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How brands use AR to enhance CX and build brand awareness

With the global AR market expected to reach about $97 billion in 2028, it’s clear that augmented reality is the future for many industries, including retail. AR technology has emerged as an innovative tool that allows brands to engage with customers as never before and elevate their shopping experiences. Let’s see what benefits augmented reality opens up for retailers and how to join the party with Cappasity.

How AR technology helps retailers improve CX

The biggest drawback of e-commerce is consumers’ inability to interact with desired items and explore them in tiny detail, like they would do in a brick-and-mortar store. As a result, online shoppers tend to dither longer on their purchase decisions. Worse, they can eventually abandon the item in their cart because of their uncertainty in the quality and actual appearance of the product. This is where AR comes into play as a technology that provides a more realistic shopping experience.

AR technology improves product perception in e-commerce by allowing shoppers to get a closer look at the product without needing to go to a physical store. Through AR, customers can place the item in a real-life environment and examine it in its actual dimensions and size. They can also use AR to manipulate the product, turning it sideways or around, checking its quality and materials from different angles of perception.

As a result, online shoppers can better envision how the item actually looks, which helps them make an informed purchase decision. Recent research by Alter Agents, Snap Inc., and Publicis Media proves this point: 80% of AR shoppers feel more confident in their online purchases after experiencing the items through AR. What’s more, 66% of shoppers who use AR are less likely to return their purchases. Allowing consumers to preview products in AR enhances the overall online shopping experience, leading to higher conversion rates and fewer returns.

A great example of using AR in e-commerce is Burberry’s collaboration with Google, when the brand cleverly brought the in-store shopping experience straight to shoppers’ digital devices through AR. By typing the relevant product name into Google, consumers could experience Burberry products embedded in the environment around them. This allowed shoppers to benefit from a more realistic view of the products before buying, eliminating the need to go to the store and interact with items in person, and potentially reducing the likelihood of returns.

How AR helps brands build brand awareness

AR in retail doesn’t have to focus on selling alone. It has the power to not only elevate the shopping experience, but also help retailers build brand awareness by launching engaging marketing campaigns with immersive experiences. First, the technology can be used to make online ads more effective. A new study by Snap Inc. and MAGNA Media Trials revealed that AR provides utility and informs consumers about the brand, above and beyond pre-roll video ads, while also enabling brands to build deeper, more personalized connections with consumers. According to the study, consumers find AR ads to be significantly more informative and more useful than traditional pre-roll ads.

What’s more, AR is a perfect tool to create marketing campaigns in stores and generate more buzz around brands. For instance, Zara, the Spanish fashion retailer owned by Inditex, placed AR displays in its brick-and-mortar stores, which included AR models wearing selected looks. Customers in its stores could hold up their smartphones to a sensor in store, or to specific shop window displays, and see AR content. This also allowed them to click through and buy the clothes. Other than creating word-of-mouth buzz around the brand, AR helped the retailer make the in-store shopping experience more engaging for consumers.

How to implement AR into shopping experiences with Cappasity

Cappasity is the first end-to-end solution for fast production, easy embedding, and powerful analysis of immersive content. With our solution for fashion, brands can create AR holograms, allowing consumers to place items into a real-life environment and explore them in tiny detail. It can provide animated AR models wearing the brand’s fashion pieces and help shoppers envision the materials of the desired items in movement. The production of an AR hologram doesn’t require manual 3D modeling and takes as little as 20 minutes vs 3–5 days with other solutions.

Click the “Cube” icon to examine the look in AR.

Cappasity AR holograms can be used both in online catalogs and brick-and-mortar stores. AR holograms in a shopping mall help consumers envision how the clothes on hangers will look in real life and how to combine them with other fashion pieces, leading to increased average sales. They are also useful for demonstrating items that are temporarily out of stock. If consumers can’t find what they are looking for, they will be able to examine the item in Augmented Reality, and then either make an order through the brand’s site or visit the location where the desired item is in stock.

To provide customers with an immersive in-store shopping experience, retailers can print QR codes redirecting shoppers to AR holograms and add them to item tags. The consumer will simply need to scan a QR code with their smartphone, and they will be able to explore a whole outfit in the surrounding environment. To showcase out-of-stock items, brands can place a kiosk in the store to provide consumers with QR-codes redirecting them to AR holograms.

To implement AR technologies into your store, contact our team via support@cappasity.com

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