Connecting the dots: Contextual design is essential for digital engagement, says SharpEnd CEO

03 Apr 2023 --- Since the end of COVID-19 lockdown measures, packaging industry players are more aware than ever of the power of connected technologies like QR codes, near-field communication (NFC) and augmented reality (AR). However, many companies joining the fray are approaching it in the wrong way, according to SharpEnd CEO Cameron Worth.

Speaking to PackagingInsights, Worth says the playing field has changed, and while many companies want to begin leveraging connected packaging, some key misunderstandings are hindering efforts at development.

“There was a point after COVID-19 when everyone saw QR codes on shop windows and restaurant tables and then brands thought ‘we need to get into this technology,’” he says.

“Now there’s this really interesting landscape where everyone’s saying we’ve got QR codes in our products, NFC tags in our clothing, or AR in our in-store visual merchandising, but how do we make it better?.”

“Packaging businesses sometimes need to get out of their own way,” Worth continues. “I think that one of the impulsive decisions you can take is, for example, with QR codes – here is a data opportunity, and you want to build a platform and start pretending you’re not a packaging materials company.”

Cameron Worth, CEO of SharpEnd.“You need a very clear strategy rather than say, ‘let’s become experts in marketing,’ which is a very difficult thing to do.”

The need for expertise
According to Innova Market Insights, 77% of global consumers are interested in engaging with connected packaging technologies on-pack via their smartphones. To properly leverage these technologies to meet consumer demand, packagers need to turn to experts, says Worth.

“Not everyone’s going to be an industry expert or pioneer like SharpEnd. You might have an agency partner that says, ‘oh, you should put a QR code on your product and link it to Instagram, and that’ll drive social engagement’ – that’s not how you drive connected product engagement.”

“You could argue this is still technically connected engagement, but it’s just not optimized – the trick is to design in the context for use,” he continues.

Improving design requires companies to become more fluent in identity and gain experience managing connected products. “You need to go out with your chest out saying we’re going to sit down; we’re going to work with you through the proper processes; we’re going to order your supplies; we’re going to work with the different stakeholders, and so on.”

Mapping data and collaborative progression
Worth says SharpEnd is the leading IoT company in the world but envisions a needed expansion in the market. “Do we think there will be just SharpEnd in two or three years? Hopefully not,” he says.

“We want to see a world in which all of the big agencies come together and say we need to understand more about designing in the context of use, QR code integration into pack designs, writing a proper call to action, making sure the content is contextualized and personalized – this is all about upskilling,” he says.

Using data to boost consumer engagement must be done in a contextualized way, says Worth.From the brand’s perspective, it will be making better use of the data being collected, he continues.

“We’re generating billions of data points for brand owners, and being able to map those against other business and brand objectives is going to be really critical.”

“If you’ve got an identity on a product and you’ve got 10 billion of those products out to market, then there’s an opportunity to build consumer profiles and insights and apply them across the wider business – and that’s when it really takes off.”

“We’re taking a bit more of an industry view now rather than just a consumer view. Our upcoming report this year will be looking beyond consumers. Businesses are moving out of the pilot mentality because we need to roll this out with bigger hairier processes in place to manage the processes and data,” Worth says.

AR: A lesson in misplacement?
A key example of misused connected packaging technology is in the field of AR, according to Worth. He says that while he isn’t skeptical of its value, many businesses are employing it in the wrong way.

“AR is a massive industry and is worth a lot of money, but it’s about where you consider AR during the decision-making process. You have a lot of well-funded companies with big sales teams going out to brands and saying you need an AR marketing strategy – and that is bullshit.”

“It’s not a channel, it’s a technique for making sure that we deliver the experiences that we want to deliver. We’re not just looking at everything through an AR lens,” he asserts.

For example, SharpEnd is currently doing a rollout for a major UK retailer but is not creating a pain management device with AR since QR codes bring consumers to the information faster.

Much of the reason AR is so often misplaced is down to culture, claims Worth.

“There’s a lot of companies who are just interested in having executed an AR project. We live in a time where there are differences between personal agendas and corporate agendas and a person may want to be the one who brought AR into the business. Maybe they get taken out for more lunches than they do by QR companies. It’s all a bit of a hamster wheel,” he says.

Registrants for our webinar with Innova Market Insights and SharpEnd on April 12 can sign up and submit questions here for the best chance of a response.

By Louis Gore-Langton

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