1. A Msgme Quick6 eBook
The Who What When Where Why (and) How
QR Codes
6 essential points to know — now and going forward — about
integrating 2D codes into your mobile CRM strategy.
2. A Msgme Quick6 eBook
1 The Lay of the Land: QR Codes defined
2 Show Me the Stats: Why QR Codes in 2011?
3 The Scan Plan: How QR Codes Drive Consumer Engagement
4 Know Their Role: What QR Can and Can’t Do
5 Get Your Intel: QR Code Innovation
6 Get Ahead: Key Tips To Maximize QR Code Campaign Success
3. QR Codes 1 2 3 4 5 6 A Msgme Quick6 eBook
1 The Lay of the Land: QR Codes Defined
You’re starting to see them in magazines, on billboards,
and consumer packaging. No, they’re not byproducts of a
Rorschach inkblot test being conducted by a secret
government agency. They’re a stamp that can go literally
anywhere (yes, the first picture on the right is a QR Code
tattoo) to launch an interactive dialogue.
To break it down, the acronym “QR” stands for “Quick
Response”, and “Code” denotes the black-pixels-on-white-
background, 2D image. QR Codes were originally created
by the Japanese company Denso-Wave in 1994 and
approved as an ISO international standard in June 2000.
QR Codes are ubiquitous in Japan today, while the US has
just begun to adopt them in steadily increasing numbers.
The key factor that has led to QR Codes’ widespread use is
that they can encode large amounts of information,
including text, URLs, location, and other data. As a frame
of reference, a standard 1D bar code can hold up to twenty
numeric digits, whereas a QR Code can hold thousands of
alphanumeric characters. Aside from their data payload,
QR Codes provide intrigue, as they can grab a consumer’s
attention and connect the physical and digital worlds.
4. QR Codes 1 2 3 4 5 6 A Msgme Quick6 eBook
The Lay of the Land: QR Codes Defined
From a design standpoint, the elements of a QR Code are as follows:
Timing Pattern identifies the central coordinate of the
data cells. With both horizontal and vertical layout,
readers can identify distorted and/or smudged images.
Finder Pattern detects the
position of the code. By
having 3 finder patterns,
readers can detect the
code’s size and angle and Alignment Pattern corrects the distortion of
read data from any the QR Code in case it gets warped (e.g. if it’s
direction. on a bent piece of paper). The black cell in the
middle of the alignment pattern provides
readers with a central reference point.
Cell all data (grey area) is stored as
binary code, with 0 and 1’s translated
Quiet Zone a contrasting margin space into black or white cells.
necessary for reading the QR Code. A
thickness of four or more cells is required.
Several marketing-friendly features result from these innovative design
Did You Know?
elements, including high-speed 360° scan-ability, data encryption and Several standards cover QR Codes.
resistance to distortion, damage and smudging. QR Codes can also vary in The most recent is the (take a
deep breath) September 1, 2006
density depending on the amount of information stored in the code. ISO/IEC 18004:2006 -
Information technology -
automatic identification and data
capture techniques - QR Code
2005 bar code symbology
specification.
For those interested, you can
download the standard here.
Lower Density/Less Info Higher Density/More Info
5. QR Codes 1 2 3 4 5 6 A Msgme Quick6 eBook
2 Show me the Stats: Why QR Codes in 2011?
QR Code Scans By Day of the Week
Hyper Growth
A study from Mobio Identity Systems cited by the Biz
Report tracked an increase in QR barcode scanning of
1,200% from Q3-Q4 of 2010. The Scanlife Q1 2011
Trend Report from Scanbuy showed 2D barcode scans 14.8% 14.7% 15.1%
14.4% 14.3%
13.9%
outnumbering 1D (UPC) scans and a 1,600% growth in 13.2%
mobile barcode scans from Q3 2010 to Q1 2011.
Leading marketing resource Mobile Marketer reported S M T W T F S
a 4,549% year-over-year increase in 2D code scanning MSkynet, Inc. Q1 2010, www.myskynet.com
during Q1 2011.
Mainstream Use
22% of the Fortune 50 have already used mobile
barcodes according to leading PR firm Burson-
Marsteller. eMarketer reported that the US ranked
number 1 for countries experiencing a percent change
in growth of mobile barcode scans in Q1 2011. Blue
chip brands spanning a diverse set of industries
currently use QR Codes, including Ford, Canon,
Anheuser-Busch, Audi, Pepsi, American Airlines,
Disney, Starbucks, Fox, Best Buy, McDonald’s and
Ralph Lauren.
6. QR Codes 1 2 3 4 5 6 A Msgme Quick6 eBook
Show me the Stats: Why QR Codes in 2011?
Purchasing Demographic
People who use QR Codes represent a crucial segment for marketers: well-educated, wealthy
smartphone users who are actively engaged with digital media.
[Phone]
[Media]
[Education] Windows 4.3%
[Income]
Physical/Print 5%
[Age] Blackberry
[Gender] 20.3%
TV
22%
55+
13% Android
University+ 28.7%
63%
$50K+
Male 71%
51% 35-54 Other
48% Online 73%
13.4%
Social
70%
College Other iPhone
26% 3% 33.3%
$25–$50K
Female 23%
18-34
49% 39% H.S. - 11%
MSkynet, Inc. Q1 2010
< $25K - 6% www.myskynet.com
The Naked Facts: Whiplash Edition,
QR Bar code Scanning in Q1-2011,
Mobio Identity Systems, Inc
Age 18+ Respondents who encountered a QR
Code, MGH Survey, eMarketer, March 22 2011
7. QR Codes 1 2 3 4 5 6 A Msgme Quick6 eBook
3 The Scan Plan: How QR Codes Drive Consumer Engagement
People interact with QR Codes using readers that they download and install
onto a smartphone. There are some companies that provide technology so
that feature phone users can interact with QR Codes using their phone’s
camera, but the majority of feature phone users (representing 50% of US
users by the end of 2011) will not be able to interact with a QR Code.
There are several types of readers that people can download depending on Feature Phones (e.g. Nokia X3 and Motorola
Razor) use a standard manufacturer’s operating
the type of phone they use and what types of codes they need to scan. system and offer little to no support for 3rd party
Some examples are: i-nigma, UpCode, RedLaser, Mobiletag, NeoReader, software or applications.
QuickMark, ScanLife, BeeTagg, Kaywa, and Zxing.
Once people have downloaded a reader onto their phone, they can then
open the application and use their smartphone’s camera as a scanner to
target a QR Code:
Smartphones (e.g. IPhone, Android, Blackberry)
have a desktop computer-like operating systems
and support the download of third party
applications.
Various scanning screenshots using (from left to right) I-Nigma, BeeTagg, RedLaser, and ScanLife.
8. QR Codes 1 2 3 4 5 6 A Msgme Quick6 eBook
The Scan Plan: How QR Codes Drive Consumer Engagement
Once successfully captured, the reader application will convey the information contained by
the QR Code to the user. As you can see, some reader applications provide you with an option
to perform the action instructed by the QR Code, while others direct you automatically:
Various result screenshots using (from left to right) I-Nigma, BeeTagg, RedLaser, and ScanLife.
There are three main reasons that QR Codes do not work on certain phones:
• Code format: several types of scannable 2D codes exist, e.g. QR, Micro QR, Datamatrix, EZ
and Microsoft Tag. No current reader supports all types.
• Data storage: QR Codes can trigger several actions, e.g. hyperlink, send contact information or
open an SMS. Not all reader applications and phone models support each action type. Various types of
2D codes (from
• Output: QR Code output can vary in color, download size and download file type. Some top to bottom)
Micro QR,
readers and phones cannot return certain outputs. Datamatrix,, EZ
and Microsoft
At times something as simple as rotating a phone or downloading a different reader will result in Tag.
a successful scan. Including an SMS call to action or reader download instructions significantly
reduces the risk of users not being able to interact.
9. QR Codes 1 2 3 4 5 6 A Msgme Quick6 eBook
4 Know Their Role: What QR Can and Can’t Do
QR Codes are both powerful and limiting at the same time. It’s a tradeoff between increasing functionality
and decreasing user security that requires codes find a delicate balance. The most important distinction to
understand is the following:
OPERATION CAN DO CAN’T DO
Web Browser Open a web page on a phone’s browser Execute an action on an open web page
Phone Activate operational functions Execute operational functions
Given these general parameters, it’s easier then to think about specific actions:
OPERATION CAN DO CAN’T DO
Contact Info Add a vCard (Contact Info) to a user’s device Save a vCard to a user’s device
Email Open a pre-populated email Send an email
SMS Open a pre-populated SMS Send an SMS
Landing Page Open & pre-populate (some fields) on a Landing Page Confirm submit on a landing page
Facebook Open a page where you can “Like” content Automatically “Like” a Facebook Page
QR Codes Open a web page with a QR Code others can scan Send QR Code content without scan to another phone
Apps Open a web page where you can download an app Download an app automatically
Ringtone Open a web page to download an mp3 Install mp3 as a ringtone
10. QR Codes 1 2 3 4 5 6 A Msgme Quick6 eBook
Know Their Role: What QR Can and Can’t Do
The second crucial distinction to consider is how QR Codes function from a data perspective. In a QR Code
transaction several types of data exist, each with its own capabilities and limitations:
DATA SOURCE CAPABILITIES LIMITATIONS
Scans QR Code Understand when, where, and how many No ability to track the actions taken by the users;
Reader people scanned a certain code e.g. action on a website or if an SMS is sent.
Web Pages URL Shortener Visibility into how people are interacting with Need unique URL per user if you want specific user
various web pages information; no insight into phone operations, e.g.
voice calls or SMS
Phone Data Web Pull data about the person scanning the User must open a web browser to register data; no
code, e.g. phone type, carrier and IP address ability to grab phone number automatically
Phone Tasks Phone Pull data about tasks completed by users, No ability to track web actions or QR Code scans
e.g. SMS sent or calls made
Running a successful QR Code campaign requires understanding how to capture and use each of the data
types. Generally, Application Service Providers (ASPs) provide technology to enable effective data capture,
providing marketers the opportunity to focus on consumers and content.
One final consideration for running a QR Code campaign is figuring out how to drive more traffic, as 2D
codes without an effective call to action will generate minimal user engagement. Consider the following
2011 MGH Survey from eMarketer, which shows why people chose to scan a QR Code:
11. QR Codes 1 2 3 4 5 6 A Msgme Quick6 eBook
Know Their Role: What QR Can and Can’t Do
Reasons Users Have Scanned QR Codes in 2011
53%
Coupon
Sweepstakes
33% Opt-In for Updates
Access Video
26% Interact with Social Media
Don’t Know
24%
23%
2%
As the graph shows, higher participation rates come from building incentives into the call to action.
Because mobile phones are such a personal device, consumers will only participate if given a compelling
reason such as a coupon, sweepstakes entry or special offer.
This shouldn’t be news to marketers. It’s the same philosophy used to run any effective direct, email or
mobile marketing campaign. The excitement of an alluring technology makes it easy to forget, but battle-
tested consumer marketing principles still apply.
12. QR Codes 1 2 3 4 5 6 A Msgme Quick6 eBook
5 Get Your Intel: QR Code Innovation
Location: QR Codes’ design allows them to turn up almost anywhere. Some innovative locations
companies have used and discussed include:
Appearance: 2-D codes have an Error Correction Level (ECL) set by the code generator that gives
marketers freedom to adjust a code’s look and feel. Some 2-D code providers have pushed this even
further, effectively building a business around customizing appearance.
13. QR Codes 1 2 3 4 5 6 A Msgme Quick6 eBook
Get Your Intel: QR Code Innovation
Engagement: Beyond placement and appearance, companies are thinking outside the box when it come to
implementation. These examples demonstrate how to push campaigns beyond scan-and-go-to-website:
Goal Industry Implementation Company/Brand
User Engagement Video Level shaped as a 2D code; when scanned users received password for use Valve Corporation
Games in the game
User Engagement Video People could print 2D codes, hold them in front of the PlayStation scanner and Sony PlayStation
Games access various aspects of the game
User Engagement Video Users could create a 2D code for their personal avatar, which could then be Nintendo
Games shared with others
User Engagement Libraries Scanning 2D codes let users participate in interactive scavenger hunts New York Public Library
User Experience Airlines 2D codes used as boarding passes on international flights United Airlines
User Experience Real Estate Users could scan 2D codes to access virtual tours of apartments or office spaces Various
Social Sharing Retail 2D codes placed on price tags and other in-store materials allowed users to access Best Buy
online reviews
Video Sharing Retail By scanning 2D codes in magazine ads users could see interactive videos of new Golf Digest
products
Operations Retail 2D codes tracked unique garments every step through product lifecycle; users that The IOU Project
scanned could view this lifecycle
Marketing Retail Users could scan a code to view images displaying latest collection of products Tag Heuer
Commerce Food & Baristas could scan 2D codes off of a mobile application to deduct credits from Starbucks
Beverage person’s personal account
Cross-Channel Museum People could scan a 2D code, take a picture with a friend or family member, this Smithsonian Natural History Museum
automatically inserted person into museum exhibit photograph, which could then
be shared or emailed
Fun Tourism People could scan codes on landmarks and restaurants to take a self-guided tour CitySearch and Antenna Audio
through a particular neighborhood
14. QR Codes 1 2 3 4 5 6 A Msgme Quick6 eBook
6 Get Ahead: Key Tips To Maximize QR Code Campaign Success
Learning from others’ mistakes is the easiest way to bridge the gap bridge between a “QR Code
campaign” and an “unbelievably successful QR Code campaign.” Here are some classic pitfalls and
how to avoid them:
Low User Engagement
Potential Despite their popularity, Nielsen Company estimates that smartphones comprise only 40% of U.S. mobile
Issue
devices as of Q1 2011, and that this will grow to 50% by the end 2011. Plus, not all smartphone users know
how to download 2D code scanners. As a result, a significant percentage of consumers will not be able to
interact with 2D codes.
Alternate Calls to Action
Solution Include additional calls to action on your marketing materials, e.g. SMS (text) or IVR (voice), that achieve
the same effect as someone scanning a QR Code. You can also use an SMS or IVR call to action to provide
people with an easy way to download a reader that works with your code.
15. QR Codes 1 2 3 4 5 6 A Msgme Quick6 eBook
Get Ahead: Key Tips To Maximize QR Code Campaign Success
No Visibility Into ROI
Potential The potential for tracking engagement with QR Codes makes them extremely compelling for data-focused
Issue marketers. However, without the proper data, calculating ROI becomes problematic.
Ask vendors the right questions
Solution Make sure you define the exact goals you want to accomplish when talking with QR Code technology
providers. As explained above, tracking code scans vs. webpage traffic vs. user actions requires different
capabilities. Have vendors explain precisely how they are going to provide you with the data you need and
check in periodically to understand campaign status.
16. QR Codes 1 2 3 4 5 6 A Msgme Quick6 eBook
Get Ahead: Key Tips To Maximize QR Code Campaign Success
ROI is Low
Potential Low return from QR Code campaigns result from a combination of three factors: 1) lackluster incentives, 2)
Issue failure to track consumer information, and 3) poor user experience resulting from little to no interactivity.
These shortcomings arise when marketers take the perspective that 2D codes are a one-shot chance for
engagement.
Think about QR Codes In Terms of CRM
Solution The correct approach focuses on interactive communication with consumers as a means to maximize
customer lifetime value: Conduct A/B tests that determine what incentive will result in the best incentive-
cost to engagement-return ratio. Use QR Code data to add insight to your consumer database, such as
where ads should be located, what type of consumer interacts with your brand or which message
resonates best with your audience. Rather than solely directing to a website, use QR Codes to opt users
into a mobile subscriber database in order to establish an ongoing, interactive dialogue going forward.
17. QR Codes 1 2 3 4 5 6 A Msgme Quick6 eBook
Get Ahead: Key Tips To Maximize QR Code Campaign Success
Ineffective QR Code Image
Potential You roll out a QR Code that worked fine in your office, but failed once you published it in the real world,
Issue effectively eliminating any chance of earning a return on your marketing spend.
Recreate Environment of Live Campaign
Solution It may sound obvious and trite, but make sure to replicate eventual live conditions when testing a
2D code. For example, scanning on a computer screen is not sufficient. Make sure to test on a physical
rendering of the code, including the type of material that you will place it on (e.g. don’t test on paper if you are
posting on glass).
Smartphone and reader types also affect whether a 2D code can be scanned or not. Test your code with
smartphone cameras that use various resolutions and focus types (e.g. auto vs. manual). Small (1”x1”) and
complex 2D codes cannot be read by cameras with less than 4-megapixels (e.g. iPhone 3Gs and most
BlackBerry devices).
Since scan context, scan distance, and scan timing matter when scanning a 2D code, keep ideas like the
following in mind: 2D codes requiring web access need to be in a location with cell phone service. 2D codes
used on TV require sufficient time for user to pull out their phone + open an app + scan the code. 2D codes
used in a bar should be tested in darkly lit conditions. 2D codes on skyscrapers need to be tested at significant
distance.
Finally, make sure that your 2D code works with various reader types (e.g. Microsoft Tags can only be scanned
with Microsoft Tag readers).
18. QR Codes 1 2 3 4 5 6 A Msgme Quick6 eBook
Get Ahead: Key Tips To Maximize QR Code Campaign Success
Poor User Experience
Potential Your QR Code campaign, though moderately successful, didn’t blow away your expectations.
Issue
Think Like A User When Designing the Campaign
Solution As with most things, the little details really matter. Take for example QR Codes that direct users to a
website. That sounds fine from a brand perspective, but for a person scanning a code? Not quite. You need
QR Codes that direct users to a mobile optimized website.
Want another example? Take QR Codes placed on consumer packaging. One one hand, successful
companies will use these codes to direct users to a compelling campaign. After the campaign ends, users
that scan will receive an error or out of date message. On the other, market leading companies will ensure
that QR Codes remain updated and relevant throughout an entire product life cycle. Rather than sending
an error message, they will send an up-sell to a new campaign or subscriber opt-in list.
By adopting the above mindset, you should be well on your way toward achieving your QR Code goals.
More than anything, remember that QR Codes are an entry point for an audience to engage with a
product or service. Ask and answer for yourself, “What do I get” and “What does my audience get” at
each step along the way.
19. QR Codes 1 2 3 4 5 6 A Msgme Quick6 eBook
Thanks for reading!
Want to learn more about QR Codes and mobile marketing?
Check out our: blog @ blog.msgme.com or
webinars @ www.msgme.com/c/SolutionsWebinars
You can also email us with any questions at sales@msgme.com
The QR Codes eBook, part of the Msgme Quick6 eBook Series.
21. QR Codes 1 2 3 4 5 6 — Sources A Msgme Quick6 eBook
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