Augmented Reality From Fiction to Retailing, Part 2

Susan Fourtané, Journalist, Writer | 12/11/2012 | 38 comments

Susan Fourtané
In part one, we gave examples of clever uses of augmented reality in retail and showed how AR can be a great tool for increasing sales, customer engagement, and enhancing the brand.

To go a little further on what a retail CIO needs to know in order to better deploy AR in their organization, we asked Qualcomm's director of business development in Europe and managing director of the Qualcomm Sweden Branch, Richard Savage, to unveil some tips for retail CIOs who want to get started with AR.

E2: How difficult/time consuming is it for brands/retailers to implement AR, also considering budget?

Richard Savage: The effort and cost varies greatly with the type of experience you're seeking to implement. On one end of the spectrum, you can deploy a direct-response campaign within marketing-oriented apps such as ViewAR or Blippar. This can be done in a matter of days, and with almost any budget. On the other end of the spectrum, you can implement an immersive, high-fidelity 3D experience that provides a whole new layer of digital interaction on top of your physical products. Such an effort can easily exceed several months and requires a higher level of investment. Successful AR projects have been implemented across the entire spectrum.

E2: What are the three things CIOs need to know about AR?

Savage: First, all AR platforms are not created equal. Customers are easily frustrated with apps that don't work. If your AR experience doesn't work the first time, your customer is not likely to try it again, and you risk creating a negative association with your brand. The quality of AR platforms and computer vision technology varies widely. You should select a platform that is most likely to provide the best experience in a widest variety of real-world situations. Customer usage environments tend to be much more challenging than those where you'll see demos -- lighting can vary widely, devices and objects can be moving, and objects can appear deformed and/or obstructed.

Second, use a developer/agency that understands AR. The most common complaint about AR campaigns is they can be gimmicky. This results from experiences that use AR for AR's sake vs. using AR where it really contributes to the experience. If your developer/agency can't explain to you what makes a good AR experience and back it up with a successful campaign in their portfolio, you may want to look further.

Lastly, get started now. While AR is still in its early days, brand and consumer adoption is growing quickly. It is very likely that in the near future, consumers will expect a layer of digital interaction on top of your products, packaging, and print media. This kind of interaction is an unprecedented opportunity for brands to build, maintain, and measure direct relationships with their consumers across multiple touch points in both retail environments and at home. Depending on your product, it may also represent a new revenue opportunity. In either case, it's best to understand AR as soon as possible.

***

It is now in the hands of the CIO and CMO to evaluate the best possible strategy to bring the marketing plan and the technology together. Getting the timing right, the message right, and most importantly, the technology right, is key. We'd love to hear from you. Does your organization intend to implement AR this coming year? If so, how do you plan on implementing it?

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DBK   Augmented Reality From Fiction to Retailing, Part 2   12/14/2012 1:42:17 PM
Re: Getting it right
Susan - Good point about using AR to determine if the product will meet the want/need.  Question do the product developers us this information as part of the human factors usability study to refine the product application and or user interface? Another way for developers to gather information about a product from a broad stroke of the user community?
Susan Fourtané   Augmented Reality From Fiction to Retailing, Part 2   12/14/2012 7:17:28 AM
Re: Getting it right
Hi, Henrisha 

Well, the truth is that some apps find out that there are some issues only after being tried by customers. This is when the company needs to have an excellent customer support, and fix the issues quickly after being notified by the user. Things will always happen. 

-Susan 
User Ranking: Blogger
Susan Fourtané   Augmented Reality From Fiction to Retailing, Part 2   12/14/2012 7:12:41 AM
Re: Getting it right
Hi, technorat :D

Even if it's a Swedish company, Ikea is also deploying AR in the US. Maybe it's just a matter of looking around? And you know how it goes, if one company starts doing something the others want to do the same. 

You are right, though, when saying many things are seeing the light first in Europe. 

-Susan
User Ranking: Blogger
Susan Fourtané   Augmented Reality From Fiction to Retailing, Part 2   12/14/2012 6:44:57 AM
Re: Getting it right
DBK, 

What is wonderful about AR apps is that the customer can get involved with a product way before getting his hands on it. Sometimes this previous experience with the product can determine if you really need/want the product, or how you can benefit from it. It allows to see the product from different perspectives. 

-Susan 
User Ranking: Blogger
kstaron   Augmented Reality From Fiction to Retailing, Part 2   12/13/2012 7:13:10 PM
Which type to start with?
I wonder what the cost ratio of AR is going to be. What types of AR do you expect to see become popular? Should an organization just starting with AR start with less expensive types or do you expect most of the sales coming from the higher end?
DBK   Augmented Reality From Fiction to Retailing, Part 2   12/13/2012 11:14:18 AM
Re: Getting it right
Technocrat - Digital signage is a great example of slow adoption in the US.  It is odd to me because the point that prevents them moving forward is the content.  I can't tell you how many times I have gone into meetings pushing digital signage and my first question is "Who will be responsible for creating the content"?  And too often they don't know and don't have an answer.  So when they go out to research content creation they find that there are companies that give the display away and sell content as the finished product.  The customer gets confused because on team s selling them a display and content creation tools and the other is giving them a display and selling them the content.  Personally I think that content should be created in house with the marketing team to maintain branding.  And there is a high level over view of slow adoption two opposing points of view with the customer not having taken a firm position in how they can culturally adopt a new technology.  And when we talk about adoption we need to have the culture conversation too. 
DBK   Augmented Reality From Fiction to Retailing, Part 2   12/13/2012 11:05:34 AM
Re: Getting it right
sohaibmasood - I have to agree with your comment "For items that are bought with relatively small effort or are bought impulsively the engagement factor doesn't play a vital role".  And for transactional retail sales the engagement is minimal.  But for the types of proudcts and services we typically discuss on E2 require research and do require the complex buying behaviour.  With that said perhaps those of us who sell these products would be better served to understand the applicatons of AR and for those who are buying may expect tor eceive presentations in an immersive style.
soozyg   Augmented Reality From Fiction to Retailing, Part 2   12/13/2012 9:17:45 AM
The taste test
Customer usage environments vs. demos.... 

This reminds me of the Pepsi vs. Coke "sip" test years ago. For a short while, Pepsi declared itself the "taste winner" and outsold Coke. But then Pepsi sales went right back to 2nd, behind Coke because real enjoyment of a drink is not based on a sip.

I understand that a company's budget may preclude them from using more than demos. But like the Pepsi sip test, wouldn't the feedback therefore be skewed?
SaneIT   Augmented Reality From Fiction to Retailing, Part 2   12/13/2012 7:58:13 AM
Re: Getting it right
Yes AR does bring a whole new dynamic and it can be very powerful, you just have to make sure it is done right and is not cumbersome.  I remember early AR toys that made things like windmills pop up on a sheet of paper using a web cam.  The concept was simple, it gave you a good visual representation of the wind farm technology and it was super easy to use.  Did it sell many wind farms?  I don't know but it was cool enough that people with no ties to the energy industry were playing with it.
sohaibmasood   Augmented Reality From Fiction to Retailing, Part 2   12/13/2012 12:53:28 AM
Re: Getting it right
DBK, user engagement in the buying process is an essential ingredient but I think it might only be applicable to a few items. Especially, the ones' that involve a lot of research and exhibit complex buying behaviour. For items that are bought with relatively small effort or are bought impulsively the engagement factor doesn't play a vital role. 
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