The QR Code – Brands New Tool To Generate Transparency, Trust and Sales
June 1974 represented a historic day in the grocery sector. In a Marsh’s supermarket in the US, on the package of a Wrigley’s gum, the UPC code made its first commercial appearance. The UPC code was a response to a business need first identified by the US grocery sector in the early 1970’s. Canada represented the second country in the world to scan barcodes at a Steinburg grocery store in Dorval, Quebec. As with the fax machine, businesses have found a new way to communicate with consumers “The QR Code”. Thirty years after it’s invention, its now ubiquitous.
What is the QR Code?
“A QR code (short for Quick Response code) is an array of black and white squares or pixels set in a grid that stores data for a machine to read. A smartphone or camera can quickly process the information contained in a QR code’s specific arrangement of pixels, making it a convenient way to store and access data”.[1] It functions as a landing page with a customizable CTA (call to action) button that directs users to a particular area of the brand’s website, or whichever content brands would like users to view.
How is the QR Code Scanned?
Smartphone usage is the primary catalyst of the QR code upsurge. In 2021, there were 70.6B mobile QR code scanners, which is forecast to top 100.2B in 2025 indicating a demand for mobile-first technology like QR codes.[2]
Who is the QR Code Consumer?
The QR code consumer based upon a survey taken in 2021 by Scantrust skewed towards females, and those between the ages of 18 and 46. Broken down by gender, 57% of QR code users were female which is a potentially exciting insight considering that women drive 70%-80% of consumer purchase decisions.[3] Appendix 1 provides a micro-level overview of the QR code consumer.
What are the Benefits for Brands to Incorporate the QR Code?
Today’s consumers aren’t just casual shoppers, they are eco-conscious and are demanding greater transparency from business. Here are 4 reasons why business should incorporate the QR code:
- Saves Consumers Time: Time is money for consumers. In place of the consumer trying to locate a product’s particular website, the QR code directs them to the brands website in less than a couple of seconds.
- Improves the Brands Reputation: In today’s mobile-first world, it is easy for consumers to get misinformed. By incorporating the QR code, CPG companies can provide accurate information about their products and have control over the narrative. Thirty-seven percent (37%) of consumers will switch brands if another brand shares more detailed information.[4]
- Drives Consumer Engagement and Education: QR codes serve as a direct link between brands and consumers, providing transparent information on product origins, sustainability features, and recycling guidelines.
- Help Create a Sustainable Future: QR codes play a crucial role in driving meaningful change towards a greener future, enhancing sustainability efforts. For instance, QR codes on product packaging can guide consumers to recycling guidelines, or initiatives promoting reusable packaging.
Why are Consumers Embracing the QR Code?
Consumers are taking notice of the value and benefits of the QR code. Today, 82% of consumers say the QR code will become a permanent part of using their phone, and 75% are willing to use the QR code in the future.[5] Here are 3 reasons why consumers are embracing this technology:
- Scanning the code is easy to do: Everyone who has a mobile phone can scan QR codes.
- Scanning the code is safe: The physical code cannot be altered.
- Scanning QR Codes is Engaging: Consumers learn more about companies and products. With feedback QR Codes, consumers can give suggestions, share ideas about improving the services or products of a company, and give star ratings that businesses can see immediately.
Is the QR Code the Future?
“The future of QR codes in digital marketing is one of expanded utility and integration. They are set to become a more integral part of the marketing ecosystem, offering innovative ways to connect with and engage consumers.”[6] Still on the fence about QR codes, I leave with you the following:
- There has been an 88% code creation growth year over year in the CPG industry.
- 75% of consumers have scanned a QR code on FMCG products.[7]
- QR codes increase brand transparency, 94% of all consumers are more likely to be loyal to a brand when they commit to full transparency.[8]
References:
[1] What is a QR Code, www.avast.com, 2022
[2] 61+QR Code Usage Statistics 2024, www.qrcode-tiger.com
[3] Do Consumers Use QR Codes in America, www.scantrust.com
[4] Do Consumers Use QR Codes in America, www.scantrust.com
[5] 61+QR Code Usage Statistics 2024, www.qrcode-tiger.com
[6] The Future of QR Codes, www.medium.com, Thomas Alling, 2024
[7] 61+QR Code Usage Statistics 2024, www.qrcode-tiger.com
[8] How to Build Loyalty and Trust with Brand Transparency, www.emarsys.com, June 2024
Appendix 1
QR Code User by Age
QR Code User by Household Income
QR Code User Frequency
Why Consumers Scan QR Codes
