A proof of consumption is a mechanism that confirms that a particular item has been received and used. It can take many forms, including receipts, invoices, delivery records, and more, but all such traditional instruments require the active participation of the last mile actors, which in the case of consumer brands means retailers & marketplaces.
In our quest for creating a true omnichannel loyalty program for consumer brands, we have devised an innovative proof of consumption. The humble QR Code.
QR codes, or Quick Response codes, are two-dimensional barcodes that can be scanned by a smartphone camera. We generate serialized QR codes for all units produced by our partner brands. These codes are placed inside the product packaging – behind the product seal. In cases where placing inside is not feasible, the code is placed outside packaging but with a scratch layer. The consumer has to destroy the product seal (or scratch the code) to access scannable code. When our QR code is scanned in our coalition loyalty app, it establishes a proof of consumption, allowing customers to quickly and easily earn rewards for their purchases.
We generate QR codes with high degree of redundancy to minimize the risk of mis-scans. Here are some benefits of our proof of consumption mechanism
1. Convenience – Customers do not have to scan cryptic / illegible cash receipts. Neither do they have to manually type in lengthy alphanumeric codes to earn rewards. Instead, they simply scan our QR code after opening the product seal, and the transaction is automatically recorded and coins are added to their loyalty account. This makes it much easier and more convenient for customers to participate in the loyalty program and earn rewards.
2. No dependence on retailers / marketplaces – The last mile actors, i.e. modern trade (MT) retailers and marketplaces aren’t known to be very friendly in enabling independent loyalty programs of consumer brands. The general trade (GT) retailers on the other hand do not have the capability to support customer’s proof of consumption through any other means. Our QR code solution addresses both of these problems with a single solution.
3. Security – Another benefit of using QR codes on our loyalty platform is security. QR codes provide a secure and tamper-proof record of transactions. This helps to prevent fraud and ensures that only genuine consumers are rewarded with loyalty coins, thus establishing fairness in loyalty program for all customers & partner brands alike.
4. Anti-counterfeit – Our QR codes are designed to be one time use only. A second scan of the same code returns an error to the customer, thus doubling up as a secure and tamper-proof measure against counterfeiting, thus helping to protect your brand.
In conclusion, QR codes provide a quick, convenient, and secure way to establish proof of consumption. Whether you are a D2C or an established consumer brand, using QR codes as a proof of consumption is a smart way to setup a truly omnichannel loyalty program, reward customers for their loyalty and encourage repeat business.
