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5 Ways Serialized QR Codes Bring Loyalty and Rewards Programs to Life

January 29, 2025

The Evolution of QR Codes

QR (quick response) codes, first developed in 1994 for tracking vehicles and parts in assembly lines, gained significant traction in 2010 with the advent of smartphone QR code scanners. However, the real boom came during the 2020 pandemic, when touchless interactions became essential. QR codes allowed companies to share information efficiently, transforming them into a ubiquitous tool for digital engagement.

Today, brands across the consumer product goods (CPG) industry are leveraging serialized 2D barcodes, like QR codes encoded with GS1 Digital Link, to create multi-purpose digital identity platforms for retail. By embedding a single, dynamic QR code on product packaging, brands can unlock opportunities to engage customers, offer personalized experiences, and drive loyalty. Dynamic redirection (redirecting 2D codes to alternative URLs) allows brands to update QR code content on demand to ensure loyalty and rewards programs align with current campaigns to keep experiences fresh and customers engaged.

What Makes a QR-Powered Loyalty Program Work?

1. Personalization at the Core

Successful loyalty programs go beyond points and rewards—they’re about building meaningful relationships with customers. Today’s consumers expect personalized content and experiences tailored to their preferences. Serialized QR codes enable brands to deliver real-time, relevant offers that show they understand customer behavior. This level of personalization not only boosts redemption rates and repeat purchases but also fosters long-term loyalty and advocacy.

Examples of personalized engagement include:

  • Exclusive invites to events or product launches.
  • Early access to seasonal collections.
  • Rewards tied to cause-based initiatives, aligning with customers’ values.

2. Data-Driven Insights for Real-Time Engagement

Serialized QR codes provide a wealth of actionable customer data. When a customer scans the code, it transmits real-time information like the scan's time, location, and associated product details. These analytics help brands:

  • Understand product popularity.
  • Optimize promotional campaigns.
  • Identify peak times for customer engagement.

For seasonal packaging, encoding GS1 Digital Link into 2D codes provides the added benefit of dynamic redirection, allowing brands to seamlessly direct customers to seasonal content and gather valuable consumer insights without altering packaging designs. This flexibility enables brands to evaluate the performance of seasonal campaigns alongside standard product promotions. Digimarc Engage, powered by Digimarc advanced QR codes, bridge customer interactions and actionable business intelligence.

3. Flexibility and Variety in Rewards

Serialized QR codes empower brands to offer dynamic, interchangeable rewards without reprinting codes. Rewards can include:

  • Discounts or loyalty points.
  • Exclusive content or access to experiences.
  • Gamified elements like digital scratch cards or randomized prizes.

By incorporating interactive features, serialized QR codes keep customers engaged, encouraging frequent participation in loyalty programs.

4. Convenience

Serialized QR codes make it easy for customers to redeem their loyalty points with a simple scan, which isn’t possible with a static QR code. Most loyalty programsrequire that a customer manually enter a specific, often long, product code to register and claim rewards points. Serialized codes ensure that information is retrieved directly via the link, so the manual step is eliminated. This makes the experience convenient and easy for customers to participate in loyalty programs, which translates to more engagement.

5. Improved Redemption Tracking and Fraud Prevention

With serialized codes, brands can track when an individual code is claimed or unclaimed. This streamlines the redemption process and keeps bad actors from abusing the system by extracting rewards points and credits from a single product. When a code is scanned for redemption, the system can immediately mark it as ‘claimed,’ ensuring that no single code can be reused. With real-time tracking, brands can provide instant feedback to customers during the redemption process. This helps reduce errors and frustration, leading to a smoother experience that keeps customers engaged.

Ready to Build Your Dynamic Loyalty Program?

Serialized QR codes are revolutionizing loyalty programs by merging personalization, data insights, and seamless engagement. If you’re ready to enhance your customer loyalty efforts, Digimarc can help you get started.

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