NEW WEBSITE INSIGHT Using AR to enhance the shopping experience Augmented reality; Rhapsody; Creative Media Production Agency; retail; marketing; interactive experiences; coronaviurs; shopping

AR to enhance the online shopping experience

In light of this data, it’s helpful to think of AR as a primary marketing tool and certainly to consider it as a replacement for traditional advertising.

The benefits of using AR to enhance online shopping are as follows:

of shoppers look for retailers who offer them AR-based experiences

of shoppers believe that AR shopping is fun

of customers buy products they did not intend to because of AR

Recent research suggests that 70% of consumers shop online and 80% use their mobile phones to access the internet, so it goes without saying that smartphones are the go-to device for augmented reality content. Further to this, Cyfuture reported that 75% of consumers now expect brands in the online retail market to offer platforms with AR experiences. Cyfuture projected an AR market forecast of 18.8bn by 2020 and also presented the following insights from a customer online experience survey:

AR to enhance the real world shopping experience

Linking online and offline

Beyond the store

Conclusion

This technology has been slowly gaining momentum over the past five to ten years, with brands turning to this solution because of its myriad benefits in driving customers to store and helping them shop more reliably online.

In a world where consumers are potentially reticent to visit physical shops, AR can become the secret weapon in any of-the-moment marketing strategy.

Holding particular appeal for the Chinese and Japanese market, with 84% of Chinese consumers convinced that AR/VR is the future of shopping, Statistica predicts that 5% of the augmented and mixed reality software market will be represented by the retail sector. To be a pioneer in the field, now is the time to invest in this exciting technology. And here’s why...

of the customers shopped for more products when using AR

of shoppers are ready to pay more for the product when tested by AR

'Try before you buy'

Sephora Virtual Artist allowed shoppers to try on different shades of makeup and compare a variety of the same product (e.g. lipstick) by taking snapshots of each shade and placing them in a grid.

Further research found that 76% of consumers would ‘maybe’ or ‘definitely’ purchase more items if there was a ‘try before you buy’ option available. Here’s how ‘Try before you buy’ AR tech has been utilised by brands:

Allowing the customer to visualise, connect with and get used to an item before buying it removes any risk involved in the purchase. By eliminating doubt you are adding value for the consumer and ensuring that the shopping experience itself is associated with positive emotions, which the consumer will want to experience for as long as possible. Reports suggest that almost 70% of online shoppers abandon their carts, so smart retailers will be looking to AR to help the conversion rate.

Reducing likelihood of returns

Reducing the need for in-store visits

Taking the AR shopping experience one step further, back in 2012 Chinese grocery brand Yihaodian exploded onto the market by launching 1,000 virtual stores in business centres, by tourist monuments and even directly in front of their competitors’ shops. Customers use an AR app to browse the virtual store, add things to their basket, pay and have items delivered directly to their home . By combining the traditional shopping experience with the fun, ease and convenience of AR, Yihaodian saw a 17% increase in revenue over three months, proving that by making use of AR there are significant gains to be had.

For many consumers, real world retail is still the premier choice. A survey conducted by Eurostat in 2018 found that 70% of people who choose not to buy online, prefer to physically interact with a product in real life because it makes them feel more comfortable with their purchase decision. Retaildive similarly found that 49% of respondents like physical stores more than online ones because they prefer to get things they pay for right away and 20% of respondents preferred traditional shopping because they enjoy the associated social aspects. Even Amazon, the world’s biggest online retailer, began opening its physical 4-star stores back in 2018, offering a compliment to its world-beating webshop. Therefore, we cannot dismiss real world shopping just yet.

And here’s how:

What consumers want is for the shopping trip to become an experience, associated with fun and positive emotions. Especially in the Coronavirus aftermath where safety is paramount, fun AR experiences can remind shoppers of the ‘old normal’. If you can reward shoppers for spending with your business more often and for longer, imagine the brand loyalty you can build! Happily, AR can also be used to enhance the physical shopping experience.

Magic mirrors/ display units

Gamification

Drive shoppers to store

Make your brand stand out at third party stores

These units allow customers to visualise what products might look like when worn/made. Most consumers are still yet to try this technology which makes it exciting and taps into the ‘try before you buy’ concept. Some successful examples include:

Magic mirrors/display units

Uniqlo’s in store magic mirror which allowed sales staff to help customers browse various colours of the same piece of clothing, take photos of their favourite and email them to the customer.

Timberland’s magic mirror in the store window to attract passersby. The mirror encouraged interaction and drove shoppers into the store (although some may have concerns about appearing on such a screen). To activate, customers would step into a human-shaped cut out to get their image to appear on screen and then flick through different jacket/trouser/shoe combinations by moving their hands to click ‘next’.

Another option to add fun to the shopping experience, by using AR in a gamification setting to connect with customers while they are in store/ to encourage them to visit the store, brands can make use of the technology that saw Pokemon Go become wildly popular. Examples include:

Clothing brand Tillys partnered with the influencer Shonduras on an AR treasure hunt on their app. Customers were encouraged to find coins, obtain discount codes and enter a big prize draw. 55,000 consumers accessed the treasure hunt, there was an 80% coupon redemption rate and the brand saw a 23% increase in app downloads during the promotion, making it a huge success.

Gamification

Walmart debuted AR games and interactive features in a Christmas promotion on its app, which allowed customers to interact with major brand mascots and take shareable festive selfies. The app received a five star rating which confirmed its hit status.

Webrooming is a retail trend that’s emerged with the success of online shopping, meaning to conduct product research online, but to make purchases in real life. A business could make use of this by working with print-at-home AR markers. One successful example of this came from the VADO Interactive Visual app. Once printed and placed on a surface, the AR markers can be scanned by the app to allow customers to see how fixtures and fittings (such as taps) will look in your home setting. The app gives a 360° view of the products as well as allowing shoppers to browse different finishes and even different lighting options! A twist on ‘try before you buy’ that will help webroomers feel even more comfortable about the purchases they make.

Drive shoppers to store

Make your brand stand out at third party stores

With such a high percentage of consumers looking for a physical shopping experience, AR helps online shopping feel more like beingin a real store while also giving potential to reduce physical store size. BMW showcased an app which allowed customers to browse different car colour options, see inside the vehicle, operate various features and customise the steering wheel. By increasing customers' ability to learn about the product and adapt it online, AR gives the potential to reduce warehouse/showroom space.

In addition to improving the shopping experience pre-purchase, AR opens up a wealth of post-purchase opportunities for the tech-savvy retailer to add value.

Lego Hidden Side sets combine gamification and AR, allowing purchasers to play games, solve puzzles and fight bosses by using their Lego set in connection with an app to get more out of their purchase.

In 2015, Hyundai created an app-based user’s manual that made the most of AR functionality to advise when the owner needed to change the oil, for example, and even provided video instructions for how to fix various in-car issues. For a millennial car owner, this option is a lot more user-friendly than traditional paper manuals.

Bombay Sapphire launched an augmented reality label offering cocktail recipes to make at home using the much-loved tipple.

By keeping the conversation with your customer going and adding value post-purchase, brand loyalty is increased tenfold.

Consumers are looking for a fun experience to give them a lift after the struggle of the last few months, so there’s never been a better time for retailers to invest in AR tech, especially as it remains relatively underused and therefore still has the desired effect of generating word of mouth hype. AR has been tried and tested by big brands like Walmart, Sephora, Ikea, Gap and BMW and has produced real, measurable results, which should give smaller retailers some comfort that it is truly an effective marketing tool.

Not only can AR help retain customers and attract new ones, boost sales and raise brand awareness, it offers a new way of interacting with the customer that transcends language barriers and can be used anywhere you take you smartphone. Though many brands choose to use AR in a one-off experience, there are those who are building it into their long-term marketing campaigns for maximum success. If your brand uses AR to educate, explain, inspire or entertain, you ensure that engaging with the content is worth consumers’ time.

'Try before you buy'

- Gap’s DressingRoom app (one of the first examples of AR in retail) saw users select a body size and an item of clothing to see a digital mannequin wearing it. More recently, Rebel Athletic’s app utilised the smartphone camera to take a full body scan and obtain accurate measurements in order to create bespoke clothing. MTailor’s app offers a similar service.

Ikea's Place app allows customers to scan the dimensions of their home and place lifesize virtual items of furniture within each room. By giving customers the ability to check that a product is right for their interior, brands are able to not only improve customer confidence but also drastically reduce the number of returns.

30% of the products bought online are returned, with customers buying and returning an average of three items per month. In the UK, returns cost businesses in excess of £60bn per year. Augmented reality offers brands the ability to more accurately predict sales figures in a world where 85% of consumers expect retailers to offer returns for free. In clothing, footwear and make-up we’ve seen how returns can be minimised with ‘try before you buy’ AR options but what about larger, big ticket items? In a 2016 eMarketer survey, furniture was found to be the product type that consumers would be most likely to shop using AR.

Reducing likelihood of returns

When customers are able to ‘try before you buy’, this minimises the need to head to the physical store. In the COVID-19 aftermath, when certain shoppers might be anxious about the transfer of germs, this is particularly vital.

Reducing the need for in-store visits

Philips added pop-up signage next to its products in multibrand retailers that could be scanned for additional video content and information about the product. This feature provided an ice breaker and allowed both customers and sales staff to interact more with the item, increasing the potential conversion rate.

Converse’s The Sampler app used an AR overlay to allow customers to see what different shoe styles and colourways look like on their feet. You can take snapshots, share on social media and buy your favourites.

Lego worked with Digital Box to encourage customers to scan items they were interested in buying in order to see a detailed 3D model of the completed build.

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