Elevating the Customer Experience Through Augmented Reality

Table of Contents

  1. Introduction
  2. The Role of AR in the Customer Experience
  3. Shopper Journey Phase: Engagement
  4. Shopper Journey Phase: Comparison & Discovery
  5. Shopper Journey Phase: Decision
  6. Conclusion
  7. FAQ

Introduction

Imagine being able to virtually try on a handbag, visualize how a new couch would fit into your living room, or test the perfect eyebrow look—all without leaving your home. This isn't a scene from a futuristic movie; it's the reality that augmented reality (AR) brings to the retail world. With 66% of consumers indicating a keen interest in leveraging AR while shopping, the technology has transitioned from a mere novelty to a vital component in today’s customer experience. Brands leveraging AR capture consumer attention 41% more effectively than those who don't. But the key to success lies in using AR thoughtfully to enhance the shopper's journey. This blog will explore how three innovative brands—Coach, Ikea, and Benefit—are harnessing AR to enrich different phases of the customer experience.

The Role of AR in the Customer Experience

Augmented reality serves multiple purposes in retail, from driving store traffic to facilitating product discovery and aiding in final purchase decisions. Here, we explore how three distinct brands have integrated AR into their strategies, creating engaging and functional experiences for their customers.

Shopper Journey Phase: Engagement

Coach

What it is: To drive foot traffic, Coach has incorporated AR into their store windows. Their Prince Street location in SoHo, New York City, features a digital mirror powered by Zero10. The goal? To captivate passersby and encourage them to engage with the brand.

How it works: Shoppers can virtually try on Coach's Tabby bags in various colors by simply standing in front of the virtual mirror. The experience is enhanced with dynamic elements such as a giant "TABBY" in bold bubble letters dancing around the screen. Inspired customers can then move inside the store to engage with another AR-powered kiosk, allowing them to browse more bags, save snaps, or share their experiences on social media.

Why it’s impactful: Store windows play a critical role in retail design. They can either draw customers in or push them away. Coach’s AR display effectively uses technology to attract attention, aligning with the brand’s goal of driving engagement. The innovative use of AR makes the experience shareworthy and fun, adding social media appeal and increasing the likelihood of customer interaction within the store.

Shopper Journey Phase: Comparison & Discovery

Ikea

What it is: Ikea has long been a pioneer in incorporating AR into its shopping experience. Their Ikea Kreativ feature enhances the traditional AR capabilities by merging it with shoppable showrooms and "build-your-own space" tools, empowering both everyday shoppers and professional interior designers.

How it works: Users scan a 3D replica of their room using the Kreativ app. They can then visually remove current furniture and add new Ikea items, seamlessly integrating them into their space at scale. Additionally, customers can experiment with different color options for these products to see how they fit into their existing decor.

Why it’s impactful: Shopping for furniture online can be a daunting task. Products may look appealing on a website but fail to match your room’s aesthetics. Ikea Kreativ overcomes this challenge by providing a precise, contextual preview of how items will look in the customer’s actual space. This eliminates much of the guesswork and helps shoppers make more informed decisions, thus reducing the likelihood of returns.

Shopper Journey Phase: Decision

Benefit

What it is: Benefit stands out for its extensive range of cosmetic products, particularly for eyebrows. To assist consumers in selecting the right shade quickly and easily, the brand offers an AR-powered virtual try-on tool, even in the absence of physical Benefit Brow Boutiques.

How it works: The AR tool is seamlessly integrated into the product display page. By accessing the “Brow Cam,” shoppers can use their phone camera for a real-time virtual try-on experience. They can also upload a photo or use a site-snapped picture to see how different brow products and shades would look. For those concerned about data privacy, the system even allows them to pick a model based on age and skin tone for product testing.

Why it’s impactful: The tool excels because it’s incredibly user-friendly and provides a realistic preview of how the products will look post-purchase. This is particularly significant for a product category like eyebrow makeup, where testing multiple options in real life isn't feasible. The AR try-on ensures customers can make confident, informed choices, enhancing their overall shopping experience.

Conclusion

AR technology is revolutionizing customer experiences across various stages of the shopper journey. Whether it’s drawing people into stores, aiding in product comparisons, or facilitating final purchase decisions, AR has proven to be a versatile and powerful tool. Coach, Ikea, and Benefit are excellent examples of how brands can thoughtfully integrate AR to not only engage but also provide real value to consumers. By leveraging AR strategically, retailers have the opportunity to enhance customer satisfaction, increase engagement, and ultimately drive sales.

FAQ

What are some common uses of AR in retail?

AR is commonly used for virtual try-ons of clothing and accessories, visualizing furniture in home spaces, and providing interactive product demonstrations.

How does AR improve customer engagement?

AR tools can captivate shoppers by offering interactive and immersive experiences which blend digital elements with the real world, thus increasing engagement and dwell time both online and in-store.

Are there any privacy concerns with AR technology?

Yes, data privacy is a significant concern. Retailers must ensure that their AR tools comply with data protection regulations and provide options for users who prefer not to share personal data.

How does AR reduce product returns?

By allowing customers to visualize products in their actual environment or simulate their use, AR reduces the uncertainty associated with purchases, leading to more informed buying decisions and fewer returns.

What's the future of AR in retail?

The future of AR in retail looks promising with advancements in technology that will deliver even more personalized and immersive shopping experiences. Integration with other technologies such as AI and VR is likely, further enhancing the capabilities and applications of AR in retail.