If you are a business owner, you would benefit from using QR codes in your loyalty program solutions. Why, you ask? They’re easy to implement, popular among smartphone users, and enjoy a massive market size.
A new study found that more than 85 percent of smartphone users had scanned at least one QR code once in their life, while over 35 percent scan a QR code every week. About half of the respondents said that QR codes have made their lives better and easier.
Over the years, QR codes have been increasingly used in loyalty programs and have a huge transaction size. A study by US-based digital technology analysis firm Juniper projected mobile QR code coupons redemptions to touch 5.3 billion by 2022.
At LoyaltyXpert, we know the value QR codes can add to a business’s loyalty programs. In this blog post, we discuss how loyalty programs are leveraging QR codes and the reasons to use QR-based solutions in loyalty programs.
How businesses are leveraging QR codes in their loyalty programs?
Invented in 1994, the two-dimensional barcode has revolutionized loyalty programs and is fast gaining traction among businesses. Here are some ways businesses are leveraging QR codes in their loyalty programs.
1. Discounts and coupons
Many businesses are using QR codes for contactless and effective loyalty program processes. By offering discounts and coupons to their customers through QR-based solutions, they are eliminating the need to print and carry the coupon codes. This not only makes the process eco-friendly but also removes the hassles for customers.
2. Promotion campaigns
QR codes are enabling businesses to run innovative marketing campaigns and track the results. By using QR-based solutions, many brands are creating several types of promotional campaigns and generating desired responses from their target customers. Some are coupling QR codes with their print media and social media marketing campaigns to drive high-quality traffic to their websites.
3. Collect feedback
Many businesses are using QR-based solutions to collect regular feedback from their customers. Creating a customer feedback QR code and putting it in the invoices is much easier than requesting feedback over phone calls or sending feedback forms over emails. Customers can access the feedback form after they scan the QR code and fill it in at their convenience.
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Ways to leverage QR codes for loyalty programs
With customers using a wide range of platforms, brands can be more creative and innovative with the ways they can leverage QR codes for their loyalty programs.
- Social networks
- Email and SMS campaigns
- Mobile app
- In-store posters, aisle, and print ads
- Tiered-based loyalty programs
- Customers’ connect platform and community
- Corporate partnerships or tie-ups
- Online marketing and retargeting
Why use QR codes in loyalty programs?
With changing times, businesses need to change how they market their loyalty programs. The traditional methods of loyalty programs are inconvenient and not environmentally friendly. On the other hand, QR codes are much more efficient and handy. Here are some reasons businesses should invest in QR-based loyalty programs:
1. Easy to implement and access
Business owners can effortlessly implement QR codes in their loyalty programs. It’s extremely easy to create QR codes and put them virtually anywhere, starting from receipts and posters to cash counters and shop aisles. For smartphone-using customers, it’s extremely easy to access. All they have to do is point their mobile camera at the QR code and click on the link that appears.
2. Better data collection and personalization
An average customer expects a personalized experience from the business they are transacting with. But many businesses fail to provide the level of personalization as per their customers’ expectations. As per Bond’s Loyalty Report, over 80 percent of customers are dissatisfied with the personalization level in their loyalty program. But QR-based solutions can solvhttps://www.forbes.com/sites/blakemorgan/2020/02/18/50-stats-showing-the-power-of-personalization/e the problems. QR codes enable businesses to collect important customer data and insights as well as to conduct surveys, which in turn help them to know what their customers want and desire from them. By collecting all crucial information and feedback, they can personalize offers and deals for specific groups of customers.
3. Enhance customer engagement and retention
Personalization can enhance engagement and retention. After businesses manage to personalize their loyalty program solutions by collecting relevant customer data and feedback, they are better poised to engage their customers a lot better and retain them for a longer period. It’s a known fact that the cost of acquiring a new customer is five times more expensive than the cost of retaining one. By engaging and retaining most of their customers, businesses can reduce their customer acquisition costs and enhance their customer lifetime value.
4. Boost revenue and result in higher ROI
As per some experts in the loyalty industry, the QR Loyalty program can enhance a business’s revenues by five to ten percent. QR-based solutions that are linked to loyalty programs are one of the best investments for businesses. As QR codes manage to engage and retain more customers, they are more likely to purchase and spend more. Loyal customers are 65 percent more likely to buy more from their favorite brands and are more likely to prefer them over competitors. Brands get high returns on their investments in QR codes and QR-based solutions for loyalty programs.
5. Identify and eliminate counterfeits
Probably the worst nightmare of every business is the discovery of counterfeit goods in the markets they sell as well as the markets they don’t. Counterfeits not only affect businesses’ sales and revenues but also hamper their reputation. But the counterfeit market size is expected to be about $200 billion and it’s growing at a range of 20 to 25 percent every year. QR codes can help businesses, distributors, vendors, and customers in eliminating the counterfeit menace. It will help in determining whether the product is authentic or fake.
Taking everything into account,
Over the last few years, QR-based solutions have emerged as a game-changer in loyalty programs. Many businesses are switching to QR-based loyalty solutions to make the process more accessible, efficient, and eco-friendly.