With 20.8% of all retail transactions taking place online in 2023, technological advancements will drive the way customers shop. In today's dynamic landscape, everything from the way you browse your favorite stores to the way you buy something is rapidly evolving, and augmented reality is one of them.
Customer preferences are constantly changing, so businesses are looking for new ways to engage their audiences. Integrating augmented reality (AR) into your e-commerce experience is just one way to do that.
Related: The evolution of e-commerce – a glimpse into its past, present and future
Augmented reality in e-commerce
Augmented reality is an innovative technology that synchronizes digital elements with the real world to provide customers with an immersive experience. The use of AR has proven to be a game-changer for several companies, transforming the way customers interact with their products and services.
Augmented reality first gained traction through entertainment apps like Pokémon Go, but it is now slowly making its way into e-commerce. According to industry experts and market analysts, AR will soon become the cornerstone of e-commerce success. According to a Statista forecast study, by 2025, approximately one-third of US shoppers will use AI-powered technology when purchasing products online.
So, if you're ready to get on board with the AR hype, let's take a look at some of the benefits for your business.
Improving customer engagement
Many companies are hesitant to incorporate AR technology into their business strategy. Most of the time, it is considered to be just a gimmick or a fad that will soon go out of style. But that's not the case, and I can assure you it's not going away anytime soon. According to a report by Deloitte, approximately 4.3 billion consumers worldwide will use AR technology frequently by 2025.
Harness the power of AR to enhance customer engagement and attract other potential customers as well. A study conducted by Retail Perceptions revealed that 71% of customers would like to frequent a retail store that offers an augmented reality experience. This initiative is not temporary. That leads directly to conversions and long-term brand loyalty.
By creating immersive shopping experiences that captivate viewers, brands can leverage AR to bring interactivity and engagement to their campaigns that weren't previously possible with traditional marketing methods.
personalized shopping experience
“Personalization” is a buzzword on everyone's lips these days. Customers want unique shopping experiences tailored to their needs. AR can help elevate the mundane and common shopping experience to something more personalized for each customer.
Augmented reality accomplishes this by curating product recommendations based on personal preferences, behavior, and shopping habits. According to McKinsey research, 71% of customers expect brands to provide a personalized shopping experience, and not only that, but 76% of customers are actually dissatisfied when that doesn't happen.
Because of this, AR is more necessary than ever before. And it's a win-win situation for both business and customers. By seamlessly merging the digital and physical realms, AR offers a unique opportunity to create bespoke shopping journeys that resonate with customers.
Related: How will augmented reality (AR) continue to transform the customer experience?
Improved product visualization
In fact, AR addresses a common pain point faced by many online shoppers by visualizing how a product will fit or look on them. It's an all-too-common scenario to buy a product and then get frustrated because it doesn't fit or look as good on you as you thought it would. According to Time, people return almost 40% of items they buy online due to size issues.
Being able to visualize how you would look in a certain dress, or with a lipstick that really suits you, can save a lot of time and money for both the customer and the retailer. AR helps turn imagination into reality by allowing customers to visualize products in a real-world environment before making a purchase.
According to research from Shopify, retailers that add 3D and AR content to their stores experience an astounding 94% increase in conversion rates. A lot of it has to do with whether customers are confident in what they're buying. AR significantly reduces the uncertainty associated with online purchases.
Success stories of brands using augmented reality
Augmented reality is not entirely new to the market, with several brands recognizing its transformative potential and leveraging it to curate immersive experiences for their customers. Let's take a look at some prominent ones.
nike fit
Nike recognized a significant pain point faced by customers: not always getting the correct size when buying shoes online. According to them, he probably wears shoes of the wrong size 3 out of 5 people. To address this concern, they developed NikeFit. This is a mobile app made using AR technology that scans a customer's feet to determine the correct shoe size. This helps customers ensure they buy the correct size and eliminates hassles when it comes to exchanges and returns.
L'Oréal virtual makeup and hair color try-on
A common problem that many women experience when purchasing makeup products or hair color is that they look good in advertisements or on other women, but in the end, they don't suit you as well as you thought. L'Oréal has devised an intelligent solution for this using AR technology. The company has created a virtual try-on experience for all its products on its website and app. So customers can now see how a lipstick or a certain hair color will look on them before they buy. This proved to be a highly effective strategy, with L'Oréal's e-commerce sales increasing by a whopping 49% after the technology was announced.
ikea place
Home furniture giant IKEA hasn't fallen behind in the AR race for continued success. A new era in home decor visualization has arrived with the release of the innovative app IKEA Place. Imagine being able to see how a rustic armchair would fit into your living room.
Check the images to see if the stylish coffee table matches your current interior. The app turns these visualizations into reality. We use augmented reality technology to achieve this. This app allows users to virtually place her 3D models of IKEA products into their living spaces. This is done using your smartphone's camera. The 3D model is a faithful representation of the actual product.
This helps the customer make a purchase decision and decide whether to proceed with the purchase or not.
Introducing augmented reality into your e-commerce strategy
According to Mobile Marketer, 52% of online retailers are not yet ready to incorporate AR technology into their shopping experience. Entering a new realm of technology, especially one as overwhelming as AR, can certainly be daunting. But the benefits to your business will be worth it in the end.
Therefore, it is essential to keep a few things in mind before embarking on an AR integration journey.
Understand your target audience
If you don't understand your target audience's preferences and technology proficiency, all your efforts and money will be wasted. Different age groups have different levels of comfort with technology. For example, Millennials and their Gen Zs, who grew up in the digital age, are more likely to embrace AR experiences than previous generations.
Choose the right AR technology
Which AR technology you choose depends on the results you want to achieve. If you are considering using AR to provide product information, you can choose marker-based AR. This method requires scanning markers to display digital content. In contrast, markerless AR identifies real-world surfaces and objects, making it particularly useful for creating virtual try-on opportunities.
Collaboration with AR developers
The idea of integrating AR into e-commerce platforms is exciting, but it also requires expert consultation and effort. By working with AR development experts, you can smoothly implement AR technology into your e-commerce venture. Their expertise alleviates technical challenges and ensures optimal user experience and seamless interaction.
Innovative content creation
Creating innovative and engaging content is the key to a successful augmented reality campaign. The immersive experience potential of AR requires a strategic approach to creating content that resonates with your target audience. Therefore, you should create content that focuses on common problems faced by your customers and leverage AR to provide quick solutions.
Related: Why you should use augmented reality in your business apps
Challenges to overcome when integrating AR technology
Integrating AR into a business' e-commerce strategy is promising, but it also comes with its own set of challenges.
The issue of ensuring a smooth user experience is paramount, and as AR experiences become more sophisticated, so does the risk of delays and lags. To address this, it's important to strike a balance between real-time interactions and maintaining technology fluidity.
Additionally, technical barriers can hinder AR efforts. Since AR experiences need to be accessible on a variety of devices, device compatibility has emerged as a major concern. Additionally, factors such as internet speed and bandwidth can also affect the performance of AR applications. To address these technical barriers, applications must be optimized for different devices. Additionally, a robust network infrastructure to support the data-intensive demands of AR.
Questions regarding privacy and data security are top of mind for any user. AR apps often require access to personal data. This may raise concerns about data collection, storage, and potential misuse. Users must ensure that their private space and sensitive information is protected. Therefore, robust security measures and transparent data policies must be in place to establish trust and encourage widespread adoption.
The future of augmented reality in e-commerce
AR has already made great strides in the field of e-commerce, but its potential has not been fully realized. As the number of online customers increases. Demand for personalized shopping experiences and immersive technology to bridge the gap between the digital and physical realms.
As technology continues to evolve, so do customer expectations. According to a NielsenIQ study, 56% of shoppers surveyed said AR technology increases their confidence in product quality and helps them make purchasing decisions. AR integration is becoming an invaluable feature for many brands.
The future of AR in e-commerce is exciting, from merging with other immersive technologies such as virtual reality (VR) and mixed reality (MR) to facilitating social commerce with AR-powered features and AI integration. There are hidden possibilities. Encourage personalization of the shopping experience.
Featured image credit: Author provided. thank you!
