Augmented reality in retail

Amber Hovious at Teamwork Commerce explores connected retail ecosystems and explains why AR shouldn’t exist in isolation 

 

From virtual try-ons to interactive product displays, augmented reality (AR) is redefining how brands engage customers and drive sales. However, it is critical to understand the importance of deploying AR in the right way that provides value for both retailers and their customers. While many are jumping on the AR bandwagon, only a few retailers are utilising it effectively.

 

The question is: If AR is valuable, why isn’t everyone realising it?

 

The key lies in the appropriate use of the technology. AR is exciting, but it shouldn’t be deployed in isolation. The technology’s true potential lies in integration with other technologies, ecosystems, and real-world applications. When leveraged in tandem with other advanced technologies - such as RFID, artificial intelligence (AI), and the Internet of Things (IoT) - and connected with the wider retail ecosystem, AR can deliver personalised and frictionless customer experiences in real-time.

 

 

CX benefits from integrating AR

Offering immersive interactive experiences and engaging in-store experiences, AR-powered solutions are redefining the customer shopping experience (CX). From streamlining operations to tailoring customer experiences, retailers can use AR in a number of ways to reap its full value. 

 

Real-time inventory visibility for customers. If retailers can deploy AR in their stores, they can help customers visualise available stock and even locate products. As a result, customers can easily visualise different items and locate them without a hassle.

 

Customers can virtually try on products, instantly know what colours and sizes are available for purchase, and even see any alternative suggestions available. This creates a frictionless and connected in-store shopping experience for customers.

 

Omnichannel shopping experiences. As omnichannel shopping becomes more common, leveraging AR solutions can make these experiences more seamless and user-friendly. AR allows shoppers to see products in their environment, enhancing confidence in purchase decisions. By integrating AR with order management systems, retailers can enable customers to reserve, purchase, or request home delivery directly from within the AR interface.

 

This removes the hassle of switching between platforms, streamlining the shopping process for a more frictionless experience. More importantly, customers often value in-store shopping experiences to see and feel items before they make a purchase. If an item a customer is looking for is out of stock, AR can fill this gap and allow them to visualise it. This allows retailers to drive sales opportunities while increasing customer satisfaction.

 

Personalised experiences. Retailers that personalise customer interactions within AR environments can create exceptional value and significantly enhance the shopping experience. By combining AR solutions with customer relationship management (CRM) systems, retailers can ensure customers are provided with hyper-personalised recommendations based on shopping history, preferences, and even real-time interactions with products.

 

This can improve sales as customers are more likely to interact and make purchases when they receive relevant and meaningful product suggestions.

 

 

How it impacts operations

Integrating AR with a wider retail ecosystem can ease the workload on staff. Instead of manually checking stock availability or searching for alternative sizes, employees can rely on AR systems that sync with the broader retail tech stack to provide instant information directly to consumers. This can allow staff to spend more time on valuable tasks such as personalising human interaction with customers and ensuring high-quality in-store experiences.

 

Beyond enhancing in-store experiences, AR plays a crucial role in streamlining retail operations. By integrating AR solutions with RFID and wider supply chain technologies, retailers can facilitate faster restocking, predictive demand analysis, and even automated reordering, ensuring popular AR-featured items are always available.

 

Retail associates can use AR-enabled smart glasses to quickly locate products, reducing picking time and errors. Similarly, staff can use AR-powered glasses to scan barcodes and QR codes, speeding up inventory management significantly.

 

 

The bottom line

Augmented Reality is a powerful tool, but its potential is limited when it exists in isolation. To reap its full potential, retailers need to integrate it with the wider retail ecosystem and use it in tandem with other technologies such as AI, RFID, and more.

 

The real value isn’t in using standalone AR applications, but in incorporating the technology into an all-encompassing retail technology stack to create seamless, connected experiences that merge the physical and digital worlds in meaningful ways.

 

Those who can approach their technology adoption holistically can create frictionless shopping experiences for their customers while streamlining their retail operations.  

 

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Amber Hovious is VP of Marketing and Product Partnerships at Teamwork Commerce

 

Main image courtesy of iStockPhoto.com and hakule