advertisement
advertisement

One Of Out Three Retailers Screw Up QR Codes. They Are A Lot Harder To Use Than They Look

Written by Evan Schuman
October 19th, 2011

With all of the recent challenges retailers—including Macy’s and HSN—have had with QR codes, it’s not a surprise that many chains have underestimated how complex and difficult those little dot-filled squares can be.

It’s not really that QR codes are so complicated as much as it is that they are different. The problem is that they are misleadingly similar enough to retail-friendly barcodes that they lull many into thinking QR codes can be handled the same way. As chains have tried pushing the images beyond posters and into devices such as televisions and magazines, they have slammed into the logistical problems new technology brings.

For example: Where should the QR codes be placed? Should it be near the bottom of the screen? Well, what if the consumer time-shifts with a DVR or Tivo? A part of the code could be overridden by screen buttons. Place it in a glossy magazine? Good choice, but you have to steer clear of the page side toward any glued (perfect-bound) gutter or else consumers won’t be able to get a full scan of the image.

At one major QR code firm—Scanbuy—almost one out of every three retailers have run into various problems, often dealing with logistics that someone at the chain hadn’t thought through, said David Javitch, Scanbuy’s VP of Marketing. “Maybe two-thirds have done a pretty good job,” he said.

The biggest problem Javitch cites from working with retailers is the lack of a clean action when someone clicks on the code. “For many, we’ve seen no call to action, no nothing. It’s just sitting there,” he said. “What is the value you are providing your audience? It should take you to a mobile site with the ability to buy [the item] right then.”

Even when customers understand the QR codes and how to work with them—a definite minority these days—the codes need to do something concrete, and do it quickly. A popular early use of the codes has been on posters, which is good, but Javitch has seen a lot of those signs placed in subways. In New York City, he said, that’s often a bad idea, with just AT&T and T-Mobile customers able to get an underground connection—and even then it’s dicey.

The subway, and other dead-cell-zone areas, could be addressed through some type of a “store now and display later” approach, but Javitch said it may be too early for such a method.

That store-and-display later “is something [Scanbuy is] probably going to be doing” in the future, he said, but newcomers to QR codes are too impatient and too inclined to conclude that a lack of immediate response means the system isn’t working. “People want to see it right away,” Javitch said. Some systems today have the ability to access failed QR code efforts through the mobile device’s history function, but it’s not typically automatic and it’s too much to ask early consumers to do. That may work well down the road, though.

The lack of consumer patience can be a good thing, if the system is programmed to provide not only a concrete immediate action—for a movie promo, for example, that action might be to run a trailer or to immediately purchase tickets—but also a sharp discount for doing so. In fact, it could create some QR friends.

Another untapped area is CRM, along with aggregated marketing data, by leveraging the geolocation functions of the phone with the QR code and then tracking the immediate actions. Although this area could be delicately handled via an opt-in process, it’s also a function best left for later deployment. The new user wants speed, tangible rewards and nothing scary. Halloween’s imminence notwithstanding, creepy is an attribute that early QR code deployment should avoid.


advertisement

Comments are closed.

Newsletters

StorefrontBacktalk delivers the latest retail technology news & analysis. Join more than 60,000 retail IT leaders who subscribe to our free weekly email. Sign up today!
advertisement

Most Recent Comments

Why Did Gonzales Hackers Like European Cards So Much Better?

I am still unclear about the core point here-- why higher value of European cards. Supply and demand, yes, makes sense. But the fact that the cards were chip and pin (EMV) should make them less valuable because that demonstrably reduces the ability to use them fraudulently. Did the author mean that the chip and pin cards could be used in a country where EMV is not implemented--the US--and this mis-match make it easier to us them since the issuing banks may not have as robust anti-fraud controls as non-EMV banks because they assumed EMV would do the fraud prevention for them Read more...
Two possible reasons that I can think of and have seen in the past - 1) Cards issued by European banks when used online cross border don't usually support AVS checks. So, when a European card is used with a billing address that's in the US, an ecom merchant wouldn't necessarily know that the shipping zip code doesn't match the billing code. 2) Also, in offline chip countries the card determines whether or not a transaction is approved, not the issuer. In my experience, European issuers haven't developed the same checks on authorization requests as US issuers. So, these cards might be more valuable because they are more likely to get approved. Read more...
A smart card slot in terminals doesn't mean there is a reader or that the reader is activated. Then, activated reader or not, the U.S. processors don't have apps certified or ready to load into those terminals to accept and process smart card transactions just yet. Don't get your card(t) before the terminal (horse). Read more...
The marketplace does speak. More fraud capacity translates to higher value for the stolen data. Because nearly 100% of all US transactions are authorized online in real time, we have less fraud regardless of whether the card is Magstripe only or chip and PIn. Hence, $10 prices for US cards vs $25 for the European counterparts. Read more...
@David True. The European cards have both an EMV chip AND a mag stripe. Europeans may generally use the chip for their transactions, but the insecure stripe remains vulnerable to skimming, whether it be from a false front on an ATM or a dishonest waiter with a handheld skimmer. If their stripe is skimmed, the track data can still be cloned and used fraudulently in the United States. If European banks only detect fraud from 9-5 GMT, that might explain why American criminals prefer them over American bank issued cards, who have fraud detection in place 24x7. Read more...

StorefrontBacktalk
Our apologies. Due to legal and security copyright issues, we can't facilitate the printing of Premium Content. If you absolutely need a hard copy, please contact customer service.