What Makes Sensible Labels So Sensible?

Last updated on May 24th, 2023 at 09:59 pm

Unlike traditional labels, Smart labels provide users with additional digital information beyond what is printed. This capability complements many trends emerging in packaging and aligns with several of UPrinting’s values and core competencies.

• Transparency: As consumers are becoming more concerned about the health and the environment, packaging labels are increasingly providing more detailed information about the product and its ingredients. Smart labels provide a multitude of ways to expand these efforts with digital data.
• Sustainability: Packaging labels are becoming more environmentally friendly by using materials like recycled paper and biodegradable inks. Smart labels take sustainability efforts a step further because they require fewer materials and use a digital printing process, resulting in less waste.
• Personalization: Labels can be customized to include information such as the customer’s name, a special message, or a unique design. Smart labels can also transmit information back to the business to create more personalization opportunities.
• Digital technology: Smart labels leverage a multitude of digital technologies to provide access to additional information about the product or item beyond what is visible on the physical label itself.

There are several technologies that are included under the category of Smart labels. Most popular among these are augmented reality (AR), quick response (QR) codes, radio-frequency identification (RFID), and near-field communication (NFC). These technologies provide benefits to both the consumer and the companies who manufacture, move and distribute the products. From the most practical perspective, this information can include security features such as product authentication, ingredient traceability, and tracking. These features enable companies to provide consumers with a more informed and safe experience.

Beyond security enhancements, businesses of all sizes can provide a better customer experience by leveraging Smart labels to create a more personalized and interactive packaging experience. By tracking the usage of Smart labels, businesses and brands can acquire valuable data and insights about their customers’ behaviors and preferences. This information can then be used to improve supply chain efficiency, reduce waste, inform product development, develop marketing strategies, and build customer engagement initiatives.

Each technology provides unique benefits and applications. For example, NFC-enabled Smart labels are commonly used in the healthcare industry. They provide customers with quick access to dosage instructions, potential side effects, and other important information about their medications. While RFID-enabled Smart labels are commonly used in the retail industry to provide real-time tracking of products throughout the supply chain, allowing companies to quickly identify and address any issues or inefficiencies.

Smart labels using augmented reality (AR) technology has been used across industries for educational and training purposes and, more recently, have become extremely popular marketing and advertising tools. With a smartphone camera and AR-enabled app, customers can access additional information that is superimposed onto a real-world view.

Businesses are finding clever and innovative ways to use AR labels. Cosmetics and beauty companies have created tools to provide customers with a virtual try-on experience. L’Oreal has been using AR in its product packaging for makeup products, allowing customers to try on makeup virtually before making a purchase. In fashion, Converse introduced AR-enabled packaging for its shoes, so shoppers can “try them on” before buying. AR labels have the potential to revolutionize the way products are marketed and sold, providing customers with an immersive and informative experience.

L’Oreal AR App

The use of AR in product labeling and packaging is still relatively new, and its success can vary depending on factors such as the target market, industry, and product. The consumer goods and beverage industry is quickly adopting AR-enabled packaging & labeling. Many of the early adopters have been larger CPG companies. Coca-Cola introduced AR-enabled packaging for its products with access to augmented gaming and music experiences. Anheuser-Busch uses AR-enabled packaging for its beer products, allowing customers to access information on the brewing process and the brand’s history.

My favorite example, which has received recognition for its innovative use of AR technology and is, to date, one of the most successful examples of AR in product packaging, is 19 Crimes wine. This Australian company uses AR-enabled labels to bring the history of the 19 Crimes brand to life. Customers can learn about the story of each crime and the individuals who committed them through an animated historical character that comes to life right on the label. This has helped the brand create a unique and engaging customer experience and educate customers on the rich history behind the brand.

In addition to the AR-enabled labels, 19 Crimes features two new wines with QR labels (short for ‘quick response’) that direct consumers to videos that depict two notorious modern-day criminals, Martha Stewart, and Snoop Dog. QR codes are two-dimensional barcodes that, when scanned by smartphones, reveal information or perform an action. These codes exploded in adoption throughout the COVID-19 pandemic, with use cases ranging from digital menus to contactless payments.

Marketing with QR labels provides an opportunity to better engage with customers by adding a layer of intelligence, allowing real-time tracking and analysis of customer engagement. This information can be used to improve marketing campaigns and better target specific demographics. For example, a smart QR label on a product in a store can track how many times it has been scanned, which can be used to determine which products are most popular and where they should be placed in the store. It can allow customers to access virtual tours, product demos, tutorials, and instant discounts. Post-purchase, it can continue to evolve to feature campaigns that increase customer loyalty and drive repeat business.

QR labels’ usefulness spans beyond marketing. Like other Smart label technology, QR codes also allow for the tracking and identification of products. Labels embedded with a unique QR code can be scanned to identify a product and track its whereabouts and movement through the supply chain, ensuring that products are delivered to the correct destination. By using unique QR codes, it is also possible to verify that a product is authentic to complement other anti-counterfeiting measures. The adoption of Smart labels is growing. As the technology behind Smart labels continues to evolve, it is likely that even more uses for Smart labels will be discovered, and we will see more and more companies incorporating them into their product labeling strategies.

With digital printing, the cost of implementing Smart labels is no longer a barrier for smaller businesses. This technology is inexpensive to produce and can be easily integrated into digital printing. This means that UPrinting customers can reap this technology’s benefits without making a super-sized investment. In fact, a review of our customers’ artwork reveals that our customers are already leveraging these technologies.

In summary, whether using AR, QR codes, NFC, or RFID technology, Smart labels are a powerful tool for companies looking to enhance the customer experience and garner valuable insights about their customers, ultimately driving growth. With additional virtual capabilities, we cement our brand promise as a leader in providing customized branding and marketing products for small and medium-sized businesses.