Customers are more likely to buy a product after engaging with an augmented reality experience and will do so at a higher price point, says new research.
The research, by marketing communications consultancy Hidden, set out to prove the effectiveness of augmented reality versus traditional sales and marketing collateral.
The findings are explained in detail in Hidden Creative’s new guide: “sales technology: selling with augmented reality” which is available to download here http://www.hiddenltd.com/sales-technology-selling-with-augmented-reality
The research aimed to recreate the famous Pepsi challenge, but this time comparing traditional marketing materials and display advertising versus augmented reality. 100 parents were shown a marketing communications and a display advert for a child’s toy, while another 100 parents were shown the child’s toy as an interactive augmented reality experience.
Matt Trubow, Chief Executive Officer of Hidden, said “It’s interesting but not unexpected that the study results clearly indicate people were more engaged with the augmented reality experience than the display advert. More importantly, however, the audience was so engaged that they were willing to spend more to obtain the item after viewing the AR experience. More importantly, however, the audience was so engaged that they were willing to spend more to obtain the item after viewing the AR experience.
“This data should prove useful for the remaining sales and marketing professionals that are still unsure how to measure the impact of the technology. For me, the measurements are easily identified and are focused primarily on core business outcomes such as the increased production of leads and sales conversions.
“Our research helps to prove that the most useful information is obtained through the tactile nature of the augmentation. This information, what we like to call ‘mass intelligence’, is a by-product of the user’s interaction with the experience and can reveal client trends that would require mind-reading powers to obtain from the client in the past.
“The ‘mass intelligence’ revealed could relate to a particular aspect or feature of a product. This information is not always forthcoming during a demonstration but is of vital importance to ensure you are appealing to the needs of the client precisely. There are distinct advantages to placing your product in the hands of the end user, something not always possible outside of a retail environment.”
To discover more about augmented reality and how it can assist the sales process, visit http://www.hiddenltd.com/
For more information please contact Manchester PR practitioner James Crawford at PR Agency One, on 07793 441 686 or email james@pragencyone.co.uk
The findings:
Likelihood to buy
After viewing the 2D printed display advert, out of 100 parents, 45% would consider buying the toy for a child.
Out of those who viewed the augmented reality experience, 74% of the parents would consider buying the toy for a child.
What we found even more intriguing was the price point at which the parents were prepared to make the purchase.
Attitude to price
Out of those parents that viewed the printed advert, the average price of £5.99 was attributed as the estimated retail value of the product. Of those parents that engaged with the augmented reality experience, they estimated a higher average price of £7.99.
Advertising engagement
For advertisers there were other relevant findings with regard to the depth of engagement with the audience. We calculated that the parents spent an average of 12 seconds actively engaged with the print advert. Those parents using the augmented reality experience did so for an average of 1 minute 23 seconds.
The research shows that the more immersive the engagement, the more likely the customer is to buy, and in fact they are prepared to do so at a 30% higher price point. Engagement clearly lends itself well to the sales process: by enhancing the engagement in increasing the audience’s level of immersion, the entire experience is overwhelmingly favourable to both parties.
Submitted by James Crawford
