QR Codes Are Driving Up Sales For CPG Products
The demand for CPG products or Consumer Packaged Goods is largely constant. The market for consumer packaged goods (CPG) was estimated to be worth USD 20 million in 2021 and is anticipated to increase to USD 25 million by 2030, with a CAGR of 2.9% from 2022-2030.
Despite this, the competition in the CPG product market is cutthroat due to high saturation (that is, multiple brands selling the same product) and lower consumer switching costs (that is, the expenses a consumer incurs when changing brands).
Given the market’s competitiveness, the brands must constantly innovate to stay ahead of the curve. As a result, a QR code generator for consumer packaged goods is becoming an increasingly used tool to drive sales. They are now a crucial component of any product or brand worth their salt. But how? Keep reading.
This blog will walk you through different ways QR codes are driving up sales for CPG products. Let’s dive right in!
4 Ways QR Codes Are Driving Sales
Although CPG products are products used daily by customers, some of them require the brand to share more information about what goes into making the product, how they have procured the main ingredients, what was the process of making the product, and more.
Of course, adding too much information on the product packaging will disturb the design of the packaging as well as make it look clumsy. This is where a QR code for product information comes into the picture.
Designing and printing a QR code on the product packaging requires negligible resources (time and money). On the other hand, it makes it possible for brands to share ample information about the product with their customers. This increases the brand’s and buyers’ transparency, fostering trust. This, in turn, makes the customers more likely to repurchase the product and suggest it to their friends and family.
An excellent example of this use is the collaboration between Hershey’s and Tetra Pack. The QR codes on Hershey’s product packages redirect customers to the list of active ingredients and nutritional facts, whereas that on Tetra Pack redirects them to the product manufacturing process.
2. Customer Feedback
Customer feedback is critical to all brands. Having insight as to how your customers feel about you and your products keeps you a step or two ahead of your competitors. Their feedback paves the way for improvement and new product launches. And what better way than using a QR code for the same?
All you need to do is design a QR code well suited for your brand, create an online feedback form, and link the QR code to the form so that when your customers scan it, they land on the form. Customers can instantly contact a brand’s customer service by scanning the QR code to report a problem or leave positive remarks. This will facilitate the connection between producers and their consumers.
3. Engagement via Promotions and Discounts
Individuals, in general, are enticed to buy a product if it’s discounted or comes with a benefit they can avail when they like. This, in turn, drives sales. Furthermore, discounts and promo codes increase the chance of your existing customers spreading the good word about the product in their social circle. And all this can be achieved via a simple QR code.
Additionally, you could engage your customers in a fun contest, asking them to scan the code on the product, complete the task it shows, and share it on social media by tagging you. This not only increases your online presence but also increases sales of the product, especially if it is a very popular one.
4. Inventory Management
What if there is a demand for a particular product in the market, but the brand isn’t able to meet it due to problems in inventory management? Efficient inventory management is vital for a quicker product identification, enhanced receiving of new shipments, smoother warehouse pickups, and seamless stock transfer between locations. The entire process will ensure that you as a brand can meet the market demands when needed, securing your market share and sales.
Since QR codes can contain much information (quite literally!) like Product ID, Lot ID, Serial Number, Sub Location, Order labels, and more, a QR code for product tracking simplifies the entire process.
The CPG industry is undoubtedly one of the most customer-first industries you will come across. The brands are always up to bringing something new to the market to increase their market share and sales. And the inclusion of a QR code generator for consumer packaged goods is one of these tactics that has paid off quite well. Flowcode QR code generator will help you instantly create personalized dynamic QR codes for your CPG product. Furthermore, you may use Flowcode’s Flowtag to connect your customer to your brand’s information. Not to forget the access to real-time engagement data and insight by location. With printing support for all your QR needs, they are the best QR code partner you can have!