If you belong to the millennial cohort, you must accurately remember the wave Pokemon Go made back in 2016. Powered by augmented reality or AR, this application took the mobile by storm with unmatched user experience blended between realities.
However, augmented reality doesn’t run out as a purely entertaining tool. On the contrary, AR tools and systems can become your big-ticket in a competitive business world by winning over new users and driving more sales.
Today, we’ll look into the core benefits of augmented reality for businesses.
What is augmented reality?
According to eMarketer, over 83 million US consumers used AR monthly in 2020. This number translates into 15% of the population. By the end of 2022, the number of AR users is projected to grow to 17%. Although isolated AR applications have existed for decades, the technologies required to fully realize their potential have just lately become available.
As such, augmented reality is a phenomenon that relies on computer-generated input to augment portions of the physical world. In other words, AR uses technology to overlay digital content on top of the physical world. The addition of digital information can be in the form of images, sounds, or other data. AR typically involves the use of a device, such as a smartphone or head-mounted display, to view the augmented world.
Augmented reality vs virtual reality
Although both are a part of extended reality, AR and VR aren’t synonymous. Virtual reality offers a digital reproduction of real-life environments, while augmented reality provides virtual elements in the form of imposed layers on the real world. Moreover, In virtual reality, the environment is generated through a complex impact on its perception using VR helmets or other devices that dynamically update the user's visible space.
At the same time, AR can be enabled via any mobile app, thus being easier for business adoption.
Benefits of AR for businesses
According to Eclipse Group, augmented reality offers a wealth of advantages for businesses. Here are the numbers to prove our points:
- 71% of shoppers stated they would make more purchases if their shopping experience included AR.
- 61 percent stated they would prefer to purchase in stores with augmented reality than those without.
- 55 percent said that AR makes shopping more enjoyable and engaging.
- 40% of customers stated they would be willing to pay a premium if they could try it first using AR.
- 77 percent of AR users said they use it to get a better idea of the product. They can do it up close, from multiple perspectives, and in their area with AR.
As you see, the upfront benefits of AR for businesses inherently include a wider customer base and competitive advantages among competitors. But there’s more.
AR for retail
Augmented reality and retail go hand in hand like peanut butter and jam. According to Statista, retail is expected to account for 5% of the total AR use by 2022.
Integrating AR functionality into retail stores (both online and offline) is an engaging tool to make shopping more engaging and visual. The benefits of using this technology in retail are manifold. Not only does AR boost sales and deliver a contactless experience, but it also minimizes labor costs and promotes more immersive experiences.
The pandemic has also contributed to the boost of augmented reality in ecommerce. According to IBM’s 2020 U.S. Retail Index report, COVID-19 has accelerated the shift to digital shopping by roughly five years. It means that more customers have entered the digital shopping world and are willing to shop from the comfort of their homes.
Augmented reality can offer ‘try it before you buy’ functionality, thus allowing customers to virtually try on items or visualize new furniture. Among other AR applications in retail are the following:
- Virtual fitting rooms
- Better product descriptions
- Merchandising via AR tags
- In-store displays, and others.
Manufacturing
Beyond entertainment and retail, AR can become a beneficial tool for manufacturers. In this industry, augmented reality can be used to handle CAD data for training workers, unifying workflows, and enabling collaboration.
Thus, AR solutions can facilitate manufacturing upskilling by training workers through visual representations. AR solutions can also be used for monitoring machinery on site. The software connects to a three-dimensional digital twin of the object located on a corporate server or in the cloud. The AR device then downloads the desired information and overlays it on the image of the object. As a result, the enterprise employee sees a combination of AR and real-world information on the screen.
Besides, this technology can help manufacturers design final products. Product designers can virtually try on the piece of a machine that will fit the final construction.
Augmented education
Augmented reality is undoubtedly a huge breakthrough both in the way educational material is presented and in the way information is digested by students. A great number of tests and experiments attest to its unlimited potential in education, including immersiveness, new education approaches, and multisensory experiences. Moreover, augmented reality technologies integrated into the educational process stimulate students' creative thinking and develop problem-solving skills, as well as provide learning flexibility.
In the pandemic-induced reality, AR applications open up endless teaching opportunities for universities. These include distance learning, interactive classes, and virtual training for medical students or astronauts. According to statistics, AR in education is projected to grow at a colossal CAGR of 80% to hit $85 billion by 2031.
The Bottom Line
Augmented reality holds an untapped potential in the business world. Whether it’s retail, gaming, or education, this immersive technology can step up any application, thus driving more user engagement. Over the last few years, AR has got an additional tailwind due to the pandemic and isn’t slated to step down.
