QR Code Applications- From Brand Protection to Customer Engagement
Source: Jotform

QR Code Applications- From Brand Protection to Customer Engagement

The success of a new product or company depends on consumer experience. Consumers are more interested in how the company sells, not just what the company sells. Customer experience is an integrated approach that includes interaction with the product and the company and is created during decision-making and consumption of services can be explained as sum of emotions, perceptions, and attitudes. The consumer experience approach was first put forward by Holbrook and Hirschman (1982) as an experimental approach to explain consumer behaviour, based on providing consumers with an unforgettable, unique, and enjoyable experience. The focus of the unique customer experience is to develop lifecycle contact points for customers at every life stage and allow the customers to evaluate these experiences positively. QR code technology is creating new pathways and models of engagement directly with consumer where companies have enhanced visibility, efficient tracking, and scaling big & fast. We see a strong upward trend in the creation of QR Codes since 2020, with a significant acceleration in 2021 and 2022, as the global pandemic inspired businesses of all sizes to reach and connect with consumers in new ways. In the first half of 2023, we’re seeing a 41% growth in global QR Code creations compared to the same period last year.

Fig: Year-Over-Year Growth of Global Creations,

Over the past several years, we’ve seen businesses and brands increasingly adopt QR Code to provide consumers with multiple options for connection that bridge the physical and digital worlds. Because of their convenience, efficiency, and measurability, businesses are leveraging QR Codes to drive stronger engagement, share information, and create a more seamless experience for consumers.

There’s no denying that the COVID-19 global pandemic boosted QR Code usage as industries were faced with the need to accommodate a touchless world, but as restrictions eased over the past few years, we’re not seeing creations slow down. In fact, businesses and brands are using QR Codes to do more than simply share a link—they’re generating curiosity, engaging with consumers, and doubling down on what works by measuring QR Code performance. Let us deep dive to understand the underlying technologies, frameworks, operating models, and IT requirements to enable QR code-based initiatives.

Understanding QR Code Technology

QR codes, short for Quick Response codes, are two-dimensional barcodes that store data in a matrix arrangement of black squares on a white background. Developed by Denso Wave in 1994, QR codes have become ubiquitous in various industries due to their versatility and ease of use. At their core, QR codes encode data using a combination of black and white squares arranged in a grid pattern. Each square represents a binary digit (0 or 1), with the arrangement of these squares encoding specific information. QR codes can store various types of data, including numeric, alphanumeric, binary, and Kanji characters, making them highly adaptable to different use cases.

QR codes use different encoding modes to represent different types of data:

  • Numeric mode: Encodes numeric characters (0-9) efficiently
  • Alphanumeric mode: Encodes alphanumeric characters (0-9, A-Z, space, $, %, *, +, -, ., /, :)
  • Byte mode: Encodes binary data using the ISO-8859-1 character set
  • Kanji mode: Encodes Kanji characters used in the Japanese writing system

Backend Development Framework and Server Infrastructure:

When building a backend system for generating and managing QR codes, developers have a variety of frameworks to choose from, such as Node.js, Django, Ruby on Rails, Laravel, and ASP.NET Core. These frameworks offer robust tools and libraries for developing scalable, secure, and efficient backend applications. Depending on the scale and expected traffic of the QR code product, server infrastructure is crucial. This infrastructure can range from cloud-based solutions like Amazon Web Services (AWS), Microsoft Azure, and Google Cloud Platform (GCP) to dedicated servers or virtual private servers (VPS). Factors such as scalability, reliability, security, and cost must be carefully considered when selecting server infrastructure.

API Integration and QR Code Generator Software:

For QR code products that interact with external systems or services, such as payment gateways or third-party APIs, seamless API integration is essential. Integrating the backend system with these services via APIs facilitates communication and data exchange, enabling additional functionality and features. QR code generator software, which can be web-based or standalone, offers customization options, batch generation, and error correction settings. Popular QR code generator tools include QR Code Monkey, QR Stuff, and QR Code Generator.

Fig: Implementation of Dynamic QR Code technology to monitor Coal Production Flow


Security, Scalability, and Integration Considerations:

Implementing proper security measures to protect sensitive data encoded in QR codes and transmitted between the backend system and external services is paramount. This includes data encryption, HTTPS encryption, access control, authentication mechanisms, and secure coding practices. Regular security audits and vulnerability assessments can help identify and mitigate potential security risks. Designing the backend system to handle large volumes of QR code generation and scanning requests efficiently is crucial, especially during peak usage periods. Scalability considerations include load balancing, caching, database sharding, horizontal scaling, and performance optimization techniques. Ensuring seamless integration with third-party services and APIs is also essential, with considerations such as API authentication, data mapping, error handling, rate limiting, and versioning. API documentation, testing, and monitoring can facilitate smooth integration and interoperability with external platforms.

Common methodologies utilized for the implementation of QR Code are:

  1. Placement: Ensure that QR codes are prominently displayed and easily accessible to customers on packaging, marketing materials, signage, and digital platforms.
  2. Relevance: Provide valuable and relevant content or incentives to incentivize customers to scan QR codes, such as exclusive offers, product information, or interactive experiences.
  3. Mobile Optimization: Ensure that the landing pages or digital experiences linked to QR codes are mobile-friendly and optimized for a seamless user experience on smartphones and tablets.
  4. Call to Action: Clearly communicate the purpose and value proposition of the QR code to encourage customer engagement and drive desired actions, such as making a purchase, signing up for a newsletter, or participating in a promotion.
  5. Tracking and Analysis: Implement analytics tools to track QR code scans, measure customer engagement metrics, and gain insights into user behaviour and preferences to inform future marketing strategies and optimizations.

Usage of QR Code technology in different industries:

The Professional Services industry is surging with 169% growth compared to the previous year. From streamlining communications and making office check-ins easy to collect valuable customer feedback, QR Codes are making consumer engagement fast and effective.

Over the past year, the Consumer Services industry saw a 120% increase in year-over-year growth, as people have grown accustomed to gaining entry to events, providing payment, and accessing loyalty programs through QR Codes.

We’re also seeing notable growth in QR Code creations in both the Retail and Consumer Packaged Goods (CPG) industries at 88% year-over-year. This boost in usage highlights a deepened investment in enhancing customer experiences through the use of QR codes on product packaging, enabling a seamless flow of information between brands and customers.


Fig: Year-Over-Year Growth of Global QR Code Creations by Industry, Source: IEEF, 2024

Lastly, the Finance industry experienced an 87% growth in QR Code creation when compared to the first half of 2022. Whether customers are visiting banks in person or downloading apps on their mobile devices, QR Codes are transforming the traditional banking experience into a far more interactive one.

Application of QR Code technology in decarbonization & mapping Carbon footprints using QR code tagging

Green Supply Chain Management: QR codes are being utilized in supply chain management to promote transparency and sustainability. Companies are incorporating QR codes into product packaging to provide consumers with access to detailed information about the product's environmental footprint, including carbon emissions, energy usage, and raw material sourcing. By scanning the QR code with their smartphones, consumers can make informed purchasing decisions based on the product's sustainability credentials. For example, clothing brands like Patagonia and H&M have implemented QR codes on their clothing labels, allowing customers to trace the origins of their garments and learn about the environmental impact of the manufacturing process.

Renewable Energy Monitoring: QR codes are being integrated into renewable energy systems to enable real-time monitoring and management. Solar panel manufacturers are embedding QR codes into their products, allowing installers and maintenance technicians to access detailed specifications, installation guides, and maintenance protocols. Additionally, QR codes can be used to link solar panels to digital platforms that track energy production, consumption, and carbon savings. For instance, homeowners with rooftop solar installations can scan QR codes to view their energy generation data and carbon offset metrics, empowering them to make informed decisions about their energy usage and reduce their carbon footprint.

Carbon Offsetting Programs: QR codes are being utilized in carbon offsetting programs to engage consumers and businesses in carbon reduction initiatives. Companies offering carbon offset services are incorporating QR codes into their marketing materials and communications to educate stakeholders about the importance of carbon neutrality and facilitate contributions to offset projects. For example, airlines are using QR codes on boarding passes to encourage passengers to offset the carbon emissions from their flights by supporting reforestation, renewable energy, and energy efficiency projects. By scanning the QR code, passengers can calculate their carbon footprint and make voluntary contributions to offset their emissions, contributing to global decarbonization efforts.

Smart Transportation Solutions: QR codes are being integrated into transportation systems to promote sustainable mobility and reduce carbon emissions. Cities are deploying QR codes at public transit stations, bike-sharing docks, and electric vehicle (EV) charging stations to provide commuters with access to multimodal transportation options. For example, commuters can scan QR codes at bus stops to view real-time arrival schedules, plan their routes, and access information about alternative modes of transportation such as bikes, scooters, and EVs. By promoting the use of low-carbon transportation alternatives, QR code-enabled smart transportation solutions help reduce traffic congestion, air pollution, and greenhouse gas emissions in urban areas.

QR Code for customer engagements in the retail sector

QR code technology has revolutionized customer interaction and engagement programs across industries, enabling brands to create seamless, interactive experiences that bridge the gap between offline and online channels. We will explore the various ways in which brands are utilizing QR codes to drive customer engagement, share success stories from prominent companies in the Fast-Moving Consumer Goods (FMCG) and Fast-Moving Durables Consumer (FMDC) sectors, and examine the key benefits and best practices associated with QR code implementation.

  1. Convenience: QR codes provide a quick and easy way for customers to access digital content or services without the need for typing URLs or downloading specific apps.
  2. Versatility: QR codes can be applied to a wide range of marketing materials, packaging, and physical assets, making them suitable for various customer engagement initiatives.
  3. Trackability: Brands can track QR code scans and analyze customer engagement metrics to measure the effectiveness of their campaigns and optimize future strategies.

Some of the success stories & use cases by consumer-facing companies:

Coca-Cola: Coca-Cola implemented QR codes on their product packaging to engage customers with interactive content, promotions, and loyalty programs. By scanning the QR code, customers could participate in contests, redeem rewards, and access exclusive digital experiences. Coca-Cola's QR code campaigns successfully drove brand engagement and fostered customer loyalty.

PepsiCo: PepsiCo utilized QR codes in their marketing campaigns to provide customers with nutritional information, recipe ideas, and personalized offers. QR codes were printed on PepsiCo's beverage cans and snack packaging, allowing customers to access relevant content and promotions directly from their mobile devices. PepsiCo's QR code initiatives enhanced customer engagement and strengthened brand connections.

Samsung: Samsung incorporated QR codes into their product packaging and retail displays to offer customers product demos, user manuals, and technical support. QR codes enabled Samsung customers to access helpful resources and troubleshooting guides quickly, enhancing their overall product experience and satisfaction.

Apple: Apple leveraged QR codes in their retail stores to streamline the customer shopping journey and facilitate contactless transactions. QR codes were displayed on product tags, allowing customers to scan and purchase items using the Apple Store app without the need for assistance from store staff. Apple's QR code integration improved the shopping experience and increased customer satisfaction.

In conclusion, the utilization of QR code technology presents a myriad of opportunities across various domains, including decarbonization, Fast-Moving Consumer Goods (FMCG), Fast-Moving Durables Consumer (FMDC), customer engagements, and system design implementation. In decarbonization, QR codes catalyze promoting sustainability and environmental awareness by facilitating transparent supply chain management, renewable energy monitoring, carbon offsetting programs, and smart transportation solutions. By integrating QR codes into their operations, businesses can empower consumers to make informed choices, reduce carbon emissions, and contribute to global climate action efforts.

In the FMCG and FMDC sectors, QR codes have emerged as powerful tools for enhancing customer interactions, driving engagement, and fostering brand loyalty. Success stories from industry leaders such as Coca-Cola, PepsiCo, Samsung, and Apple demonstrate the effectiveness of QR code campaigns in delivering valuable content, personalized offers, and seamless shopping experiences to consumers. Through strategic QR code implementation, brands can leverage the versatility and convenience of this technology to connect with customers across multiple touchpoints, strengthen brand relationships, and drive business growth.

Effective QR code system design and implementation require careful consideration of various factors, including backend development frameworks, server infrastructure, API integration, QR code generator software, security measures, scalability, and integration with third-party services. By selecting the right tools and strategies, businesses can build robust backend systems capable of generating, managing, and tracking QR codes efficiently, ensuring a seamless user experience and maximizing the impact of their QR code initiatives.

In essence, QR code technology represents a powerful enabler for driving innovation, sustainability, and customer engagement in today's digital age. By embracing QR codes as part of their business strategies, organizations can unlock new opportunities for growth, differentiation, and social impact while addressing pressing global challenges such as climate change and environmental sustainability.

References:

  1. Siemens Technology Report 2024
  2. Bitly
  3. Guavasoft
  4. IMF
  5. Wagmane Technology Center
  6. IDERA
  7. IBM Security Guardium
  8. Bluefin Technologies









Tomasz Kozlowski

Empowering your FMCG business to increase ROI through AI-driven, integrated suite of digital solutions.

7mo

This is a great breakdown of the potential of QR codes! Especially love the point about using QR codes to provide access to personalised offers and targeted content. Do you think there's potential to leverage data analytics alongside QR codes to further personalise the customer experience?

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