In the rapidly evolving landscape of e-commerce, businesses constantly look for innovative ways to enhance customer experiences and increase conversions. One such groundbreaking technology reshaping online shopping is virtual try-on software. By enabling customers to virtually try on products before making a purchase, this technology is significantly influencing consumer behaviors and transforming e-commerce operations.
Reducing Uncertainty, Increasing Confidence
The inherent drawback of online shopping lies in the inability of customers to touch, feel or try the product before buying. This lack of physical experience often leads to uncertainties and inhibitions about product fit and look. Virtual try-on technology is addressing this issue head-on.
Whether it’s clothing, footwear, eyewear, or even furniture, virtual try-on software lets consumers visualize how a product would look on them or in their space. By providing a realistic and personalized product view, it boosts consumer confidence, making them more comfortable with their purchasing decision.
Try on software work especially well for things like jewelry and sunglasses where the customer can see themselves wearing the product, and not only does it increase engagement and word of mouth, but it can greatly increase te confidence in the purchase.
Minimizing Returns, Maximizing Profits
High return rates have always been a significant concern for e-commerce businesses. According to a report by Shopify, nearly 30% of all products ordered online are returned. Virtual try-on technology helps mitigate this issue by giving customers a better sense of the product before they buy, reducing the chances of dissatisfaction and subsequent returns.
Lower return rates mean fewer logistic complexities and lower operational costs, leading to improved profit margins. Furthermore, satisfied customers are likely to become repeat customers, contributing to the overall business growth.
Enhancing Customer Engagement
Virtual try-on software doesn’t just serve a functional purpose; it’s also an exciting and engaging feature that can enhance the shopping experience. The novelty of the technology can intrigue and entertain customers, keeping them on the site for longer.
By integrating this feature, businesses can differentiate themselves from competitors, create a more interactive shopping journey, and ultimately increase customer loyalty.
Leveraging Augmented Reality
At the heart of virtual try-on technology lies Augmented Reality (AR). AR superimposes digital elements onto the real world, allowing consumers to see products in their actual environment or on themselves. Tech giants like Apple and Google are continuously improving their AR platforms, making the technology more accessible to e-commerce businesses.
The use of AR-powered virtual try-ons is especially prevalent in the fashion and beauty industry. Companies like Warby Parker and Sephora have successfully implemented AR try-ons, enabling customers to see how glasses look on their faces or how a specific shade of makeup appears on their skin.
The Future of Virtual Try-Ons
While the technology is already significantly impacting e-commerce, we’re just scratching the surface of its potential. Future advancements may lead to more realistic and accurate visualizations, including better fabric simulations in clothing or more accurate size representations.
We can also expect the technology to expand to new product categories and become a standard feature for online shopping. Furthermore, as virtual reality (VR) technology continues to develop, we could even see fully immersive virtual shopping experiences in the future.
The Research
Research published in the Journal of Marketing, conducted in partnership with an international cosmetics and beauty retailer, unveiled fascinating insights about the implications of AR on eCommerce. The retailer integrated AR into their mobile app, allowing customers to virtually try on make-up products. This digital transformation led to significant changes in customer product sampling behavior, an increase in revenue, and varying impacts across different customers and brands.
Impact on Product Sampling Behavior
Shoppers using AR sampled more products compared to those using physical testers, according to the study. Shoppers spent almost 50% more time at the sampling fixture when using AR, and they tried an average of 7.5 times more products. This demonstrates how AR, by simplifying the sampling process, can encourage customers to explore and try a broader range of products.
Moreover, AR use led to more evenly distributed product sampling across different brands. Without AR, shoppers focused mainly on a few popular brands, but AR encouraged a more widespread exploration. This suggests that less popular products and brands may significantly benefit from AR due to the increased sampling activity.
Increase in Revenue
The integration of AR has shown to directly affect sales. Data from over 160,000 customers over a 19-month period indicated that customers using AR spent 20.7% more time on the app and viewed 1.28 times more products on average. The likelihood of making a purchase during the session was also 19.8% higher for customers who used AR, indicating that AR can effectively boost revenues.
Differing Impact Across Customers and Brands
Interestingly, the influence of AR varies across different customers and brands. AR seems to reduce purchase anxiety for customers who have never bought a specific product online, suggesting that AR can help draw new online customers. This also extends to customers purchasing from a product category for the first time, who found AR helpful in reducing the perceived risk of the purchase.
The effect of AR is also more pronounced for less popular brands, indicating that AR can level the playing field by allowing customers to assess product fit more effectively, reducing their reliance on brand reputation. Furthermore, AR can stimulate demand for niche, premium, or “long tail” products, thereby enhancing revenues.
AR Use Cases and Experiences
AR has various applications along the customer journey. It can entertain, with AR’s ability to transform static objects into interactive, animated 3D objects, offering novel and engaging experiences. It can educate, offering an interactive and immersive format to deliver complex information, aid navigation in stores, or provide additional product information. It can also help customers evaluate products by allowing them to visualize how products fit in their consumption contexts.
Designing effective AR experiences requires considerations around spatial presence, embodiment, fidelity, and motion. For instance, AR experiences are more compelling when virtual objects are appropriately integrated into the physical environment, creating a seamless blend of the real and virtual worlds.
AR Adoption Challenges
Despite the evident benefits, businesses must be aware of AR adoption challenges. These include the cost of implementation, availability of talent and expertise, the ability to build AR filters and narratives, latency issues, resource availability, and keeping pace with rapid changes in technology. These challenges necessitate thorough cost-benefit analysis before implementing AR on a large scale.
In conclusion, AR and Virtual Try-On software have the potential to significantly reshape the eCommerce landscape, driving customer engagement, promoting product exploration, boosting revenues, and leveling the playing field for lesser-known brands. While the costs and challenges associated with AR adoption should be taken into account, there’s no denying that AR presents an exciting frontier for retailers, promising substantial returns if implemented correctly.
Conclusion
Virtual try-on technology is redefining the e-commerce landscape by bridging the gap between online shopping and the physical retail experience. It’s improving customer confidence, reducing return rates, and enhancing customer engagement, proving to be a game-changer for e-commerce businesses.
As AR and VR technologies continue to evolve, the role of virtual try-ons in e-commerce will only get more significant, pushing the boundaries of what’s possible in online shopping.