Using AR to Drive Engagement

Augmented opportunities

There has been rapid digitalisation across the entire customer journey in recent years, and the metaverse is set to become the next frontier for online interaction. Brands should already be taking advantage of augmented and virtual realities to start building the future of customer experience.

The global AR market is projected to grow from $6.12 billion in 2021 to reach $97.76 billion by 2028. AR content has reached the marketing mainstream and offers vast creative opportunities, in this article, we examine the key areas where you can use augmented reality to drive engagement with your own audience.

Advertising

According to Allied Market Research, there are already 1.5 billion frequent users of AR in 2021, and this figure is forecast to reach 4.3 billion by 2025. This presents an enormous opportunity for advertisers to reach a new and engaged audience.

The breakdown of cookie advertising and privacy concerns in recent months challenged advertisers. However, AR presents a new opportunity for brands to create interesting ads that are memorable and with which consumers want to engage.

AR provides the opportunity for brands to deliver personalised experiences based on the viewer’s location, device and stage of the customer journey. This can significantly increase conversion rates without sacrificing privacy, as was proven by Shopify, who saw 94% higher conversions for products featuring AR or 3D content.

In-store experience

Digital technology in stores is making for more interactive phygital experiences. eCommerce presents a number of challenges to brick-and-mortar retailers, but with AR and other digital tools, these channels and touchpoints can blend together.

Shoppable AR presents the opportunity for the seamless connection of customer experiences. An AR advert can take a user directly to a purchase page within the same device and app or allow them to add it to their virtual basket and pay for the product at the physical store check-out.

AR can create new and exciting experiences within physical retail. For example, Burberry created a series of global pop-ups where audiences could scan a QR code to watch the Elphis statue walk around them. Content like this can be regularly updated to keep stores exciting without the environmental costs of temporary physical displays that are regularly changed.

Purchase consideration

AR can boost purchase confidence as it provides an easy and accessible ‘try before you buy’ experience. In a Deloitte report, 56% of consumers agreed that AR gives them more confidence about product quality and over half said that they want to use AR to assess products risk-free.

Virtual try-on/visualization is extremely popular with beauty and home brands. IKEA’s Place app offers an AR feature that allows users to envisage furniture that they are considering purchasing in their own space. Similarly, ASOS ‘See my fit’ shows shoppers how products realistically look in different sizes and on different body types. This help to drive sales and reduces return rates.

Loyalty

Not only does AR boost customer satisfaction with increased convenience and product understanding; it can also be integrated into loyalty programs through gamification. Pokémon Go demonstrated how popular AR games can be, especially when there is a mission or collectible as the driving motivation.

Virtual rewards and missions can be strong incentives to customers and largely increase brand recall and favourability. Branded AR games can include rewards such as digital coupons, exclusive content, and new release announcements.

If you would like to know more about how Tag can bring AR experiences to life, visit our retail design services page here, or send us a message below.