It’s estimated that 100 million consumers used augmented reality (AR) to shop online and in-store in 2020 (“Gartner Says”). That number is growing every day, so if you want your beauty brand to stay relevant, here are five good reasons for you to start thinking about implementing new augmented reality (AR) online shopping features like virtual try-on for makeup and hairstyles:

Use AR Virtual Try-On to Increase Sales

When implemented correctly, AR can drastically increase a company’s traffic and visibility. Benefit Cosmetics has reported 20% increase in add-to-carts from its site due to virtual try-on technology

While views don’t automatically equal conversions, in the case of augmented reality beauty services, it seems like the two are positively correlated. As an example, the brand e.l.f. Cosmetics has had a 200% increased conversion rate since adopting virtual try-on services (click here to see e.l.f.'s virtual try-on experience). Clearly, customers love being able to see how a product would look on them before buying it.

Another example is Madison Reed, which saw a 38% conversion rate increase for customers who used their live hair color try-on. Madison Reed also reported a 10x increase in sales thanks to their try-on service (click here to see Madison Reed's virtual try-on experience).

In turn, higher conversions are leading to increased traffic and sales. A great example of this is Aveda, which reported 5x increase in traffic to the store location finder vs. site average (click here to see Aveda's virtual try-on experience).

Increase Customer Satisfaction

As many as 40% of online purchases are returned by customers who are unhappy with the product (Reagan). Usually, this is because they were unable to get a good understanding of how the product would work for them without seeing it in person. In fact, not being able to try a product before buying is a concern for 58% of customers (Wallace).

AR beauty can help lower these return rates, allowing companies to expand their profits. With augmented reality makeup, for example, customers can virtually experience the products on their own face, thus reducing buyer’s remorse. They’ll know exactly what they’re buying and how it will work for them, reducing their chance of dissatisfaction. They’ll be happier, and so will your customer support team, as they’ll have fewer returns to process.

Bolster Future Product Development

Other than increasing sales and reducing return rates, AR can also help brands gauge product interest and popularity. If customers are using face AR to try on certain product lines or color shades much more than the rest, brands can clearly see customer interest and use this info to adjust the sales strategy quickly.

There’s also the chance to enhance product discoverability. With AR makeup try-on, it’s so convenient for customers to experience new shades or new products. They can effortlessly switch between items, allowing them to try a new product they have never thought of checking out before. This can help brands broaden their product outreach to new target audiences.

Use Beauty Teach for High Scalability

When brands choose the right technology solution for AR, they can easily reuse the digital AR SKUs they already created with new platforms and services, including:

Social networks like YouTube, Snapchat, and WeChat
Cross-border retailers like TMall and Taobao
Livestreaming with AR try-on (click here to see the live demo)
Online beauty advisor 1-on-1
AI beauty advisor (foundation) consultations with product recommendations

These are just a few of the available options. Companies can brainstorm even more ideas to scale beauty AR into their product strategy.

Reducing Costs With Augmented Reality

Saving money is important for all brands, and augmented reality beauty is one way to accomplish that. It can help companies reduce costs associated with testers and swatches. Previously, your brand may have offered customers the ability to order sample sizes of products to see if they like them. These require an entirely separate production and logistics process from your full-size products.

They also require additional shipping and inventory management, which can cost you money if the customer doesn’t end up buying any full-size products. Not only that, but AR face and makeup solutions are more eco-friendly. In 2018 alone, the beauty and personal care industry generated 142 billion units of packaging (Rai). By stopping the production of unnecessary physical testers, companies can do their part to be more green.

Want to Drive Retail & E-Commerce Sales Using AR?

Are you ready to experience the makeup AR revolution? Contact us for more information about integrating AR solutions into your online beauty store shopping experience, or request a free demo today to see how much your beauty brand can benefit.

Read our “Beauty Tech: The Complete Guide” to unlock powerful ROI secrets.

References

“Gartner Says 100 Million Consumers Will Shop in Augmented Reality Online and In-Store by 2020.” Gartner, 1 April 2019, https://www.gartner.com/en/newsroom/press-releases/2019-04-01-gartner-says-100-million-consumers-will-shop-in-augme.

Rai, Vasudha. “Unseen 2019: The ugly side of beauty waste.” Mint, 28 Dec 2019, https://www.livemint.com/mint-lounge/features/unseen-2019-the-ugly-side-of-beauty-waste-11577446070730.html.

Reagan, Courtney. “That sweater you don’t like is a trillion-dollar problem for retailers. These companies want to fix it.” CNBC, 12 Jan 2019, https://www.cnbc.com/2019/01/10/growing-online-sales-means-more-returns-and-trash-for-landfills.html.

Wallace, Tracey. “[Infographic] Modern Consumer Behavior in the New Omni-Channel World + 31 Expert Tips to Dominate It Now.” BigCommerce, https://www.bigcommerce.com/blog/consumer-behavior-infographic/#31-experts-on-dominating-an-omnichannel-strategy.