Stores are beginning to use apps and interactive screens that combine reality with virtual images

Source: Augmented Pixels

Retail shopping is beginning to change dramatically due to the implementation of technology that merges actual objects with virtual images, also known as augmented reality.

Augmented reality is a supplemented view of the world created by technology, such as mobile phones, which displays additional images and information digitally on the screen.

In stores, this is being used so that shoppers can use either their phones or provided screens to find not only more products, but information, reviews, uses, and deals.  Specialized apps created by the stores, interactive screens, and interactive billboards are being used to increase customer interest and hopefully increase sales.

These new technologies are important because they keep customers interested in a particular store and prevents customers from looking elsewhere for products.  Sherry Levine, a finance and information systems double major, discusses this shift toward augmented reality.

Sherry touches on the importance of a customer's ability to interact with the product because the interaction increases "psychological ownership":  The more a customer handles or experiences a product, the more he/she connects and wants the product because they know the benefits.  Making purchases is largely due to personal feelings and experiences which are increased with interactivity and therefore augmented reality.

New store apps combine real objects with virtual images to provide more product options and decrease hassles of shopping

Apps like these are being developed for a wide variety of stores including furniture, clothing, car dealers, and grocery.  Although each has specific functions that best fit with the product being sold, they all are designed to remove inconveniences and increase a customer's likelihood of buying the product.

Source: Dezeen.com

The IKEA catalog app is one example of how a store is successfully using an augmented reality application to not only provide additional information about the products to customers, but also to remove one of the store's major problems.  Buying furniture is a risk because there is a high chance that the chosen product will not fit or look good in the designated room; their new app removes this uncertainty.

By scanning the hard copy catalog that comes in the mail and the room they want to place the furniture, the app creates a 3D representation of the product on the screen of the user's device.  This image can be moved around and have the color changed to ensure it fits and is what the customer wants.

The number of users of this app has increased from 2011 when it was first introduced as the number of downloads went from 3.5 million to 8.5 million in 2014, reaching its' height in 2013 with 9.7 million.  In 2014 alone, the app had over 42 million visits depicting its' popularity and success with customers.

Although the number of downloads decreased slightly in 2014, this is due to similar apps being created and the large number of customers who had previously got the app.

Another store that is leading the way with augmented reality is American Apparel.  This clothing store has developed an app that allows shoppers to scan items of clothing and receive additional information like customer reviews, other colors options, and additional product details.  Customers also have the alternative to buy the item right there on their phone.

An online survey was conducted with University of Maryland students to determine whether having the option to buy the item in-store on their phone was a beneficial idea.  Of the 100 students surveyed, 67% stated they were likely to use that feature, while 19% were neutral and 14% were not likely to capitalize on the technology.

Stores are beginning to incorporate interactive screens and virtual dressing rooms to improve shopper experience and provide faster service

These interactive screens are designed to provide similar benefits as the apps, but does not require the customer to have a personal device.  This is beneficial for customers who do not own a smartphone, don't want to download the app, or would like to see the information on a bigger screen.

Source: techtimes.com

Rebecca Minkoff, a luxury clothing and accessories store, is one retailer who is embracing this new technology in the form of interactive screens.  These screens are designed to assist customers during the entire process from choosing clothes to try on to making purchases.

In addition to actual products in the store, interactive screens allow customers to see the recent trends on the runway and social media and select items they would like to try on, in the size and color they want.  By entering their phone number on the screen, the customers will get a text when their fitting room is ready so they do not have to wait in line.

Once in the dressing room, the customer has the actual items to try on in addition to another interactive screen on the mirror.  This screen allows the customer to adjust the lighting in the dressing room depending on the look he/she wishes to accomplish, request a different size, see stylist recommendations for accessories, and purchase the items.

Since this is all digital, the customer can check his/her past records to see the items he/she had tried on previously.  This technology has been implemented in two Rebecca Minkoff stores so far and the number of items bought at these locations has increased by 30%.

Source: flickr.com

Lego, similar to Rebecca Minkoff, is using interactive screens to increase customer experience as shoppers can now see live 3D images of lego sets.  By holding up a set to a screen, customers can see what the final product will look like from all angles, and they can even watch it move depicting all the possibilities children have when playing.

Another type of technology stores are beginning to experiment with is virtual dressing rooms, where customers do not have to physically try on the clothes but can see an image of themselves in the chosen attire.

FaceCake has created two programs called Swivel and Swivel Close Up that allow the customer to see an image of him/herself trying on clothing, accessories, or makeup.  Using a camera, the customer is scanned and an image uploaded on a screen.  The customer can then select which products to place on their image to see how it would look.

Although having a virtual dressing room can remove the need to physically try on clothes and save time while shopping, there are concerns about whether or not the image will be accurate and if it is a violation of privacy.

The University of Maryland students that were surveyed were more divided on whether or not virtual dressing rooms were a good idea.  The majority of students responded with maybe or no, 37% and 30% respectively, while only 20% answered yes.  Only 8% believed it was absolutely a great idea and only 5% believed it was definitely not a good idea.

Molly Higgins, a psychology student, discusses the potential issues that could arise with virtual dressing rooms.

Molly brings up two issues that were shared by other University of Maryland students in the survey: the problems of phisically accurate representation and security issues.  Cybersecurity is an extremely prevalent issue as many Americans alone have been hacked; even the government has had cybersecurity issues as their databases were hacked depicting stores having personal information and people's body images may not be very secure.  For this technology to be successful, stores need to determine a way to ensure both the accuracy and privacy of the dressing rooms. 

Increased use of online shopping, social media, and mobile phones is changing shopping resulting in a demand for new creative marketing

The dynamics of shopping have changed significantly in the last decade because the technology is becoming more developed and the customers have begun to change from people who grew up with minimal technology to digital natives.  Digital natives are a new generation of customers who have been using digital technology since an early age.  As a result, online shopping, social media, and mobile phones have a greater role in the shopping process.

Online shopping did not become very popular or profitable until the mid 21st century but it has grown immensely as sales this past year were $304.91 billion.  Although it is a large amount, according to Chad Brooks, a senior writer at Business News Daily, customers still prefer to shop in stores rather than online because there are no delivery fees and they get the item immediately.

Source: howng.com

However, with the development of new online options like Amazon Prime which offers free, two day delivery for members, the popularity of online shopping is rising and retailers need to find new ways to keep customers in their stores.

Social media has also influenced which products are being bought because customers are more likely to buy products that their friends or celebrities have bought.  36% of shoppers are more likely to buy a product that they interacted with on social media.  

Mobile phones however, might have had the greatest effect on shopping because it gives customers continuous to information, reviews, and other product options.  According to a Pew Research Study, nearly two-thirds of all Americans own a smartphone, giving them internet and social media access at all times.  As a result, customers have begun to use their phones as a research tool to not only look up reviews about products but to compare prices and often find the cheapest version.

The online study on University of Maryland students revealed that 66% of students sometimes use their phone while 13% always do, illustrating the prevalence of this trend.

When asked what they mostly look up, the majority of students responded saying they look up reviews and compare prices.  Other answers included looking at other color options, similar products, and checking the Amazon App.

Psychology student Suzanne Woller discusses some of the reasoning behind customers using their phones in stores.

Customers, as discussed in the video, do not show as much loyalty to stores but rather focus on their own personal benefit. The influence of these technologies has been seen as a disturbance, but stores are now incorporating them into their marketing techniques to benefit off their popularity.  Since shoppers are looking for a product that best satisfies their want and need, stores are using augmented reality to immediate reviews and other color options so that the customer is satisfied and will purchase the product there.

Accenture conducted an augmented reality survey to see if customers would be more likely to purchase a product from a store that utilized augmented reality.

This survey was conducted in 2014 on 400 Americans.  It asked them about eight different applications ranging from a catalog app to a virtual vehicle manual.

For all of the options, over 50% of the shoppers surveyed stated they would be more likely to shop there, as seen in the chart.


Combination of actual and virtual images is the future of shopping because it enhances customer experience and satisfaction

Not only does augmented reality remove difficulties that can occur while shopping, but it also personalizes a shopper's experience, leading them to become more satisfied and more likely to buy from a specific store.  Augmented reality provides an individual, interactive experience that focuses on the shopper's preferences.  Based on these tastes, stores can recommend products and offer special deals.

An article by Michele McGovern discusses how customers expectations have changed and the five ways stores need to meet these priorities.  The most important priority is personalization because customers want to feel like they are being helped one-on-one and all of the store's resources are being put to use.  If a customer feels neglected by a store or employee, the customer is very likely to take their business elsewhere.

Customers also expect more options because the more choices and products they have to choose from, the more satisfied they are with their final choice.  Augmented reality immediately provides reviews and other alternative products that the store carries.  By having all of this knowledge available immediately for the customer, stores are ensuring that their needs are met and the customer is content with his/her purchase.

Augmented reality caters to the individual needs of shoppers which is why it is becoming more popular and successful in stores.  This new technology depicts the next trend in shopping as stores begin to focus more and more on personalizing the experience with the help of digital technology.