How Augmented Reality is Enhancing Customer Experiences
The Internet boom and the rapid evolution of the e-commerce industry have directed the retailers to create a strong online presence apart from improving their in-store variety. The ease of access and better deals online has made e-commerce profitable for businesses, small and big alike. But as the number of competitors increases, the stakes get higher and companies must overcome more and more challenges to be able to sustain and run a successful e-commerce platform.
The shopping experience has come a long from being just about the in-store contents. Nowadays, the focus has shifted to providing the consumers value for their time and an unforgettable experience which creates more loyal consumers. To provide such an experience, retailers are now incorporating novel technologies into their businesses to stay ahead of the competition. One such technology is Augmented Reality (AR), which has gained a lot of traction in recent times.
Augmented reality is one of the two cornerstone reality technologies, along with Virtual Reality (VR). These technologies have carved a special place in the market today and spending on AR/VR products are expected to reach $27 billion by the end of 2018, witnessing a growth of 92% year over year. The AR technology can help the retailers provide an immersive experience to its customers as it amalgamates the physical world with digital content.
The Technology
Imagine you wish to buy a watch for your birthday. You just open an application on your phone, select the watch and it is projected in the real world through the phone camera. You can try out the watch by placing in on your hand and save yourself the hassle of going to a shop or returning a product which looks good online but doesn’t suit your style offline. In another example, imagine you visit a clothing shop and like a dress displayed on a mannequin. You point your camera towards the mannequin and it comes to life on your screen, posing with the dress to help you get a better look at the dress.
The technology is limitless and the possibilities countless. Implementing AR in retail can help businesses keep the spark alive, increase sales, retain customers and gain new ones. The benefits that AR brings to retailers are given below:
Expanding the Product Catalogue: Retailers can create product catalogues through AR apps, offering an immersive experience and different preview options. Online retailers who do not have functional retail stores can invest in AR catalogues to overshadow the absence of a showroom. An AR app can help them showcase all the products that are on offer without having to invest in a showroom.
Reduction of Return Rates: Simply put, AR can reduce the return rates as customers will try out the products (virtually) before purchasing them. This can help to cut down costs of return pickups and increase revenue, along with minimal customer loss.
Enhancing Customer Experience: As people always say, ‘the customer is always right’, and AR is about providing the customer with the best possible experience. AR offers a customisable experience that can go with the needs of the customer. Using an AR application, customers can see all options available to them and choose freely and easily after they have visualised the products.
Taking AR In-Store: AR technology is not just about online shopping but also can be integrated in-store to take things a level further. The feeling of lost or confused in a large shopping area is more common than you think. There have been countless cases when customers cannot find what they are looking for as they are standing on the other end of the store. This is where immersive AR comes to the rescue. AR applications can provide accurate information about the products in the store along with the shortest route to the required product. The app may also help the customer prepare a shopping list and promote certain products in tandem with the customer’s needs, to drive sales up.
Immersive Marketing: AR can become the future of marketing as the requirements of the technology are far lower than the other methods. Using AR a pamphlet, poster or billboard can come alive when viewed through an AR application. As the usage of AR increases, many people now wish to connect more with the technology, making it a perfect time for an AR powered billboard.
Product Advertising: Using AR, powerful presentations can be created for specific products, particularly catering to the consumer base for maximum reach. Speakers can direct the audience to view the product from their devices and witness it through immersive technology. Similar models can be sent to consumers via social media and email for an increased reach.
Stepping into the Future: Many customers like when the entity they are buying from is up-to-date in both products and features. By incorporating AR into your marketing strategy, you can create a futuristic shopping environment for your consumers, which are sure to strengthen your ratings and help you build a strong digital presence.
How Retailers are Using AR to Enhance Consumer Experience
The New Yorker: In a revolutionary meeting of print and technology, the New Yorker released an issue with its traditional illustrious cover, but this time with a twist. To the naked eye, the covers seemed normal and similar to the magazine’s previous covers, but readers could open Uncovr’s application and point it at the magazine to unveil a whole new story behind the cover. The cover and the idea was very well received by the readers.
Volkswagen: Who doesn’t like a Volkswagen car? They are fast, they are durable and they are amazing. To celebrate the launch of its new Beetle model, Volkswagen used AR features in billboards. If a customer viewed the billboard through their AR application, the car would come alive and burst out of the billboard onto their phone screen.
Charlotte Tilbury: Leaping a little forward, leading cosmetics brand Charlotte Tilbury took the technology out of the hands of the customers and installed in into mirrors in their store. These AR-enabled mirrors would scan the faces of the customers sitting in front of them and display it with the brand’s most iconic looks. Therefore, customers can browse through different shades of looks that they can invest in without having to wear any makeup physically.
Lego: The LEGO giant brings forward their Lego Digital Box kiosk, which helps customer envisage the end product after assembly. Users just need to stand in front of the kiosk with the Lego box and it will show a pseudo 3-D image. The company believes this move will increase engagement and help children learn faster as they will know what they are heading to.
IKEA: Remember that table you liked for your room but did not know how it would look beside your bed? Well IKEA has the solution. IKEA has come up with an AR catalogue which helps customers see how a specific piece of furniture will look in their place of choice through a smartphone or tablet. IKEA Place, the AR application by IKEA has 3D renderings of over 2,00 products, which include storage units, tables and chairs.
ZARA: The AR project of apparel retailer ZARA has been recently launched with phenomenal capabilities of AR. ZaraAR application aims to enhance the brand experience for the consumers and drives excitement. The customers can use the app and see models in three places, store windows, delivery boxes and store podiums.
Moosejaw: The Moosejaw X-Ray application was rolled out in order to work with its winter catalogue. The catalogue when scanned through the applications leaves the model in just their underwear. The application helps the customer understand how well the winter clothes are fitting while promoting underwear and other stuff from partner brands, thus investing in integrated marketing.
Many other retailers who have used AR for marketing include Lacoste (Clothing and Apparel), Timberland (Accessories), Topshop (Apparel), Toys “R” Us (Toys), Lowe’s (Home Improvement) and many more. As evident, the AR functionality is more popular among apparel brands over any other industry.
Conclusion
The demand for immersive experiences is growing. Both Virtual Reality and Augmented Reality are becoming more common by the minute. This is the right time for retailers to be on their toes and leverage the capabilities of the AR technology to offer an enhanced experience to its consumers via product-focused campaigns. The AR technology adds even more convenience on the top of what online shopping offers, making shopping a pleasant and informed exercise for the customers. As the giants make use of the technology, it is time for the small and medium scale establishments to jump into the mix as well.
