By: Dr. James McFarland, People Scientist
Discussions about Artificial Intelligence (AI) and Augmented Reality (AR) are inescapable in 2024 – flooding the news, overflowing our inboxes, and for good reason. AI is empowering businesses of all sizes and industries to automate, optimize, and innovate at unprecedented levels. In Retail, recent data suggest that an increasing number of consumers are using AI/AR to inform purchases, orders, and trials in lieu of in-person or even “traditional” digital channels. For example, Sephora, offers a wildly successful AI/AR service called Sephora Virtual Artist that allows customers to “try on” various shades of eyeshadow, foundations, and lipsticks with the click of a button.
Having this technology at your fingertips allows you to tap into one of the more powerful tools available in marketing, the engagement principle – a psychological effect that’s all about creating meaningful connections with customers and fostering a sense of community around your brand. It’s not just about making a sale; it’s about building relationships through personalized experiences and turning customers into loyal fans.
A classic example of a brand that has successfully applied the engagement principle is GoPro. Through their GoPro Awards program, they’ve built a strong community of users who share their adventures and experiences through their cameras to gain recognition and win fun prizes. Not only does this provide a wealth of user-generated content the company can use in its marketing, more importantly, it creates a keen sense of engagement among current and potential customers.
That is the engagement principle in a nutshell. Motivating consumers to directly interact with your ad, product, or service prior to and/or after purchase, which automatically results in a higher degree of investment than if they had just passively observed or consumed your content. It’s like the difference between watching a cooking show vs. getting your hands covered with flour in the kitchen – you’re much more invested in the outcome when you’re actively involved.
Today, marketers are eagerly using AI/AR to achieve more consumer buy-in in an array of ways: from digital 3D models that consumers can “interact” with via store display to customers’ own smart phones, tablets, or even eyewear. VR companies such as Vyking offer virtual try-on technology for shoes, watches, clothes, and more, allowing customers to engage with products more intentionally and bringing them closer to their decision to purchase. This technology is currently being used by millions of people across the largest fashion retailers, resulting in a 2x increase in purchase intent and up to a 50% conversion lift.
Main takeaways for in incorporating AI/AR in shopper experiences:
- Prioritize Active Engagement: Use AI/AR to encourage customers to actively interact with your brand, whether through puzzles, games, user-generated content, interactive experiences, or virtual try-on technologies.
- Foster Community Engagement: Build a sense of community around your brand by facilitating interactions among customers. Forums, rewards programs, contests, etc., there’s an incredible value in creating these types of post-purchase engagements, as they ultimately serve as a pre-engagement launch pad for both new and existing customers in the future.
- Embrace Emerging Technologies: AI/VR experiences offer unmatched ways for consumers to interact with products, leading to increased purchase intent and conversion rates. But remember, AI is fueled by human intelligence and requires upfront investment. You need human talent and intuition to set up the desired algorithms, infrastructure, and problem solving/experimental aspects of your AI. Lastly, you need an appropriate database for training the AI (e.g., your existing customer base), which allows it to personalize your brand for the target audience. Stay ahead by integrating these “prompt engineers” and technologies into your marketing strategies early so you can unleash your own innovative and engaging experiences for customers in the AI era.
In conclusion, AI and AR have revolutionized the way businesses engage with their customers, offering unprecedented opportunities to create personalized, interactive experiences that foster a sense of community and loyalty. By embracing and integrating them into your marketing, the engagement principle is also at play. Just remember, the most intelligent AI is one that understands and leverages the intricacies of the human mind.
Happy Marketing!
