Best Practices to Make
Enhanced Barcodes Effective
New technologies are fueling some exciting ideas in the promotions space.
As they emerge, questions arise regarding the use of such technologies,
especially as they relate to coupon redemption. While the possibilities and
ideas are intriguing, they are not without challenges.
Today, some companies are touting the next best couponing concepts
enabled by barcodes on various discovery places, such as on-pack,
traditional print, on-shelf, and even on billboards. From proprietary codes to special graphic barcodes — 1D and 2D barcodes seem to be everywhere — barcodes are an effective way to help consumers discover more information about a particular product or engage in the newest collect-to-win game. This new way to interact with the consumer allows brands to speak one-on-one with their audience to provide additional information, translate their message into different languages, or incent consumers to purchase with an offer.
Using a consumer packaged goods digital coupon in barcode format on a mobile device at point-of-sale for redemption and reconciliation, however, makes the conversation more complex. Barcodes have been a staple on paper coupons for decades, but using them for redemption in the digital world poses challenges.
In the paper coupon ecosystem, for example, the paper is collected at the POS, and the checkout person places the coupon in the cash drawer. At the end of the shift, all those pieces of paper are consolidated and go to the clearinghouse to be counted. Once counted, the reconciliation process begins between the retailer and the manufacturer. If, however, the barcode for the coupon is in digital form, there is no piece of paper to put in the cash drawer: There is nothing to count, and the retailer is out that money, resulting in a reconciliation problem downstream and cash drawers that can’t be balanced.
Another obstacle arises because many retailers do not have the optical scanners needed to read 2D barcodes from a mobile phone screen. A majority of retailer lanes are equipped with laser scanners. Many have taken the position that the return on investment at this point does not justify the cost of optical scanners. Redeeming barcodes electronically also presents the opportunity for fraud. Barcode software is relatively easy to obtain and persons with larcenous intent can get very creative with technology. Some retailers also express concern that dealing with coupons on consumer phones could negatively impact in-lane performance.
The best use for barcodes in the digital couponing world is for discovery, and they can be a highly effective marketing tool for that purpose. Consumers can scan barcodes with mobile devices and be prompted to enter their “unique IDs or loyalty numbers” so that the offer can be routed to the POS. These types of offers are pre-loaded into the retailer’s POS. Once the offer is selected by the consumer, the POS can validate that the offer is good and that the consumer purchased the item.
This methodology for barcoding digital coupons is a scalable solution in that the consumer can choose the retailer from which they wish to redeem the offer. When a promotion can be targeted to a single consumer to be redeemed at a specific retail banner, barcodes can also house the consumer’s unique ID, as long as the back-end elements are set up properly within the retail systems.
Bottom line: when publishing digital offers, be as creative as you need to be to reach, inspire and motivate consumers through unique discovery options. However, consider carefully the routing and the back-end processes that must occur to make that offer work from beginning to end.
Information for this article was provided by John Thompson, vice president, strategy, and Sharon Wahrmund, director of digital publishing services, at Inmar, Winston-Salem, N.C. For more information, visit www.inmar.com or email solutions@inmar.com.
DIGITAL MARKETING
SECTION ONE
SECTION TWO
 |
Click on the LinkedIn logo to join the new Shopper Technology Institute Discussion Group
SECTION THREE
