How Augmented Reality Is Reshaping The Beauty Industry
Discover the Fascinating Advantages of Augmented Reality
Augmented Reality (AR) is a powerful tool that helps integrate digital content into the real world. It enables users to interact with virtual objects in their physical environment, enabling them to experience products as though they were actually present.
As technology continues to change how we buy and shop, many retailers are looking for new methods to make shopping more engaging. AR is a great way to do this, because it allows consumers to interact with a product in a much more realistic way than before. In fact, A global study by Snapchat and Deloitte in 2021 found that 3/4 of those polled see augmented reality as a useful “tool” that is no longer just seen as an entertainment but rather as a useful engagement tool for marketers.
By placing virtual products into real space, marketers can create augmented experiences that are more immersive and compelling than other forms of advertising.
AR is a marketing trend that has been gaining momentum at an incredible pace, representing a huge opportunity for businesses to engage customers and increase their loyalty in this exciting space. It can be used to create brand awareness, sales and customer allegiance among those who are already familiar with brand or product offerings. It also provides an opportunity to reach new untapped audiences.
How Augmented Reality Is Helping Beauty Businesses to Thrive
The beauty industry is one of the fastest growing industries in the world. Up from $483B in 2020 to $511B in 2021 and with an annual compounded growth rate of 4.75% worldwide – it’s predicted to exceed $716B by 2025. There are no signs of it slowing down anytime soon and the augmented reality has the potential to revolutionize this field in more than one way. Let’s take a look at all the AR beauty industry benefits:
- A strong emotional bond between your brand and the audience;
- Interactive and entertaining interface to engage customers;
- Increased conversion rates;
- Authentic simulations to demonstrate to buyers what they will receive
- An increased understanding of client experience leveraging data for creating better products
- Better hygiene
Create a strong emotional bond with your audience
Building strong relationships with consumers is one of the main keys to success in the beauty business. Augmented Reality gives the opportunity to create a strong alliance on a personal level with the consumer. This is how it works: the environment is transformed into an appealing product presentation where customers may view, browse through, play with, and feel beauty products. For example, from lipstick colors to blush variations – customers can choose their own from a huge palette – with simple make-up try-on effects. This immersive experience increases emotional response in your customers and invites more action.
Boosting Conversion Rates with the Power of AR Technology
AR enhances the online shopping experience for consumers and establishes a customer-focused environment for anyone looking for the ideal accessory or piece of makeup, these technologies provide brands the chance to enhance their sales conversion rates.
Estée Lauder has introduced customized virtual makeup try-on solutions using AR technology. Using AR customers can now try on its cosmetics products in-store or online.
According to data from Perfect Corp, Estée Lauder’s Lip Virtual Try-on experienced a conversion rate that was 2.5 times greater than average, and their iMatch Virtual Shade Expert was found to improve brand loyalty.
Similarly, e.l.f Cosmetics increased their online conversion rate from customers by 200% by using virtual try-on technology.
Empower Personalization with Advanced Data Collection
The growing popularity of AR virtual cosmetics apps enables beauty companies to gather consumer data on a variety of factors. Important data elements for brands to use include:
- Skin type
- Skin tone
- product preferences
- makeup styles
- previous purchases
Knowing this enables brands to suggest the appropriate items depending on customer’s behaviours patterns. Spending on beauty goods increases when new products are promoted and deals are offered that are most tailored to consumer’s preferences.
Improve Hygiene Standards with the Advancements of AR Technology
Another significant benefit of AR is improved cleanliness. Although several companies stopped using cosmetics testers during the epidemic, COVID-19 has made us more aware of how unclean in-store makeup testers can be. Particularly considering that makeup testers are frequently applied close to the lips and eye areas.
It is a good insight for marketers to rethink the post-pandemic buying behaviour by offering contactless, virtual try-ons that are comparable to physical ones. For example, Sephora and Douglas launched a so called magic mirrors. This helped bring the in-store try-on experience online in a meaningful, engaging, and secure way.
Examples of AR Technology Integration for Unmatched Customer Experiences
NYX used an immersive AR experience to promote its Halloween cosmetics line. It was part of NYX’s marketing campaign “NYX Professional Makeup Haunted Dollhouse” featuring five dolls sporting a unique makeup look created by the renowned makeup artist Mimi Choi. Available as a filter on both Instagram and Snapchat, the experience started with a 3D model of a dollhouse consisting of five different rooms, each inhabited by one of the haunted dolls. Overall, the campaign was opened 2.1 million times in the US, while in Spain the filter experienced an engagement rate of 99.8% with more than half a million opens.
Sephora is a big fan of AR. We already mentioned their in-store AR mirrors above, but the brand also uses The Virtual Artist app which is a great illustration of augmented reality in beauty industry. It perfectly shows other stores how augmented reality will advance the customer experience. The software offers features including a “Virtual Tutorial” that teaches users how to complete a makeover appearance step-by-step. The software then makes tailored product recommendations based on the user’s tastes and skin tone. This way, Sephora’s Virtual Artist helps the brand increase brand engagement and awareness.
Integrate Augmented Reality Marketing into your Strategy Today
AR is here to stay and it is here to shape the future of the beauty industry. Beauty brands are now able to engage with their customers in a way that was never possible before. AR allows the creation of immersive, realistic experiences that go beyond TV commercials or digital videos, but instead bring the brand directly into people’s lives as they browse through their Instagram feeds or scroll Tiktok on their phone.
Crosscreators connects brands with AR creators and is trusted by the companies globally.
If you’d like professional guidance on how to implement AR into your marketing strategy, and to stay on top of the latest in marketing book a call with us.