Augmented Reality (AR) is a technology that can display digital images on top of what someone sees in the real world. This technology offers many benefits, including more engagement, better brand recognition, and higher sales. AR enables people to interact with products and services more immersively than before. It is becoming increasingly popular in retail, allowing customers to preview products before buying, like trying on glasses or seeing how furniture or appliances would look in their homes. AR is also used in mobile games, like Pokemon GO, where players can interact with a virtual world in real-time. AR has great potential for businesses of all sizes, offering a new way to connect with customers and enhance their experience. It is estimated that AR device users will grow steadily, reaching approximately 1.4 billion by the end of 2023 and 1.73 billion by 2024. The AR market is projected to hit a value of $50 billion by 2024. As more businesses adopt this technology, we will likely see even more creative uses of AR in the future.
Improving Customer Experiences
AR technology is being used in a variety of ways to improve customer experiences, including:
- AR product demos and try-ons:
AR technology has revolutionized the way customers shop for products online. AR can be used to provide customers with an immersive shopping experience that allows them to preview products in their own homes or on their bodies before they make a purchase. This technology has become increasingly popular as it helps customers make more informed decisions and reduce the likelihood of returns. For instance, IKEA has effectively utilized AR technology by developing an app that allows customers to place virtual furniture in their homes to see how it would look. This way, customers can visualize how a piece of furniture would fit into their existing décor, and whether it would match their style, color scheme, and size requirements before they make a purchase.
- AR-powered customer service:
AR is also a powerful tool that can revolutionize customer service and enhance the overall customer experience. With AR, companies can provide customers with personalized and efficient assistance by offering step-by-step instructions on how to use a product or troubleshoot an issue. By simply pointing their device at the item in question, customers can access an interactive guide that provides valuable information in real-time. Moreover, AR can enable customer service representatives to remotely view the customer’s issue and provide live guidance. This feature eliminates the need for customers to explain the problem in detail, which can be time-consuming and frustrating. Instead, the support team can see exactly what the customer sees, identify the issue, and provide a quick solution. This not only saves time but also increases customer satisfaction.
- AR gamification and engagement:
AR technology has become a powerful tool for businesses to create highly interactive and engaging customer experiences. By integrating virtual elements into the real world, AR enables businesses to offer unique and personalized experiences that significantly enhance customer satisfaction and loyalty. A notable example of AR in action is Domino’s Pizza integrating AR into its Ramadan Campaign in 2022. The campaign released a pizza box with a unique QR code that customers could scan to access the AR filter. The pizza box was digitally illuminated with this filter, creating a visually pleasing customer experience. The campaign also announced that every AR pizza box purchased would feed one underprivileged person, making it a socially responsible campaign. Such innovative campaigns have helped Domino’s Pizza create a loyal customer base while setting a new standard for customer engagement in the fast-food industry.
Businesses are utilizing AR technology to provide customers with more interactive, customized, and informative experiences. Examples of such businesses include Warby Parker, Sephora, Lowe’s, Wayfair, and Pokemon GO. Let’s take a closer look at Pokemon Go. This game combined a hugely popular franchise like Pokemon with the real world through AR technology. Despite being launched in 2016, Pokemon Go remains one of the most popular games that incorporate AR technology as a vital component, with an average yearly player spending of $1 billion and 80 million active players. It is safe to say that Niantic Inc., the company behind the game, has established a legacy in terms of AR integration, with increasing revenue year after year.
AR increasing Sales
The usage of AR is rising as businesses have started to recognize the potential of AR to provide more personalized and immersive shopping experiences. AR technology offers a more engaging and stimulating shopping experience by superimposing computer-generated images onto the real world. E-commerce companies are adopting AR technology to drive sales and improve customer experiences by creating personalized shopping experiences, offering loyalty programs, and reducing returns. As mentioned, leading names in the industry, such as IKEA, have already implemented AR technology to enhance their sales and improve customer satisfaction. According to a recent study, 61% of consumers prefer retailers offering AR experiences, and 71% of shoppers would frequent stores more if they implemented AR. Additionally, 57% of users are inclined to patronize brands that offer AR experiences.
The use of AR technology can improve customer confidence, reduce returns, and ultimately increase sales, providing businesses with a competitive edge in the market and offering significant benefits, including increased customer engagement and sales. For example, a study by IKEA found that using its AR app to place virtual furniture in homes before buying it led to a 17% increase in sales.
Boosting Brand Awareness with AR
AR technology has revolutionized how brands connect with their customers. AR can offer more immersive and engaging experiences, making advertisements, marketing campaigns, and social media interactions more enjoyable and memorable for users. 64% of customers feel AR usage boosts their brand loyalty. Brands can leverage AR to allow customers to try on products virtually, interact with characters or environments, or create scavenger hunts, among many other experiences, to boost customer engagement. This technology enables brands to create AR games and activities that users can share with their friends and followers, increasing brand exposure and social media reach.
Moreover, AR can be used to tell brand stories more captivatingly, allowing customers to explore factories or offices through AR tours or learn about the brand or its products through AR educational experiences. AR’s ability to create immersive and interactive environments enables brands to provide exceptional customer experiences and build stronger relationships with their customers.
Conclusion
AR is a technology that is evolving rapidly and has a lot of potential for businesses of any size. Its ability to improve the customer experience, boost sales, and increase brand awareness makes it an invaluable tool for achieving business objectives. Early adoption of AR can provide a competitive edge to businesses, as the technology is advancing rapidly.