4 ways that AR is Impacting Retail
Retailers are developing AR shopping experiences to offer customers an experiential visit to their stores that will allow them to interact with products.
Let’s examine some of the potential benefits of AR in the retail space.
1. Increased Engagement
In order to create immersive shopping experiences that foster engagement, improve customer education, and pique consumers' curiosity; several firms are turning to AR. For example Starbucks recently created a wonderful AR experience that told the story of the coffee bean on its journey from crop to coffee cup. This educational experience was a hit with customers leading them to be more engaged as they learned about the process that goes into their favourite coffee.
Creating these unique experiences can help in engaging with customers and this could help in customer retention, with a good AR experience staying in a customer mind helping a retailer retain that customer.
2. Increased Conversions
AR may dramatically impact both in-store and online conversion rates and have a big impact on your bottom line. In-store displays and activations, virtual try-on experiences, and virtual navigation can all work to influence a purchasing decision by allowing customers to experience products easily before purchasing.
3. Contactless Is the Future
Contactless transactions will increase as ecommerce develops and customers grow more at ease making purchases online.
With more advancements in AR, there would be more opportunities to create a life size virtual model for potential customers to interact with. This offering will enable customers to have a look at products from various angles, while saving time, effort, and even money. Brands such as Apple have already started enabling users to view an AR version of the iPhone in their phone.
4. Content-sharing
Filters, displays, and applications driven by AR are entertaining to interact with and also effective organic marketing techniques.
Many brands come out with collaborations with Snapchat that let consumers try out products and share content with friends.
This raises brand awareness for the company but it also offers retailers an opportunity to share information about the products, too. While in-app, if users like the product, they can purchase there and then with a call-to-action (CTA) that takes them straight to your site.
Furthermore, through these fun interactions on social media driven by the AR experience, people will also be talking about the retailer. Whenever people engage in conversation about your brand, there is great potential to gather insights into people’s opinions and general mood around the brand and product.
Examples of how AR can help retailers:
- AR can improve complex warehouse management systems. Warehousing management activities such as inventory control, order allocation and picking, and packaging can benefit from an interactive 3D warehouse layout with the use of AR. These tools can help warehouse staff quickly locate products and quickly extract necessary information.
- Virtual fitting rooms allow customers to try on clothing items before they buy without touching them or even without visiting the store.
- Placement previews like Ikea’s place App AR feature let customers ‘see’ what an item of furniture would look like in their home. This seamless experience keeps customers motivated through the buyer’s journey and results in increased conversions.
- AR-enabled packaging can offer customers the ultimate unboxing experience. For example, customers can scan a QR code on a package that would bring up various digital content offering education or entertainment to accompany the product itself.
- AR can allow businesses to offer more product information to customers. Many customers need as much information as possible to influence their purchasing decision. However, retailers can’t put reams of text in-store or even online as this would be disruptive. So, a QR code that brings up interesting product information will be immensely valuable to many consumers.