Why augmented reality is a smart sales strategy

Aug 04 2020 | PayPal editorial staff | 4 min read

Augmented reality is removing shopping barriers on mobile.
Australian consumers are changing the way they shop, and it’s a pretty exciting time to be in eCommerce. Insights from the 2018 PayPal mCommerce Index Trends Report show that mobile tech is rapidly transforming the path to purchase, and the focus is on fun.

The report reveals that two thirds of Australian smartphone owners are now browsing as a form of entertainment, with 77% making an impulse purchase as a result. These purchases are fuelled by interactive technologies like augmented reality that once seemed futuristic but now lets people find, try and buy new products with ease.
 

Augmented reality – more than just Pokémon Go

Remember Pokémon Go? The craze that had people chasing digital creatures that “popped up” in the real world before “capturing” them on their mobiles via an app? For a moment there it seemed as though the world had gone Pokémon-mad, and that’s the power of augmented reality.

Not to be confused with virtual reality, which is a wholly immersive digital experience, augmented reality is when technology is used to superimpose digital information – video, pictures or sounds – on real-world interactions, and it has a host of compelling applications.

From a business point of view, the smart thing about augmented reality is that it makes it easier than ever before for brands to bridge the gap between digital and physical experiences. And, if that experience is a good one, customers will engage more with their products and be more likely to make a purchase.
 

Augmented reality removes shopping barriers

One of the most telling statistics to surface in the Trends Report is that almost nine-tenths of Australians revealed they were concerned about fit and size variation between brands when shopping online. 82% were worried that they didn’t know how the item would look, either on them or in their home.

Augmented reality solves for this in two ways.

First, it helps guide people to the right product choice. Almost half of all those surveyed (44%) said they’d be more likely to buy online if they could see what an item looked like on themselves, or in their home, before heading for the checkout.

LorealSecond, it encourages people to spend more. More than a quarter (27%) of shoppers went on to say that being able to virtually try on products would actually make them purchase more items overall – and, interestingly, 38% of businesses agreed with this statement.

Add in the fact that 12% of customers would also share virtual “try on” images with their friends on social media, giving the products and businesses additional online exposure, and it’s easy to see how the “fun factor” can be a great way to grow sales.
 

Who’s trying it on for size?

Some of the world’s best-known brands have already discovered the benefits of offering augmented reality experiences and virtual assistance on their sites.

SephoreOptical retailer Specsavers offers a “Virtual Try-On” that lets a customer scan his or her face and see how a pair of glasses suits them (both front-on and side views); while Ray-Ban has options to see how different frames look on a model for customising sunglasses.

Cosmetics brand L’Oreal invites mobile shoppers to give themselves an online makeover by testing different lip colours, eye makeup and hairstyles, and to then share the images with friends.
IKEAFor customers keen to “try” makeup on and even star in their own tutorials before they pop their chosen products into the cart, beauty retailer Sephora offers its Virtual Artist app.
And those who need a little interior design inspiration, Swedish giant IKEA offers the Place app that lets its shoppers see how a rug, lamp or piece of furniture would look and fit in their own home.

Augmented reality is not just for big business

Using augmented reality to remove barriers to purchase has worked well as a strategy for Sydney-based bag and tech accessory company, STM.

STMSTM has an app that encourages shoppers to “try on” STM’s bags by superimposing them onto their own backs and test them out for form and features. Prospective customers can also view the backpack in a range of colours and use their smartphone’s camera to “hold” it in their hand and look at it from any angle.

According to company founder, Ethan Nyholm, the app has boosted sales by as much as 35% on the bags it promotes. “If people interact with a product and have an experience, they’re more inclined to buy that product,” he says.

Start with simple tactics to make your site more fun

The good news for entertainment-seeking browsers is that other Australian businesses look likely to follow suit. The 2018 PayPal mCommerce Index Trends Report found that 5% of businesses are already offering augmented reality and 32% are planning to introduce it soon.

All businesses should at least be exploring tactics to connect people to their products in increasingly creative ways, even if they’re not yet ready to invest in the full interactive experience. For example, having great images on your site is a must, ideally shopping multiple product views and colours, and featuring both stand-alone as well as in-home or in-use scenarios.

It’s also a good idea to include “how-to videos” to bring products to life. And it’s definitely worth providing detailed sizing guides alongside your range. Plus, of course, your site must be mobile-optimised. Because ready or not, the age of mobile “retailtainment” has arrived.

 
The contents of this site are provided for informational purposes only. The information in this article does not constitute legal, financial, IT, business or investment advice of any kind and is not a substitute for any professional advice. You should always obtain independent, professional accounting, financial, IT and legal advice before making any business decision.
The contents of this site are provided for informational purposes only. The information in this article does not constitute legal, financial, IT, business or investment advice of any kind and is not a substitute for any professional advice. You should always obtain independent, professional accounting, financial, IT and legal advice before making any business decision.

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