June 21st, 2023

How consumer engagement mechanisms such as QR codes, labels, or apps can provide product stories and information based on traceability data

Consumer engagement is a key concept in marketing that refers to the degree of involvement, interaction and emotional connection that consumers have with a brand or a product. Consumer engagement can influence consumer loyalty, satisfaction, advocacy and ultimately sales performance.

Therefore, marketers are constantly looking for new ways to engage consumers and create meaningful relationships with them.

One of the emerging trends in consumer engagement is the use of digital technologies to provide product stories and information based on traceability data. Traceability data is the information that allows tracking the origin, history and quality of a product along the supply chain, from the source to the store. Traceability data can include information such as:

  • The location and identity of the suppliers, producers, processors and distributors involved in the product’s journey
  • The environmental and social impacts of the product’s production and transportation
  • The ingredients, components, materials and certifications of the product
  • The health and safety standards and regulations that the product complies with
  • The expiration date, storage conditions and usage instructions of the product
Traceability data can provide value to both consumers and brands by enhancing transparency, trust, authenticity and differentiation. Consumers can benefit from traceability data by:

  • Gaining access to relevant and reliable information about the product’s features, benefits and impacts
  • Making informed and conscious purchasing decisions based on their personal values and preferences
  • Verifying the quality and safety of the product and avoiding counterfeit or fraudulent products
  • Engaging with the product’s story and connecting with its purpose and values
  • Participating in loyalty programs, feedback surveys, social media campaigns and other interactive activities related to the product
Brands can benefit from traceability data by:

  • Demonstrating their commitment to sustainability, ethics, innovation and excellence
  • Building consumer trust, loyalty and advocacy by providing transparency and accountability
  • Differentiating their products from competitors by highlighting their unique selling points and value propositions
  • Collecting valuable consumer data and insights to improve their products, services and marketing strategies
  • Driving consumer traffic, engagement and sales across different channels and platforms
However, traceability data alone is not enough to engage consumers. Brands need to find effective ways to communicate and deliver traceability data to consumers in an accessible, attractive and engaging manner. This is where consumer engagement mechanisms such as QR codes, labels or apps come into play.

QR codes

QR codes are two-dimensional barcodes that can be scanned by smartphones or other devices to access digital content or perform specific actions. QR codes are widely used in various industries and contexts for different purposes, such as payments, identification, authentication, ticketing, coupons, etc. QR codes can also be used as consumer engagement mechanisms to provide product stories and information based on traceability data.

For example, Transparency-One1 is a digital solution that enables brands to collect batch-lot data for their products from their suppliers along the supply chain. Brands can then generate QR codes for their products that link to a web page where consumers can access detailed information about the product’s origin, history, ingredients, certifications, impacts and more. Consumers can also interact with the brand through feedback forms, social media sharing buttons or other features.

Another example is SmartLabel, an initiative launched by the Grocery Manufacturers Association (GMA) in collaboration with retailers and manufacturers. SmartLabel allows brands to provide more information about their products than what is available on the package label. Brands can create QR codes for their products that link to a web page where consumers can find information such as nutrition facts, allergens, ingredients sources, environmental attributes, etc.

Labels

Labels are printed or electronic tags or stickers that are attached to a product or its packaging. Labels typically contain information such as the product name, brand logo, price, barcode, etc. Labels can also be used as consumer engagement mechanisms to provide product stories and information based on traceability data.

For example, Fairtrade is a global movement that aims to promote fair trade practices between producers and consumers. Fairtrade certifies products that meet its social, environmental and economic standards. Fairtrade also provides labels for its certified products that indicate the origin, quality and impact of the product. Consumers can scan the label with their smartphones or visit the Fairtrade website to learn more about the product’s story, the farmers who produced it, the benefits they receive from Fairtrade and how they can support them.

Another example is HowGood, a company that provides ratings for food products based on their environmental, social and health impacts. HowGood analyzes over 60 indicators across four categories: growing guidelines, processing practices, company conduct and health benefits. HowGood then assigns a rating of Good, Great or Best to each product based on its overall performance. HowGood also provides labels for its rated products that display the rating and a summary of the product’s impacts. Consumers can scan the label with their smartphones or visit the HowGood website to access more detailed information and recommendations.

Apps

Apps are software applications that can be downloaded and installed on smartphones or other devices. Apps typically provide various functions and features that allow users to perform different tasks, such as browsing, shopping, gaming, learning, etc. Apps can also be used as consumer engagement mechanisms to provide product stories and information based on traceability data.

For example, Provenance is a platform that enables brands to create digital passports for their products that contain traceability data and verifications. Brands can then use the Provenance app to scan their products and access their digital passports. Consumers can also use the Provenance app to scan the products they buy or encounter and access their digital passports. Consumers can then learn about the product’s origin, history, quality, impact and more. Consumers can also interact with the brand and other consumers through reviews, ratings, comments, etc.

Another example is OpenLabel, an app that allows consumers to scan any product barcode and access information about the product’s ingredients, health effects, environmental impact, social responsibility, etc. The information is sourced from various databases, organizations, experts and users. Consumers can also contribute their own information, opinions and ratings about the products they scan. Consumers can also discover alternative products that match their values and preferences.

Conclusion

Consumer engagement mechanisms such as QR codes, labels or apps can provide product stories and information based on traceability data. Traceability data can enhance transparency, trust, authenticity and differentiation for both consumers and brands. Consumer engagement mechanisms can help communicate and deliver traceability data to consumers in an accessible, attractive and engaging manner. Consumer engagement mechanisms can also facilitate interaction and feedback between consumers and brands. Consumer engagement mechanisms can ultimately increase consumer loyalty, satisfaction, advocacy and sales performance.