As the retail landscape evolves, staying on top of consumer expectations has become even more challenging. With buyers seeking more personalised and convenient shopping opportunities, augmented reality (AR) is boosting the retail experience. It integrates physical and digital shopping, creating more satisfactory moments.
The Challenges of Traditional Retail
Retailers that continue without technological investments continue to experience these top challenges.
Increased Customer Expectations
Technology is constantly improving, and customers have seen what it can do to enhance their shopping experiences. They expect retailers to offer the latest technological advances to make their experiences as smooth as ever. However, traditional retail models struggle to meet these higher expectations, as they rely heavily on in-person assistance or static online platforms.
Without augmented reality, stores will find it challenging to offer the immersive experience today’s consumers crave. That can lead to higher cart abandonment rates as they seek brands that provide more tech-driven interactions.
Personalisation
Modern consumers expect retailers to understand their preferences and offer tailored product recommendations. However, traditional retail models have limited ability to provide this level of personalisation. For instance, in-store sales associates can only make broad suggestions because of their limited knowledge of the customer.
Research has found 73% of consumers expect a personalised experience as technology advances and 64% anticipate the same when they spend more. The AR retail experience can provide vendors with opportunities to drive more customised shopping.
Higher Operational Costs
From managing large inventories and store layouts to hiring salespeople, retailers invest significant resources in ensuring a smooth customer experience. However, costs can escalate quickly without the proper technological support. For example, providing customers with detailed product information typically requires extensive training, which drives up labour costs.
Additionally, these companies must dedicate their resources to stock management. If there is less visibility in the stockpile, there is always a concern about out-of-stock items or excess inventory. This can contribute to missed sales or wasted capital, and 8% of product leftovers contribute to the excessive waste the world experiences today.
The Benefits of the AR Retail Experience
AR is changing the retail experience in several ways, letting retailers drive customer loyalty and business growth.
Higher Brand Engagement
AR in retail transforms the shopping experience by allowing brands to engage more deeply with customers. Spatial augmented reality, or digital projection mapping, is a great way to create a positive and immersive in-store experience that allows brands a unique way to connect with consumers in a fun and memorable way. AR filters on apps like Instagram, Snapchat and TikTok provide entertaining, shoppable moments as customers engage with products in a virtual space.
By meeting people where they already spend a lot of time, businesses can build stronger loyalty and keep them returning for more. Furthermore, AR filters encourage user-generated content.
Consumers can share their virtual try-on experiences with their followers, acting as brand ambassadors. This deepened engagement creates a ripple effect, increasing patrons’ awareness of a company through social interactions.
Integrates Online and Offline Shopping
Augmented reality in retail stores merges online and offline shopping experiences, bringing the physical store to customers regardless of location. Traditionally, online shoppers had a limited ability to interact with products as they would in a physical store.
With in-person shopping, you can try clothes on to see how they look or fit. You can even test products to see how they work, but this is challenging for consumers to experience online. Augmented reality in retail fills this gap by offering virtual experiences similar to in-store shopping.
For example, choosing paint colours can be challenging for homeowners who are still determining how they may look in a room. The Sherwin-Williams AR app lets customers point their camera at a wall and sift through shades. Patrons can browse for the perfect paint colour online and visit a physical location to purchase the item.
Boosts Customer Decision-Making
Before augmented reality, uncertainty often slowed down customers’ decisions because of how unsure they were about a product. AR removes much of this guesswork by providing real-time, interactive insights into the products they are considering.
For example, AR-powered virtual try-ons let consumers see how clothing or makeup will look on them without physically touching the items. One recently integrated AR experience is Instagram’s makeup try-ons from brands like NYX and Urban Decay. The social media app can provide this feature due to Facebook’s collaboration with L’Oréal’s AR beauty company ModiFace.
Users can test makeup products virtually through Instagram, improving their confidence in product selection. This is because they can visualise the result before committing to a purchase, giving them a better look into how these items improve their lives.
Hyper-Personalised Shopping
In retail, shoppers expect a high level of personalisation, especially regarding discounts and promotional offers. In fact, 83% are interested in customised offers, but only 44% say they are relevant. AR technology gives retailers a chance to provide the most appropriate promotions.
Through this technology, retailers can monitor customer behaviour and tailor product recommendations, promotions and store layouts in real-time. When customers use AR-powered apps in-store or online, they can receive a discount offer based on the products they’ve viewed through the app. These relevant and timely promotions lead to increased conversion rates and higher satisfaction.
Augmented Reality: the Future of Retail Stores
The retail industry is becoming increasingly competitive as companies invest in digital transformation to provide the most seamless shopping experiences. Therefore, integrating augmented reality in retail stores is essential for brands looking to thrive in today’s marketplace. By leveraging this technology, retailers can exceed customer expectations and improve their experiences.
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