Augmented reality (AR) is an innovative tool for retailers and marketers to catch viewers’ attention and move them along the sales funnel. A KPMG study from 2017 found that 42% of executives from leading global brands planned to make significant investments in AR, suggesting that this technology will grow and prosper now and in the future. In this week’s video, the American Marketing Association examines the use of AR to facilitate product evaluation and sales. Speaking on this topic are Yong-Chin Tan from City University of Hong Kong, and Srinivas K Reddy, from Singapore Management University.
Tan and Reddy describe four main uses of AR in retail. The first is entertaining customers, as AR technology can create novel and engaging experiences, build brand interest, and drive foot traffic into stores. The second is educating customers by delivering information interactively and appealingly. An example is the Toyota Hybrid AR app that allows customers to view the inner mechanics of the car. The third is helping customers evaluate products. Finally, the fourth is enhancing post-purchase experiences by offering new ways of enjoying products after they are purchased.
While AR is excellent for marketing to mass audiences, Tan and Reddy find it works best on new online and category customers. As brands strive to engage new customers, they must learn to integrate AR technology into their strategies to succeed.