Last updated: How augmented reality boosts the holiday shopping experience

How augmented reality boosts the holiday shopping experience

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For retailers, the holiday season is the ultimate test. The challenges of meeting customer demands, outshining competitors, and creating stellar shopping experiences can often feel overwhelming.

In an age of rapid technological advancement, retailers can get help in addressing those challenges. Augmented reality is among the many new technologies redefining retailers’ strategy for attracting and converting holiday shoppers, both in-store and online.

A global survey by Snap Inc. and Publicis Media illustrated how augmented reality is reshaping retail: More than two-thirds of shoppers who experienced AR said they intend to purchase products after using the technology.

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Holiday standouts: Augmenting the in-store experience

Amid all the holiday offers and deals, brands must captivate their customers and deliver exceptional experiences to distinguish themselves from competitors. This is where AR technology can help, by blending digital and physical spaces.

In physical stores, AR offers opportunities for virtual try-ons, enabling customers — who may be feeling their own holiday pressure — to see how clothing, accessories, or cosmetics will look without having to hunt down a fitting room.

Magic mirrors” in a brick-and-mortar stores help customers virtually try on multiple items in different colors and sizes without having to physically change them.

Interactive product demonstrations are another way AR technology can help retailers provide outstanding in-store experiences. For instance, AR can show how kitchen appliances work or provide information about the origin and manufacture of a product when a customer scans a QR code.

When it comes to fashion items, brands can create interactive AR holograms, featuring models wearing their apparel and accessories. These animated visualizations help shoppers see the materials in movement, offering a complete view of products.

How that works: A consumer scans a QR code to see an outfit spring to life on their smartphone and turn into an interactive AR hologram  featuring a model posing in the items they’re interested in.

Augmented reality tackles the online holiday return problem 

AR technology addresses one of the most pressing online shopping challenges for retailers — the surge in returns after the holidays.

A study by the National Retail Federation estimated that retailers were expected to see an average of 17.9% of merchandise bought during the 2022 holiday season returned. That totals about $171 billion in returned items.

An extended holiday shopping season, heavy discounts, and bargain-seeking consumers drove up returns last year, according to Insider Intelligence. Retailers should brace for a similar trend this year and plan carefully, researchers warned.

One factor that can contribute to online returns is the disparity between the product images the consumer sees versus what they receive.

AR can help retailers tackle this problem by offering consumers many ways to explore products, from visualizing them in real-life settings to virtually trying them on from the comfort of their homes. As a result, online shoppers gain a more accurate understanding of products to boost the chances that it will be the right item for them.


Click the “cube” icon to experience the 3D view in AR

The  Snap/Publicis Media survey found that 80% of shoppers said they feel more confident in their purchases when using the technology. Moreover, 66% of shoppers who use AR are less likely to return their purchases.

Beyond the holidays: AR and the future of shopping

Augmented reality technologies are poised to become mainstream as more retailers incorporate them into the shopping experience. From trying on different fashions to seeing how a new bookcase might look in your living room, AR is transforming retail.

By offering immersive and interactive experiences that bolster customer confidence and reduce returns, AR redefines the shopping landscape. boosting customer experience and driving better results for retailers.

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