Think about the last time you picked up your favorite bottle of wine from your local shop, ordered a new gadget online, or even grabbed a salty snack from the convenience store on your last road trip. If you scanned the QR Code printed on the product’s packaging, then you’ve already experienced the world of connected packaging firsthand!
Thanks to connected packaging, with just a simple scan from a smartphone consumers can unlock a world of digital content. From product information to personalized experiences, brands can now extend their interactions with consumers anywhere, any time—whether they’re tinkering with a product at home or even on the road.
We’re witnessing a major shift towards more interactive and immersive consumer experiences. So to get a better understanding of the future of connected packaging, we sat down with Btily’s Chief Product and Technology Officer, Kelsey Stevenson, for a deep-dive discussion.
Don’t miss our panel at GS1 Connect 2024 next week!
Kelsey is joining forces with folks from Domino, Enseso, and GS1 US to dig into how brands can enable smart packaging with 2D barcodes and the GS1 Digital link on Wednesday, June 5th at 12:15 pm. Be sure to stop by our booth to learn more about Bitly’s 2D Barcodes. We hope to see you there!
Let’s start by getting into what connected packaging even is in the first place. Can you give us a brief overview?
Kelsey: Absolutely! Connected packaging integrates digital technology into physical product packaging, allowing for interactive and enhanced consumer experiences. Think of it as your product’s way of telling a story or providing additional value directly to the consumer.
Technology like QR Codes, 2D Barcodes, and even Augmented Reality are commonly used to create these connections. With advancements like the GS1 Digital Link, consumers can simply scan or interact with the packaging using their smartphones or other devices to access digital content, product information, or even personalized experiences.
On the manufacturing side, companies benefit from supply chain efficiencies like real-time inventory management and more effective returns and recall processes. With that intel, businesses can then provide dynamic updates to consumers, like new allergen disclosures for example, directly from the products that are already on shelves.
What types of companies and industries are currently using connected packaging to reach consumers directly?
Kelsey: Connected packaging is definitely becoming more popular across a number of industries, but we’re really seeing companies in the Consumer Packaged Goods (CPG) space use connected packaging to reach, engage, and convert consumers. Major players like Coca-Cola and Nestlé are already using connected packaging to create immersive experiences directly from their product packaging, and we expect to see that momentum trickle down to smaller brands as well.
Retailers and e-commerce platforms are also getting in on the action when it comes to connected packaging to enhance the customer experience and track products through supply chains. Take Bitly customer Rad Power Bikes, for example. They’re the largest electric bike brand in North America and use QR Codes to guide customers through the bike assembly process. You can just scan the code that’s printed on the box and instantly access videos and instructions for putting your bike together right from your phone.
Since so many industries are leveraging connected packaging, there must be some pretty big benefits for businesses of all kinds. In your opinion, what are the biggest advantages of connected packaging?
Kelsey: I think first and foremost it’s the impact on consumer engagement and the customer experience. We know consumers love personalization, convenience, and information, and connected packaging really hits on all three of those core components. Consumers are scanning QR Codes on packaging to get more information about the products they’re considering purchasing, to see usage instructions, and to access helpful nutritional information.
On the other end of the spectrum, it also offers greater supply chain transparency, which means from production all the way through to purchase, businesses have more insights into the lifecycle of their products. Going deeper on the data side, businesses are able to tap into valuable marketing insights by collecting data across a number of fragmented touchpoints. They’re using this information to better understand their customers and tailor their strategies moving forward.
Clearly there’s so much you can already do with connected packaging, on both the business and consumer side, but what do you think the future looks like for this space?
Kelsey: This is what really excites me about connected packaging—the future potential is huge. Sustainability is top of mind for lots of CPG brands right now as the environmental, social, and governance space continues to evolve daily. Just a few months ago, we saw a significant shift take place with new Extended Producer Responsibility (EPR) laws in the United States. A number of states have already finalized EPR legislation targeting packaging materials and brand responsibility for waste management, so we’re seeing the role of connected packaging actually play out in real-time.
We’re seeing more brands experiment with geo-targeted experiences as well, where they’re leveraging location data to deliver highly relevant offers to consumers, so that trend toward personalization is really booming at the moment.
One area that businesses need to be proactive about, though, as they continue to adopt connected packaging, is interoperability, security, and how they plan on scaling across hundreds and thousands of products.
Tell us more about the importance of scalability and security. Why are these important considerations for the future of connected packaging?
Kelsey: In a nutshell, businesses need to make sure that the technology they’re using to deliver these connected packaging experiences can work seamlessly across different platforms and devices, and across all of the many products they distribute around the world. When you’re managing large volumes of products and data, you can’t afford to compromise on performance, so this is where finding the right solution becomes critically important.
And with a large volume of products also comes a massive amount of consumer data! So businesses need to make sure they’re protecting both the end-user and their own brand by utilizing trusted platforms. Adhering to data protection regulations and being transparent about data use can also really help build trust and mitigate privacy concerns, too.
Well folks, there you have it! A deep dive into the world of connected packaging with Bitly’s Chief Product and Technology Officer, Kelsey Stevenson. It’s clear that this technology is not just a trend but a significant step forward in how businesses interact with consumers and manage their products.
We hope to see you at GS1 Connect 2024 next week! Be sure to join us at Kelsey’s panel on Wednesday, June 5th at 12:15 pm to learn more about enabling smart packaging with 2D barcodes.