Thursday, September 27, 2012

QR Code Did it

At first, I do not understand what a QR code is. But if you tell me it is a type of two-dimensional code, I'm clear.

I feel like that I was surrounded by the QR codes after one night when I got up in the morning. I can give this credit to the WeChat, a mobile phone text and voice communication service developed by Tencent, China, and Weibo, Chinese twitter. WeChat developed an advanced service named " My QR Name Card" recently, which means each WeChat user is given an exclusive QR code. Other user can add you as a friend by scanning your QR code instead of typing in tens of characters and search you. The following figure is my WeChat QR name card, which is shared in Weibo.

The most influential tool, which gives "WeChat QR name card" a push, must be Weibo. One day I found that I was flooded by the WeChat QR codes in the Weibo. I followed a lot of "information collectors" and newspaper/magazines in my Weibo and they all started to share their codes. Once you scanned their code, you are agreed to receive their push notifications, which can be deals, coupons, sales reminder, restaurants, hotels, travel information, product introduction, news, comments and they can even do anti-humors!!!
The advantages of QR code adoption in WeChat and Weibo are great for business. Firstly, WeChat takes the advantage of Weibo to reach more customers. Secondly, business users in Weibo utilize WeChat to penetrate the market and build customer loyalty. Thirdly, customers will not feel resistant to the push notifications since they have the authority to opt which they wanna receive from. Fourthly, once the products/deal was purchased by one customer, it is highly probably to be shared with potential customers, leading in purchase generation. It is because the users in WeChat are mostly close friends or relatives. The community-oriented marketing is convincing among friends, peers, relatives and family as we discussed in last post.
Besides the case in WeChat and Weibo, I trust the easy-creation of QR codes is another important factor leading to the QR code success. Subsequently, QR code requires fewer technology support.
I have to stop figuring out the advantages of adopting QR code in WeChat since it'is the work for Nan in her Net Tool project. lol. But the case I explained above is the most emerging change I observed in Chinese social media recently.


Then come back to QR code marketing. Have you considered which industry/customer favor QR codes? I read a great linked article titled "Marketing with QR Codes" (http://www.smartinsights.com/mobile-marketing/proximity-marketing/marketing-qr-codes/) which mentioned the top 7 applications for QR codes. They are "maps and signage" "coupons and special deals" "In-store drive to web" "how to advice" "after sales care" "direct response mechanic on any advertising" and "e-ticketing". Combining the chart of "Total Audience: Scanned QR code with mobile phone" in the article of "QR code statistics" (shown as below), advertising QR codes printed in magazines/newspapers is the winner. It develops my thought to the "traditional marketing is dead" last week. Is QR code a hope to make the traditional marketing in prints prosperous again? In addition, I am not surprised to see "product packaging" takes the second position since  the two-dimensional code starts up with delivery industry to make the process effectively and conveniently. Last, I want to point out the QR code using in e-ticketing is really really great. I used to buy an event ticket on Eventbrite last week just one hour before that event start. I was in a hurry that I had no time to print the ticket out since it was time-consuming for me to find a printer. Therefore, I downloaded the app of Eventbrite. My e-ticket came up after I logged in my account and all I need to do is just present my e-ticket at the entrance of the event! That's kind of cool and convenient thing. Let's suppose that the airport adopt e-flightticket, which I trust the according app has already been created. It will great shorten the waiting time for customers to print the flight tickets in the kiosks and convenient for passengers, who have no baggage to check in, to quit the long line. Moreover, it is more environment friendly since it goes paperless! 
However, I have three concerns for the QR code marketing in current situation.
Firstly, there is still relative low customer awareness right now. Even though the QR codes can bring considerable benefits, most customers and companies haven't realized! There is still much work to do with customer education. I think the high exposure as I mentioned in Weibo case is a useful way to create public awareness.
Secondly, almost every QR code needs a reader. Therefore, customers have to download the QR code readers before using a QR code. Some customers may think it is troublesome and quit it. On one hand, customer education is important by educating the customers that the benefits they gonna received are much greater than the tiny inconvenience of downloading the QR code reader. On another hand, it is necessary to develop a standard QR code reader to make one reader can read every QR code.
Thirdly, as prof. Shari mentioned in class, the landing page of a QR code must be accurate. Otherwise, it is meaningless.

As we discussed before that customer behavior is changing that more and more people value their time and value the convenience, I trust it is a critical factor to make the QR code popular. I view the future of QR code is great brilliant and I want to extract an example from the article "why the best online marketing may be headed offline" to prove its feasibility. ( also a great article for you guys to read! http://mashable.com/2010/11/11/online-offline-marketing/) It is the greatest and most interesting result that every product has its QR code on it. And I am sure the marketing world will be shuffled again at that time!!!

"As a final example, imagine discovering that the water dispenser on your home fridge isn’t working. You open the fridge and see the indicator light informing you that your water filter cartridge needs replacing. What do you do? Will you fire up your laptop and type into a Google search box the exact model of your water filter cartridge replacement, then hunt for the best deal online? That’s what I did last year. But with any luck, next time around, a QR code will be printed on the water filter with the prompt: “Scan me to reorder.” Grabbing my phone, I scan the code, pulling up a 15% manufacturer’s discount if I order the cartridge directly. I click to buy, knowing I saved time and money, which I can now spend on more worthwhile activities."



Article: "QR code statistics" by Dave Chaffey

7 comments:

  1. Hi, wantang,I like your example of Wechat. I actually also wrote a blog about Wechat before and use 7 sources of innovations to analysis it.
    http://balance714.blogspot.com/2012/09/how-wechat-use-7-sources-of-innovation.html
    Your consideration of hard access to QR reader is reasonable. I personally have this problem--too lazy to download a QR scan App. I think maybe mobile suppliers could set the scan function into camera as a factory setting.

    ReplyDelete
    Replies
    1. Indeed, but I think WeChat addressed this problem well since it connected the reader with its app directly so that customers do not need to download a QR code reader to use this function! I trust it is a feasible way and a good model.

      And I read your this blog. A good job but did WeChat never adopted any advertising?

      Delete
  2. Iris,
    What a comprehensive analysis on QR code! I am so impressive. I just LOVE your example of WeChat and Weibo. Actually, I think QR code is doing a better job in China than in America. I remembered seeing QR codes in public transportations. While waiting for the subway coming, people can scan the QR codes on the boards across them. But I am thinking that QR codes may not be a perfect carrier of commercials. People are tired of watching commercials, not even mention to find commercial to watch on their own initiative.

    ReplyDelete
    Replies
    1. Mengting, I think QR is a good product to do the commercial, because it is a consumer pull product. Unlike the company push product, QR can target customer more accurately, because customers have the ability to choose which kind of commercials they want to see - the scan right is in their hands but not the company. Don't you think so?

      Delete
    2. Yes, I agree with Julia at this point.
      QR code is effective to do commercial since the option is at the customer side.
      In addition, I read an article about how are action codes (QR code is one of action codes) being used by marketers. (http://www.smartinsights.com/mobile-marketing/qr-code-marketing/using-action-codes-to-integrate-print-ads-with-digital-media/)
      What do you think is the most common marketing action with action codes? The overwhelming number one is video! I used to think that marketers are prefer to use QR codes to do promotion and purchase acceleration. But it seems that more marketers are using QR codes to raise brand awareness and customers education. That is very interesting.

      Delete
  3. Iris, I like your article, in fact, I use WeChat for my own example. Also, we have the same vision about QR code - it will be promising! I appreciate the concerns you have about the QR code. It is right that there is no enough customers' awareness of this code. But the situation is changing I believe. Also, QR reader is easy to be downloaded on digital products (I actually downloaded an app from app store which is able to read all QR code as well as barcode). If people need to carry a standard QR code reader to go anywhere, that will not be as convenient as using the smartphone.

    ReplyDelete
    Replies
    1. Hi, Julia.
      At first, the QR code reader is not a device but also an application in the smart phone! Just as you mentioned you download one in the app store.
      Secondly, I guess it is probably that standard QR code reader exists but I didn't do any research on it. Thanks for telling me that you have already got one!

      Delete