Connected Packaging: The Two-Way Communication Between Brand and Consumer

Packaging is a commodity that we all interact with every day. While it may be easy to overlook a piece of packaging and focus on the actual item within, product designers see the importance in both. Why? Well, package design fulfills purposes that the item itself cannot. Chiefly, it protects the item from damage by external elements. It is an ancient concept, with clay pots being used to store food for thousands of years.

In modern times, packaging has been used to enhance the visual appearance of a product. You can see this in any grocery store aisle, with various products in bright colors and stickers with ‘Try me!’ emblazoned across the front. The aim here is to make an item stand out from the competition.

Today, tech innovations are expanding the role of what packaging can do. One such development is in the field of ‘connected packaging,’ a relatively new concept that is currently enjoying rapid growth. Data Bridge Market Research predicted that the globally connected packaging market will grow at an annual rate of 7.4% from 2022 to 2029.

Is the term ‘connected packaging’ news to you? This article will explain what it is and why many businesses are introducing it to their products. We will also cover emerging techs in the field and their use cases.

What Is Connected Packaging?

Connected packaging aims to bridge the gap between the physical and digital worlds. The most common example of this today is to print a QR code on a product’s packaging. It can be simply scanned by a customer’s camera app, which takes them to a relevant Internet page.

For example, it might take them to the product manufacturer’s website, allowing the customer to learn more about the item and company. Alternatively, it may lead to a specific product page, such as a user manual. Connected packaging aims to provide an engaging and interactive shopping experience. The next section of this article will explain how this is achieved.

What Are the Benefits of Connected Packaging?

Offers a personalized customer experience

Consumer choice theory suggests that customers like it when companies offer personalized products and services. It shows that the company cares about them enough to address individual needs. In turn, the company’s brand image is enhanced, creating a loyal customer base.

Connected packaging can achieve this by delivering personalized outcomes based on who scans the QR code. For instance, a customer in a Spanish-speaking country may not understand the language written on an American-produced product.

Fortunately, the QR code will direct them to the Spanish version of their website. Geolocation data and browser preferences aid in this process. It provides the customer with ample product information and links to customer support pages (such as a virtual phone number for business).

Stands out on the shelf

We already mentioned how packaging is often used as an advertising tool. It’s why companies trademark eye-catching logos that consumers learn to recognize and associate with their products. Connected packaging can propel this to new heights. Instantly, by displaying a QR code, it invites the customer to ‘communicate’ with your business.

This process can be highly interactive, teaching the customer about the story and provenance of the product they are holding in their hands. For example, scanning the QR code could display an augmented reality 3D rendering of the object inside. Hopefully, this engages the customer enough to drive a purchase decision.

Boosts your online traffic

Another benefit of connected packaging is that it increases natural traffic to your website and social media pages. It is assisted by the simplicity of a QR code, which negates the need to type out a domain name in full.

You might be wondering why online traffic is important. For starters, it boosts customer awareness of the other products/services you offer, thus increasing your brand image. Also, site traffic is an indicator used by search engines for SEO purposes. In simple terms, it means your website will show at the top of search results pages, making your site easier to find.

As for social media? Well, increased traffic to your socials means more followers, likes, and engagement. It means your business will show up in more people’s feeds, thus organically growing your online presence.

Connects with your marketing campaigns

Finally, connected packaging can be incorporated into your marketing campaigns. For example, businesses often launch competitions or prizes for their paying customers. It is already an interactive method of business-to-customer communication. Now, with connected packaging, the process can run a lot smoother.

You might see this as a QR code with text like “Scan me for your chance to win a lifetime supply of our product!” written underneath. This style is highly engaging and will hopefully boost your brand loyalty by giving back to your customers.

Of course, running any online contest carries risks and requires you to follow legal regulations. You may consider integrating a release of liability clause into your contest - protecting your business from claims by participating contestants.

Future Trends in Connected Packaging

Connected packaging does not start and end with QR codes. Rather, it’s more like one small step on a broader journey toward producing valuable customer outcomes. There are various other techs employed in the space which might be the next big trend in packaging optimization. Here are some of the most common use cases:

- Active packaging: This package type has functions beyond the passive protection of the goods inside. It may use preservatives and shelf life-extending techs to protect fresh food products, for example.

- Intelligent packaging: This package type uses technologies such as RFID tags, NFC, and sensors to produce more interactive packaging. One such use case is to maintain a product’s condition, which might be achieved through the monitoring of internal temperature and humidity.

Get Started on Connected Packaging

To conclude, connected packaging is an exciting development that is entering mainstream adoption by product designers. By now, you should have a good idea of what connected packaging is and its various benefits for companies.

Want to get started on connected packaging? Well, the first step is to build a website or app that your QR code links to. Keeping things simple is always best, but if technical issues do arise, a customer support number must be provided as backup. To ensure timely response times, you should settle for nothing less than the best small business phone system.

Hopefully, all your bases will be covered then, producing a connected packaging system that delivers for your business and its customers.

Richard Conn - Senior Director, Demand Generation, 8x8 Richard Conn is the Senior Director for Demand Generation at 8x8, a leading communication platform with integrated contact center, VoIP phone service, video, and chat functionality. Richard is an analytical & results-driven digital marketing leader with a track record of achieving major ROI improvements in fast-paced, competitive B2B environments. Richard has written for domains such as VMblog and Iconosquare. Here is his LinkedIn.