According to a survey, a whopping 61% of consumers say they prefer retailers with AR experiences. This excitement is quite natural given that this digital ecommerce capability opens up an abundance of opportunities for them to explore and interact with products. You might be wondering what AR/VR is and how these technologies are creating waves in the digital retail world.
Augmented reality (AR) augments the surrounding elements by integrating digital elements, usually using smartphone cameras to enhance user experiences. Virtual reality (VR), on the other hand, replaces the real-life environment with a simulated one to create an immersive experience. Both technologies use computer-generated simulations to enhance our experience.
The use of augmented reality in retail ecommerce allows users to perform visual searches by pointing their phone's camera at any nearby object. Customers can use AR to interact, personalize, and virtually try on products, helping them make informed decisions about what to buy.
A seamless and enjoyable shopping journey increases the consumer’s trust in the company, which is another strong argument in favor of implementing AR in retail environments.
VR on the other hand, can be leveraged by stores in a way to create an immersive retail environment or give customers a virtual tour of the store. This allows customers to shop at their convenience, browse, and buy things without even leaving their homes.
Both these technologies enable brands to creatively reach out to potential customers across the globe. They help companies develop a unique bond with customers, and lead to a plethora of business advantages.
Here are a few examples of brands that have gone above and beyond to augment their digital ecommerce capability with AR and VR to improve customer satisfaction, engagement, and business outcomes.
1. Gucci
For the longest time, Gucci has been unattainable to many consumers. While these stores are often viewed from afar, many customers might not have been able to experience their luxury first-hand. Gucci was amongst the first high-end brands to collaborate with Instagram and leverage augmented reality in retail to boost sales.
Gucci also partnered with Snapchat to offer a virtual try-on experience, significantly boosting customer engagement and establishing a fresh avenue for sales. By integrating AR and VR technologies, Gucci has successfully crafted an elevated luxury experience, leading to heightened satisfaction after purchases and enhanced customer loyalty.
From increased reach to positive Return on Ad Spend (ROAS), Gucci extracted significant business value through this exercise.
2. Nykaa
The Indian e-commerce company Nykaa, is another example of a brand using augmented reality and virtual reality in retail. Through a partnership with L'Oreal, Nykaa launched ModiFace, an AI-powered virtual try-on tool that lets customers virtually try on products on Nykaa's website and mobile app.
This contributed to the company providing an improved beauty experience for all makeup enthusiasts, allowing them to make confident choices from a wide range of products.
Nykaa has also utilized Verloop.io, a live chat platform, to interact with customers and manage around 1.6 million unique conversations within the initial 30 days of implementation.
3. IKEA
One of the most renowned home decor and furniture brands, IKEA helps consumers virtually arrange furniture in their homes using augmented reality and virtual reality. This allows customers to accurately measure the size and design of products before purchasing it.
IKEA also temporarily launched "Lilla Äventyret" (Little Journey), an AR adventure, in 21 of its Swedish stores in February 2023 to promote sustainability as part of the in-store experience, this augmented reality game encouraged players to investigate subjects like pollution prevention and littering.
Further augmenting its digital ecommerce capability, IKEA introduced Billie, an AI bot, in 2021 to handle customer inquiries and streamline the information and assistance-access process for clients.
4. Nike
Nike has incorporated features that enable consumers to scan items such as clothes or shoes with their cellphones, providing additional information and enabling virtual try-on experiences. Nike Fit is an example of augmented reality in retail ecommerce that uses AI, machine learning, and computer vision to accurately measure the entire form of both feet.
Customers can use the camera on their smartphone to scan their feet, and AR technology will provide an accurate measurement within a 2 mm margin.
Nikeland stands as Nike's dedicated virtual space within the Roblox platform providing a venue for fans to socialize, participate in promotions, and interact with a variety of brand experiences. Users can purchase NFTs, play minigames for chances to win rewards and prizes and try virtual things using their avatars within Nikeland.
5. BMW
One of the leading automotive giants, BMW has created virtual showrooms using AR and VR technology, allowing clients to engage with cars and explore their features in a more engaging and immersive way. They use AR and VR technology to enhance ecommerce capabilities by offering personalized customer experiences, like letting customers see how a specific car would look in their driveway. This helps customers imagine owning the car and makes a successful sale more likely.
BMW also developed AR software that allows users to get remote assistance from BMW experts, who can diagnose problems with their vehicles or respond to questions regarding the features of the automobile.
Wrapping Up
The integration of AR and VR technology and its digital e-commerce capability is causing a significant transformation across multiple sectors, especially in retail. These immersive technologies are being used by brands to improve customer engagement, provide personalized experiences, and streamline sales processes.
However, these technologies truly shine when incorporated into a foundation of essential digital e-commerce capabilities. This is where the expertise and support of a reliable technology partner, such as Mayura Consultancy Services become crucial to leveraging virtual reality and augmented reality in retail operations. Contact us to know how you can embark on your digital transformation journey.
FAQs
1. How does AR technology contribute to overall customer satisfaction in online shopping?
AR technology in online shopping enhances customer satisfaction by allowing visual searches, personalized interactions, and virtual product try-ons. This provides customers with a more immersive and assured shopping experience.
2. How has Gucci used augmented reality to boost customer engagement and sales?
Gucci has collaborated with Instagram and Snapchat to offer virtual try-on experiences, leveraging augmented reality. This strategic use of AR has significantly increased customer engagement, establishing new avenues for sales and enhancing customer loyalty.
3. What innovative steps has IKEA taken to incorporate AR and VR technology into its customer experience?
IKEA has utilized AR technology for virtual furniture arrangement, allowing customers to measure product sizes accurately before purchasing. Additionally, the brand introduced an AR adventure game in stores to promote sustainability and implemented an AI bot named Billie to streamline customer inquiries, enhancing the overall digital ecommerce capability.
