Upon entering a store, consumers download the app on their smart phone or tablet, register, and create a profile of features that matter to them—from product ingredients that could trigger an allergy, to whether packaging is biodegradable. When they point their device’s video camera at merchandise, the app will instantly recognize products and, via augmented reality technology, overlay digital details over the images—such as ingredients, price, reviews and discounts that apply that day. If consumers opt in, information from their social networks can be integrated into the information stream. For instance, if a friend had reviewed or made a comment about a product they’re looking at, they’ll see it.
Using IBM’s prototype app, shoppers looking for breakfast cereal could specify they want a brand low in sugar, highly rated by consumers—and on sale. As a shopper pans the mobile device’s camera across a shelf of cereal boxes, the augmented shopping app reveals which cereals meet the criteria and provides a same-day coupon to entice consumers to make a purchase.
“In the age of social media, consumer expectations are soaring and people want information and advice about the products they’re going to buy,” said Sima Nadler, Retail Lead, IBM Research. “By closing the gap between the online and in-store shopping experience, marketers can appeal to the individual needs of consumers and keep them coming back.”
The app, being developed by IBM’s Research lab in Haifa, Israel, addresses the fundamental gap between the wealth of real-time product details on the Web that in-store shoppers don’t have access to as part of their browsing experience—despite the fact that in-store shopping accounts for more than 92% of the retail volume, according to Forrester Research.
Retailers will be able to use the app to build in-store traffic by connecting with individual consumers, turning marketing into a welcomed service that is not intrusive. The app can make it easier for retailers to understand consumer likes and dislikes and offer related products in other aisles, such as bananas or milk, to accompany a cereal purchase. It could also make loyalty points and digital coupons become more convenient for shoppers, freeing them from the hassle of searching for discounts.
A recent IBM survey found that consumers actively seek out shopping advice from peers, family, friends and strangers. It also found that consumers are eager to opt-in to retail programs in exchange for coupons, rewards and discounts.
How it works
Upon entering a participating store, consumers opt-in to the service by downloading the augmented reality mobile app to their smart phone or tablet. Once they register, identified by either their telephone number or their loyalty cards, they create or update a profile of preferences. This simple, one-time setting will allow shoppers to receive personalized information that addresses dietary needs, pricing, environmental or religious preferences. The video camera on the mobile device will be able to recognize products according to shapes, colors and other features using advanced image processing technologies. The retailer’s back-end computer system, powered by IBM Smarter Commerce software, will deliver information to the mobile device, where advanced augmented reality technologies overlay the information on the product images.
Beyond helping consumers, this new app is expected to bring great value to retailers, serving as a natural platform for them to interact with their customers at the point when purchasing decisions are made. Aside from the ability to suggest up-sell and cross-sell offers in the store itself, retailers will have the opportunity to gain invaluable insights that can help optimize floor plans and product arrangements in their stores.
Source: IBM Research