Using QR Codes to Trigger Retail Sales

Wilson Kerr of Unbound Commerce is an expert in helping retailers mobilize their sites and develop Facebook commerce for excellent customer experience and incremental sales. He made an awesome presentation to my social media marketing class last week in which he argued that mobile commerce is exploding and all ecommerce retailers need to become mcommerce retailers also. The factoids in this Ad Age poster support his argument. If you’re interested in drilling down for details on any of them, visit the page and click on the Mobile Marketing tab.
Once a retailer has mobilized her site and is open for mcommerce, the trick becomes to attract people to the msite, at anytime from anywhere. I was struck by Wilson’s concept of “Trigger Point Marketing.” It’s sort of like POS promotions that we all learned about in Marketing 101, but now the point of sale is anywhere! The media channels for Trigger Point Marketing are all the usual suspects including Facebook, Twitter, email and SMS. Two that are getting a lot of attention at the moment are QR and NFC codes.

I wrote about the similarities and differences in February when Google dumped QR codes in Places listings for NFC codes. NFC codes are operationally more complex, requiring a Places decal to be delivered to the local retail establishment. The program has been on a steady roll-out since April of this year. NFC have a lot of potential advantages, including tap-and-go payments, but for now QR codes are more accessible to the individual marketer or business. All you need is a free reader and qrcode creator and there are many of those available on the web.

Wilson’s slide shows some applications and there are many more. Home Depot has partnered with Martha Stewart’s lines to post QR codes in their stores—the POS concept again. When a shopper uses a smart device to scan the code he is taken you to the appropriate web page on one of the MSLO sites for detailed product information. That’s pretty cool for the US, but the really visionary application is Tesco’s virtual stores in Japanese subway stations. Here’s a video that you really should see. The US isn’t there yet in several ways, but if busy Japanese commuters love the concept can Europe and the US be far behind?

Your basic QR code has also gone social. Here’s one (yes, I made it myself and it wasn’t hard). I thought about putting it on my blog, but I remembered Wilson’s advice that it’s silly to expect people who are sitting at a computer to grab their mobile phone and scan a QR code on the screen. I settled for a simple “Follow Me on Twitter” icon for this blog, but try this tag for yourself to see how it works.

I was interested in an article on iMedia Connection this morning opining that the QR code might be dead. My experience parallels Sean X Cummings' informal survey; few people understand them and that's a problem. It would be resolved over time with wise use that adds customer value. One of his points is that agencies are using them stupidly, on moving buses for example. That certainly doesn't help the cause.

For my own part, I’m off to order new business cards with a QR code on them! What other applications can you think of that provide genuine value?

Article first published as Using QR Codes to Trigger Retail Sales on Technorati.

Barcode Marketing II-Creating My Own Barcode

In part 1 of this saga, I advanced my knowledge about using smartphone apps in shopping and promotional settings. What I was really looking for, though, was the answer to the question, “Can I do this myself?” Not that anyone cares that much, except that if I can do it, anyone can!

First, the terminology. The series of lines known as bar codes are featured on all products that move in distribution channels today, and they are essential to maintaining inventory all along the supply chain. However, in spite of the fact that they hold a large amount of data, they became too small for newer applications like mobile shopping and promotion. A new generation was introduced, the 2D or matrix code. I first misinterpreted this as saying that the QR code and the familiar bar code were different animals. Not so, as this list shows. There are a variety of 2D codes and there is no real standardization. Selecting one that can be accessed by the most common readers is key, as I suggested in the previous post. As a commenter suggested, standardization is needed—and I heartily agree.

Note that the Barcode generator page contains a barcode generator that appears to be useful only if you have a numerical barcode already. If you don’t, this post tells you how to get one. If you want “free,” it is not necessarily unique and just for your own use, say in a retail store to maintain inventory. I’m also not convinced that “free” is as easy as this post suggests, although there are low cost solutions available.

I used the Kaywa QR code generator to create the QR code shown in this post, on the sidebar, and at the bottom of the page (same qr image, different sizes for different placements). It is one of the solutions featured by Mashable, which has written extensively about barcodes. See the demo slideshow on their post to get started. I use the text option in order to get a message into the code.

My own experience so far has been twofold:
1. Not all codes work on all scanners. In many cases it appears that the code has to be registered with the reader’s own database to register properly.
2. Changing the size of my code made a difference in readability. I’m told that the code is more readable if it’s on a white background—thanks, Charles.

Another piece of personal experience is also puzzling. I have had good luck reading QR codes in print media. Lynkee is my favorite reader, although I’m finding print codes generally easy to read. Reading the codes on paper seems to be easier than reading them on screen; maybe that’s the white border issue.

That said, I’m sorry that Google Places has eliminated the ability to print out a QR code poster from its listings. That was easy, and it worked for me. According to ReadWriteWeb, Google is moving to NFC technology in partnership with MasterCard and Visa, working on an e-wallet, apparently.

You’ll see more QR codes around. Home Depot has just started a promotion—in print and in store—using the Scanbuy solution. It will be worth following, but I’m interested in DIY efforts.

Anyone in the mood to make their own QR code poster for their blog or office or store window?

Barcode Marketing I - Promotional Opportunities

In this week’s Internet marketing class I played a Tesco ad that plugged both barcode marketing and Tesco’s new app, which has social shopping potential. The ad is fun, but it doesn’t emphasize the social aspect.



Consider this quote from Tesco’s agency:

Let’s say that three of your friends had bought tickets to [a concert] and advertised the fact on Facebook. Wouldn’t it be beneficial to receive an alert letting you know that they would be going to the concert and offering you the chance to buy your own ticket? This is a simple extension of current functionality but already the end user is having their possible needs preempted.

Sounds reasonable, doesn’t it? You might want to read the post for some other ideas including the possibility that your friend Susan might be getting a cold. That one sort of creeps me out.

It will be interesting to see where Tesco goes with the social shopping aspect. They’ve experienced privacy push-back before, so they may proceed with caution. What most interested me about the video, though, was the happy consumers shopping with their smart phones in various settings.

A recent chart from eMarketer shows shoppers using their smart phones for a variety of purposes. Looking for deals is high on the list. Here’s a Reuters video that talks about the marketing implications of Tesco’s barcode app. So barcode marketing, which is essentially promotional, is clearly a growing marketing activity. Who are the enablers?

There are numerous agencies out there that develop mobile promotions (search ‘mobile shopping agency,’ for example). I was interested in DIY barcode promotions, so I kept looking. I found this really interesting case study. A mobile agency headquartered in Portland, Oregon hosted an art exhibit in their own space to test aspects of barcode promotions. They attached a barcode to each piece of art and encouraged viewers to scan them for information about the artist.

By now I had several barcode scanners on my iPhone, so I tried them all. None worked, so I made the correct assumption that I had to download the app from StickyBits in order to read them. That was only the beginning of my annoyance.

It’s a free app on iTunes. No problem there. It wanted me to sign in with Facebook Connect, which I don’t do. I don’t know whether my friends are interested in this stuff, and I don’t want to bug them. That proves I’m old, I know, but I just don’t use it. So I set up an account with StickyBits, no unusual information requested, but annoying on a smart phone. Then after a couple of other now-typical screens—Can I send you push info? No. Can I use your current location? Yes, although that could be a mistake from a privacy perspective.

Having satisfied those screens my scanner was operational and I scanned one of the artworks. The amount of information was disappointingly small. Yes, I know this was a test, but they could have made it more useful to the artists. The test performed as expected, though. Relatively few of the attendees used the barcodes and the ones who did were relatively young and computer-savvy. Read the post for yourself: it’s quite interesting and you can just click on the works of art featured to see the information provided (and consider the possibilities) and to see how few people scanned them.

I see another important lesson from the TenFour case study. Using a bar code format that isn’t recognized by the best-known barcode readers is going to present a problem. The user can prominently post the download link, but it still will probably inhibit use. My phone is already cluttered with apps—how about yours?

My investigation took me down many other paths looking for an answer to a basic DIY question, “Can businesses/non-profits do this for themselves without an agency?” The answer is “yes,” and I’ll follow up on that in a forthcoming post.

The Mobile Future--QR or NFC?

One of my students recently attended the mobile unconference in Boston and sent back dispatches from the field—thanks, Mike! One talked about QR codes and NFC tags. I wasn’t sure what the difference what the difference was, so I thought I should find out.

I’ve seen QR codes around for awhile. This is a shot from a Google Places page I maintain that invites me to “Share Your Place Page with Customers.” When you print out the QR code poster, this is what you get—a simple poster to place in the window. When a mobile phone with the appropriate reader (free here and, of course, on the iTunes store) is trained on the code, it links to the Place Page and the business information it contains. The QR code is a bar code that is read by the mobile reader--technology we’re all familiar with.

Ok, that’s great—so what is a NFC tag. NFC stands for near field communications; cutting through the techno-speak that means wireless connectivity. It’s hard to find a non-technical definition of NFC tags. I’ll settle from for this phrase from the NFC forum: “short-range wireless interaction in consumer electronics, mobile devices and PCs.” That phrase on their home page links to a nice non-technical explanation. The graphic shows what the two types of tags look like, but it’s not helpful in understanding the differences. It comes from a video on this site which has nice music but no narration!

This video is useful; it uses a scenario to explain what NFC tags can do. It comes from the University of Munich (in 2005!). Sincere thanks to the professors there for posting it in layman’s English! You really need to take the 5 minutes to watch the video and understand the potential power of this technology!

Everything I read while researching this admits that NFC codes are way cooler and have the potential to do more than QR codes. QR codes are, however, easy to create and for the consumer to use as my Google Places example shows. NFC codes require devices (likely mobile phones) to have built in NFC chips. Not many have it at present, especially in the US. The ones that do appear to be pricey. For now it appears that we’ll need to keep an eye on the NFC trials taking place in Europe, so we need to once again thank our colleagues there for leading the way into the mobile future!

Location-Based Marketing 1--Basics

It seems to me that location-based marketing happened during the summer while I was taking time off from blogging. That’s not quite true, but it suggests how fast this phenomenon has taken hold.

When I first heard about Foursquare (from my students of course!) my first reaction was, “Why do I want anyone to know where I am at a given moment??” My second was that I’m not a twenty- or thirty-something out on the town on Friday evening! I got that. It took me awhile to realize that this was potentially a better option than the mobile couponing campaigns I had been writing about (for example, Ford local campaign; mobile trends). Foursquare and the others provide platforms that provide functionality and reach users.

Foursquare and Gowalla are the two largest location platforms. At the risk of oversimplifying, Foursquare looks to be very attractive to retailers who want to run a specific promotion. Gowalla seems to be attracting venues that want something long-term as suggested by Disney’s recent deal with Gowalla. There are many other smaller and/or more specialized platforms. This short slideshow identifies them and does a good job of explaining their similarities and differences. This space got a big boost in August when Facebook introduced its Places application, making it easy for marketers to tap into the huge Facebook population.

10 Lesser Known Social Platforms and How Businesses Can Use Them

View more presentations from Erica Swallow.

The importance of location-based marketing is emphasized by Chief Marketer:

• 37% of customers who searched for a local business in ’09 ended up visiting the store in person (TMP & comScore, October 2009) • Local search currently represents half of all mobile search ad revenue (Kelsey Group, September 2009) • Younger generations embrace mobile in staggering numbers; 97 million 5-29 year-olds in the U.S., 281 million in India and 255 million in China currently have mobile accounts (The Mobile Youth Report, 2010)

They emphasize the ties between search and location-based marketing: “Search teams should be sure to capitalize on these online-to-offline strategies to capture local visibility and in-store traffic.”

Leading-edge marketers are already onboard. Sports Authority has conducted several promotions on Foursquare, including one on Black Friday, and says, "We like the ROI on the things we've been doing on Foursquare." CNN describes some of the other Black Friday action.

My favorite for sheer marketing creativity is KLM’s recent foray, which is “spreading happiness.” When a passenger checks in on Foursquare, the KLM marketing team uses other social networks to find out about the passenger’s “likes” and about her trip. They use that data to provide a surprise to the passenger and take a photo of the surprised traveler.

The KLM team has surprised travellers with champage, notebooks, a watch, and traditional Dutch foods. One passenger, Willem van Hommel, was going to miss one of his soccer team’s most important matches of the year due to his trip to New York. KLM surprised him with a Lonely Planet guide to New York with all the best soccer bars in the city marked out for him. Another traveller, Tobias Hootsen, was surprised with a package to remind him of home during his long stay abroad.

I checked out the KLM Facebook page. The wall page had the usual flight complaints with speedy responses from KLM. One “surprised” passenger wanted to get a copy of the picture taken in the airport. Actually, it’s right there. There’s a link to the photo album on the wall page and it’s what you get when you click through on “what happened” on the promo announcement. As you might guess, the promo is also big on the I Love KLM page with another link to the photo album. Good follow up and I suspect they are integrating it with other media like Twitter. The downside is suggested by an article that uses the word “spies” in the headline, which is actually quite favorable when you read it. I didn’t see any privacy complaints on the KLM site. Wonder if that’s partially due to the fact that KLM already had an app that allows passengers to make a luggage tag with their picture on it? In any event, it’s a cool app and taken together, it signifies a company that’s deeply involved in location-based marketing.

Mashable has a good post with 9 steps for the marketer who is new to location-based marketing. A lot of the steps are not new to regular readers of this blog. Setting clear marketing objectives and monitoring are critical, for example. One that is especially important is 4 Customize. Each of the platforms offers different opportunities to engage visitors like the badges that can be earned on Foursquare. The marketer must understand the options.

There are other examples and strategy approaches. I’ll write about those in a few days when Cyber Monday calms down and we see what’s happened during these hectic shopping days!

Point of Purchase Going Mobile

I was fascinated by this interview with Scott Monty of Ford that passed through my inbox a couple of weeks ago. It’s worth listening to. About 2 minutes in he talks about the localization issue. Ford is following up their successful Fiesta introduction last year with the formal North American launch. The launch marketing is concentrated in 16 local markets. Ford will have 20 2-person teams handling the local social aspects of the launch. Monty says that Ford wants to “connect to the people that matter” and my guess is that it’s going to be dealer-centered, not Ford headquarters-centered. Really interesting!

Fast forward a couple of weeks to this article in Ad Age. It gives an additional slant on localized marketing:

It's the ad served while you are reading the news in the morning on an e-reader that knows you're at home and three blocks from a Starbucks. It's a loyalty program on your phone that, through a hotel-room sensor, sets the lights and thermostat and turns the TV to CNN when you walk in the door. It's finding a restaurant in a strange city on a Tuesday night, discovering that a store nearby stocks the TV you're looking for, or that a certain grocery on the way home has the cut of meat you need. . . "What used to be called point-of-purchase is now called mobile advertising," said Kip Cassino, VP-research at Borrell Associates. "Mobile can be an extension of a retailer's storefront."

The emphasis here is on mobile. I was reminded of these two articles as I listened to CNBC report on the CITA conference earlier this morning. If you are interested in wireless developments, and all sorts of cute new devices and appls, you can follow their coverage. I was caught by the headline of this particular report, “Charge It On Your Cell Phone.” I should add that mobile payments are not a new concept. I wrote about a concert ticket transaction that was completely mobile c. 2007 in my Internet marketing text. However, the example came from Australia; I couldn’t find an actual example in the U.S!

The section of the report that interested me most was the Visa payWave service. When I looked at that, I found that it was actually a smart card application, not mobile at this point. That’s also not a new concept; I wrote about that in an even earlier text! ExxonMobile SpeedPass still seems to be going strong, although it didn’t morph into a payment system as the initial strategy seemed to anticipate.

So initially, I said, ok nice service, but nothing new. Then I clicked on the “find merchants near you” link and saw how this fitted in. I live in a small market and admittedly the merchants now listed are mostly national or regional chains. What happens when local merchants catch on?

I’ll tell you what happens! Local merchants sign up for the service and voila—they are listed on the local map along with the big guys. More free promotion! Not to mention creating an easy transaction mechanism for their customers!

Further, this is only one step in the direction of mobile-based advertising and transactions. Billing Revolution is one firm that offers transaction processing on mobile phones. It was developed to allow mobile purchases from e-commerce sites. I can’t tell whether you can yet walk into a retail store, one that accepts PayPal apparently, and pay for your purchase with your cell phone. If you can’t do it today, it’s bound to be the next step.

As that is happening, marketing becomes more local with the ability to reach people where they are, whenever they are there. Also the opportunity to annoy them immensely while they are trying to read the morning news on a mobile device!

Haven’t I said this before? Broadcast marketing is dead. No reference implied to particular channels. The reference is to blasting a message out to all within hearing, whether they are the people you want to connect to or not! It calls for smarter, more thoughtful marketing, but the potential returns are great!

Ghost of Christmas Future?

It’s no secret that I think apps are the future, and we can see it emerging now. However, I’m not a big mall shopper, so I haven’t experimented with shopping apps for my iPhone except for a grocery list, which I quickly became unable to live without. My students are on the same wave length. In fact, last night one tried to convince the class that we wanted to listen to sports events on our smart phones! No sale there, Laura! but I was thinking about apps when I saw this article in the NYT today. The idea of mobile phones as an essential tool for shopping intrigues me, although it may strike fear into the hearts of some retailers.

The video is fascinating, so I decided to experiment. I downloaded the free ShopSavvy app with no trouble. However, it didn’t work. Ok, go read some more. I found out that it only works on the iPhone 3Gs. Reason: older iPhones lack the autofocus function that makes a bar code readable.

Is there a bar code scanner app for the 3G? Yes, I found RedLaser and it looked pretty good. I downloaded that, although along the way I had to update my iPhone software; that took longer than the two app downloads together. After that, $1.99 and a few seconds later, I had a bar code scanner.

First thing I tried was a Diet Coke can. The UPC is on the side, so the can kept rolling around and getting glare from the metal; never did get it to work. However, I pointed the scanner at the bar code on the RedLaser site, and moments later I had lift off! The code is for a snuggles blanket and it sells for as little as $11.99 online and shows $14.99 at both Best Buy and Sears, which are near me. And I didn’t need to try to integrate it with the ShopSavvy app; it gave me results from Google search and from the Find. Fascinating!

Thank goodness I’ve finished my Christmas shopping, but I decided to check how well I did on one item. The hard drive I bought sells for as little as $109.95 online and as much as $179.99 at retail outlets and some online merchants. So I did just fine—thanks to a sale and loyal customer discount at Staples! Are you surprised at the price range? I was! Of course, customers will think about shipping when they see the online prices. Does this kind of shopping confirm the wisdom of all the free shipping offers we are seeing this holiday season?

This is all pretty new, and not that many shoppers are yet using it. What about next Christmas? Fearless Roberts prediction; this is going to catch on fast. Corollary to that; if I can do it, anyone else with a smart phone can!

Retailers, both online and off, seem to have two choices. They can offer to meet the lowest price; notice that Wal-Mart’s price matching offer (current TV ad appears to simply restate the policy on their site) excludes online prices. That obviously can cut into a retailer’s margin—and what if it’s counter to the merchandising strategy?

I would describe the second option as, “you can’t beat them, so join them.” I’ve previously described apps intended to make it easier to shop at certain stores or buy certain brands. That is going to make sense, at least for first movers for awhile. Like everything else, however, there will be a limit to how many apps customers want.

Is this within range of small local retailers? I searched again and found this site; the costs are consistent with what I’ve seen before and on the low end are not excessive.

Should retailers—large and small—be thinking right now about next Christmas and how they can take advantage of the trend to mobile-assisted shopping?