Does Using Augmented Reality Really Effective to Increase Sales?

Businesses are continuously looking for new methods to engage customers and increase sales in an ever-changing technological world. Augmented Reality (AR) is one such game-changing technology that has received a lot of attention. Augmented Reality superimposes digital material on the actual environment, providing consumers with an interactive and immersive experience. As this technology advances, a key issue arises: Does Augmented Reality have the ability to enhance commercial sales? This article investigates the numerous ways in which augmented reality might impact customer behavior and lead to increased sales.

The Promise of AR in Retail
AR technology has been heralded by tech executives for years as having the potential to revolutionise our everyday lives. According to studies, about 100 million people utilise AR technology on a regular basis. For retail settings in particular, some experts identify four broad uses of AR technology: to entertain, to educate, to help consumers evaluate product fit, and to enhance their post-purchase experience. Since 2017, several studies have been conducted that increased of using AR in retail websites or e-commerce really affected customer decision-making on buying products. AR is very useful on retailer or E-commerce smartphone apps to let clients visualise how different cosmetic goods, such as eyeshadows and lipsticks, might appear on them. Nowadays, purchase history by using AR is really increasingly consistent to digitalization.
On the customer side, the presence of AR literally helps them to buy the products they wanted. They will just stay at home, scrolling through their phone, and try this feature to see how it fits with their lifestyle without consuming so much time rather than need to go to its real-life stores. It also helps the customer to buy and try the products everywhere and anytime. Some customer said they prefer to choose a retailer that has an AR to satisfy their buying experience. Those who preferred AR said it was better for quality of life (QoL) applications like education, shopping, navigation, and healthcare because it was more reality integrated and felt more natural.

Product sampling behavior is different with AR
The AR interface was mounted on a sample apparatus, allowing customers to digitally try lipsticks without having to physically apply the product. Physical product testers for 16 featured goods (i.e., four different colours of lipstick from four brands) were also put at the sample fixture to assess how browsing behaviour on the AR interface differed from the traditional approach of trying products in shops. When compared to customers who used product testers to sample lipsticks, those who used the AR interface spent nearly 50% more time at the sampling fixture. On average, these customers sampled 7.5 times more goods. Customers that utilised AR tested 1.8 times more lipsticks out of the 16 highlighted lipsticks that were offered on the AR interface and as product testers. These findings show that AR encourages buyers to explore and sample more goods by making the sampling procedure more convenient (when compared to real product testers). This distribution suggests that when buyers use product testers to sample items, they prefer to focus on a few major products and brands. When buyers tested the 16 highlighted lipsticks utilising AR, however, sampling activity was more uniformly distributed among the 16 featured lipsticks. As a result of the increased sample activity, less popular items and brands may profit more from AR.

AR Increase Revenue
Also, the findings said consumers who utilized augmented reality throughout the session spent more time exploring and saw more goods than consumers who did not use augmented reality. On average, customers who utilised AR spent 20.7% more time on the app and viewed 1.28 times more goods. More crucially, their chance of making a purchase during the session was 19.8% greater than that of clients who did not utilise AR, indicating that AR can help businesses raise revenue.

AR’s impact differs across customers and brands.
We discover that, when compared to current online consumers, AR usage had a higher effect on purchases for customers who have never purchased a given product through an online channel, implying that AR can assist to lower buy anxiety for customers who are hesitant to make online purchases. Similarly, AR has a bigger impact on customers who are purchasing from a product category for the first time vs those who have previously purchased from the product category. As a result, when buyers are unfamiliar with a product category, they depend more on AR to lessen the chance of making an unsatisfactory purchase. As a result, augmented reality has the ability to increase the use of online channels and bring in new category customers for merchants and enterprises.
AR adoption has a greater influence on product sales for less popular brands. Customers who utilise augmented reality to sample things are more inclined to buy from lesser-known businesses. AR not only encourages buyers to investigate additional brands (as evidenced in the in-store field research), but it also allows customers to decide how well each product suits their needs, decreasing their dependency on brand signals in the purchasing process. As a result, the availability of AR may accidentally level the playing field for less popular businesses.
AR usage also has a bigger effect on less popular goods purchases. These items often appeal to a smaller target demographic and are known as the “long tail” of product sales. Furthermore, the impact of AR usage is stronger for more expensive items. These findings imply that when buyers can try out risky purchases via AR, they feel more comfortable doing so. As a result, AR may be able to assist firms in increasing revenue by stimulating demand for niche or premium items.

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