QR Codes: A Cinderella Story
Pixabay | Pexels
In the competitive waters of the retail marketplace, not every new product or technology can survive. Depending on the industry, such failed inventions can either fade out of the marketplace quietly, be taken apart and repurposed into a new commodity or, in rare occasions, enjoy a surprise revival.
The QR code is one such lucky innovation that made it back from the brink of mediocrity. Originally, QR codes were developed in Japan to help track vehicular parts during manufacturing and distribution—a far cry from the prolific variety of uses they have today. Although the creators of the QR code never imagined the current level of usage, they certainly did set out to create a better version of the UPC barcode.
QR code origins
UPC barcodes revolutionized the grocery store checkout line; store clerks no longer had to memorize and manually punch in a numerical code for each item but could now simply scan the barcode. Thanks to this fast optical scanning, by the late 1970s, there was a 40% speed increase at checkout lines. And although nearly every product in a store is still outfitted with one of those iconic black and white barcodes, there exist some limitations to this widely accepted technology. No matter how the barcode was reiterated and improved upon, the vertically aligned design could only be read one way and could only store less than 100 characters. Don’t let the jail bar look fool you, the information is encoded horizontally, through the width and placement of the black and white lines.
This system worked well in the 70’s and 80’s, at that pace of manufacturing and business. But the 90’s saw a boom in manufacturing capabilities, necessitating a faster processing method, as even the need to orient barcodes vertically so they could be read by scanners would add more time delay to manufacturing orders.
The QR code invented by the Denso Wave company allowed their manufacturing process the ability to read the codes horizontally and vertically, with data encoded both ways, increasing the storage capability significantly. Modern QR codes can store up to 7,000 characters, which we can now use for items such as menus, contact forms, and more.
In fact, there are two types of QR codes: static and dynamic. Static codes are permanent, and the information encoded within cannot be changed. However, they are free to generate and therefore can serve for many personal uses. For example, the Google Chrome browser makes it easy to generate a static QR code, which could be helpful for neighborhood flyers, brochures, and local advertisements.
Dynamic QR codes, however, offer a lot more. Not only is the encoded information changeable, it is also trackable, making it the perfect opportunity for marketing strategies to gather more information about their client base.
Don’t call it a comeback
Despite the usefulness QR codes showed in the manufacturing industry, the technology was hardly recognized as the robust marketing tool it is today. QR codes weren’t completely absent from the retail market; for instance, they could be found on the occasional C-channel tag in a grocery store, linking to an expanded product selection. Another notable win for the QR code was in 2016, when Cracker Jack boxes replaced all toys and prizes with QR codes that gave access to online games.
This moderate usage of the QR code after the 90’s meant most consumers had likely seen them around, even if they hadn’t used one before. Still, their presence in the market allowed the humble QR code to be elevated to a ubiquitous presence during the coronavirus pandemic. It delivered on a real need in the times of a new, touch-averse reality. Consumers quickly learned the touchless interactivity was simple and user-friendly, with phone cameras being an ideal two-dimensional scanner of the code. In addition, the native integration made it easy for any consumer with a camera phone, completely eliminating the need to have a mobile application dedicated to reading the codes.
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Increased usage in some of the most common daily transactions turned QR codes from a near-zero into a hero. From informative uses to actual point-of-sales, to customer loyalty programs and exclusive coupons, QR codes dominated commerce during the pandemic. In 2021, Bitly reported a 750% increase in QR code downloads, in large part due to the restaurant industry’s adoption.
The touchless codes benefited restaurant patrons and owners alike, helping to keep businesses open and safe. Patrons only had to handle their own phone to see the latest menus, and could then stand apart from others while deciding their meal, in accordance to the nationwide CDC guidelines during the pandemic. The editable capability of dynamic QR codes allowed restaurant owners to keep their menus up to date, whether for seasonality of ingredients or for supply chain issues. Ultimately, QR codes eliminated the standard paper menu, making one less highly trafficked, tangible item to touch and sanitize. Another example is ExxonMobile’s contactless payments in over 11,500 gas stations across the country, which would even automatically open the Exxon Mobile Rewards+ app for customers who were part of their rewards program.
As with any rapid adoption of technology, there comes with it a risk of safety. To the untrained human eye, QR codes are like 21st century Rorschach tests. Since it is necessary to use technology to make sense of the codes, many unsuspecting consumers scan the codes right away, not realizing the immediacy of the scan can lead to vicious scams. The Better Business Bureau recommends double checking your QR code comes from a legitimate source as the codes may lead to phishing websites or may automatically launch payment apps that can make it difficult to get your money back. Some victims report receiving scam codes through emails, social media direct messages, and even physical mail.
QR codes also carry some of the stigma of data privacy concerns. As brands seek to understand their shopper better, they may use QR code tracking to bridge the knowledge of what happens offline and online. The codes themselves are not malicious and are in fact an opportune way for brands to collect voluntary first-party data. A shopper only scans the code if they are interested in the product or information within. However, as is the case with any website or mobile app, there’s almost always third-party tracking that’s primed to harvest shopper actions as profitable data. Just as most people don’t take the time to inspect a QR code before scanning, most people don’t read privacy policies or read about who the website is sharing data with.
Here to stay
With an approximate 6.5 billion smartphone users worldwide in 2022, digital and contactless processes such as the ones afforded by the QR code will only expand and increase. The empowered shopper will likely continue to have lingering hyperawareness of health and hygiene, plus the continued expectation of smooth transactions unencumbered by fumbling through wallets and pushing buttons on kiosks. As AR and VR experiences become more commonplace, QR codes can also play an integral part in making such experiences accessible to the consumers. Ease of experience will remain critical as UI/UX gains more importance to keep brand support high.
The malleability of the QR code makes it the next new playing field. Several industries have already proven how the little codes can streamline processes, capture attention, increase sales, gather feedback, and so much more—just look at the famous QR code in the Shanghai sky. These days, QR codes can even be dressed up in specific colors or shapes to align with company branding. Our work with QR codes has included postcards and product boxes that have led to how-to articles, product reviews, video content, and pre/post purchase tracking. As businesses look to beneficial technology to drive traffic, they’ll continue to look for opportunities that have built-in flexibility. Anyone who works in retail marketing knows commerce is often volatile and given to sudden changes, perfectly exemplified by the dramatic upheavals of 2020 and 2021. Brands looking to use dynamic or static QR codes will be happy to know it is a technology ripe for creativity and suited to almost any industry and any purpose.
