In recent years, AR has gained popularity fast in a range of industries, from education and medicine, to real estate and retail. According to a US study on “The Impact of Augmented Reality on Retail”, 34% of customers already use AR when shopping and 71% said they would shop more often if AR applications were available.
But in what way does AR really affect the consumer retail experience? What makes it such a powerful emerging tool in retail? Let’s explore:
According to a Harvard professor’s recent book, 95% of purchase decisions are based on subconscious emotional reactions. There are many ways to create emotional connection - sensually, physically, psychologically. AR technology combines them all.
For instance, Home Depot’s Project Color app enables customers to “see” how their home will look when painted in particular colors. This ability to physically and interactively experiment with paint colors in the AR space of their own home deepens the customer’s brand experience with Home Depot. Once they arrive at the store to view and purchase the paint, they have already invested their time, effort and emotion. AR helps lay the foundation for a more powerful, personal and memorable in-store experience.
According to a smartphone addiction study, the average user checks their device 47 times a day. The average time spent on mobile phone and tablet every day is 4.5 hours. The facts speak for themselves - smartphones are an integral part of consumers’ everyday lives.
In a study by Retail Perceptions, 40% of people say they are willing to spend more on a purchase if it involves some form of AR. Today’s consumers are hungry for a tech-rich experience, one that resonates with their smartphone behavioral habits, and they will even pay for it. In the retail sector, it is recommended to create apps and experiences that bring the online, interactive smartphone experience into the store. New AR technologies provide ample opportunity to do so.
A huge advantage of AR in retail is its ability to provide an engaging, informative experience that makes the purchase process easier for the customer. Whether it’s an AR changing room, where the customer can virtually try on different clothing or jewelry, or an AR app that enables consumers to instantly call up product information in store, such as pricing, colors, sizes and reviews, AR is not a gimmick or toy - it’s a purchasing tool that encourages consumer decision making by providing compelling, engaging and easy in-store and online retail experiences.
AR is here and it’s here to stay and at YEG Fine Jewelry we completely agree. Many analysts predict that the AR industry will reach $100-130 billion in value by 2020. The next challenge facing retailers - including diamond and jewelry sellers - is keeping up with the dynamic pace of technology advancement in AR and its vast potential for in-store application.