Retail Marketing is About to be Disrupted, and here's how
What is Connected Packaging?
Connected Packaging just opened up a whole new channel for marketers, and it's good for everyone!
In a world dominated by digital innovation, industries are constantly seeking new ways to enhance consumer engagement and streamline processes. One such revolutionary concept gaining massive adoption is connected packaging. This cutting-edge technology utilizes QR codes and other digital triggers to bridge the gap between the physical and digital realms, offering a myriad of benefits for both businesses and consumers. In this blog post, we'll explore the fascinating world of connected packaging, its key aspects, examples, best practices, and debunk common misconceptions surrounding this transformative trend.
Understanding Connected Packaging
Connected packaging refers to the integration of digital elements, often facilitated through QR codes, RFID (Radio Frequency Identification), or NFC (Near Field Communication), with traditional product packaging, the most common of which being QR codes. These technologies enable consumers to interact with products and brands in new and meaningful ways, fostering a seamless blend between the physical - digital experiences.
Key Aspects of Connected Packaging
Enhanced Customer Engagement
Connected packaging elevates consumer engagement by offering an interactive experience. Consumers can access a wealth of information, such as product details, usage instructions, benefits, and even personalized content, by simply scanning a QR code or tapping an NFC-enabled device on the package.
Supply Chain Transparency:
Businesses can leverage connected packaging to provide real-time visibility into the supply chain. By embedding QR codes at various stages of production, companies are able to trace products and dynamically share this data with consumers from manufacturing to delivery, ensuring the brands they buy match their personal ESG values.
Marketing and Loyalty Programs:
Connected packaging serves as a powerful marketing tool. Brands can create targeted campaigns, promotions, and loyalty programs that are easily accessible through QR codes, targeted at marketing dark zones and hard-to-reach places. This not only enhances brand visibility but also fosters customer loyalty by rewarding consumers for their engagement. Even better, they can be changed easily digitally without reprinting the package.
Connected Packaging used in the context of retail marketing is essential to new-wave data capture in dark zones. Prior to Connected Packaging, retail was an inaccessible and untapped stream of information, but now it’s an incredible source of raw data. Marketers will need to know how to adopt Connected Packaging’s data capture into their existing information flow to make informed decisions.
Connected packaging can support sustainability initiatives by providing consumers with information about the environmental impact of a product. For instance, QR codes can lead to a digital page detailing the product's lifecycle, recycling instructions, origin, verify claims, or provide information about the brand's sustainability efforts.
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Lo Siento Tequila
Lo Siento, a high-quality tequila company, has added Digiphy to its labels. With our age gate functionality, they’re able to comply with regulations and engage consumers directly to provide more information on their products and differentiators. Beyond providing a high-quality digital experience to engage customers directly, they’re focused on capturing customer data and insights. They’ve connected their CRM and integrated their marketing tags and pixels, so they can segment and retarget customers digitally with an omnichannel approach. Customers are very engaged with their Digiphy pages, spending on average >2 minutes on them.
True Story Foods
True Story Foods humane and delicious meats are available at grocery stores nationwide. They are using Digiphy on all of their 35+ products. Each product has a unique Digiphy QR-linked digital experience that takes customers to information that is relevant to that product. They’re using Digiphy to go beyond the label to share more information on their practices and values, uses and recipes, and provide customers with an offer so they can collect customer data. True Story is capturing a 10% email capture rate (compared to 1-2% for digital ads), 60% engagement rate, and 32% of their users are repeat visitors.
Clear and Concise Communication:
Ensure that the purpose of the connected packaging is communicated to consumers with clear CTAs (calls-to-action). Use packaging design and labeling to indicate how the technology can enhance their experience.
Provide meaningful and valuable content through connected packaging whether it’s recalls, detailed allergen info, product uses, benefits, tutorials, or exclusive offers.The content should enhance the overall consumer experience and provide more info than the package label.
Optimize the digital experience that consumers access by sharing contextual product info through connected packaging. The process should be intuitive, requiring minimal effort from the user to navigate and retrieve information. It should also be unique to the context, that way each interaction feels unique and personal to the moment.
Drive Action & Capture Consumer Insights:
With a quick scan of a package, Connected Packaging can not only share useful and relevant info with consumers but quickly and easily get them to take action: boost (re)orders and subscriptions, collect first-party customer data, capture feedback and reviews, and increase engagement and social followers.
It’s a brand new owned marketing channel that can be tested continuously and always return on investment.
Misconceptions About Connected Packaging
Complexity and Cost:
One common misconception is that implementing connected packaging is complex and expensive. While there are initial setup costs and adding the QR codes to the labels, with self-serve software platforms like Digiphy, the process is easy and seamless. You can create serialized QR and individual pages in minutes. You don’t need developers, or long lead times. You can revise the digital experience often, redirecting the page without reprinting the package.
Some believe that connected packaging is only suitable for certain industries. In reality, the technology can be adapted to a wide range of products, from food and beverages to electronics and apparel.
“No One Scans QR Codes”
QR codes are actually one of the best places to get peoples’ attention and capture intent. While they were used widely throughout the pandemic at restaurants and in hospitality, brands and products benefit even more from building closer relationships with their customers. It’s what defines great retail marketing.
Connected packaging represents a paradigm shift in the way consumers interact with products and how businesses communicate with consumers.. By seamlessly integrating the physical and digital worlds, this technology opens up a world of possibilities for enhancing consumer engagement, capturing valuable consumer data and insights, ensuring transparency & traceability, and supporting sustainability initiatives. Embracing best practices and using software solutions like Digiphy will be key to unlocking the full potential of connected packaging in the years to come.
As businesses continue to innovate and consumers demand more information on their products, connected packaging is poised to play a pivotal role in shaping the future of product interactions.
Make the most out of your packaging
QR paired with the right strategy creates an always on digital sales person to communicate directly with your customers.