The packaging industry is experiencing a seismic shift as digital technology transforms how brands engage with consumers. According to Towards Packaging, the global smart packaging market is projected to reach $68.99 billion by 2032. Given this growth, brands are evolving their strategies to seize the opportunity. While QR codes—a central feature of connected packaging—have existed since 1994, the pandemic catalyzed their widespread adoption; a 2021 report revealed that 79% of consumers had already interacted with a product via a QR code.
Through the strategic deployment of QR codes, brands are discovering a powerful way to create direct connections with their consumers. This technology enables them to deliver enhanced customer experiences, build stronger brand loyalty, and collect valuable consumer data.
Building a connected packaging strategy
The successful implementation of connected packaging requires a sophisticated approach that addresses multiple strategic objectives. From an operational standpoint, it can significantly streamline the consumer journey by incorporating features such as “scan to pay” functionality, effectively reducing friction in the purchasing process and driving sales growth.
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Beyond operations, connected packaging serves as a powerful vehicle for information sharing. Brands can set themselves apart by offering detailed insights about their products, from ingredient sourcing to sustainability initiatives, thereby building consumer trust through transparency. This informational aspect extends into functional value, where brands can deliver personalized content such as recipes or dosage instructions, enhancing the consumer’s product experience and encouraging repeat purchases.
The promotional capabilities of connected packaging are equally significant. Through digital brand promotions, companies can not only drive incremental sales, but also gather valuable first-party data about their consumers. And, perhaps most importantly, connected packaging opens up new avenues to inspire. By inviting consumers to experience the brand’s creative proposition directly via brand digital channels, companies can strengthen brand equity and foster long-term loyalty.
The implementation challenge
According to Paul Simonet, founder of Experience is Everything, the successful implementation of a connected packaging strategy hinges on brands’ ability to consider not only how to operationalize efficiently across all products, but also how to optimize effectively across different consumer experiences.
To operationalize a QR code infrastructure, brands must address four key domains:
1. URL creation and delivery, including URL origination, URL Management, and URL enhancement.
2. Code design and quality control, covering design code production, code artwork integration, and code artwork adaptive design.
3. Connected platform customer experience, spanning everything from the design through to the build and integration with first-party data and e-commerce platforms.
4. End-to-end integrated analytics and ROI.
Considering each of these elements strategically is important, as SGK outlines in its recent white paper on connected packaging, developed in collaboration with Experience is Everything. “We should not think of the QR code as a link to a brand’s website or campaign page,” it reads. “We should think of [it] as a connection to a digital instance of the product itself, down to the SKU level, which allows consumers to engage at multiple levels with the brand and the product as they hold it in their hand.”
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While many companies have experimented with QR codes, few have achieved true competitive differentiation. To optimize connected packaging engagement, include the following:
- Elevated code design: Increasingly, designed codes are being used by brands to create impact and to increase scan rates of key activities. They should be viewed as brand experiences and invitations to engage, not merely functional elements.
- Creative brand experiences: Modern device capabilities enable innovative engagement through technologies like geo-location, face filters, VR, and AR.
- Sustainability stories: Connected packaging is a low-cost, direct-to-consumer channel that allows a brand to share its sustainability initiatives.
- Multichannel integration: QR codes are increasingly being used to connect multiple campaign channels, including POS, TV, print media, and social media. These channels should be tracked in an integrated way and connected back to the one always-on channel—the connected package.
The potential return on investment is compelling. Tetra Pak reports that connected experiences can deliver up to a 20% increase in sales, demonstrating the commercial power of well-executed connected packaging strategies.
A bridge for success
As the digital and physical worlds continue to converge, connected packaging will become even more of a valuable bridge between brands and consumers. Those who master this complex but rewarding strategy will likely find themselves at the forefront of consumer engagement, driving both brand loyalty and business growth. PW
