Are QR Codes Here to Stay for Small Businesses?

It’s been almost three years since our lives turned upside down because of COVID-19. Unlike most fads that came and went (sourdough, anyone?), there’s one that survived lockdown and became a staple in our daily lives: the QR code.

So why exactly did it stick, and how can it help your small business now and in the future?

A Brief History of the QR Codes

Masahiko Hara, the inventor of QR code, expressed that the utilization of QR codes has exceeded his initial expectations. (Image courtesy of Denso Wave Inc.)

Believe it or not, the QR code has been around for a long time – 28 years to be exact.

In 1994, Denso Wave engineer Masahiro Hara thought of a more efficient way for his team to track automobile parts. The UPC barcode wasn’t getting scanned fast enough and it can only store 12 digits. Plus, the lack of alternatives at the time was slowing down the manufacturing industry.

Inspired by a strategy board game, Mr. Hara came up with the two-dimensional QR code which can store over 4,200 alphanumeric characters in its patterns. This new technology was able to solve the speed and efficiency issues plaguing the assembly line. Not only can the QR code store more data, but it’s also easier to scan from any angle and distance.

Because of its usability, it’s no surprise that the QR code eventually transcended the automotive and manufacturing industries.

The Effectiveness of QR Codes

Although the QR code has been proven useful since its inception, it did not hit mainstream use until the lockdown. As governments worldwide promoted contactless technologies to help prevent the spread of the virus, more and more businesses adopted the QR code to promote their social media channels, share discount and promo coupons, collect customer feedback, enable digital payments, and more.

In 2020, almost 11 million US households used a QR code, an increase of more than one million uses up from 2018.

In 2021, it went up by 15.3%. In a separate survey conducted in June, more than half of the respondents are confident that scanning QR codes would be a smartphone staple in the future.

In Asia, specifically in China, Indonesia, Malaysia, South Korea, the Philippines, and Thailand, mobile wallets reign supreme as the consumers’ preferred mode of payment.

A recent survey also revealed that 24% of millennials and 18% of Gen X-ers prefer redeeming offers through a QR code.

Benefits of Using a QR Code

Image Source: Host Merchant Services

There are several factors that make the QR code an effective marketing tool.

Versatility

There are so many ways to use a QR code since it can store large amounts of alphanumeric data. Some businesses even use multiple QR codes not just to minimize human contact, but also to save space and resources. By now, you probably have encountered your share of QR codes in your day-to-day transactions—on a restaurant table for the menu, on a business card that redirects you to social media channels, on a mobile app for in-app purchases, and even on a sale poster for time-sensitive promo codes.

Affordability

There are lots of QR code generators online that are either free of charge or offer different types of paid plans depending on use.

Easy to adapt

There is little to no learning curve when using a QR code. It’s easy to generate one and all you need to do right after scan it. Easy-peasy!

Trackable

Since you know what you’re printing your QR code on and the information it holds, it’s easy to find out when and from where a person scanned your code.

Customizable

QR codes can be either static or dynamic. A static QR code contains information that can’t be edited once created, which makes it best for storing fixed data such as portfolio links, one-time-use coupons, and event details.

On the other hand, dynamic QR codes are best for marketing campaigns that require retargeting. It can also save you money in the long run since the content remains editable no matter how long the code has been printed. This allows you to replace broken links and update details such as contact information.