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Boosting Retail with QR Codes in the Post-Pandemic Era

The COVID-19 pandemic greatly affected different industries, including the retail landscape. To regulate the devastating effect, lockdowns and restrictions were implemented by other countries. This event led to a sharp decline in retail sales globally.

However, the post-COVID-19 era ushered in a significant transformation to the retail industry. The adoption of some digital and contactless technologies became prevalent. One such technology was the QR code, which emerged and became a powerful tool for enhancing customer experiences in the post-COVID-19 era.

Meaning of QR Code

A QR (Quick Response) code is a type of barcode that can hold vast amounts of data. It consists of a black-and-white pattern arranged on a grid that represents pieces of information. To access the information, it is scanned using a smartphone or other devices equipped with a QR code reader or camera.

Early QR Code Hurdles Weren’t Worth Limited Benefits

When QR codes emerged, users faced challenges operating the contactless technology. A specialized QR code reader app was needed, and implementation was difficult. These experiences have led to users' limited adoption of QR codes.

Also, retailers and brands made it more challenging by directing users to irrelevant websites or promotional pages. They even provided little rewards for engaging with the technology. These greatly contributed to the early day's struggle for QR codes.

The challenge was minimized when some smartphone manufacturing companies like Apple, Amazon, etc. tried to fix the issue by integrating QR codes in their photo app, thus making the implementation process seamless and engaging for users.

Now, contactless technology is highly adopted in the retail industry.

The Emergence of QR Codes for Contactless Payments

Contactless transactions became important due to the COVID-19 pandemic that surged the world and limited physical transactions. This gave birth to the use of QR codes in the retail landscape.

QR code was initially used to link physical signage to mobile devices, but interestingly, their first mass application was integrating from the mobile phone to a terminal in payments. Big companies like PayPal, Apple Pay, and Amazon Pay have adopted the technology for their contactless solutions for various activities.

In countries like China and Japan, they use it for loyalty programs and payments. QR code-based loyalty programs are now a convenient way to nurture customers' loyalty.

Retailers that use QR codes are:

  • Walmart
  • Starbucks
  • Dunkin donuts
  • Tesco
  • Decathlon
  • Whole foods
  • Macy’s app

The above retailers have integrated QR codes into their mobile apps for customers to make payments and also earn rewards. Customers can easily enroll by scanning a QR code displayed at the store or on various platforms. Once registered, they’ll accumulate rewards for their purchases, which can be redeemed for discounts, free products, or exclusive deals.

The Use of QR Codes for Product Information and Marketing

The use of QR codes is not limited to contactless payments and program loyalty alone. They are crucial for both product information and marketing, ensuring seamless customer engagements and great shopping experiences.

QR codes store and provide comprehensive information about a product to customers. They are able to learn a lot about the product before purchase. This can be accessible by scanning via a smartphone. Product information like:

  • Nutritional facts
  • Ingredients
  • Customers manual and instructions
  • Product specifications
  • Certifications and authenticity

QR codes are also used for marketing campaigns and promotions. QR codes can be placed on product packaging. Through this, it is easier for customers to access instant offers and discounts.

QR codes can be linked to personalized marketing campaigns within the app. After scanning, users might be directed to tailored content based on their preferences or shopping behavior. This contactless transaction has helped to improve marketing strategies and alleviate customers' experiences.

QR Codes in the Post-Pandemic Era

The global COVID-19 pandemic accelerated the use of this technology in the retail industry. QR code is now a tool for limiting person-to-person contact.

According to a Statista statistics report, approximately 89 million smartphone users used QR code scanners and scanned QR codes in the United States alone in 2023, marking a 20 million increase from the previous year. This figure is projected to exceed 100 million by the end of the year 2025.

In 2024, QR codes continue to see a significant surge in usage in the retail landscape. These QR codes can store diverse information, ranging from website URLs to contact details, account information, and more. As more people use smartphones, QR codes will continue to grow significantly.

Restaurants, for instance, have replaced traditional menus with QR codes to reduce the risk of contamination.

Coca-Cola recently updated its Freestyle beverage dispensers to allow users to select drinks via QR codes, eliminating the need to touch a shared screen.

Zara has integrated QR codes into its window displays, offering customers the ability to shop directly from the street, while brands like Louis Vuitton have creatively designed branded QR codes to enhance customer engagement.

Retailers and brands should use this digital technology in their marketing strategies and harness its many benefits.

FAQs

How Important Is QR Code to Retailers and Brands?

QR codes have made interactions with customers easy, particularly in the post-pandemic era. Adequate information about a product is provided to customers without manually typing it.

All they have to do is scan the QR code, and all information about the product will be displayed in an instant, including the product price, descriptions, and other specifications. That is why it is called ‘Quick Response’ code.

Does QR Code Support Contactless Payments?

Yes, it does. At the comfort of your house or base, you can perform different transactions and make payments. It promotes cashless and touch-free transactions. The customer's smartphone can be directly connected to the payment system, facilitating a contactless payment.

Is QR Code Effective for Marketing?

Definitely! It is an important tool for marketing. It is effective for engaging customers and improving their shopping experiences.

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