AR in retail seamlessly integrates the digital with the physical in a blended shopping experience. Consumers are interacting with their favorite retail brands in a completely different way with augmented reality. It enhances engagement and convenience, redefining behaviors and customer expectations. This is why retail brands are developing, redeveloping, and applying AR in a multitude of ways.
Here is how brands are currently boosting customer engagement with AR in retail and what the future of augmented reality looks like.
AR, or augmented reality, is a type of technology that enhances or augments the real world by superimposing or adding real-time digital content overlayed on real-life objects. In retail, AR allows customers to explore products in ways they could not otherwise.
AR in retail today goes beyond the augmented reality features of a decade ago, now incorporating AI and machine learning to function. AR can analyze an image or video stream, recognize objects, seamlessly overlay digital elements, and adjust dynamically to user movements, resulting in a truly immersive and interactive experience.
The global AR in retail market is currently valued at $19.9 billion as of 2024. It is expected to dramatically increase to $64.6 billion by 2030.
For a retail who is prioritizing customer engagement, the ability to pivot to a tech-friendly feature such as AR is an asset. Heighten the in-person shopping experience by leveraging this technology to tell stories, share information, and add animation.
This doesn’t just make things more fun for the customer but it translates to more sales and conversions, sometimes significantly impacting both in-store and online revenues. The investment in AR in retail often makes a meaningful difference in a retail store’s bottom line as they seek to overcome competition, battle back against rising costs and expenses, and provide their customer with the most value they can in-store.
Here are some of the ways that the present and future of AR in retail will be carried out.
AR is, first and foremost, all about immersing the customer in a digitally augmented reality.
Imagine being able to walk through a retail store with AR as a constant. See bold colors, illustrations, animations, product information, how-to guides, personalized ads and discounts, and more. The potential for augmented reality in retail is immense.
An augmented reality-led virtual shopping assistant or AI chatbot delivered through a retail app can suggest products, make recommendations, and tailor navigation to customer preferences.
Reduce time spent searching for products and use an AI chatbot to field questions from customers as they come up. This establishes a deep connection between the customer and your retail brand, and keeps them engaged while shopping.
Engage a retail customer with AR apps that provide additional information about a product.
When a customer’s on the go, not everything they want to know will be indicated on the packaging and display. Augmented reality allows a brand to add more value with detailed specs and guidance on specific products.
Beyond the specs, AR in retail can offer a realistic demonstration of a new product’s features and functionality.
A product demonstration is perfect for new, innovative items on the shelf that may require a little extra to explain. Complex products, such as new smartphones or electronics, benefit from AR simulations. Interactive demos are another way to build trust with the customer and qualify their interest.
AR enhances the presentation of a retail product by making it more interactive and visual.
When customers can visualize a product on themselves – like trying on clothing – or see it in their space, such as placing a couch in a virtual living room, their confidence in the purchase increases. This immersive preview helps reduce uncertainty and return rates, making the shopping experience more seamless and satisfying.
Tap into existing customer data to offer tailored recommendations based on prior purchases and in-store preferences.
Offer personalized promotions, complementary products based on what’s already in a customer’s cart, and use advanced algorithms to connect the customer with a range of services to heighten the value of their in-store experience. Boost the likelihood of upselling and cross-selling, suggesting related products based on AR interactions.
At present, AR in retail is arguably most prominent with virtual try-ons from brands like Sephora.
Retailers with AR technology implemented in-store and on their e-commerce apps allow customers to try on clothing, makeup, glasses, and fashion accessories.
Find a product in-store and have AR in retail suggest other items that suit it. Create product collections.
This is particularly effective with clothing. Let’s say a customer finds a top. AR can suggest bottoms, a hat, and accessories. Create style profits and combine your AR service with an AI-style chatbot to provide further insights into fashion trends and how to craft the most appealing outfit.
Scannable QR codes on product packaging can activate an AR experience that truly captures a customer’s attention.
Imagine being able to state how to use a product, a product’s benefits, and transcend what can be otherwise inactive or mundane packaging.
Consider how augmented reality in retail could be used to highlight new offers and promos in the aisle.
Create specific discounts and promos that can be targeted based on augmented reality and AI. Enhance shopper satisfaction and add thoughtful, relevant sales for the customer to consider.
Help your customers through your retail store, simplifying navigation and leading them directly to the product they came in to view.
AR in retail can tap into an interactive map and work with other technologies to create an intuitive smart store, such as IoT devices, automated product advertisements, responsive product discovery, and AI inventory management.
Beauty and skincare brands are using a combination of AR and AI in retail to analyze and provide personalized recommendations.
Test makeup virtually. Match the makeup to your skin tone. Try on hair colors and other styles based on the results of an advanced analysis. See skincare product recommendations in-store without having to consult a sales associate and be directed to the benefits and effects of specific beauty products.
Retail stores are an underdeveloped source for gamification but more retailers are introducing game-based experiences.
Games, such as scavenger hunts, can activate rewards based on AR interactions and captive customers. This is a whole new way to apply AR in retail to foster engagement. This can be tagged with a loyalty program as well and a retail app to encourage repeat visits day after day.
Launch augmented reality events for your retail store to drive foot traffic and generate buzz online. Transform your retail space into an immersive zone. Consider ways you can use a product launch or seasonal marketing campaign to heighten the interactivity with your retail store.
Further enhance your retail store by looking for creative ways to produce event storytelling and customer engagement.
AR in retail can be a valuable tool for enhancing accessibility, helping customers with disabilities navigate the shopping experience more easily.
Features like text-to-speech, visual aids, and other inclusive AR solutions assist those who may have difficulty moving through the store or locating products, making shopping more convenient and inclusive for all.
AR in retail is known to produce several effects when implemented in a store environment.
There are admittedly some challenges to incorporating AR into your retail store.
There is a high upfront cost to creating augmented reality features. A store will typically encounter technical limitations in software or hardware. There may be a struggle to get customers to use your AR service. Therefore, for a retailer investing in AR, there must be a campaign of awareness launched to ensure that you provide it with its best chance at generating a return.
As you launch an augmented reality campaign, ensure you set clear metrics to judge the ROI from.
Track customer engagement via app analytics. Monitor sales and conversion rates that you believe are influenced by your AR tools. Assess customer satisfaction through surveys and feedback requests which many brands print on the receipt.
Retail is about more than static products. With augmented reality, you can create an experience. Evolve with your shoppers who already expect more from their favorite retail brands.
The future of AR and AI in retail is strong. Now’s the time to make an investment to give your customers the chance to interact, visualize, and engage with products in unique ways. Transform your retail environment with AR software, apps, and features in-store from the experts at Lets Nurture.
