It only took a global pandemic, but those funny-looking 2D barcodes are finally having their moment. Thanks to this touch-free, germ-avoiding, digital-first period of time in which we have found ourselves, Custom QR codes are becoming a more popular way to seamlessly engage consumers.
Quick Background
QR (short for Quick Response) codes were first conceived in Japan by a subsidiary of Toyota back in 1994. This was a way to expedite the manufacturing process by tracking vehicles and parts. Over the years, QR codes have been used as a way to store information such as websites.
One of the biggest advancements in the adoption of custom QR codes cam in 2017, when Apple updated the iPhone’s functionality to read one from the camera. QR codes struggled to catch on because smartphone users had to download a separate third-party app to scan them. Those few extra clicks and precious seconds of time were not worth the effort. Now, scanning a QR code and getting to the landing page can be done in as little as two clicks.
Marketers have been experimenting with QR codes for almost as long as they have existed. Yet, there is still a lot of uncertainty around how best to use them. However, in the most recent three months, we have seen some of the most innovative uses for custom QR codes.
Growing Use of QR Codes in 2020
Use of QR codes in direct mail has always been relatively low. In 2018 and 2019, approximately 4% to 5% of all mail observed included a QR code. So far, in 2020 YTD, Comperemedia has observed them in more than 7% of all mail pieces captured in our database.
That’s a 60% increase in the share of mail with a QR code from the average over the last two years. That’s still fewer than 1 in 10 mail pieces with a QR code; however, the growth in usage is indicative of a larger trend toward an increased acceptance of QR codes as a means of engaging.
Direct Mail Examples
From a customer service perspective, custom QR codes provide one of the quickest and most frictionless ways to access account information. Comenity Bank, for example, the issuer of the Wayfair online store credit card, utilizes a QR code on paper statements sent to customers as a quick payment option. This skips the need to log into one’s account or remember any passwords. When the QR code is scanned, the payment screen is automatically loaded.
Synchrony Bank is another institution using them in an innovative approach to acquisition marketing. In a recent direct mail campaign, the Synchrony Bank CD was promoted as a way to reach one’s savings goals. This is by locking in a guaranteed rate of return. Instead of providing the interest rate on the campaign itself, Synchrony added a QR code and the prompt to “scan for current rate.”
Touch-Free Customer Experience
Even outside of direct marketing, QR codes are changing the customer experience. As small businesses look for ways to re-open in a post-COVID environment, innovation and adaptation are going to be essential.
Some restaurants are experimenting with QR codes on printed table-top signs, reducing the need for menus that could spread germs. This could even go a step further if the custom QR code is on an online ordering platform for patrons to place their orders right from their phones. In grocery stores or brick-and-mortar retail stores, QR codes on product labels can open the doors to endless possibilities for sharing product information to consumers and creating that extra nudge in the decision-making path to purchase.
QR code acceptance is about to get another big boost from a major player in the payments space – PayPal. In May, PayPal announced the launch of a new QR code capability for its mobile app. This new feature allows merchants and business owners the ability to generate, print, or display. A unique QR code as a means of accepting payment for a purchase at the store or any in-person transaction. Not only will this provide customers with another touch-free option to pay for purchases. Small business owners who were previously handling cash transactions can pivot to more contactless options.
Using QR Codes Successfully
The key to using them successfully comes down to the value it promises to bring. The ability to conveniently deliver on that promise. Marketers need to be as specific as possible about what it will provide. Like why it’s worth scanning it, and how fast it will be to do so. Aim for the fewest number of clicks necessary to get information. And, if possible, try to get a little creative with your QR codes. They don’t have to be in black-and-white, and some code-generating services will allow you to customize the image. Including a special character or logo embedded inside of it.
When used successfully, QR codes can enhance a brand’s message, create a unique customer experience, or encourage a new transaction. How will you incorporate QR codes into your next campaign?