Technology advancements are reshaping consumer expectations and raising the bar for personalized, interactive customer engagement. Today’s customers expect to engage and be engaged. Brands must deliver more than just a product; they must create an experience.
Enter augmented reality (AR), a powerful tool redefining customer engagement. AR enhances the real world by overlaying virtual elements such as images, videos or 3D models. Think interactive product previews or virtual try-ons.
When used strategically, AR does more than captivate – it converts. This technology enables customers to interact with products and services to improve understanding, increase satisfaction, and create more memorable experiences in ways traditional marketing methods can’t match.
Increasing Consumer Conversions Through Immersion
The “try before you buy” revolution is here. Shoppers can use AR to superimpose 3D images of furniture on their homes, try on eyeglass frames before they order, or try on clothing in virtual fitting rooms before they buy. Shopify reports that merchants who add 3D content see a staggering 94% increase in conversions.
Nike is already leveraging AR to enhance customer experiences and cut costs. The Nike Fit AR application scans the customer’s feet using a smartphone to generate 3D models of Nike footwear. Nike Fit has saved the company millions by reducing the number of online returns by 28%. Meanwhile, Nike By You, an AR app for smartphones, enables customers to choose custom colors, materials and designs and has increased sales of customized products by 30%.
These aren’t just cool features, they’re game-changers. AR is setting new standards for engagement, personalization and conversion, proving that interactive experiences are no longer optional, they’re essential.
Creating Personalized Customer Experiences
AR isn’t just transforming how people shop, it’s redefining customer loyalty. Personalization is now a competitive advantage, with 91% of shoppers preferring brands that offer tailored recommendations, according to Accenture. Leading brands are embracing AR to deliver exactly that.
For example, Sephora’s Virtual Artist is an AR app that uses facial recognition to allow customers to test lip products and buy them directly through the app. While many cosmetic brands are using AR to increase customer engagement, Sephora pioneered an integrated experience that seamlessly blends experimentation with mobile shopping.
Consumers are spending more time shopping in digital spaces. According to Gartner, by 2026, 25% of people will spend one hour or more in the AR and/or metaverse each day for work, shopping or entertainment. Gartner also predicts that 30% of organizations will have products and services ready for the metaverse, making AR branding strategies more critical than ever.
As brands compete for attention in an increasingly digital world, AR isn’t just an enhancement, it’s an essential tool for personalization, engagement, and sales.
Benefits of AR for Customer Engagement
Brands leveraging AR aren’t just selling products, they are forging stronger customer relationships. These technologies enable unprecedented product visualization, allowing customers to see, try, and experience items prior to purchasing. From trying on virtual clothes to experimenting with cosmetics, or projecting furniture placements in a room, AR eliminates guesswork and boosts buyer confidence.
AR promotes an interactive buying experience, enabling buyers to engage with goods and services and explore features and options that are more difficult to convey through static images. Virtual try-ons, for example, give buyers a higher degree of confidence in their purchases, improve satisfaction, and reduce the number of returns. AR also enables customers to personalize designs and create a tailored buying experience.
AR is also enhancing customer service. AR-powered interactive tutorials and product support guides make understanding product assembly or troubleshooting simpler and more intuitive, reducing frustration.
Deeper customer engagement yields additional benefits, such as promoting a stronger brand image and experience that sets one brand apart from its competitors. Using AR technology to track customer interactions generates data and insights that inform marketing and product development.
These benefits aren’t limited to retail either. AR can benefit virtually any industry. We have already discussed the benefits to retail with virtual try-ons and visualizations. The same benefits extend to auto sales, real estate, travel and other markets.
AR isn’t just a trend; it’s essential for brands looking to exceed customer expectations and stay ahead in an evolving digital landscape. By delivering interactive, immersive experiences, these technologies drive conversions, strengthen brand differentiation, and forge deeper emotional connections with customers.
In a world where engagement is everything, AR is the competitive edge forward-thinking brands can’t afford to ignore.
