Tuesday, April 6, 2010

The Stars Align for QR Codes

The Stars Align for QR Codes

By Barb Pellow, InfoTrends

Over the past several years, there has been a lot of buzz about Quick Response (QR) codes. Although QR codes are now widely used in countries like Japan, they have been slow to take off in the United States. Nevertheless, 2010 could be the year where the U.S. actually sees the true potential of QR codes. The combination of smartphones and printed materials will help drive this market, and endorsements by brands like Google and the ability to drive real-time demand will add fuel to the fire.

The Mobile Story
No one denies the importance of mobile technology. Cell phones have truly become an integral part of our everyday lives. Statistics from a variety of sources (e.g., eMarketer, Mobile Marketer, InfoTrends) tell the story:
·         At the end of 2007, there were almost three times as many cell phone subscriptions as there were total users of the Internet.
·         There were four times as many cell phones as there were personal computers of all kinds (including laptops, desktops, and servers).
·         More than 90% of us keep our cell phones within arm’s reach 24 hours a day, 7 days a week, 365 days of the year.
·         More than 70% of us actually take our cell phones to bed with us.
·         Over 70% of us now use our cell phones as alarm clocks.
·         A study by Unisys revealed that if we lose our wallet, we report it missing in 26 hours. If we lose our cell phone, we report it missing in 68 minutes.

Then There’s Print…
Consider all the printed messages that surround you on a daily basis—there are billboards, flyers, newsletters, books, and magazines. While some marketers are turning away from print and putting all of their eggs in the online basket, savvy marketers understand the importance of going offline and using signage and printed media to get their brands in front of consumers on the street.

Particularly within the younger generation, the focus on smartphones is huge. Texting is replacing e-mailing as a primary mode of communication for some. Mobile devices are the primary interface for the Internet among younger consumers. Savvy marketers know that they need to reach consumers who are unchained from their home computers. Connecting with these consumers means communicating via mobile devices, signage, packaging, interactive magazines/newspapers, catalogs, and direct mail.


Google Gets It!
Google added credibility to the world of QR codes this past December. The company began using QR codes to promote its Local Business service. Google mailed out window stickers with two-dimensional QR codes to the most-searched for or clicked-on businesses in its local business directory. These stickers were sent to more than 100,000 local businesses.

By-passers with QR-enabled mobile devices were able to scan the code to call up a Google Mobile local directory page for one of these Favorite Places. The directory pages generally include a map, a phone number, directions, the address, reviews, and a link to the business’ Web site.
 

Local businesses can also set up coupon offers through their Google directory page, which would turn the QR code into a mobile coupon. Consumers who are standing at a store window might be enticed to come in and take advantage of a special offer.

Figure 1: Window Sticker for Favorite Places Campaign


QR codes have certainly taken off in Japan, but U.S. adoption has been much slower. With this endorsement and promotion by Google, the U.S. might become the next hotbed of activity for QR codes. In the near future, Google Maps on mobile phones will start including businesses as points of interest. Google calls these “smart maps” internally. As the businesses are added, they are clickable and their Places page pops up.

Businesses will be selected based on their PlaceRank. According to Google, PlaceRank is like PageRank for places. The service attempts to figure out how prominent a place is based on factors such as references on the Web, reviews, photos, how many people know about it, and how long it has been around. Google has figured out a way to leverage its technology and QR codes to generate the most important value proposition—real-time demand.


The Bottom Line
As move forward through 2010, the stars are aligned for QR codes. Major brands like Google are now endorsing QR codes as a trigger to real-time demand for businesses. I believe that QR codes will soon become more mainstream in the United States as a result. If you are a local business or a big brand investigating this potential, the combination of location-based needs and real-time information means that the sky is the limit!

Thursday, April 1, 2010

Snail Mail Still Sells

In a Wall Street Journal story, the president of a company that had used direct "snail mail" for years related what happened when they decided to change to email sales.

Amid the recession this company was looking to cut costs. They had spent about $20,000 a year on personally signed letters that offered customers a discount for early orders. Time and money could be saved by switching the advertising program to email.

Despite the prevalence of digital media, this company found old fashion direct mail was the key to winning and keeping customers.

After swapping snail mail for email last year, this company, a seller of city diaries, albums and planners in the struggling corporate gift market, saw a 25% drop in early orders compared with the same period the previous year.

"We realized we had made a huge mistake," said the president of the New York firm.

The affordability of e-marketing, along with the explosion of social media and the desire to trim costs in the recession, has prompted many small companies to slash traditional direct-mail budgets. U.S. consumers received about 5.2 billion pieces of direct mail in the third quarter of 2009, a 27% decline compared with 7.1 billion in the same period a year earlier, according to Mintel Comperemedia, a research firm that tracks direct-mail marketing.
However, some entrepreneurs who were quick to write off direct mail as too pricey or passé are finding it's not so easy to dismiss.


Our New York company president says that at first she blamed the economy for the drop off, until she "started hearing from customers that they never got their 'reminder' in the mail." She quickly sent a postcard mailing in June, which recouped the 25% loss.