The question of whether to invest in augmented reality (AR) is becoming increasingly common for Australian SMEs. It’s no longer a futuristic fantasy; AR is a tangible marketing and sales tool. But it’s not a ‘must-have’ for everyone. We need to analyse whether it aligns with your specific business goals and customer experience strategy.

Essentially, AR overlays digital information onto the real world, usually through a smartphone or tablet. Think Pokémon Go, but applied to your products or services. The key is understanding how this can deliver a return on investment, not just create a ‘wow’ factor.

Here are a few things we’re seeing with our clients:

• Enhanced Product Visualisation: For businesses selling physical goods – furniture, appliances, even clothing – AR allows customers to ‘try before they buy’. Imagine a customer using their phone to see how a sofa would look in their living room. This reduces purchase anxiety and return rates.
• Immersive Brand Experiences: AR can create memorable brand interactions. A winery could offer an AR label that tells the story of the vineyard and winemaking process. This builds emotional connection and brand loyalty.
• Improved Customer Support: AR can guide customers through product assembly or troubleshooting. Instead of lengthy manuals, customers can point their phone at the product and receive step-by-step visual instructions. This lowers support costs and increases customer satisfaction.
• Location-Based Marketing: If you have a physical store, AR can drive foot traffic. Think AR-enabled scavenger hunts or interactive window displays that offer exclusive deals.

However, AR isn’t a silver bullet. Development costs can be significant, and maintaining AR experiences requires ongoing investment. It’s crucial to start small, with a clearly defined use case and measurable objectives. Don’t chase the technology for technology’s sake. We’re advising clients to focus on solving a specific customer pain point or enhancing a key part of the buying journey.

Before committing, we recommend conducting thorough customer research to validate the demand for an AR experience. A pilot program with a limited scope is a smart way to test the waters and gather data. If AR demonstrably improves conversion rates, reduces returns, or strengthens brand engagement, then it’s a worthwhile investment. Otherwise, focus on optimising your existing marketing channels.