A Guide To Connected Packaging – Updated
Competitive advantage is critical for online retailers and ecommerce businesses who are looking to get ahead in a saturated market. Capturing the hearts and minds of shoppers is often key to securing business…
In our 2023 unboxing survey, 40 % of consumers reported that branded packaging can influence them to buy again. This highlights how transit packaging can play an important role in the customer experience.
When you think about it, the packaging materials online retailers use are often the first physical touchpoint in their customer journey. So, it makes sense for retailers to leverage this opportunity and make the most of it. In the digital era we inhabit, simple branding may no longer be enough, while it creates visual impact, consumers are looking for experiences that really stand out. What’s the next step? Enter, connected packaging…
To align their physical and digital customer experiences, online, multi and omni-channel retailers can start considering connected packaging. It presents an all new creative opportunity for retailers to gain a competitive edge and represents a new trend in retail technology.
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What is connected packaging?
Connected packaging is packaging that can be transformed into a digital experience. This is achieved by printing packaging with QR codes, barcodes or images that can be scanned with a smart device that launches a digital experience in a browser-based app.
Also classed as smart packaging, this type of packaging can feature RFID or NFC technology where users can tap their phone against packaging to interact with it.
Exploring different types of QR codes used for connected packaging
With connected packaging there are different types of QR codes to get to grips with, which can be used in different ways to enhance the consumer experience. Let’s explore a couple of options and how they could be used internally and for customers…
Before a product even reaches the customer, connected packaging can save time in the warehouse by using SKU (Stock Keeping Unit) QR codes. This QR code may look like a classic barcode but it unlocks so much potential for things, like inventory control, as each packaged product can simply be scanned and information stored in digital databases.
In comparison, serialised QR codes can help to deliver unforgettable unboxing experiences for customers. Each code is unique for every product and can be easily customised making them precise and trackable. Of course, they can be used for content delivery, such as videos on how to use the product too. Plus, serialised QR codes can be useful when thinking about product specific requirements which a customer could scan to learn more about.
What’s the difference between connected packaging, intelligent packaging, and smart packaging?
These terms might seem interchangeable – they all mean the same thing, right? Well, not exactly.
As mentioned, connected packaging is when you leverage technology, like QR codes or NFC technology, to create an interactive (or connecting) experience for consumers.
Intelligent packaging is used to monitor the conditions of packed products, such as food, with sensors. It’s particularly useful in cold chain industries, where temperature sensitivity of products is critical.
Smart packaging is an umbrella term for any packaging that has enhanced functions, so both connected packaging and intelligent packaging could be referred to by this name!
What are some of the advantages of connected packaging for B2B and B2C organisations?
Connected packaging can offer advantages to B2B and B2C businesses alike. Let’s explore some of these…
- Creating instant feedback loops- Connected packaging can be used to interact with customers in terms of feedback and provides a way to create instant content delivery. Scanning a QR code that takes the customer straight back to a page where they can leave a review of things like the overall service and product rating is a great way to gain valuable information and analytics.
- Enhancing customer experience- Connected packaging can give customers a better product experience as well as making the product more accessible, something which is paramount to stand out in a competitive retail environment.
- Reinforcing Branding – The story for business-to-business organisations is also very similar. Connected packaging is a groundbreaking way to develop content and reinforce branding.
- Easily communicating key messages- Connected packaging can be used internally for training purposes. Imagine having a way to communicate and train a sales team on a new product with a simple QR code on the product’s outer packaging that takes you to an informative video all about the key selling points of it. This could save time and valuable resources.
Providing consumers with connection – how connected packaging can enhance the unboxing experience
With consumer behavior perpetually changing, connected packaging presents new opportunities to provide online shoppers with a new way to connect with retailer brands. It’s a way to communicate and engage on top of standard branding practices.
In the age of social media, there are millions of unboxing videos on the internet. The ritual of unboxing a new product or opening a haul is everywhere. Google estimates that people have spent so much time watching unboxing videos, its equivalent to watching Love Actually 20 million times.
Who wouldn’t want a slice of that pie? A positive unboxing experience not only reaches the customer who opened the parcel but could reach a huge audience if they post their encounter online. Using connected packaging is certainly a way for retailers to stand out. Plus, it could be a great tool for brands who use influencer marketing as part of their strategy.
Reaching your sustainability goals with connected packaging
We have explored what connected packaging can offer to customers and businesses but how can it be used to contribute to a circular economy?
With the impact of packaging on the environment becoming more prevalent in today’s market, connected packaging can offer a simple solution to minimise packaging waste and strengthen businesses’ sustainability goals and reputation.
An interesting way this can be done using a QR code is to give consumers details on how to recycle the packaging provided. Specific serialised QR codes could be used to provide recycling instructions by region as well as tracking returnable packaging all the way back to its origin.
Leveraging connected packaging to build long-lasting customer relationships
Connected packaging not only holds the potential to be a new marketing opportunity, but it also offers online retailers a way to further understand the needs and wants of their customers, as they interact with their packaging. Just like loyalty cards, connected packaging is a great way to collect marketing data!
Using this type of packaging, you can look at measuring interactions, engagement and conversion of a particular campaign. Plus, connected packaging allows retailers to think big picture too and capture information about trends, brand saliency and efficacy, as well as spend optimisation and efficiency.
The data collected can help retail brands to build long-standing relationships with consumers and drive repeat sales. Plus, consumers are receptive to connecting with brands through packaging and there’s evidence to back this up…
- 49% shoppers think that their shopping experience would be better if retailers offered promotions related to past purchases.
- 65% UK consumers said they’d be willing to take the time to work out how to engage with a product via their smartphone.
- 45% of shoppers in the UK say they expect to interact more with connected packaging in the near future.
- 62% UK buyers said they are more likely to buy a connected product if it links them to a loyalty scheme.
Connected packaging examples – how you can deliver a wow-moment with your packaging
So, once a consumer has scanned or interacted with your packaging, how can you deliver that wow-moment?
Well, the experience your connected packaging launches really can be as simple or as complex as you want it to be. Connected packaging examples include using a QR code to launch a simple web page, or even a full augmented reality experience. For example, after scanning, you could launch a game that allows customers to win prizes or just direct them to instructions on how to recycle the packaging your product has been shipped in.
But what do consumers want from connected packaging? In essence, they want to get added value from their experience.
In the UK, consumers have a big preference for discount on future purchases, with 85% of people telling SharpEnd this is what they desire. Instructions for use and customer support were also reported by consumers as content they were interested in. 75% consumers were also interested in how to recycle a product. These consumer preferences highlight that the experience brands deliver is as much about informational transparency, as it is about repeat purchases.
Deliver a memorable unboxing experience with connected packaging
Interested in exploring the potential of connected packaging? The Innovation Lab team at Macfarlane Packaging are experts in packaging design and have the capability to support connected packaging projects.
For more information, get in touch with us today or click to take a virtual tour of our Innovation Lab facility today.