The evolution of QR codes and modern customer expectations
Tara Daly
·July 9, 2024
The role of QR codes in retail has evolved significantly over the last five years—spurred on by the transition to the need for touchless encounters during the start of the 2020 pandemic.
QR codes, or Quick Response codes, were first developed in Japan in the 1990s as a way to track automotive parts. However, their use has now expanded far beyond that initial purpose, and is particularly important in retail technology.
In this article, we’ll look at the evolution of QR codes, and how ecommerce businesses can take advantage of this important technology in their operations.
What are QR codes?
QR codes are two-dimensional barcodes that can be scanned by a smartphone or other mobile device. They were created to store data in a more efficient and user-friendly way than traditional barcodes, which could only hold limited information.
Originally used for tracking inventory and identifying products, QR codes have now become an integral part of the retail landscape. With the rise of online shopping and contactless transactions, they offer a convenient and safe way for customers to access product information or promotional offers, make purchases, and scan in items for return shipping.
How have QR codes evolved in retail?
The use of QR codes was limited to business-to-business functions for many years, as employees needed special QR code readers to view the data. But as smartphones gained widespread adoption, reaching 77% of American consumers by 2016, individuals were able to tap into their phone’s camera to instantly read QR codes, with no need for any special equipment.
Retailers began taking advantage of QR codes by sending their customers print mailers with scannable QR codes linking to their landing page, or encouraging visitors to trade shows to scan a QR code to see the booth’s website.
But widespread usage was still relatively limited until the lockdown era: While 52.6 million Americans scanned QR codes in 2019, that number has jumped to 94.7 million in 2024. As it became necessary to limit physical contact in retail establishments, turning to QR codes was an ideal way for businesses to engage with consumers in a way that felt safe and hygienic—and now that consumers are used to the technology, they’ve implemented it into their daily life.
So how can you use QR code technology most effectively as a retailer, whether in-store or online?
Using QR codes to streamline customer interactions
Whether you’re a brick-and-mortar retailer, solely online, or a mix of both, QR codes can provide numerous opportunities to engage with your customers. Consider these options:
Product information and reviews
Placing QR codes near products in your store or on your website can give customers quick access to detailed product information, reviews and ratings. This can help them make informed purchasing decisions and decrease the likelihood of returns.
Loyalty programs
Instead of carrying around a physical loyalty card or inputting a phone number or email address, customers can simply scan a QR code at the register or during online checkout to collect points or rewards.
Contactless payments
QR codes provide a secure and convenient option for customers to pay for their purchases directly from their smartphones, with no need to get out a credit card or touch any surfaces.
Personalized promotions
By scanning QR codes in-store while logged into your app or website, customers can receive personalized promotions and discounts based on their past purchases or interests. This not only increases customer satisfaction but also encourages repeat purchases and brand loyalty.
Inventory research
Customers can scan QR codes at in-store kiosks to look up inventory levels of products and request to have them shipped to their store or home—ideal for situations when a customer wants a particular item but your store is out of their size or color choice.
Package return scans
Finally, QR codes offer a simple and convenient alternative to requiring your customers to print out mailing labels to send back product returns that they’ve purchased online. By providing customers with a QR code to scan at a nearby shipping carrier or drop-off center, they can instantly share the necessary information with the shipping company to facilitate the return process. You can set up your returns process to offer the customer their refund or exchange credit on the spot, delivering a great customer experience that will result in higher retention.
The importance of choice
While QR codes can provide enhanced convenience for customers who love making their smartphones a part of the online and off-line retail experience, it’s important to keep in mind the customers who’d rather stick with tradition.
In fact, 47% of restaurant customers said that they aren’t comfortable using QR codes to view menus, order, or pay, according to a survey from William Blair. That data shows the importance of providing choices to your customers, whether you’re a restaurant or retail brand. Don’t alienate close to half of your customer base just to make it easier for the other half—make sure that you’re offering customization options for your shoppers to direct their own experience, based on their unique needs and preferences.
For a restaurant, that might mean pasting QR codes on each table, but offering paper menus on request. For an ecommerce retailer, that can mean offering customers the choice between printing out mailing labels, or bringing a scannable QR code to a USPS location or other shipping facility. In any situation, giving your customers options will ensure that they have the most positive and comfortable experience with your brand possible.
That also holds true through the returns process: By giving your shoppers access to Shop Now, Shop Later models, in which they can either choose an instant product exchange or hold on to store credit for later use, they’ll feel confident that they can make the decision that’s right for them, on their own timeline.
By adopting QR codes alongside returns management technology, using a platform like Loop, you can give your customers access to a streamlined, customized returns experience that caters to their needs and will deliver a great returns experience every time.
Learn more about how Loop can help you offer QR code-based returns.
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