What is Augmented Reality?

Simply put, Augmented Reality (AR) overlays digital content and information onto a user’s real-world scenario to enhance their virtual experience of their existing physical environment. An improved version of the physical world is achieved by using computer-generated display capabilities, visual elements, sound, text, and graphics that augment the user’s real-world experience.

AR lets you explore things visually just by pointing mobile cameras at objects in the natural environment. The Live View feature in Google Maps is a leading example of how AR allows users to visualize their destinations in the real world. Nintendo’s Pokémon Go app and photo filters on Facebook and Snapchat are some popular examples of AR today.

Why is Augmented Reality Important in Retail and E-commerce?

Millennials are today’s primary customers and they need services at their fingertips! Standing in long queues to get this limited offer is out of fashion! Now shoppers like to book online first.

Augmented Reality in retail is taking online shopping in a new direction. Customers can virtually try on, customize and interact with items to make quick and smart purchasing decisions. 

Total satisfaction with online shopping increases brand confidence immensely and gives retailers an instant boost to accelerate sales! All the more reasons to implement AR in retail!

“40% of consumers say they would pay more for a product that they could customize in AR.”- Fingent

Why is Augmented Reality a powerful Retail Sales Channel?

AR-integrated e-commerce websites and apps can run on any smartphone, allowing customers to contextually experience each product at scale. Immersive product discovery experiences lead to better conversions because retailers can capture shoppers’ attention at the decision stage.

Augmented Reality offers shoppers countless ways to interact with consumer products in a more personalized way. Customers are no longer held back by a limited number of product images and videos. With AR, every single online session can be turned into a powerful sales channel.

“32% of consumers use Augmented Reality while shopping!”- Fingent

How is AR driving retail sales?

Augmented Reality use cases in retail are growing by leaps and bounds. Across the B2C, D2C, and B2B realms, Augmented Reality bridges the gap between online sales and the customer experience in the following ways:

1. Increase of sales

Augmented Reality technology allows customers to virtually try on products before they buy them – meaning they can see exactly how their clothes will fit or how new furniture will look in their home or office environment. Regardless of whether a customer is shopping online or offline, AP helps shorten the customer journey and increase store conversions.

2. Minimizing returns

Augmented Reality helps customers avoid disappointment and choose the products that suit them best. Thus, returns tend to decrease for both online and brick-and-mortar stores.

3. Increase customer engagement

The virtual experience that augmented reality offers in retail stimulates customers’ interest in products while providing all the additional product details they may need. Informed customers tend to come back and buy more products whenever they get the chance.

4. Creating content on social networks

Augmented Reality experiences give customers something to talk about and share on social media. Follow-up comments and discussions on social media help increase product and brand awareness.

5. Collecting data on customer preferences

The information about the products that customers choose to try through Augmented Reality shopping tells about their interests, preferences, and buying behavior patterns. Retailers can use these statistics to provide personalized advertising and marketing campaigns.

6. Providing a contactless experience

In a post-pandemic world, Augmented Reality applications in retail services eliminate contamination risks and hygiene concerns.

Use Cases for Augmented Reality in Retail

There are two fundamentally different approaches to implementing Augmented Reality in the Retail Industry: in-store and out-of-store.

The first would include the consumer who is actually in or just outside the store experiencing Augmented Reality through handheld devices, wearables such as AR glasses, or dedicated AR hardware including smart interactive mirrors, fitting rooms, storefronts, etc. Off-store access involves using Augmented Reality from another physical location through mobile or web-based e-commerce applications.

Of course, the best strategy would be a combination of in-store and out-of-store approaches, the so-called “omnichannel” strategy. However, not all retailers can afford to install Augmented Reality hardware such as mirrors, and many rely solely on an online presence without the hassle of running a traditional “brick and mortar” store.

Augmented Reality in Retail: Final words

This game-changing trend will revolutionize the retail industry and transform the way people shop. The AR train is quickly gathering momentum, and those who won’t manage to hop aboard – will be left behind!