Thursday, July 14, 2011

The Rise and Fall of QR Codes

Those cutting edge mobile codes called QR Codes are making their mark on US mail pieces with a helping hand from the USPS. That is correct; the USPS is offering a 3% discount for mail pieces that have a QR Code on them.

As a direct mailer it is hard not to want to take advantage of that discount. It is not often that the USPS offers any type of relevant discount. For our part, we did plan on testing QR Codes at some point, but the discount definitely pushed up our timelines.

In my opinion, the USPS has made an error in judgment with this discount. I get that they are trying to tie their dying product to the mobile revolution that is going on, but I am not sold that QR Codes are the way to do it.

The USPS is hemorrhaging money at this point and in the short term this will surely make that situation worse. They will get 3% less revenue from us since our mail plans didn't change; we just added a QR Code to the pieces so they qualified for the discount. With the short timelines they provided relative to how far out direct mailers plan out campaigns it is doubtful that many companies will increase their volumes even if they wanted to.

Assuming they are only looking for long term gains I don't think their chances are much better. This does not pass the normal technology test of making things faster and easier. Scanners are unreliable at best and can work or not work depending on the code, the phone, the app, the person using the app... Have you tried them out yet?

There are at least three different types of codes at this point, which means the end user needs at least three different apps and has to know which app to use on which code. I would love to see the Vegas odds on that happening.

QR Codes seem like they could have a great response and use in certain situations, but mail pieces don't seem like the best use. Most individuals, when checking their mail at home or the office, are within shouting distance of a computer. If that is the case, it seems much more likely that they would want to visit any site using a computer rather than going through the hassle of scanning a QR Code so they can view the offer on their phone.

And as a final strike against the offer I don't think QR Codes have hit the tipping point yet as far as individual knowledge and usage. If this is truly the case the USPS is pushing a lot of mailers into tests that are at a disadvantage and more than likely will have lackluster results. If marketers were to wait until the learning curve was a little further along, the tests would have a much better chance of success and continued usage.

To end on a positive note, let me reiterate that I believe QR Codes will find a place in most marketers’ toolboxes, but I don't believe the direct mail piece will be that place. I would love to hear more opinions on this topic.