What’s Up With The AR Technology? Why Is It So Popular Among Brands?

Businesses Have Started To Invest Progressively Into The R&D And Technology Acquisition To Improve Customer Experience

Photo by rupixen.com on Unsplash

E-commerce has grown rapidly in 2020. Having 69% of American online shoppers generate an average of$1804 per customer, the e-commerce sales came close to approximately 3.9 trillion last year. Since the potential profit is high and the entry barrier is lower compares to opening up a brick-and-mortar store, more and more entrant joined and have intensified the competition.

Amazon “View In Your Room”

Companies like Amazon have been acquiring advanced technology to try to strengthen their competitive strength. Innovative technology like Artificial Reality has help increase product sales and customer satisfaction. The Amazon AR, “View In Your Room” assist the users to virtually view amazon product in a real-world environment. Products like furniture or home decor have given the online shopper headache due to the fact that they can not accurately visualize the product with only the measurement and color out of the blue. The inefficient communication and abstract product description often lead to purchase unsatisfaction.

Amazon “View In Your Room” Demonstration

Shop smart, shop confidently! The AR technology has satisfied both needs. To get started, the users can simply download an amazon app with no sign-up needed, open the camera and start designing their own space. The features allow interaction with more than one product, the users can design the whole space and seeing it placed altogether. The items can be moved freely and rotated 360 degrees to see the items placed at different angles. The technology has brought the shopping experience to another level that brings positive feedback from customers and differentiates the company from others.

Amazon is well-known for its fast shipping and free return. Many shoppers take advantage of that and the estimated return rate of amazon purchases is about 15–40%. The number is relatively high and has been a problem for amazon since it requires much manpower to take care of the returns and organize the items back into the systems. With the AR technology, consumers are more aware of the product's actual dimension and attribute and the return rate of the item can be reduced which helps further reduce the operation cost.

Pokemon Go AR Technolgy

AR technology is used in other industries as well. The Pokemon Go app has started to use AR a few years back to let the players interact with their virtual pokemon and taking travel photos that the players can share on their social media platforms. This customer-generated content has provided marketing effort to create hype around the game and increase its active users.

I believe that AR technology will become the next normal since it brings great business opportunities and benefits to both the company and the customers. The investment in the R&D and the technology acquisition will produce assets that are significant to the business.

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thoughts and reflections on digital-first marketing from NYUSPS Integrated Marketing Grad Students

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ycy263 Ya Chien Yang

“Agile” learner and believer sharing an unique marketing voice. • NYU Integrated Marketing• Video Content Creator &Editor