Articles

EXPLAINED: QR Codes

By CFIN Newsdesk posted 07-27-2022 08:00

  

 

Although Quick Response (QR) codes have been around for decades, their use during the pandemic on restaurant menus, retail displays, grocery shelves and even COVID vaccination passports, have made them more accepted by consumers. And as demand for a contactless economy grows, QR codes are an increasingly important step in connecting businesses and consumers.  

 

What are they? 

A QR code is a form of two-dimensional barcode invented in Japan as a means to store more data about a product and shorten scanning time. Many food and beverage companies began using the symbols on packaging in the early 2000s. But it wasn’t until smart phone technology evolved to the point that consumers could quickly and easily scan QR codes through their camera that companies began actively using them to provide information and engage customers. As consumers increasingly ask for contactless transactions, QR codes are a quick and inexpensive way to update menus, communicate with customers, and add traceability to the supply chain.  

 

What makes them unique? 

As opposed to one-dimensional barcodes which are only encoded with information horizontally, QR codes – which can be static or dynamic -- are encoded with information vertically and horizontally, meaning they can transmit more data at a faster speed. They can be embedded with banking and credit card information, and in many countries such as China and India, they’re often used as mobile payment method. As their use becomes more sophisticated, companies can add multimedia elements and create a more immersive experience for customers. 

 

Why you should care 

While QR codes are become more recognizable, it doesn’t mean Canadians have fully embraced them. In fact, a recent survey by Field Agent Canada showed that only about a third of Canadian consumers have used a QR code -- the majority of those millennial and younger shoppers. And although QR codes are everywhere, 48 per cent of respondents to its 2021 survey say they have scanned a QR code in a grocery store, by far the most often cited location. 

Barriers to use 

A lack of understanding seems to be a barrier to greater usage in Canada, and ultimately it may be up to businesses to highlight the benefits of QR Codes to their customers. In asking why they don’t use QR codes, Field Agent found, for example, that just three per cent of consumers said they didn’t know what they were, while nine per cent of admitted that they didn’t know how to use them. Instead, 62 per cent of respondents said they hadn’t seen QR codes in stores, 21 per cent said they didn’t understand the value of using them, and 15 per cent said they didn’t use them because of the information they contained. 

 

QR Codes will become more important to food and beverage supply chain distribution as additional companies invest in automation and traceability. New research from Cornell University suggests that best-before dates on dairy products could also be replaced by QR codes in order to give consumers the most accurate information possible and prevent food waste. 

QR codes in use 

 

Several payment apps are already using QR codes. Since 2020 PayPal has embraced QR codes to allow Canadians to scan and pay at retailers through the third-party payment platform in a fast, touchless transaction. 

Tim Hortons integrated QR codes into the awareness campaign leading up to its 31st annual Camp Day on July 13, 2022 with the help of technology from Scanbuy, Inc.  QR codes were added to marketing and point-of-purchase materials, allowing customers to scan them for information about Tim Hortons Foundation Camps, and how to donate funds. 

 
#FIC
#digitization
#apps
#digitaltransformation

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Comments

07-27-2022 12:30

Interesting read. This article directs the reader's attention to 'lack of understanding' as a primary barrier. While I think I understand the basics of QR codes, as a consumer I have a notion (that could be wrong) that any necessary information that a consumer should have access to, should be on the item in hand. I assume that any information that a brand/company has the responsibility to disclose to the consumer should not require an extra step to get to, especially if the extra step requires a device, wifi/data, and therefore money. This potential economic barrier doesn't sit well with me. However, in the cases of extra, non-essential, information this could be less of an issue. While I appreciate that age is definitely a determinant of engagement with QR codes, and there are ways to lessen the divide there, via education/outreach, I am always hesitant of essential information being only accessible via mobile device/wifi/data due to the people that experience this as a real barrier. I haven't seen any in my local grocery stores, but perhaps there are QR code readers available to shoppers in some stores, since there is this such an appealing push to quickly accessible, dynamic info.