To stand out in any field, you have to be a pioneer. Retail is no different: for your business to offer a truly distinctive shopping experience, staying ahead of the trends is essential. A good way to do that is by keeping an eye on technological advances, and one of them has a lot of untapped potential: augmented reality.
In today’s post, we’ll explain what this technology is all about (it has everything it takes to become a highlight of retail innovation) and how it can impact your company’s sales. Read on!
What is augmented reality?
Augmented reality is simply the addition of virtual information to the real world. Through an electronic device, it lets users interact with real-world objects or places in ways that wouldn’t be possible without this technology.
Unlike virtual reality, which immerses users in a fictional world and transports them into a virtual environment, augmented reality makes new elements appear in the real world. To experience it, users need an electronic device, such as a smartphone, that connects them to this information. Most of the time, these devices display an altered or enhanced version of the real world, invisible to the naked eye.
Examples of augmented reality include software that reveals the position of a patient’s veins to make injections easier, apps that display the constellations anywhere in the sky (even during the day), and tools that transform artworks in museums to give them new meaning.
Another very famous example is Pokémon GO, which launched in mid-2016. It filled cities around the world with Pokémon that players could interact with through their smartphones.
All well and good, but what does this have to do with retail?
What can it do for your business?
Because it’s a technological novelty and shares the interactive nature of the digital world, augmented reality will have three main impacts on your business:
- building engagement with your audience;
- strengthening brand awareness;
- and increasing your business’s competitive edge.
These impacts are actually linked in a chain, with one leading to the next. First, there’s audience engagement: augmented reality initially draws people in with the allure of novelty. Its usefulness can range from providing more information about the product to simply offering a fun, casual way to interact with it.
Next, it grabs attention because it feels like a kind of secret. When customers see others interacting with a product and seeing things no one else can see, their curiosity will be piqued and they’ll want to join in, too.
This makes the customer’s contact with your product more memorable, strengthening brand awareness. You’re replacing passive contact (like looking at a product on the shelf, a billboard or even a product demo) with an interaction that depends on the customer’s own action and is therefore a more engaging shopping experience.
When customers remember your service or product positively, they’ll not only be more likely to come back, but they’ll also talk about the experience with other people, who may become customers as well. With more visibility, your business will boost its competitive edge.
To illustrate these advantages, we’ve rounded up a few examples of companies that have used augmented reality innovatively in point-of-sale campaigns.
1. The Shiseido Mirror
Shiseido is a Japanese cosmetics brand that decided to innovate in how its customers interact with its makeup line. It placed the Digital Cosmetic Mirror at the POS, which recognizes customers’ faces and applies the selected products to their “reflected” image. At the end, customers can compare their face with and without the products to get a clearer idea of the final look.
On top of that, the augmented reality mirror also recommends complete makeup looks based on the customer’s face, designed to enhance her features. At the end of the experience, a list of the products used is printed out. Then all she has to do is head to the checkout and take everything home.
This kind of “digital fitting room” is also being rolled out by other major brands, such as Rayban! It’s the kind of POS innovation that engages customers and speeds up the sale.
2. Ikea’s digital furniture
What if the product isn’t something you wear or put on your body, but something you take home? No problem. Ikea launched an augmented reality app that lets consumers visualize their homes with different pieces of furniture, making it easier to choose.
For those who prefer flipping through printed catalogs, Ikea’s new catalog also supports augmented reality. Casas Bahia didn’t fall behind and did something similar. In both cases, customers don’t need to visit your store, which makes this a powerful tool for e-commerce.
3. Coop Italia’s talking fruit
At one location of Coop Italia, an Italian supermarket chain, screens light up when you approach the food products and provide information about the products the customer is choosing. Details like price, nutritional information and expiration date can be checked much more easily.
In this case, the device used isn’t mobile but fixed, and it belongs to the supermarket itself. That way, customers don’t have to hold their phones and point them at products the whole time.
It’s worth noting that the push to use augmented reality can come from either the store or the supplier, as part of a trade marketing strategy developed together with distributors to increase product visibility at the point of sale.
We hope today’s tips inspire you to use innovative tools like augmented reality in your company’s marketing.
On our blog, we make a point of bringing retail and new technologies together in innovative strategies. If this combination interests you, be sure to read this other post about the future of retail.
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