5-minute read

Gone are the days where customers must wait to find their size so they can try it on – augmented reality (AR) lets them check the fit from the comfort of their home. With AR, online and in-store shopping has become more fun: from virtual try-ons to pointing at items and paying for them instantly. AR is also improving the customer experience by making it more efficient than ever. With Barclaycard Payments’ support, retailers can employ payment methods that ensure purchase without hassle – because there’s nothing luxurious about waiting for a payment to go through.

Driving sales and designing experiences using AR

Frictionless omnichannel experiences require more than simply allowing customers to buy across multiple touchpoints. These touchpoints must also feel a connected, unified journey rather than individual ones. While this is easier to achieve across eCommerce platforms, connecting in-store and online can present challenges. These include delivering on customers’ different expectations, understanding how these shopping experiences interact; and helping customers pay when and how they want. With AR technology, such as visualising products in situ or viewing clothing in different colours, it’s possible to create a coherent, immersive journey for customers who shop both in-store and online.

Which of these AR experiences would you like to see offered by retailers?

Understanding customers’ expectations across channels

We have been able to understand how online and offline shopping habits are influenced through a YouGov survey of 500 UK luxury consumers, who were asked about a range of new retail technologies, from non-fungible tokens (NFTs) to AR.

Our research suggests luxury consumers still value what’s unique about the in-store experience, with 47% identifying ‘seeing and touching products’ as the main benefit and 27% picking out ‘trying on items’.¹ When asked about the AR experiences they would like to see offered, technology that helps recreate these preferred benefits came out on top. 28% of consumers said they’d like AR to help them visualise products in situ at home, and 26% said they’d like virtual try-on-at-home options.¹
 

Help customers pay the way they want to

Luxury customers have indicated that they expect a choice of payment methods from retailers, with 61% citing it as something they expect to be offered as standard.¹ While Apple Pay was the most popular digital wallet at 28%, customers still prefer to pay for high-value goods with physical credit or debit cards in-store and online.¹

Integrating payment options into AR customer experiences could pose challenges. Kirsty Morris, Managing Director of Client Experience and Market Development at Barclays Transaction Banking, highlights that, “There’s no one-size-fits-all answer, as it will depend on what role AR is playing in the broader customer experience.” Apps may potentially need to link cards previously stored on the customer’s smartphone – and have biometric verification enabled – to allow seamless payments through fingerprint or facial recognition. With cards being their preferred choice, these challenges must be met if AR is genuinely going to augment rather than simply provide novelty. 

Bringing the store experience home

Retailers are already using AR to meet customer expectations. Gucci added AR try-on for mobile app users in 2019, and Louis Vuitton has allowed virtual visualisations of items from their Object Nomades collection since 2021. This was supported by a Vogue Business and Snap whitepaper, which found that 77% of luxury fashion consumers were already familiar with virtual try-ons, following behind the most recognised tool – AI chatbots (87%).²

A Klarna study further suggests that 23% of consumers would rely on AI to advise which clothes best fit their body and fashion style.³ The opportunities for AR to enhance the shopping experience are virtually endless. With consumers wanting to elevate their experience and luxury retailers recognising this, it’s time for the rest to join the trend.

How do you prefer to pay for high-value items or luxury goods in-store?

Using AR to create fun

AR can also exceed expectations through creative uses that can encourage customers to spend more time immersed in a brand. Whether that’s online fashion giant ASOS using it to bring models into customers’ homes, the Burberry Beauty Virtual Studio including face-mapping makeup tutorials, or Dior’s fun and festive butterfly filters allowing interaction with the aesthetic of their broader seasonal campaign. This fostering of positive associations and relationships may also lead to more sales. A study by PathIntelligence found that a 1% increase in in-store dwell time can lead to a 1.3% increase in spend.⁴ By using AR to extend dwell time, in-store and at home, retailers are more likely to see interest in their brand and products converted into sales.
 

Turning interest into purchase

The relationship between dwell time and purchase can be interrupted by points of friction in the customer experience, particularly when it comes to payments. However, AR has fundamental features that can make it simpler for customers to buy in-store or online.

Consumers are familiar with an electronic point of sale (EPOS) or using a self-service checkout when shopping instore. However, offering payments via AR can free customers from having to find a payment point – or even a staff member – before making their purchase. Being able to point their smartphone at the item they want to buy and be taken to a virtual checkout (or even pay in-app), can help drive conversions, especially at busy times where moments of hesitation can lead to lost sales.

Personalise the in-store experience with AR

AR doesn’t just open possibilities for more immersive experiences at home – it also presents the chance to create new ones in-store. With Coach⁵ installing AR window displays that bring virtual try-ons to the street of NYC, and H&M⁶ in Barcelona using digital mannequins to help people see what clothes look like in different colours and sizes, AR clearly offers exciting opportunities. These can help encourage personalised in-store interactions at every stage of the customer experience, from awareness to purchase. 

Use AR to match customers’ evolving values

The deeper personalisation made possible by AR will only become more essential. AR potentially allows those with mobility issues to try on clothes more easily and for anyone experiencing social anxiety to avoid physical changing rooms, it’s hardly surprising that shoppers of all generations are ready to embrace it.

The Vogue Business and Snap whitepaper found that consumers aged 45 and over were 8% more likely to say virtual try-on allows them to “try on garments and accessories regardless of my body type or budget” , while those over 55 were 30% more likely to say that virtual try-on “helps make fashion feel more accessible”.² Consumers are also aware of how AR could help them shop sustainably. 53% of respondents say they like that virtual try-on’s capability can lessen returns and has sustainability benefits.²
 

The key takeaways

AR has the potential to seamlessly connect digital and physical customer experiences. Features like facial recognition and smartphone payment integration enhance both at-home and in-store shopping. Consumers are already embracing virtual try-ons, a widely recognized AR digital fashion technology, showing strong demand for such innovations. Retailers can use AR to add value, increase dwell time, and smooth the path to purchase. AI-generated styling advice, product tutorials, and interactive campaign experiences are just some ways AR could enhance a cohesive customer experience. Additionally, AR can weave inclusion and sustainability benefits throughout the shopping journey, making it increasingly essential as these factors become central to consumer decision-making.

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