You’ve probably seen them – those Rorschach-looking inkblot designs in magazines, on point of sale displays, maybe at Starbucks. They are called 2D (two dimensional) codes and if you scan them with a reader in your smart phone, you can download information, be taken to a website, launch an application, or even pay for your cup of coffee at Starbucks. If you download the code from your airline, you don’t need a paper boarding pass any more.
Providing data on mobile devices through 2D codes (comprising QR, quick response, and datamatrix codes) is called mobile tagging.
Mobile tagging takes us beyond SMS messaging where we can receive coupons or notifications about sales or even find out that the store we are passing is having a special on bananas or iPads right now. They add a new dimension to traditional barcodes, which are linear, providing product specific information, even when attached to mobile applications.
They are the future. Whether one is scanning a code from a newspaper or catalog to buy a product, or from a postcard to learn where the nearest store is, or off the computer in order to send a cool video to a friend’s smart phone, or copying a link from an x-ray which can be brought with you to the doctor’s office, we are on the cusp of a communication paradigm shift.
There are certainly some bugs to work out, particularly involving security/identity theft, but sooner rather than later we will be scanning and downloading mobile tags into our phones.
As marketers, we need to be in the mobile space with apps available for Droid, Blackberry, iPhone and other smart phone platforms – and we need to be updating constantly. As consumers, mobile tagging is convenient and scary. We could leave the house with nothing but our phones and lipstick, but if the phone is lost or stolen, the thief would not only be able to run up the phone bill, but would also have bank and credit card account access. The key will be striking a balance between convenience and security.
Industry analysts estimate that retailers will need to invest upwards of $10 billion to upgrade to a mobile payment system. The new payment system would reflect a boom for both retail and the economy. But it’s a serious investment. The future of mobile payment won’t move forward until it’s accepted by the largest and most frequently used retailers, like supermarkets. So, for now, while customers do not need their wallets to pay at Starbucks, they do still need it at Shop Rite. We believe most retailers will wait to make this transactional investment until a larger player sets it in motion.
The key will be figuring out how to offer the convenience while maintaining the right level of security.
But in the meantime, merchants in all channels need to be moving into mobile – start using 2D codes in customer communications, consider 2D and SMS coupons, create contests that can be entered through texting… A coupon sent to a customer’s mobile device allows for instant action and for the coupon to be automatically applied in payment. Instant gratification for both the consumer and the retailer. It is the next wave of Customer Relationship Management, maintaining a customer focus and at the same time adding to understanding how the customer shops.
Brands will then have to strike a balance between timely and relevant communication with their customers and making their customers feel as if they are being stalked. We are helping our clients determine the most cost effective ways to communicate with customers and how to create an integrated marketing strategy that encompasses all channels the customer is likely to use.
Tag you’re it!
Tags: 2D, coupons, CRM, customer experience, Customer Relationship Management, ecommerce, mobile customer service, mobile marketing, mobile media, mobile tagging, retail marketing, SMS Category: Newsletter Articles. You can skip to the end and leave a response. Pinging is currently not allowed.