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QR codes for increasing the efficiency of marketing solutions and assessing customer interest in the product

QR codes in marketing

Manufacturing and trading companies are heavily investing in marketing strategies. However, it is difficult to assess the effectiveness of these investments in a particular marketing solution. For a company, a manufacturer of various products, to obtain reliable assessments is quite difficult, as the bulk of sales are made through third-party distribution channels.

In most cases, monitoring the impact of each marketing strategy on consumers at each point of sale of goods is economically impossible. In fact, a marketer cannot fairly and considerately evaluate the effectiveness of marketing strategies at all places of sale of their products, and the basic assessment of the effectiveness of marketing in terms of sales is very subjective. This evaluation is created by unifying subjects (city, region, country), although, generally, even within a single urban area demand and factors may differ (varying incomes, diverse nationalities, traditions, etc.) due to the fact that the marketing strategies are being based on the generalized data, while the effectiveness is just the average of all places of sale. Therefore, if a marketer adjusts his strategy to be more specific, then he will be able to enhance the effectiveness of his strategy by “fine-tuning” specific sales within a target budget, rather than at the cost of additional capital.

To solve the given problem, PVCode LLC was created by the marketing service TrustThisProduct®, which gives marketers a real tool for evaluating the effectiveness of a marketing strategy based on credible marketing data for each product at each point of sale. The performance of the service is based on marketing information received from end users of a company's product, presented in the stores or other retail outlets. This service does not include the involvement of third parties (vendors, consultants, promoters, etc.) to implement the contact between the product on the shelves and the buyer. All data is processed online and available to marketers in the form of ready-made reports.

The marketing service will allow us to identify both the interest of consumers in general, as well as differences in the demand for different types of goods of any one manufacturer at each point of sale (receiving data on consumers, such as sex, age, language). Comparing this data with the data on the amount of sales and marketing activities undertaken will make it possible to carry out a comprehensive assessment of the marketing strategy and the "point" to improve its efficiency.

How does it work?

To conduct a thorough market research, it is essential to choose a method of data collection. Taking into account the need to provide data, without additional personnel, it is appropriate to use smartphones to solve the problem of consumers. According to the authoritative portal, eMarketer, the number of users of smartphones in the world is continually increasing, and by 2016, there will be about 2 billion devices in use. The penetration rate of mobile Internet in the world is extremely high, and covers almost all cities and countries. The shares of penetration are estimated from various sources 90% to 95% of area.

The next step is to determine the interaction between smartphone consumers with goods manufacturers, and how the information will be collected for subsequent marketing analysis. As an option, you can suggest the optimal use of technology QR-code. This is not the only way to collect data, but the practice shows that at the moment it is the simplest and most affordable for customers and manufacturers. Software recognition for QR codes is free and submitted to all manufacturers of mobile devices. For example, if you have a smartphone without software to recognize QR Codes, you just type a shortened link address to our service QR9.me into your smartphone’s browser to download it. Therefore, the use of QR-code technology can be used by any user anywhere in the world.

We consider the essence of the proposed method of the use of QR-codes for accurate marketing information. The company brings in the useful service of TrustThisProduct to obtain customer information about the product and puts QR-codes on their products (on the tag, the product itself, etc.). All entered information should be of interest to the customer, something rational. When scanning a QR-code, GPS-coordinates are received, as well as the requested data of the sex and the age of the buyer. It automatically detects the language group of the user from their mobile device. As a result, you get data on the geography, age, and sex characteristics and the language group for the consumer goods. These can be obtained for each type of product up to a single point of sale of goods.

You can collect information by other means, as well, for example, using NFC tags which contains a link to the product description. However, the application of QR-codes is the best option at the moment, in terms of simplicity, accessibility, use for consumers and the smallest investment for companies.

At the moment, with this method there is only one problem: the small amount of QR-Code scans of customers at point of sale. Now, many companies place QR-codes on their products, but the interest in scanning these codes by buyers is small because most of them do not benefit from it themselves from using an application to read QR-code, or just do not realize what a QR-code is and how to use it. In most cases, companies do not try to draw attention to their products with QR-codes; most only implement in a link to their web-site, or do not use this method at all to deliver information to consumers. To increase the number of scans, it is essential to seriously encourage buyers to take advantage of this offer.

To solve the problem of stimulating consumers to scan QR Codes on the goods you need, first off, create an informative and appealing label containing the QR code, and second off, provide a sufficient range of options that consumers get when they scan the QR code. When the service TrustThisProduct implements from the point of view of the consumer it is based on the following features:

  • Submitted information about the product: buyers can, within seconds, receive more information about the product and make an informed choice directly at the point of sale. This information will automatically be available in the language of the buyer, optimized for viewing on their smartphone.
  • Protection against counterfeits: by using unique QR Codes and applying unique numbers of the goods, buyers will be able to verify the authenticity of the product at the point of sale.
  • Feedback: buyers can send feedback or suggestions directly to the manager responsible for the treatment of customers by the company, directly from their smartphone.
  • Many additional convenient features: for example, with one-click the consumer can save the contact information onto their phone, and share with their friends a link to the product via social media.

With this adoption of the TrustThisProduct service, manufacturers will be able to not only increase the loyalty of their customers by presenting them with full and accurate information about their products, but also see a rise in the number of scans of QR-codes on the products that will enable the collection and processing of marketing data down to each item and each individual outlet.

What is the margin of error from received data?

When processing the data obtained by the marketing services of TrustThisProduct ®, you must take into account two very important criteria. First, you need to pay attention to some inaccuracy in the data obtained as a result of any marketing study (margin of error). Secondly, you need to determine the minimum sample data that will analyze the information (sample size). In the table below, we have systemized both of these options, taking into account the generally socially accepted concepts.

Margin of Error

1%

3%

5%

10%

15%

20%

Sample Size

6000

700

250

60

30

18

The question of error and the minimal sample data market research is subject to many works, some of them can be found through the links: http://www.measuringu.com/survey-sample-size.php, https://en.wikipedia.org/wiki/Margin_of_error.

As seen in the table, to obtain full marketing data, it is essential to have a minimum amount of reviewers. When entering the qualitative information about the product and bringing the attention of buyers to the QR code on a product (which prompts consumers to obtain information about that product), you can analyze the data on virtually every point of sale. For example, if the level of error is 10% when the sufficient sample of 60 reviewers, then a full analysis of marketing data can be reached for each place of sale for products of your company. At the same time, selective collection of the data analysis of macro-regions (city, region, country) will be much higher and will bring the error of the data to a minimum.

How is the service TrustThisProduct internally structured?

The TrustThisProduct® service consists of two parts: a section for buyers, TrustThisProduct.com, and a section for companies, PVCode.com.

The company enters information about their products into a database on the server PVCode.com. The service then duplicates the data onto the servers at TrustThisProduct.com, which are located all over the world, and sends requests to the closest customers for their servers. Hence, reducing the amount of time for customers to receive data about the product and provide access to the data regardless of the load from international communication channels, as well as other restrictions on the transfer of data between States. After all, if a buyer is experiencing a long wait for a response to their request, often at points of sales, the effectiveness of these requests will decline sharply. Service employees constantly evaluate the geo-location of the data being received from consumers who are looking at the products and organize new servers at TrustThisProduct.com as close as possible to the regions with the highest demand. For example, if an increasing number of inquiries come from buyers in Brazil and Argentina, the new servers will start running in South America, with an increase in a number of requests from China or Japan, new servers will run in Asia, and so forth.

An important feature of the service is the support of the automatic detection of the language group of buyers in accordance to the ISO 639-1 standard. All data is displayed in easy-to-consume language. For example, if the primary language is French on their smartphone, then the data is displayed in French (if the item description is available in that language). This makes the service very convenient for the customers.

For manufacturers, the service is implemented with a full cycle of information management products, fully automated with the generation of QR codes. It includes thorough technical aspects of the implementation of the production process. Services most convenient to use are those that do not require additional costs such as IT-infrastructure and IT-specialists. As a result, companies can quickly and easily enter a description of their products and place QR-codes on products to enable buyers (with just a few clicks) to get complete and accurate information about the product directly in the field at the point of sale of goods. Hence, the service TrustThisProduct® becomes both convenient and useful for both companies and consumers of products of these companies.

What does a manufacturer get?

1. Strategy handled by an independent market research at point of sale location.

The ability to assess the effectiveness of the impact of your marketing solutions on consumers. For example, you can see exactly how the interest of the audience affects your advertising activities and in which regions. Or by comparing data on the scans of various items, you can identify exactly which of your products causes the greatest demand among consumers.

2. Increased customer loyalty.

Customers receive complete, accurate information in the language convenient for them. The more accurate and complete the information is about product that is available to the buyer, the more likely he will be to buy the product. And as a result, they will be more satisfied with their purchase. According to the theory of Trust-Based marketing, customer trust and loyalty to a manufacturer who presents useful, accurate information about their product will continue to grow, which in turn will increase the sales of the manufacturers products.

3.It protects brand.

If a company operates in emerging markets, where the level of counterfeiting is traditionally high, the use of the technologically unique QR Codes will both reduce the level of counterfeit goods, and obtain data on such phenomena as the re-export of gray imports (by tracking geographical spread).

4. It highlights the products among those of the same category.

By using unique QR codes for each product unit, you give the buyer an understanding that your product is so good that you are taking steps to protect it. Also in the eyes of consumers, this will create a sense of uniqueness of each one of your products by selecting it among a variety of the same type and thereby raise its value. This will have an effect on the consumer even if they do not scan the QR code, but only physically see it.

As a result, by using the TrustThisProduct® service, companies have an opportunity to not only conduct full, and in fact unique, market research, but also receive a number of additional advantages in marketing and sales with minimal financial, technological or human resources investment.

Sign up for the service and add your products into TrustThisProduct® marketing service for free.

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