February 27, 2024

Connected Packaging | Enhancing Shopper Experiences

In a retail landscape where the digital aspects are just as important as the physical experience for shoppers, brands must focus on expanding and optimising omnichannel experiences of user journeys. One way brands can take charge of shoppers’ user journeys is through connected packaging and this article will go into detail about how brands can utilise packaging to control and guide omnichannel user journeys.

What is connected packaging?

Connected packaging is when a product’s package includes a ‘pathway’ to a digital experience. It’s often used to facilitate business-to-customer (B2C) engagements through smartphone and internet access.

The most common mechanics in achieving this are activation points, such as QR codes or NFC chips. This is a common mechanic used in many industries, frequently in fast-moving consumer goods (FMCGs); connected packaging can have multiple use cases, product types, and varied uses depending on the industry.

A simple example of this is as follows:

A minimal graphic illustrating how connected packaging works. It depicts a bottle with a QR code; followed by an arrow pointing to a phone scanning a QR code with a link below it that reads promo-now.com; followed by another arrow pointing to a desktop that reads “PROMONOW”.

Say a brand is running a promotion, and as part of their on-pack promotion, they can include a QR code so shoppers can easily access the sign-up page whether it’s a web app or a promotional microsite and quickly join the promotion. 

In a survey conducted by Appetite Creative in early 2023, they found that the number of respondents who had used connected packaging for their brand had nearly doubled from 46% to 81.5%. Although popularity is not a direct indicator of its importance or effectiveness, it does indicate that brands are finding importance and value in integrating connected packaging. 

What are the benefits of connected packaging?

Authentication

Brands may decide to incorporate connected packaging as a way to protect their brand reputation against counterfeit products and as a way to verify the authenticity of their products. It not only protects against counterfeiting but also improves product safety and gives customers trust and confidence in a brand.

An example of this is seen in GUCCI and its authenticity tag technology. Consumers buy from the famed fashion-haus for their heritage and luxury status which is why proving authenticity is an important consideration for both the customer and the brand. With NFC technology, customers can use their smartphone to check the authenticity of their designs by placing the phone at the back of the piece after downloading and accessing the Gucci App’s ‘Gucci Tag’ section.

Building loyalty

It’s reported in SharpEnd’s ‘Connected Experience Report’ that 66% of consumers will interact with connected packaging if it is linked to a rewards or loyalty programme, making it easy for shoppers to reap benefits from buying a brand without having to download an app which is a major roadblock in omnichannel user journeys.

It’s an additional activation to include on the product packaging that adds value for consumers and shoppers.

Incorporating connected packaging into a brand’s shopper strategy is also an opportunity to enhance these reward schemes. It enables businesses to personalise user experiences by using the data collected through connected packaging to better improve a brand’s understanding of customer preferences and behaviours, allowing better-optimised marketing strategies.

Yeo Valley is a great example of connected packaging. On extensive ranges of their products, shoppers can collect yeokens which is a part of Yeo Valley’s rewards programme. URNs (aka unique codes) are translated into unique QR codes to easily validate entry.

It is also a hub for their content, from competitions and promotions to recipes and other brand content which, as we mentioned before, provides a brilliant stop for shoppers to learn about the brand by directly interacting with it.

By having connected packaging across its entire product family, Yeo Valley lowered the barriers of entry to its loyalty rewards scheme, effectively encouraging more customers to sign up and build brand loyalty with them over time. It becomes a low-effort and low-commitment way for shoppers to join Yeo Valley’s rewards programme and incentivises the purchase of every Yeo Valley product to earn Yeokens.

Storytelling and improving engagement

Brands with a strong marketing strategy will always have a story to tell consumers, this story is sometimes what ultimately sways a shopper to pick one brand over another competitor. Including this story through a product’s packaging is just one avenue for this.

Connected packaging allows brands to further expand on their stories and invites consumers to engage. It’s an opportunity for brands to tie their values into a campaign by ‘showing’, instead of ‘telling’ which is often more impactful and a more meaningful way to speak and show a campaign’s messaging than in outright plain text.

One brand that has integrated its brand story and identity with connected packaging is the Australian wine brand, 19 Crimes. With each bottle and a scan of the QR code, shoppers can access a creative and engaging augmented reality (AR) experience, exploring the life of the historical figure on each of their bottles; effectively bringing each bottle and character to life.

Customers are most aware of a brand at the POS (point of sale) when they’re making that purchasing decision. This makes the packaging the best place to keep your customers and shoppers engaged about the product they will buy and use. Incentivising shoppers with call-to-actions and an added ‘next step’ builds curiosity and encourages further action, improving brand engagement and recognition. 

A brilliant example of both engagement and data collection is illustrated by Coca-Cola’s iconic “Share A Coke” campaign. Consumers could scan the QR code on the pack and access numerous offers that encourage them to revisit the store, creating a mutually beneficial way to gather target audience data and engagement.

Brand awareness

There’s an exciting creative opportunity that comes with connected packaging. Done right, it can help brands capture the attention and imagination of their target audience. It’s an exciting and convenient way to add an interesting and dynamic digital flair to the otherwise static nature of traditional marketing media. 

How to effectively incorporate connected packaging into your shopper marketing strategy

Should I use connected packaging?

  • Rather than focusing solely on the ‘how’, brands should first consider: why your brand wants to integrate connected packaging and what connecting packaging can do for your brand. Businesses should take time to consider if this is something their audiences will want rather than falling victim to the common ‘rush to tech’.

What should I link to when using connected packaging?

  • Consider what your packaging will lead your audiences to. It should be relevant and be a point of interest that keeps them interested and engaged. For example, linking to a microsite for a promotion is a good way to keep shoppers engaging, but linking them to the app store to download an app is a surefire way to tank your engagement, consumers consider app downloads to be a long-term decision so will often stop their interactions and move on. If space is available incorporate your brand logo into the QR code.

Consistency and planning for effective engagement

  • Update whatever the destination page is frequently, don’t take your customers to a microsite just for it to be empty and without content. Populate that page with interesting and engaging content, it should reward customers for continually engaging. Using a QR code redirection service minimises risks and allows full control, such as qrcode.promonow.io/?1234

Always-on promotional QR code call-to-actions

  • Consider opportunities for using an always-on promotional platform displayed permanently on-pack via a QR code. This saves expensive production costs and shortens delivery timelines for activations. ‘Scan to win’ is a simple call-to-action to invite participation via the QR code. If you’re looking to integrate a simple CTA into your brand’s offering and connected packaging experiences, PromoNow’s scan2.win service offers an alternative format; it would looks something like {brand_name}.scan2.win , e.g. sony.scan2.win. Whether or not this addition is for you, read on - there’s more than one way to improve your activations with PromoNow.

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