Rob Weaver, chief revenue officer at Vertebrae, explains how AR and 3D can have a broad impact on business outcomes and how immersive commerce can affect a broad range of key business metrics.
December 11, 2020 by Rob Weaver
The rise in online shopping is both an opportunity and a challenge for retailers: there are more customers and online spending dollars than ever to capture — but also more competition. Indeed, technology researcher Forrester estimates that overall North American retail sales are set to drop by 2.5% annually, even as online revenues grow by 18.5%, which means online interactions are crucial to capturing a portion of what is overall a shrinking market in a global pandemic.
Engaging shoppers — especially new shoppers — can be tricky in the best of times. Search engine results and social media feeds are apt to be dominated by big retail players with deep pockets for digital advertising. Furthermore, as the year-end holiday period approaches, promotions shift into higher gear, making the competition for attention and engagement even tougher. Email volume, for example, rises to more than 120% above average.
But there's now a revolutionary approach to online shopping that engages shoppers on a whole new level, differentiating brands in the process. Immersive commerce — the use of augmented reality (AR) and 3D in retail — transforms the visual experience of products by placing photorealistic renderings in shoppers' own real-life surroundings, giving shoppers a wholly personal experience that provides vital information about product details, size, and fit.
Thanks to innovations in mobile and Web browser technology, it's easier than ever for consumers to access 3D and AR without needing specialized apps or equipment — and as a result, more shoppers than ever have encountered immersive experiences. In a survey by Vertebrae, nearly three quarters of respondents were familiar with AR, and close to 4 in 10 have experienced augmented reality while shopping — nearly twice as many as in 2018.
That growth means immersive experiences are still new enough to deliver a "wow" factor, while also providing real benefits to users: nearly half of respondents said AR and 3D is beneficial because it allowed for a 'try-before-you-buy' digital experience, while a third said immersive shopping is "fun and engaging."
Those positive reactions can translate into concrete improvement in key performance metrics around engagement, including:
Mobile activity. With white-collar employees away from their office workstations during the pandemic, mobile commerce is forecast to make up 44% of all online sales this year, making engaging mobile experiences a must-have. Most mobile retail sites are ho-hum exercises in scrolling through multiple screens of product listings — but 3D and AR can disrupt that experience. Immersive interactive tools provide life-like, detailed images that consumers can use their phones to flip, spin, zoom, and even walk around to view from every angle.
Omnichannel clienteling. More shoppers than ever are looking to streamline in-store experiences to limit possible exposure to COVID-19, and 3D and AR can help make the transition seamlessly to face-to-face clienteling experiences. Wedding retailer David's Bridal plans to use its new 3D and AR implementation for top-selling gowns and bridesmaid's dresses to stimulate personal shopping appointments in its boutiques. "With our stores closed and wedding plans upended around the globe, we knew we had to reimagine the experience and help bring excitement to shoppers at home," said Lizzy Ellingson, chief digital experience officer for David's Bridal. "It's an innovative and dynamic way to view gowns and bridesmaid dresses that's unlike any other experience on the web."
Social media traction. Snapchat, Facebook, and its subsidiary Instagram are all piloting AR tools for businesses, and Facebook's recent launch of Shops prominently featured available AR enhancements. Retailers that create Web-based 3D and AR assets can easily syndicate them to social platforms, creating standout experiences that disrupt consumers' passive scrolling and invite them to interact.
Search engine results. Google's search engine results are already populated with 3D and AR wildlife, from alligators to wolves, and commercial applications are in the works. Given that image-rich Google Shopping formats outperform standard text-based ads, it stands to reason that merchants with immersive assets at the ready will see similar boosts in results with the transition from traditional flat images.
Breaking through the noise is more crucial than ever — but using the revolutionary medium of immersive commerce, retailers can engage shoppers on a whole new level while delivering the vital product information that drives sales.
Rob Weaver is chief revenue officer at Vertebrae.