Augmented reality represents a revolution in the customer's purchasing process, incorporating key elements such as advanced product configuration, sophisticated interaction techniques, and virtual product visualization, as they would appear in the real world. This creates an immersive shopping experience that emotionally connects the customer with the product and brand. Furthermore, it eliminates a physical barrier, as it’s no longer necessary to visit a store to see, for example, how a garment fits.

In an increasingly competitive environment, brands must interact with consumers in innovative ways to maintain engagement and, consequently, increase trust and conversion rates.

Viewing a static image no longer provides the same value as it did a few years ago. Consumers now want to actively participate in the purchasing process. Brands that understand this and bring a product to life will thrive in this nascent digital era.

Market forecasts predict that consumer spending directly linked to immersive technology purchases will surge over the next four years. Currently, nearly 40% of consumers have already experimented with augmented reality during their purchasing process or through marketing campaigns, with over 70% likely to purchase from brands offering augmented reality experiences.

 What does augmented reality offer to retail?

  • Increase conversion rates
  • Interactive product experiences can help customers make more informed decisions, leading to higher conversion rates and reduced return rates.
  • Increase brand engagement and loyalty.
  • It can transform how a consumer interacts with a product, creating an emotional connection with the product and brand.

Although augmented reality is still in its early stages within e-commerce, the benefits of adopting this technology are already clear and tangible. Notably, a significant portion of consumers enjoy being ‘early adopters’ within their social circles, encouraging them to become brand advocates and amplifying brand social reach.

 

Examples of Successful Implementations

HOME DEPOT

In 2015, Home Depot launched its Project Color app, utilizing patented technology to show users how a paint color will look in their home. The AR technology accounts for lighting, objects, and shadows in the room, allowing users to visualize the yellow tone in real life. Users can also share images from the app on social media to solicit feedback from a friend if they are unsure of their own judgment.

BLACK AND DECKER

Black and Decker developed an Augmented Reality (AR) card featuring a 3D rendition of a classic Stanley ruler. Activating the Web AR experience involves scanning a QR code on the card's reverse, directing users to a unique URL. Once on the URL, users can point their smartphone to see the card come to life.

VIRTUAL EVENTS

The COVID-19 pandemic has made 2020 a challenging year for economies across numerous sectors, with the event industry being particularly impacted. Large-scale live events, trade shows, and conferences are unlikely in the near term, leading many brands to transition to virtual alternatives. Utilizing Augmented Reality for events offers a highly engaging and effective way to deliver interactive experiences to audiences.

 

BRIDGING THE PHYSICAL AND DIGITAL

It's also possible to leverage physical elements as a starting point to capture user attention and encourage engagement. For example, Hewlett Packard launched an AR campaign to promote its HPE Primera software product, which included sending out postcards with a QR code for activation. Scanning the code allowed users to teleport to their chosen location and begin the experience.

The campaign involved sending postcards to customers containing a QR code to activate the experience. Upon scanning, users could virtually transport themselves to the selected location and begin the immersive experience.

In conclusion

For businesses, Augmented Reality marketing and commerce present a unique opportunity to foster deeper connections with customers by providing tangible, valuable experiences. This immersive product interaction shortens the sales cycle and strengthens emotional bonds.