3 Ways AR is Digitally Transforming Retail Customer Experience in 2019

Digital transformation in retail is key to differentiating and outshining competitors. The retail industry is leveraging AR to create immersive and personalized customer experiences. Let’s see, how.

Augmented Reality (AR) is no longer a futuristic technology. It has made inroads into a majority of industries with rapid adoption by the gaming, retail, healthcare, and automotive industries. Global Market Insights predicts AR market size will exceed USD 50 billion by 2024.

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Let’s begin by understanding AR.

What is Augmented Reality?

Augmented Reality projects objects into a real-world environment, digitally transforming a person’s perception of an object across multiple sensory modalities. It is an interactive experience providing a composite view of what a user actually sees and what is digitally created. Pokémon GO, Harry Potter: Wizards Unite, Ingress and other such games are the best examples of augmented reality.

Also Read: The 6 Best Augmented Reality Marketing Campaigns We've Seen So Far

How is AR Redefining Retail and Transforming CX?

Shopping experiences today are not confined to store visits. Customers expect valuable and memorable experiences in the limited time they spend shopping. Retailers are therefore exploring novel ways to create experiences that blend the physical world with digital magic.

AR can empower your customers by creating interactive and enhanced experiences. Here are three ways AR is bringing digital transformations to the retail sector for ‘augmented’ customer experiences.

1. Interact and Inform
 

AR can be harnessed to engage your customers and help them solve common problems, such as in product information, instruction manuals, and help guides.

• Using AR you can improve your in-store experience with detailed product information. Lacoste, for example, created the LCST Lacoste AR mobile app using which customers could not only virtually try on their shoes, but also experience window displays, in-store signage, and promotional postcards.
• American Apparel also drove engagement with their mobile app. A shopper could scan a picture of the signage on her American Apparel app, which would then pull up product details, customer reviews, color variants, pricing, etc.
• Mercedes-Benz’s Ask Mercedez app is a step towards doing away with complex user manuals. E- and S- class (2018 models) sedan owners can use the Ask Mercedez app on their iPhone 6 (onwards) to access the car interior and functional details using the phone’s camera and touchscreen. Once a feature is selected, the app communicates information via video, audio, and text.
   

2. Infuse Personalization
 

Digital transformation is incomplete without delivering personalized experiences. Marketers know that no one size fits all, and are finding innovative ways to customize their customer experiences. Here are some examples of what big brands did with AR in marketing:

• Apparel brands such as Timberland and Topshop created a virtual changing room to let customers try on their products more conveniently.

• Sephora, a leading cosmetics brand, was an early adopter when they let users try on makeup using their AR app, before purchasing it.
• Charlotte Tilbury created a ‘magic mirror’ AR wall, that could scan shoppers’ faces and let them try the brand’s iconic looks without having to wear any makeup.
• IKEA’s Place App shows how a piece of furniture would look in your desired space.
   

The ‘test before you buy and how it looks on you’ concept not only improves engagement, but also builds your customer’s trust that she is making the right decision by choosing a product that best ‘fits’ her needs.

Also Read: Immersive Technologies 101: How AR and VR can Change your Game

3. Immersive Experiences
 

Gartner identified immersive experience as one of the top ten trends of 2018. Immersive experiences are not just a cool new tactic to stand out, but can also add value to your customers’ shopping experiences.

• Often, customers can get lost or confused in a large shopping mall, and struggle to find the products they need. Most just leave in exasperation – something no retailer would want. AR can come to the rescue. An AR-powered mobile app or in-store kiosk can provide accurate product information and build an interactive map to help a customer find a product.
• AR is increasingly used by the tourism and travel industry to guide travelers through unfamiliar places. Yelp uses its Monocle feature to provide data on local places.
• AirWalk’s invisible pop-up shop is another creative example that intrigued shoppers. AirWalk promoted the limited-edition relaunch of AirWalk Jim. Shoppers could download the AR app, and using geolocation, this app would guide them to the location of the virtual pop-up shop.
• You can enhance brand experience and make your products more desirable using AR. For instance, Volkswagen launched its new Beetle model using AR-driven billboards. When a customer viewed the billboard using the AR app, the car would come alive and burst onto the screen!
   

Also Read: 5 Ways AI is Impacting Retail Marketing

Conclusion

AR provides fun, unique, and memorable experiences for customers. Early adopters such as Sephora and IKEA harnessed AR and continue to stand-out for their revolutionary apps. As with all such tools, using this technology smartly and creatively to add value to customers’ lives will make their customer experiences even more informed, pleasant and enjoyable.

Which retail digital transformations inspired you the most? What AR tactics would you incorporate to transform customer experiences? Tell us on Twitter or LinkedIn or Facebook; we’re always listening!