Believe it or not, eCommerce has been around since the mid-1990s and has been on a steady growth incline ever since. Just before the infamous dot-com boom in 1999, global eCommerce managed to reach $150 billion. However, when the stock market bubble popped, many companies in the dot-com sector crashed and the industry took a bit of a knock.
Fast forward to the present and online stores are more popular than ever before. In fact, online shopping is slowly overtaking physical shopping as the more preferred option between the two. And with the arrival of the COVID-19 pandemic, eCommerce popularity skyrocketed to new heights – and doesn’t seem to be coming down any time soon.
Naturally, it’s understandable why so many people prefer online shopping – it’s quick, easy, and much more convenient than traveling to a physical store (especially when there’s a scary virus going around).
So why are people still choosing to shop at brick-and-mortar shops when they can purchase items with the click of a button?
Unfortunately, eCommerce stores are still lacking a few important aspects of the shopping experience, such as instant gratification, immediate help from sales assistants, and, most notably, there’s no way to physically see or test a product out before purchasing.
The latter is especially a problem, as consumers want to ensure that they’re making the right purchase. No one wants to buy clothing in the wrong size, shoes that don’t fit, or an item that they haven’t properly tested out.
Luckily, technology advancements have come a long way, and slowly but surely eCommerce sites are bridging the gap between online and physical shopping. One of the ways this is being achieved is through Augmented Reality (AR).
Augmented Reality is no longer just for Snapchat filters and Pokémon Go. It is increasingly being used as a tool in daily life, particularly to enhance the shopping experience when purchasing from an online store.
Adding a touch of sensory product experience to online shopping, AR technology offers customers more in-depth and complete information about their products. Without leaving their homes, consumers can now participate in a virtual “try-before-you-buy” experience where they can preview products and simulate testing them out prior to purchasing.
From viewing scale models of furniture in your home to trying on clothing, consumers can visualize products in familiar settings when shopping online, further avoiding the need to visit a physical store.
And with more and more people turning to eCommerce stores, particularly due to the ongoing pandemic, it is becoming a necessity for every online shop to offer an AR experience where customers can engage with their products before committing to a purchase.
Virtual reality (VR) and augmented reality might seem like interchangeable terms, but they are actually very different. There are 3 distinct disparities between the two concepts, which are:
The most common ways that eCommerce stores are using AR technology are:
1. Increases customer engagement
AR is inherently interactive and interesting, which will attract and hook customers when on your site. Not only does AR pique customers’ interest when viewing products, but it also provides additional information they might need. And an informed customer is more likely to make a purchase and return to your store for more items.
2. Reaches new customers
An engaging AR campaign is more likely to be shared across social media by customers visiting your eCommerce site. And the further it spreads, the more potential customers you’ll reach.
3. Reduces return rates
Viewing a static picture of a product isn’t always the best way to determine whether or not something is a suitable purchase. So, it’s no surprise that many people tend to return items they bought online after receiving and reviewing them in person.
By providing consumers with a way to visualize and interact with a product – even if virtually – they’ll avoid disappointment and choose the items that suit them best, thereby avoiding a high return rate.
4. Increases shopping time and improves conversion rates
Research shows that conversion rates increase by 90% for customers engaging with AR when compared to those that don’t. Not to mention that interacting with AR functions will increase the time they spend on your site, which, in turn, will increase the likelihood of conversions.
5. Boosts sales
When a customer is able to see exactly how a product fits into their life – whether it be shoes on their feet or a new desk for their home office – they are more likely to purchase said product, as they are making a well-informed decision. Therefore, AR helps reduce the customer journey and increases store conversions, which means more sales.
6. More data on customer preferences
AR technology collects information about the products that your customers are viewing. This will help you learn about your target audience’s preferences, interests, and shopping behavior patterns, which can then be mined to deliver personalized advertising and marketing campaigns.
With over 15 years of experience in driving growth for our clients, Nexa is perfectly positioned to help your business reach new levels of success. Speak with us today to learn how we can improve your digital marketing strategy for a more optimized, efficient, and effective sales and marketing process.