For emerging consumers – including Gen Z – it’s not sufficient for a product to merely fill a need or solve a problem. Younger generations are increasingly insisting that products align with their values regarding sustainability and ethical production. As Digital Product Passports become more widely accessible to consumers, they’re enhancing the discussion around data transparency, product provenance, and consumer trust. These digital product IDs provide key information about a product’s origin, materials, and lifecycle, promoting transparency and trust between brands and consumers.
As brands seek to implement DPPs, forward-thinking companies are adopting a structured approach. In this guide, we’ll explore a three-step model for Digital Product Passport implementation that can assist companies in gaining internal support, gathering customer feedback, and conducting effective pilot projects.
Why Digital Product Passports?
Digital Product Passports represent a shift towards sustainability and social responsibility. In addition to aiding compliance with emerging E.U. regulations such as the Ecodesign for Sustainable Product Regulation (ESPR), Digital Product Passports can also help drive brand differentiation for companies by showcasing their efforts surrounding sustainability.
Three-step model for implementing Digital Product Passports
1. Pilot phase
The first step in implementing Digital Product Passports is the pilot phase. In this phase, companies should select a handful of pilot products that will serve as the basis for their Digital Product Passports. Consider choosing products that exemplify sustainable practices or core brand values, and for which product data is readily available. Concentrating on a limited number of items allows for easier management and will provide insights as the company tests DPPs with its stakeholders.
Gather product data
Following product selection, businesses should gather relevant product data to create Digital Product Passports. Often, the most difficult part of a Digital Product Passport pilot is the data gathering step, as it involves coordinating with multiple parties up and down the supply chain. However, using generative AI, such as the "PicoNext AI Assistant", can streamline this step, because it can sift, sort, and summarise raw product data and transform it into structured output that can be used in a Digital Product Passport.
Gather feedback
Once pilot projects are launched, it’s essential to see how the data in a Digital Product Passport resonates with customers, distributors, and other key stakeholders. Create channels for collecting feedback, whether through surveys, focus groups, or informal conversations. Understanding different perspectives can help identify strengths and weaknesses in its messaging and engagement strategies. For example, ask consumers if the QR code used to access the Digital Product Passport is easy and straightforward to use. Or, ask if the DPP reflects the brand experience you’d like to convey.
2. Refine phase
The next step is to refine the implementation of Digital Product Passports with a focus on staying in sync with regulatory requirements and connecting with your target consumer. In this phase, consider adding a customer experience layer to reflect your brand look-and-feel. You can include DPP data in a branded website, add loyalty rewards and special offers to it, or include value-added information in your DPP like the location of recycling and disposal sites. When you over-deliver on customer expectations for your Digital Product Passport, you can not only attract potential customers but also create more meaningful interactions that foster brand loyalty.
Monitoring performance
As pilot Digital Product Passports are launched, it’s crucial to keep testing and refining them based on user feedback. Regularly monitor the performance of DPP initiatives and assess how effectively they communicate sustainability messages. Be open to making adjustments based on real-world usage to ensure that the experience aligns with customer expectations.
3. Scale phase
In the final phase, companies should prepare to scale Digital Product Passport implementation in anticipation of impending EU legislation or similar regulations in non-EU countries. Keep an eye out for fast-follower legislation in other jurisdictions you operate in – similar to how the California Consumer Privacy Act followed after the EU's General Data Protection Regulation (GDPR), and resulted in the ubiquitous presence of ‘Accept Cookies ’ dialogs on websites.
Broaden product range
The scaling phase is also an opportunity to broaden the range of products included in your Digital Product Passport portfolio. Companies should look to integrate their DPPs with product information management systems or other enterprise solutions that can facilitate data sharing and management. Expanding the portfolio not only showcases the company's dedication to transparency but can also create brand touchpoints that help drive positive customer interactions.
Managing data assurance
Finally, companies should prioritise data assurance and governance. Outline clear audit workflows to guarantee that product attribute data is accurate and of high quality. Having robust data governance practices in place strengthens the reliability of Digital Product Passports and can improve consumer confidence in the information you communicate.
View an overview of implementing Digital Product Passports
Implementation strategies as Digital Product Passports become mainstream
Implementing Digital Product Passports is essential for companies looking to embrace transparency, sustainability, and social responsibility – and to stay compliant with fast-evolving E.U. laws and regulations. Utilising the three-phase model—Pilot, Refine, and Scale—can facilitate a structured approach that allows businesses to gain internal support, gather valuable feedback, and create tailored experiences for consumers.
As Digital Product Passports come into the mainstream, they will play a key role in shaping the future of responsible commerce. By adopting these practices today, businesses can position themselves as leaders in transparency, trust, and integrity – even before DPPs are fully mandated by law.
Learn more about implementing Digital Product Passports
- Video demo. Learn more about implementing PicoNext DPPs in our video demo
- Request consultation. Learn more by requesting a consultation with a PicoNext DPP expert
