The QR Code Phygital Marketing Strategy

How QR codes can Transform First-Party Data Acquisition

Today, many brands are placing focus on first-party data acquisition.

This report outlines how QR code marketing can be utilised as part of a first-party data acquisition strategy; especially for omni-channel brands.

This marketing strategy isn’t necessary limited to omnichannel brands. QR codes also offer a great first-party marketing opportunity for ecommerce only brand, especially with the packaging process.

Here we explore why consensual, first-party data acquisition is becoming increasingly important, and how brands can leverage QR codes in doing so.

The Challenges

Third Party Cookies Sunsetting

With the sunsetting of third-party browser cookies; advertising that relies on tracking users is set to become less targeted and less effective.

With that, advertisers are adding first-party channels and consensual retargeting as part of the mix.

How Brands are Prioritising First-Party Data Acquisition

Brands deploy a number of strategies for first-party data acquisition. These typically take the shape of a value exchange between the customer and the brand.

These include opt-in forms, onboarding quizzes and joint marketing with complementary brands.

Whilst the above value exchanges work well online, opt-in forms are difficult to deliver and automate in the physical environment.

This is where QR codes come in, where brands who transact online as well as in-store are now embarking on an opportunity to leverage foot-traffic as a first-party data acquisition channel.

Bridging online and offline is often referred to as a ‘phygital’ strategy; and QR codes can play a major role in this.

In-store vs Online Volumes

Where online shopping has grown substantially in market-share over the past few years, instore shopping typically accounts for the majority of volumes. For example, Retail Express reports that shopping online accounts for 12.6% of the market in Australia (1).

Whilst QR code technology has been around for a long time, it’s only in the past few years that consumer awareness and adoption has increased.

It is only recently that smart phones enabled the scanning of QR codes as part of the camera functionality. Prior to that, a user would have needed to download a brand’s purpose built app, or a seperate QR code scanning app, to scan QR codes as part of the experience.

With the advent of QR code camera scanning, much of the adoption friction has been removed, and omnichannel brands are embarking on an opportunity to source the high-volumes of foot-traffic as an acquisition channel for first-party, consensual, customer data.

Promotional QR Code Strategies

The following are some QR code strategies for acquiring first-party data that we have identified. They can be can be utilised as part of a first-party data acquisition mix:

  • Offline-to-Online Opt-ins: These are in-store CTA's to opt-in for a special offer that can be redeemed either online or offline. QR codes can be displayed throughout the store or on the windows.

  • Shop-Front CTA’s: These are CTA’s for a shopper to claim a promotion by opting-in through a QR code. They can redeem them in store.

    E.g. "Claim your 20% off store wide today, start by scanning this code."

  • Cross Promotion: Complementary brands can form partnerships by displaying cross-promotional incentives at their stores. Offers are claimed as a value exchange, by scanning a QR code and opting-in.

    For example, a hair dresser can display a QR code for an offer on a hair product from a partner brand. The link that comes with the QR code can include an affiliate code, offering both an acquisition channel for the hair product brand; as well as a revenue stream for the hairdresser.

  • Post-Purchase Competitions and Giveaways: These are post-purchase CTA's to enter a contest or competition. E.g. "Win a year's wardrobe, get started by scanning this code".

    The QR codes for these campaigns can be displayed at the point-of-sale, so that a giveaway or a competition is offered as part of a post-purchase process.

  • Post-Purchase Referral Program: These are CTA’s for the shopper to enrol into a referral program.

    E.g. "Send friends free gifts and receive rewards for referring friends and family. Start by scanning here."

    As with a giveaway, the QR codes can be displayed at the point-of-sale, or as part of the post purchase receipt.

Context Rich QR Codes

Just like UTM's can be added to hyperlinks to provide some acquisition context, UTM's can also be added to QR code links. For example, a UTM can be added to provide context on the location of a QR code in the store, helping optimise the locations of the QR codes.

QR Code Marketing Implementation Examples

The following are a number of notable implementation examples of QR code marketing campaigns.

Ogilvy - Burger King

Ogilvy designed an advertising campaign for Burger King, by gamifying a TV ad. This is where viewers could scan a moving QR code to win a free whopper(2).

Cotton On

Cotton On, in Australia, displays 'Opt-in' CTA’s in-store for member benefits, like rewards and perks. They also display QR code CTA’s receiving information on ‘finding your fit’.

Scanning can be done with a phone’s camera, and the Cotton On app also allows customers to scan instore QR codes.

Decathlon

Decathlon in Singapore displayed QR codes on product labels for self checkout, as part of their 'Phygital' strategy.

Upon implementation, in-app purchases increased to 10%(3).

Conclusion

You may have noticed an increase in QR code implementations in stores, events and other physical environments.

With increasing awareness of QR codes as well as the ease of scanning, QR codes act like context-rich hyperlinks in the physical environment. This marketing capability offers opportunities for bridging the gap between offline and online experiences; as well a mechanism for acquiring consensual first-party data.

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