the importance of mobile commerce.

QR Code Use Cases: CPG Brands in Action

Contactless Ecosystem

Brands like Sephora are using QR codes and NFC technology to offer contactless payments, reducing the risk of virus transmission. The post-lockdown era has also seen a surge in curbside pick-ups, with brands like Ulta and Kohl's adopting buy online and pick-up in-store (BOPIS) models.

Direct-to-Customer Selling

As COVID-19 disrupts supply chains, brands are shifting away from third-party channels like Amazon. PepsiCo and Nike, for example, are focusing on direct-to-customer (DTC) sales through their websites and mobile apps. QR codes in stores direct customers to these platforms, supporting DTC selling.

Enhancing Hygiene Standards

Brands like Soulful, a cereal company, are using QR codes to promote direct-to-customer sales and communicate safety measures on social media. This approach reduces human contact and ensures customer safety.

Tips to Make Your QR Code Stand Out

Add Color

Avoid monochromatic codes. Personalize them with colors to make them more noticeable. Different shades can denote different purposes, such as black for donations and blue for website links.

Clear Call to Action

Ensure your QR code has a clear call to action, so customers know what to expect when they scan it.

Optimal Size

Make sure your QR code is large enough to be easily scanned. A size of 2x2 cm is ideal, but you can adjust it based on your packaging.

Proper Placement

Place the QR code on a flat surface and in a prominent location, preferably on the front side of the packaging.

Conclusion

As the impact of COVID-19 continues, CPG brands are adopting contactless technologies to provide a safe and pleasant customer experience. QR codes are playing a crucial role in this transition, and their importance will only grow in the future.

By leveraging QR codes, CPG brands can enhance their marketing strategies, connect with customers, and offer a seamless shopping experience. As the shift to contactless technologies continues, QR codes will remain a vital tool for CPG brands.

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