The data is in, and the proof is conclusive: time and again, the integration of 3D and augmented reality (AR) has been shown to increase conversion rates in ecommerce. In this article, we review the evidence from leading brands, take a closer look at the consumer demand for 3D and AR that makes it such a powerful tool, and examine the economic case for investing in immersive technologies.
Key takeaways:
- 3D and AR functionality increases conversion rates by as much as 200%
- This consumer behavior driven by three Cs: Confidence, Convenience and Control
- Data from world’s largest web-based AR implementation shows a 112% increase in conversions and a 22x ROI
3D in online commerce
High quality 3D models provide online sellers the most accurate way to display their products, surpassing even pictures and video. But the benefits go beyond just aesthetics; by offering consumers immersive tools, retailers make online shopping an active, rather than passive, experience.
Consumers who can zoom, rotate and explore a product in 3D are naturally more engaged, and the data shows the important benefits that offers to brands seeking to increase conversion rates in ecommerce. MADE.com found customers who viewed a product in 3D were 25% more likely to purchase, while Forbes asserts that 3D drives 40% higher conversions than 2D images.
3D and AR experiences are shown to increase conversion rates in ecommerce | Furniture: IMS Avola Corner Sofa
AR’s ability to increase conversion rates in ecommerce
Forecasts by ARtillery Intelligence project $58B in consumer spending will be AR-influenced or aided by 2025 (from practically $0 in 2019). It’s a figure that demonstrates the value of 3D and AR technologies to business, and to ecommerce retailers in particular.
AR is one of the few tools that can impact every part of the sales funnel, from brand awareness at the upper end, right through to product purchases – and it’s this lower-funnel activity, demonstrating AR’s capacity to increase conversion rates in ecommerce, that has generated many of the best-known headlines to date.
Shopify, the Canadian ecommerce platform, is one such example, citing internal data that shows increases in conversion rates of up to 200% when 3D and AR is offered on product pages – a figure made even more notable because of the site’s huge transaction volumes.
US-based furniture giant Overstock.com reported conversion rate boosts of up to 200% when customers used 3D and AR for product visualization, and furnishings retailer Houzz’s reported 11x boost to conversions after their AR rollout is a similarly well-known figure.
Return on investment
A particularly compelling datapoint for brands looking to increase conversion rates in ecommerce comes from the UK’s leading sofa retailer, DFS. With more than 120 showrooms, the brand is so synonymous with its product in the UK that ‘DFS’ is the most-commonly searched term in the sector – ahead of even ‘sofa’.
Despite such brand prominence, and despite being a traditional bricks-and-mortar retailer, in January 2020 the company invested in what has been billed as the world’s largest web-based AR implementation, offering visualizations for more than ten thousand products.
The results, as reported by PR Newswire, are striking: a 112% conversion boost amongst shoppers who interacted with the AR tool compared to those who did not – and, crucially, a 22x return on the company’s investment in immersive technology.
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How AR fuels consumer confidence
Even before the pandemic, Google found that 66% of people were interested in using AR for help when shopping, and 60% wanted to be able to visualize where and how a product could fit into their lives. Simply put, product visualization is a consumer pain point that AR can solve, making it a vital tool to increase conversion rates in ecommerce.
AR’s potency in this area boils down to three Cs:
- Confidence: the ability for consumers to visualize products in their own homes allows them to check for size, style and fit, and reduces the likelihood of having to organize returns – boosting their confidence in making a purchase.
- Convenience: visualizations remove the need to visit a physical store, eliminate requirements for measurements and style-swatches, while also minimizing the chances of an item not meeting the buyer’s expectations when it arrives.
- Control: AR interactivity gives buyers a greater all-around sense of agency – crucial for consumers making high-value, considered purchases.
It’s notable that the brands enjoying the greatest success with AR have adopted the maxim of ‘placing it directly in the consumer’s path’, integrating it as seamlessly as possible in the consumer purchasing experience while making it as readily available as possible. That outlook might sound counterintuitive, in the context of minimizing friction in the purchase funnel, but actually attests to the consumer appetite for AR functionality, and its corresponding ability to increase conversion rates in ecommerce.
The economic case for 3D and AR
Of course, a proven ability to increase conversion rates in ecommerce is only one piece of the puzzle when it comes to determining the economics of 3D and AR. As with any tech investment, there are costs involved – but they needn’t be crippling, and must be considered in the context of the ROI they offer.
To that end, we need to examine the rest of the picture – and again the data is positive:
- Furniture retailer CB2 found product pages with 3D and AR saw 21% higher revenue per visit (RPV), and a 13% lift in order size.
- In addition to improved conversion rates, DFS reported a 106% RPV increase amongst shoppers using 3D and AR.
- Meanwhile, the likes of Shopify and Overstock.com found that purchases made with help from 3D and AR saw up to 40% fewer returns.
The importance of sustainability
That last data point has huge implications, given that Statista estimates return deliveries cost US-retailers $550B in 2020. But the implications go beyond simple cost-savings.
Reducing returns mean fewer transportation emissions, representing one of the many environmental benefits of adopting 3D and AR. From removing the need for physical trips to stores, to reducing packaging and materials consumption, immersive technologies have a big role to play if retailers are to meet consumers’ changing expectations.
In a world where, according to a Deloitte survey, nearly 1 in 3 consumers have stopped purchasing a brand or product due to sustainability concerns, a brand’s credentials in this space now have a direct impact on the bottom line. 3D and AR are one way companies can convince consumers they’re serious about moving to a sustainable future.
