The role of augmented reality in retail and ecommerce
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The role of augmented reality in retail and ecommerce

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The business landscape has never been more dynamic since the advent of smartphones. With a whopping number of users, the coveted mobile device is changing consumer behavior rapidly with every upgrade.

The eCommerce scene has likewise seen dramatic shifts in recent years. More than half of the traffic for online shopping is traced back to mobile users. By 2021, mobile eCommerce is expected to hold 72.9% of the share in the arena.

As more consumers turn to mobile phones, marketers are tasked with providing a seamless flow from start to finish. Developers are adopting a mobile-first approach to enhance user experience and reap the rewards.

From simplifying navigation menus to crafting mobile-friendly displays, there’s much to explore to meet your consumers’ demands and improve conversion rates. However, perhaps the most exciting development in the field is augmented reality.

This innovation brings customers closer to products, thus closer to purchases, while staying behind their screens.

What is Augmented Reality?

Augmented reality (AR) is a form of interactive technology that superimposes digital information into the real world. Such information can be text, sound, images, and three-dimensional objects—all meant to improve how we experience products and relevant content.

Although the concept of AR sounds futuristic, the technology has been around for some time. Augmented reality dates back to the 1960s when a head-mounted display called ‘The Sword of Damocles’ was introduced.

In 1968, Harvard professor and computer scientist Ivan Sutherland created a gear that allowed users to experience computer-generated graphics. Similar projects emerged since then, but the term ‘augmented reality’ did not appear until 1990.

AR is often confused or used interchangeably with virtual reality, but the two differ. AR technology only adds some aspects to an ordinary backdrop, whereas VR creates a completely computer-generated environment for users to interact.

In other words, AR is meant to enhance the ordinary world, while VR is made to create an entirely new setting.

Applications of AR Technology

AR Technology

One of the most notable applications of AR is NASA’s hybrid synthetic vision system for the X-38 spacecraft. Using AR technology, pilots see map data on their screens, improving navigation during test flights.

Meanwhile, sports broadcasts use AR by overlaying visuals onto the court or field. By inserting yellow yard markers, trajectory lines, virtual trackers, and ads, viewers have an even more unique on-screen experience.

Sportvision introduced AR 1998 on a live NFL game, which they enhanced through the 1st & 10 graphics system. AR didn’t take long to reach other sports, paving the way for the company to capture clients like the NBA, NHL, MLB, and more.

Volkswagen pioneered leveraging AR technology in the automotive industry by creating the Mobile Augmented Reality Technical Assistance (MARTA) app. MARTA serves as a step-by-step guide for repairs and alterations, an idea that was later applied to other industries to help streamline processes.

Google seized this opportunity and launched Google Glass in 2014. The wearable AR device proved helpful in medicine, cognitive therapy, and media coverage. Two years later, Microsoft released its take on the technology as Microsoft HoloLens.

Today, the masses use AR more frequently than you’d think. AR technology makes the popular game Pokémon Go possible, as are the filters on Facebook Messenger, Snapchat, and Instagram.

The Role of Augmented Reality in Retail

AR in Retail

In 2017, IKEA released IKEA Place, an app that allows customers to preview products virtually in their homes. Decor options appear true-to-scale, helping customers make informed decisions about every purchase.

This revolutionized the retail industry forever.

While online shopping is convenient, an apparent gap between consumers and products creates friction inside the sales funnel.

People want to make sure they get their money’s worth. This means knowing how an item looks in their hands, inspecting fine details, and making sure it’s the perfect fit. Not being able to do any of these physically makes customers hesitant to checkout.

With AR, you bridge these gaps and make online shopping interactive and memorable.

Major platforms already support augmented reality, including WordPress, Shopify, Magento, and Woocommerce.

Augmented Reality Technologies for Product Visualization

AR for product visualization

There are two major AR technologies used in eCommerce. Depending on the nature of your business, you can choose either of the following or combine utilizing these technologies to your advantage.

Marker-Based Augmented Reality

Various devices support this technology and are the simplest to implement and produce. It uses natural feature tracking, recognizing distinctive images or objects as markers to trigger a response.

When such markers are identified, additional content such as text, animations, images, and sounds are overlaid on real-world objects. When scanning QR codes or logos, marker-based AR can also redirect users to landing pages or videos.

Markerless Augmented Reality

Markerless AR does not require visual markers to produce results. Users can visualize products almost anywhere and interact more with the virtual projections. However, it can only be run on select devices and is more challenging to develop.

Markerless AR can place detailed 3D objects in an active environment. It is the backbone of IKEA Place and all social media filters.

Pros and Cons of Using AR for Product Visualization

The key to closing sales is building consumers’ confidence in your brand and products. Establishing that trust is especially difficult in eCommerce because customers don’t have the luxury of reviewing items in person.

This is why augmented reality is a game-changer.

Product visualization through AR gives consumers the closest possible feel of items without visiting a physical store. They can explore their options in-depth, compare products more effectively, and see how they look on their bodies or living spaces.

Empowering customers with this level of control improves their overall shopping experience, leading to higher conversion rates and sales.

Of course, you must consider a few things before diving into AR.

Many augmented reality applications are based on open-source architecture. This framework lets anyone inspect, modify, and enhance the software’s source code. In other words, people can freely customize how an app or program works.

The biggest concerns that arise from this are security breaches and privacy threats. Since anyone on the internet can access the source code, such AR apps are more vulnerable to cyberattacks.

Additionally, AR technology comes at a high price. The intricacies of developing AR-based applications require high-level skills, so you should expect more expensive professional fees.

Conclusion

AR has its fair share of drawbacks and advantages. However, the consensus is that using AR for product visualization is a good investment, primarily when implemented correctly.

In a time when most of our every day is spent on the web, providing excellent service on online channels is no longer just an option. Seamless and empowering experiences must drive conversions and nurture customer relationships.

Revisit your marketing plan and see how AR can improve your sales funnel. Visualize how you want your products presented and let your developers do the rest. Trust us, you won’t regret it.

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