E-commerceCompanies using PIM (Product Information Management) software need no further explanation to demonstrate its value. PIM is an innovative solution that enables companies to seamlessly centralize, manage and distribute large amounts of product data. However, technology is constantly advancing and there is always a next level. That is why a number of PIM systems now come with an integration with so-called AR systems. This new feature in their offering is created to meet the increasing demands of consumers and end users. This feature vastly improves the amount of product information passed to the customer. Augmented reality is changing e-commerce as we know it today.
WHAT IS AUGMENTED REALITY?
To understand the need for augmented reality, one must first understand the dilemma of the modern consumer. While more and more people are embracing online shopping, many still crave the experience that brick-and-mortar stores provide. That is the ability to see, touch and smell products before they are bought. While shopping in real stores, the customer has no illusions about what he is buying. However, making purchase decisions based on images and texts leaves a lot of room for assumptions and doubts. Research shows that up to 76% of consumers would be willing to buy more online if there was an option to test. With augmented reality, customers are now closer than ever to a real-life experience.
Augmented reality is a technology that superimposes computer-generated three-dimensional images on real living or non-living objects. Simply put, it is a technology that simulates the presence of 3D images in the real world. In reality, it's not exactly new technology, but lately it's popping up again in new areas, including e-commerce. With augmented reality, customers can now enjoy real-time interaction with the products. They can now zoom, rotate 360 degrees and deconstruct products to extract all the necessary details.
AR IN PIM WILL BE GAME CHANGER
An experiment by Hidden Creative showed that the interest in buying a product with 29% increases when the advertising method is changed from 2D images to augmented reality. This shows the value of this technology for e-commerce.
Here's how 3D and augmented reality can benefit your business and the customers it serves:
IMPROVES CUSTOMER EXPERIENCE
It is a scientific fact that the human mind processes images thousands of times faster than texts. Therefore, your customers will always prefer visual representation over text descriptions. Augmented reality goes one step further by facilitating an immersive buying experience. Now customers can see how that new vase or sofa will fit into their room. They can also visualize the intricate details that make your product more expensive or better than the alternatives. This makes the customer experience more engaging, interactive and fun.
REDUCES RETURN COSTS
Product returns remain one of the biggest problems of e-commerce. 22% of the products are returned because they do not meet the buyer's expectations. However, Augmented Reality may negate product returns due to unfulfilled expectations. Customers can get a more accurate view of the product as the line between real and automated images blurs.
REDUCES CUSTOMER SERVICE DEPENDENCE
It's not just your company's sales and marketing departments that benefit from the benefits of augmented reality. More often than not, online shoppers call and email customer relations with questions about product features and specifications. 3D and augmented reality will answer most of their questions with enhanced visuals, reducing the need for customer service intervention.
TRACKABLE PROGRESS
It's easy to measure the impact of augmented reality on your business with in-depth analytics. Your company can track statistics such as dwell time, bounce rate, click frequency and return rate. All of these metrics are directly related to the efficiency of your campaign and may indicate that you need to re-strategize.
IMPROVES SALES AND REVENUES
The culmination of all of the above benefits is an upward trajectory in sales and revenue. According to Shopify, augmented reality increased conversion rates by 250% in 2020. This technology encourages customers to buy from me and increases the chances of upselling and cross-selling. As a result, your business will receive more revenue and a high ROI.
In short, augmented reality is still an evolving technology with great potential to get even better. Recording augmented reality is a smart way to PIM strategy to improve. Therefore, be wary of this feature as you grow your ecommerce business' tech stack.
