Technology

AR is now table stakes: Here’s why retailers need to dive in

Rob Weaver, chief revenue officer at Vertebrae, explains why immersive commerce has the potential to transform online shopping. By giving shoppers a way to virtually try products in real-life context before buying, 3D & AR provide a richer experience than traditional 2D browsing.

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April 12, 2021 by Rob Weaver

Even as retailers implement augmented reality (AR) and 3D features on their e-commerce sites, they're still treating the technology as experimental and launching with just a handful of SKUs or a single product line to use as a test case.

But in fact, with overall AR spending set to grow 54% to reach $72 billion by 2024, immersive commerce is quickly becoming standard in key categories. Merchants failing to take a comprehensive approach will soon be left behind.

Consider another technology once thought of as newfangled and revolutionary: the customer review. Ten years ago, reviews were growing in popularity, but many retailers were still skeptical about implementing them on their e-commerce sites. They wondered if consumers really wanted them or if negative reviews would hurt sales. But as proof points emerged of their revenue-boosting power, adoption snowballed — and now retailers selling everything from lipstick to lighting fixtures feature them on their sites.

Because of reviews, the way consumers evaluate purchases has fundamentally changed. More than 9 in 10 consumers use reviews to make purchase decisions, and go online to check for them before spending money on almost anything — whether a book or a restaurant meal or a plumber.

Immersive commerce has the same potential to transform online shopping. By giving shoppers a way to virtually try products in real-life context before buying, 3D & AR provide a richer experience than traditional 2D browsing -- one that addresses key product questions and helps boost confidence in purchase decisions.

And, as with customer reviews a decade ago, 3D & AR commerce is approaching the same critical-mass tipping point. Even before the pandemic, Deloitte reported that 46% of retailers planned to launch AR initiatives. And by June of last year, planned investment jumped another 150%, according to eMarketer.

Across categories adoption of 3D & AR selling is on the rise:

● A pioneering category for AR, 9 in 10 furniture retailers have already implemented immersive commerce or plan to do so in the near term.
● Eyewear companies, also early adopters of immersive tools, report significant sales gains from AR implementations. Athletic sunglasses maker goodr reports a mobile conversion boost of 32% using AR.
● Virtual try-on for makeup is growing fast, thanks in part to initiatives by Google and Snapchat. Leading retailers such as Sephora and brands such as L'Oreal have virtual try-on experiences both online and in-store. "We now consider virtual make-up try on to be the base of any experience," L'Oreal chief digital officer Lubira Rochet told Deloitte.
● Footwear brands and retailers are giving shoppers the chance to virtually place products in their environment and view dynamic 3D renderings of customizations they've created, an appealing feature for the more than one in 4 shoppers who've purchased products they've personalized.
● Apparel makers are capitalizing on consumers' ability to spin, flip and zoom in on fine detail via 3D to drive engagement, sales, and store visits. David's Bridal introduced AR to the bridal industry with an implementation that enables customers at home to walk around models of dresses, see how selections will look next to other wedding party outfits, and examine intricate details up-close before heading to stores.

Not only are immersive experiences becoming integral to every retail category; consumers can now access them nearly everywhere. Thanks to advances in mobile technology, shoppers can interact with 3D & AR directly through the Web browser, without needing to download a purpose-built app. A survey from Vertebrae found more than four in 10 consumers want to access AR directly on the Web.

Social media is another popular outlet for immersive experiences, with 4 in 10 consumers seeking AR through Facebook, Instagram, or Snapchat, Vertebrae found. Pilot advertising and shopping initiatives are already underway on all three platforms, giving retailers an opportunity to engage followers and encourage further browsing and sales.

Given the ubiquity of 3D and AR across retail categories and in consumers' online lives, retailers should go beyond dipping a toe in the waters of immersive commerce and take the plunge. With a comprehensive and robust implementation, merchants will meet shoppers' expectations, resolve questions surrounding products, and boost purchase confidence, leading to increased conversions and sales.

Rob Weaver is chief revenue officer at Vertebrae