This is a guest post by Mikkel Andreassen, Customer Experience Manager at Dixa. All views/opinions expressed herein are that of the author. This Website may or may not agree with the same. All images supplied by the author.
When speaking about augmented reality (AR), Tim Cook once said: “I think that one day we will wonder how we ever lived without it”. Although this day hasn’t come yet, we can already observe the seeds of the new technology sprouting across the industries. From Amazon’s Alexa and Apple’s Siri to Niantic’s Pokemon GO, there’s no shortage of real-world applications of AR.
Businesses are also quick to make notes of the huge potential of augmented reality in a variety of departments. Customer service, in particular, is the area that could benefit from the technology with 71% of consumers confessing that they would shop more often if the companies used AR.
Not only are customers saying that they would pay more for a product customizable in AR, but it’s also more profitable for retailers to adopt the technology. Companies that make use of augmented reality register 40% higher conversion rates. This is because the innovative tool is capable of enhancing customer engagement and experience.
The impact of AR in customer service is nothing short of extraordinary — its capability to translate digital content as if it’s real to the world view of the customer is unlike anything we’ve ever seen before. The best part is that it’s only starting to gain momentum. Check out how advantageous it can be if applied to customer service:
AR can minimize the hesitancy associated with making purchasing decisions
Did you know that revenue from e-commerce in the United States reached 431.6 billion USD in 2020? Or that it’s projected to increase by 132.7 billion by 2025? But it’s not all sunshine and rainbows. In fact, customers are reported to return between 5% and 15% of all the items they purchase online. The ease of making returns — and, notably, the lack of the possibility to ‘try’ the product out before buying it — hurts the sales revenues.
With AR, this trend of returning items can be reversed. It can even completely remove the hesitancy buyers have when deciding whether they should purchase the product or not. The ‘try before you buy’ concept incorporated by companies like Warby Parker and GOAT eliminates the need to go to the store and spend unnecessary time on the commute. In the case of GOAT, customers get to place their feet on the screen of their smartphone with a camera app turned on and see how a pair of sneakers would look on their feet.
AR can help train customer service teams to provide a better customer experience
There’s no great customer experience without a well-trained customer service team. The staff has to be able to answer all the customer questions in detail and do so promptly. When a customer has trouble making a purchase or wants to make a complaint, a customer service agent must know how to assist him. This is where AR comes in handy.
Augmented reality minimizes the time it takes to teach customer service staff all in need to know to operate efficiently and effectively while also cutting down on training costs. From personalized learning where each employee gets suggestions on the next step in providing customer care that’s based on his job position to virtual coaches that guides them through their learning process and answers training-related questions, the applications of AR in customer service training are seemingly endless.
AR can make the product more appealing by adding an interactive packaging
Customer service doesn’t end with the customer making the purchase. It continues right after the purchase and becomes even more important when ensuring that the customer is happy with the provided service. Adding interactive packaging is an example of how AR can help turn a one-time customer into a loyal client.
This add-on provides impressive visuals that never fail to hook the customer in and make him wonder what else the company offers. Apart from pointing the camera at, say, a bottle of wine and learning more about the life of the characters depicted on the label, augmented reality can also make use of brochures and cards. By allowing customers to scan them, they could get access to a short product demonstration and even a link to the company’s website from where they can purchase the product.
AR can help with spotting faults and reporting them to the company
On the topic of product returns and customer complaints — AR makes it possible to minimize both. Usually done through the app, companies employ features that allow customers to hold their smartphones up to the faulty parts of the product so that the customer service staff can see what needs to be replaced or repaired.
This practice saves time for both parties as it enables customers to show what’s wrong with the purchased product in real-time and customer service teams to offer virtual help on the spot. Besides, it saves money that the customer care agents would otherwise have to spend on sending return labels and replacing what could have been repaired.
AR can provide customers with advice and other useful information
Aside from spotting faults and resolving post-sale issues, AR can also be used to supply customers with additional information. This could take a form of a digital user manual and even maintenance advice that would help prolong the life of the product. The result — increased brand loyalty and a higher number of repeat purchases.
A common practice among car companies is offering AR-run instructions. A user can just point his phone camera on any part of the car and the user manual will give them insights into what it is and how to use it.
AR can eliminate the need for potential buyers to contact customer support altogether
In the digital world of quick access to seemingly everything, self-service is becoming the first choice of customers. Gone are the days when calling the customer care line was the only way of reaching the company. Today, an overwhelming 40% of customers would choose self-service over contacting a real human.
With AR, customers can open their camera app and point it at the product to get access to all the information there is concerning it. This includes user manuals, FAQ pages, and tips and tricks on how to get the most from the product. Paired with an AI-based chatbot, the role of customer support agents becomes virtually obsolete.
Wrapping up: There’s no question whether or not augmented reality (AR) — just like artificial intelligence (AI) and virtual reality (VR) — is a game-changer for every industry. Its applications are infinite and we’re at the point where we can witness the swift development of the technology first-hand. The fact that it can transform customer service makes it that much more appealing to every business regardless of the niche. If you want to be among the pioneers who have wooed their customers with an exceptional, digital-savvy customer service that your competitors haven’t adopted yet, consider giving AR a try.
