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The ROI on AR: How Augmented Reality is Boosting Ecommerce Sales

ROI

When used correctly, augmented reality can drive significant business results across the marketing funnel. When used correctly, augmented reality can increase value at all stages of the consumer journey: awareness, consideration, and conversion. To reap the most value from your augmented reality campaigns, you need clear goals and appropriate call-to-action functionalities. The ROI of AR for your ecommerce business will be measured as a percentage of sales or other KPIs.

30x more effective than traditional methods

Augmented Reality (AR) can increase the purchase intent of your customers by 30x. Customers can see products in 3D and experience their placement within their surroundings, increasing their likelihood of adding items to their carts and reducing the chances of product returns. With the help of AR, consumers can experience a memorable shopping experience that will keep them coming back for more. Moreover, augmented reality can improve the customer’s shopping experience, resulting in higher sales and more satisfied customers.

One of the biggest challenges for ecommerce is high return rates. Fortunately, AR removes these barriers by letting customers virtually try a product, reducing the number of unsuitable purchases. AR can improve a customer’s confidence in their purchasing decision by allowing them to visualize the products in their home before making a purchase. In fact, one recent study conducted by Apple found that consumers were 11 times more likely to purchase furniture after seeing it in their homes.

Reduces returns

One of the main benefits of AR for ecommerce is that it helps online shoppers better understand what they’re buying. The technology works for many different products, including eyeglasses, clothing, and makeup. It’s even possible to use AR to preview your product before you buy it! It also helps you reduce the number of returns that you receive because of incorrect sizing. For more information on how AR can help your business, read on to learn more.

According to the National Retail Federation, 8% of online sales result in returns. This figure is even higher when it comes to clothing. AR apps allow consumers to see themselves wearing catalog items, eliminating customer doubts, which reduces returns. Even though online shopping is increasingly popular, 51% of Americans say they would rather buy things online than from a brick-and-mortar retailer. With this in mind, AR is an excellent solution for ecommerce.

Increases engagement

When it comes to online shopping, augmented reality has many advantages. For starters, it gives customers the chance to have a full sensory experience with a product. While online shopping allows consumers to see products in a 3D environment, they can’t touch or try on the clothes they’re looking at. This can be problematic when it comes to selling certain products online. Augmented reality applications, however, can give shoppers more information about the products they’re looking at – all while sitting in their own homes. Hire GMB Local SEO Services from AffordableSeo.

In addition to boosting ecommerce sales by increasing engagement, AR also improves customer satisfaction. In fact, it’s predicted that AR will generate $60 billion in spending by 2020. According to the World Economic Forum, AR will have a profound impact on online shopping. A recent survey revealed that 61% of online shoppers would prefer to shop at a site that has the technology. A further study showed that 70% of consumers would become loyal to a brand that incorporates AR into its site.

Boosts conversion rates

AR technology can impact every step of the sales funnel, from brand awareness to product purchase. Shopify, a Canadian ecommerce site, cites internal data showing a 250% boost in conversion rates, which is noteworthy given the site’s huge transaction volumes. Ultimately, AR can provide consumers with a unique and interactive shopping experience. To learn more about AR and its potential for your ecommerce business, read on.

In a recent UPS study, 27% of consumers returned items because they weren’t as described. By providing a virtual “try-on,” consumers can better assess the quality of products and make an informed purchase. This increases customer satisfaction and reduces return rates. Augmented reality can help bring products to life for customers by offering a virtual “try-on” experience. With AR, customers can interact with the product in 3D, which increases their likelihood to purchase the item.

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Jeremy Parker

FOUNDER & STRATEGY DIRECTOR

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