Augmented Reality Marketing; a Revolutionary Sales Technology

12 Hilton Street, Manchester, M1 1JFwww.hiddenltd.com+44 (0)161 236 8181

SALES TECHNOLOGY: SELLING WITH AUGMENTED REALITY

05/09/2011

Copyright © Hidden Creative Ltd

We set out to test how persuasive augmented reality can be by conducting a study of people between the ages of 29 and 55. The study focused on parents, although this is not crucial to the outcome or findings. In total, 200 parents took part in the study.

We recreated the famous Pepsi challenge, but this time comparing traditional display advertising versus augmented reality. 100 parents were shown a display advert for a child’s toy, while another 100 parents were shown the child’s toy as an interactive augmented reality experience.

Foreword by Matthew Trubow, CEO of augmented reality developers Hidden Creative

Augmented reality (AR) is a fast emerging tool for sales and marketing departments, but to help a wider audience understand the benefits of this technology, we have produced this report that demonstrates how augmented reality can drive bottom line sales growth.

The technology allows sales people to put a virtually enhanced version of a product directly into the hands of customers and prospects. These products do more than you would expect. They have the ability to demonstrate themselves to the audience and to collect feedback for you, allowing you to better provide for your customers and to more clearly communicate with prospects.

One of the most powerful aspects of the selling process is the affinity customers develop with a product the moment they touch and engage with it. Through our research, we have been able to truly endorse the theory that the outcome is no different if the product is presented as an augmentation.

This document describes how sales and marketing teams are currently using the technology, but to ensure we accurately reflect how powerful AR can be in this environment, we decided to commission research.

1Copyright © Hidden Creative Ltd

Each person was then asked two questions:

1. Would you consider buying this toy for a child?

2. How much would you consider paying for the toy?

The duration of engagement the audience had with each format was also monitored.

Summary The research shows that the more immersive the engagement, the more likely the customer is to buy, and in fact they are prepared to do so at a 30% higher price point. Augmented reality clearly lends well to the sales process by enhancing the engagement and increasing the audience’s level of immersion.

Although the study compared a print display advert, there are also obvious major implications for the DOOH, events and digital marketing sectors.

This research also has revealing implications for all types of marketers regardless of B2B or B2C specialism. Whether the product is a complex engineering structure or a FMCG, people are more likely to buy and at a higher price point.

B2B organisations that sell a physical product will also deem the findings very relevant. For example, imagine during the sales process, being able to demonstrate products that are too big, dangerous or complex to engage with first-hand. Augmented reality technology gives an innovative and insightful edge to the sales professional by allowing non-verbal communications with the audience in a far more informative and immersive way.

AR not only enhances communication but provides sales people with intelligence on how clients feel about a product and what they find interesting. In other words, when armed with AR, sales professionals can focus on utilising feedback gained from the customer’s use of the experience to shape the sales process towards making a sale.

Likelihood to buyAfter viewing the 2D printed display advert, out of 100 parents, 45% would consider buying the toy for a child.

Out of those who viewed the augmented reality experience, 74% of the parents would consider buying the toy for a child.

What we found even more intriguing was the price point at which the parents were prepared to make the purchase.

Attitude to priceOut of those parents that viewed the printed advert, the average price of £5.99 was attributed as the estimated retail value of the product. Of those parents that engaged with the augmented reality experience, they estimated a higher average price of £7.99.

Advertising engagementFor advertisers there were other relevant findings with regard to the depth of engagement with the audience. We calculated that the parents spent an average of 12 seconds actively engaged with the print advert. Those parents using the augmented reality experience did so for an average of

1 minute 23 seconds.


About Hidden... Hidden is a marketing communication agency, which specialises in developing augmented reality experiences for industrial, consumer and commercial uses. The company has a proven track record of delivering projects with clear, measurable goals for the likes of ABB, Knauf Insulation, BBC and Channel 5. Its senior management team are pioneers in the field, and are experts in advising businesses in how to deploy augmented reality, regardless of their experience and understanding of AR and technology.

For more information please call us on +44 (0)161 236 8181 or visit hiddenltd.com

ContentsThe basics

The psychologies underpinning the use of technology in sales and marketing

Augmented reality and sales strategy

10 ways that augmented reality is improving sales processes

Summary

Appendix oneThe basics - Augmented reality for marketers

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The basics How to find out more

Copyright © Hidden Creative Ltd 4

If you want to understand how the technology works and what it is, a quick overview of technology is available in our appendix.

An in-depth explanation of the technology is available in Hidden Creative’s Augmented Reality Marketing Strategies: the How to Guide which is available free here http://www.hiddenltd.com/augmented-reality-marketing-how-to-guide

‘Augmented reality is a term for a camera enhanced view of a physical real-world environment, where virtual elements are merged with the real-life scene creating a ‘mixed reality’ of virtual elements and the real world. The ‘virtual elements’, given their nature, can consist of anything. This could be 3D models, video, web information…anything. The point here is that your mind is the only boundary.’Matt Trubow Hidden Creative Ltd

Technology can be very persuasive if used in conjunction with four key psychological techniques: touch, storytelling, neuro-linguistics and risk management.

5Copyright © Hidden Creative Ltd | 1 Journal of Consumer Research: October 2009.

The psychologies underpinning the use of technology in sales and marketing

Touch

Storytelling

Neuro-linguistics

Risk management

Augmented reality and the psychology of touchOne of the biggest advantages of including augmented reality in the sales process is the ability to interact directly with a product or object.

For years sales and marketing professionals have used psychological techniques to ‘read’ a situation, ultimately resulting in increased sales.

The most common technique is the use of touch. Tactility with a person or object decreases an audience’s natural resistance or defences and helps to change negative behaviours.

The most recent research into the power of touch is by Joann Peck and Suzanne B. Shu, called, “The Effect of Mere Touch on Perceived Ownership.” Their study summarises that people are more willing to buy, and to pay more for an object if they have engaged with a product through the sense of touch.

It’s not always possible to allow the audience the luxury of touching or engaging directly with a product. For example, an offshore platform, wind farm or an engineering mechanism that is a sub-component within a larger component would be difficult to engage with. Some of this comes down to obvious barriers such as safety, sophistication, size and location of the product.

Many sales professionals, at least those that really want to understand the people they are selling to, employ the use or observance of neuro-linguistic programming (NLP).This is a technique that explores the different ways in which people process information, how they communicate and their associated behaviour patterns and emotions.

The subject matter is complicated but it essentially boils down to the fact that people can be separated into three fundamental categories in terms of learning behaviour patterns:

• Visual learners• Aural or Auditory learners• Kinesthetic or tactile learners

Augmented reality eliminates the barriers to engagement, and in fact allows for a deeper level of interaction and provides actual ‘contact time’ with a product. Additional information, animations and other details can be highlighted and further explained with precise detail. Augmented reality can make the most inexperienced salesperson appear as a seasoned professional.

When it comes to marketing and selling consumer brands, marketers also have the benefit of being able to extend their sales reach by demonstrating products, such as jewellery and clothing, directly over the internet through augmented reality.

As with all augmented reality experiences information about the path and actions of the user are monitored and can offer valuable insight, feedback and guidance.

For instance, the types and combinations of clothing viewed via an AR experience can help to guide a marketing team in the design and construction of a catalogue or perhaps even next season’s product range. Having this insight and knowing exactly what appeals to the audience would be beneficial for any organisation.


Augmented reality and the psychology of NLPVisual learners have a high aptitude for digesting images, diagrams and graphics. Aural learners absorb through conversation and the written word. Kinesthetic learners understand through touch and engagement experiences. All learning styles require deep involvement with the subject in order for the desired connection to be made.

What can’t be ignored is the power that augmented reality has in lending well to each of these learning styles in a unique, immersive and intriguing way. By allowing a client to engage with an augmentation, the sales professional is appealing to the non-verbal communication patterns of both the visual and kinaesthetic learner. They can also observe behaviours and emotions, and react accordingly, endearing the client to the product and lowering the barrier to closing a sale or obtaining a contract.

In addition to the mass market intelligence that is gained directly from the consumer, an AR experience creates a ‘smart’ communication channel into the customer’s world. This channel can then be utilised to forward promotions that specifically address the interests of the client. This in turn will drive footfall into store, or could be used to take the customer to a website to further review the offer, and ultimately make a purchase.

In short, AR gives the vendor the ability to demonstrate a product to a customer in ways previously thought impossible and helps to build trust and relationships.

In retail or B2B environments, using touch as a form of non-verbal communication can lead to impulse purchasing and can be a powerful way to connect with a consumer.

Storytelling is one of the longest standing and most relied upon sales techniques in the world. Augmented reality once again is the catalyst, enabling storytelling. AR can be employed to connect with customers using storytelling in a way that doesn’t feel like a sales pitch. This can be delivered over the internet, at an event or in-person. It can also be passed among colleagues and distributed freely if appropriate.

Below is a link to a video that shows an augmentation Hidden Creative developed for ABB using storytelling, to explain how a complex engineering system could be deployed by rail.http://youtu.be/9IomPBSt35Y

Other examples of how the storytelling theme is being used in conjunction with augmented reality:

• Problem solving• Undiscovered versatility of a new or existing product• Demonstratingperformanceandkeybenefits


Augmented reality and the psychology of stories

Risk is a major barrier for any sales professional, no matter their focus, be it B2C or B2B.In any sales situation the objections tend to include subjective matters and none more so than in the retail industry, nonetheless these barriers must be overcome. Consumers must be confident that a product is reliable and, perhaps even more so, that it is fashionable too.

Likewise, in the B2B environment, there are always several key objections that a sales person must handle. Many are obvious and well known to most people in their own industry but the most typical objections are:

• Will the product or service make the client more money?• Does the product or service allow the client to lower overheads or reduce costs?

Risks are evident in every scenario but the benefit of augmented reality is how it provides insight to the customers thought process. This allows the sales professional to address the fundamental barriers directly and overcome the objections.

The technology affords the sales person the ability to present visually how a product could help achieve an objective. For many, seeing is believing, so having an AR experience on hand can be the difference between winning and losing a sale or a piece of business.

Augmented reality and the psychology of risk

Process: Demand generationNaturally customer acquisition is the key element to the sales process. A customer, from a basic perspective, has a need, a problem or is looking to exploit an opportunity. Sales and marketing content is there to ensure the potential client reaches the conclusion that a product or service is the right solution.

When used in conjunction with traditional marketing material, augmented reality can guide potential customers to the answers they are seeking. AR is an attention grabbing technology, but there is more to it than the ‘wow’ factor. AR is a powerful non-verbal communication tool that can help any business create demand for its products.


Augmented reality and sales strategyAugmentedrealitycaninfluenceseveralaspectsofthesalesprocess,andbyallowingthetechnologytodoitsjob,budgetaryjustificationforinvestinginARisstraight-forward.The following diagram outlines some of the processes associated to the sales cycle and indicates where marketing technologies such as augmented reality can be used to support these activities.

SalesStrategy

Demandgeneration

Leadqualification

Propositioning

Delivery


Process: PropositioningCreating an appealing proposal, particularly in the B2B space, is essential to capturing the attention and beginning a prosperous relationship with a new potential client. Bringing products to life through augmented reality allows businesses to clearly demonstrate an offering far better than a PowerPoint deck. ‘Death by PowerPoint’ is a familiar term and understood by most professionals. AR eliminates the boredom that typically denotes many presentation methods.

In the event that the salesperson is not present to offer a solution face-to-face, as is often the case with the tendering process, augmented reality really excels. Tender documents are purposefully designed by procurement departments to be very text-heavy so to appear very similar when placed next to the competition. AR allows you to stand-out by putting the actual solution in the hands of the potential client. Augmented reality speaks volumes in this type of sales situation and is a superb way to create a disruptive attention grabbing proposal.

Process: DeliveryThe delivery stage is different for every business but for a B2B organisation, the journey only begins once a customer has been acquired. The acquisition stage is the start of what is intended as a long term relationship that often includes several phases of delivery, punctuated by numerous project milestones.

Many of the visualisations that may be necessary to support ongoing project efforts could be realised through the use of augmented reality. When the customer can see, hold and interact with your vision through this type of media it naturally encourages client buy-in. When you can bring your thoughts to life though the use of AR, it greatly helps to enrich the clarity of the relationship by allowing you to precisely manage the client’s expectations.

Retailers, once a sale is made, begin another more distant journey with the customers. The primary goals in retail are to establish a brand and build loyalty, ensuring that a customer continues to rely on the product or service. In this sector it is also traditional to exploit up-selling and side-selling opportunities as well as offering enticement to increase repeat visits. AR can be used to support all these activities.

Process: Lead qualificationQualification is often the most resource consuming of all the early sales stages. Spinning your wheels in the wrong direction costs the company time and money so streamlining this element of the process is high on the priority list for many executives.

This stage focuses on using AR to establish what a client wants or is interested in. By qualifying the lead and understanding what they want, management can provide them with a sales team that is right for them. Likewise, products and services can be tailored accordingly too. One of the major benefits or AR is maintaining customer interest. This can be done upon initial introduction, sales demonstration, pitch or presentation. The sharper and more powerful the engagement, the more difficult your competitor’s job becomes.

By furthering a customer’s engagement with a product through the use of technology, businesses can gather what we refer to as ‘mass intelligence’. Simply put, mass intelligence is the activity of the user that is recorded during their engagement with the product augmentation. This data can be analysed to determine what’s hot and what’s not with regard to an offering. Being able to see exactly what the audience is interested in or interacting with gives organisations the blueprint to ensure they are communicating clearly with their target market on all levels. This is far more than can be accomplished through any website or catalogue.


101. Demand generation: increase engagement and dwell time onlineA good website should be part of a digital strategy to acquire new customers or generate leads. When AR is used on websites, it increases dwell time and there is a proven correlation between the dwell time on site and conversions (e.g. sales, visits to the contact us page).

WAYS THATAUGMENTED REALITYIS IMPROVINGSALES PROCESSES

2. Demand generation: engaging advertising (print and DOOH)Advertising is changing and savy advertising agencies are incorporating interactive elements into their artwork. Brands can incorporate an AR experience into an advert which then drives the user through to a website or provides them with a coupon or offer to drive footfall into store.

3. Demand generation: eventsThe events’ industry is in decline and old fashioned, an exhibition is no longer as central to marketing budgets as it once was. Successful events and exhibitors are increasing interactivity at events which can increase dwell time on stand and directly help with lead generation.

4. Qualifying: sales and marketing collateralToo many sales and marketing professionals under invest in sales and marketing collateral. Some innovative companies are choosing to invest in the sales process and make a good first impression by using AR to bring a presentation to life.

Sales collateral can be static too but at the end of an AR experience it is possible to add data capture forms or refer people onto a website or contact page, thus supporting the sales process.

5. Qualifying: AR used in credential presentationsThe credentials’ meeting is the chance to impress and make an impression. Clearly an interactive web experience will not only captivate attention but as research shows, AR gives businesses a chance to put products into the hands of customers helping increase the likelihood to buy.


6. Qualifying: AR used to demonstrate productsProduct demonstrations might not be as high pressure as a pitch situation but it is still a selling opportunity. If it is impossible to demonstrate the real product then an AR experience can make an engaging alternative.

7. Proposing: tender documents and proposalsDon’t under invest in the pitch stage. Most sales professionals know it is better to do five great pitches than 100 average ones, so why not enhance a presentation with augmented reality?

8. Proposing: modeling designs and productsThere are some businesses that need to strip back costs from the sales process. For example, engineering firms spend hundreds of thousands of pounds on 3D product models. There are a number of leading engineering and construction firms who are investing in AR modeling instead which can be much more cost effective and take much less time to complete.

Again for some organisations modeling products for clients can be a major part of the job. Make the process quick impactful with AR.

9. Delivering: reporting and updating clients on projectsSelling doesn’t stop when a client has been acquired. Most businesses are constantly trying to convince clients that their strategy is right or that their product design is the best solution. An augmentation of a proposed solution can be a sophisticated and persuasive way to communicate its benefits.

10. Delivering: global working practicesTruly global businesses come with their own challenges. Sometimes it is not feasible to fly out clients to visit a project site in China or Australia, or perhaps a project is being coordinated with teams which are located in different time zones. AR demonstrations can prove to be the death of distance and reduce the need for expensive international travel.


Summary The skill of selling is intangible to most and impossible to learn. It is in part because the ability to connect and persuade will always be something that few people are able to do naturally. For this reason, there is little chance of technology, such as computers, replacing field sales staff, and the role of the sales person within organisations is safe for a good few years to come.

There is of course no reason why technology can’t aid sales teams and improve the process - in fact technology is already doing so. The last decade has seen the emergence of tools like Sales Force which has transformed sales departments by supporting the implementation of quality business processes, just as human resources management or engineering is guided by best practice techniques too.

However, there is always room for improvement and we feel that marketing technologies can help sales people to sell more effectively. Not by creating visually stunning presentations (although this helps) but by using technology to tap into psychological sales principles and by applying technology to every step of the sales process, from lead generation, qualification, right through to delivery.

By adopting marketing technologies sales people reap the benefits of placing a digital version of a product in a client’s hands. Not only is this a powerful way to sell, the intelligence gained from allowing a customer to explore a digital version of a product can provide very powerful intelligence on what customers like most about what they see. This mass intelligence can be obtained by examining the path the user takes in exploring the product, as

recorded precisely by the system. This insight can be used to guide new or existing product development and ensures sales professionals tailor their presentations and pitches accordingly.

Sales professionals are always looking for the edge and we feel that technologies such as augmented reality can be the point of difference that many corporate organisations need to help them stand out from the crowd.

The technology is immersive, persuasive and powerful. What is more, it is becoming more and more accessible as the cost of producing an augmentation decreases thanks to increased competition in the marketplace and the lowering of software licensing costs. Now it is possible to create an AR experience for much less than the cost of a corporate video.

I hope you have enjoyed reading this document as much as I have enjoyed putting the content together. If you have any more questions regarding augmented reality and marketing please feel free to contact me.

Matt Trubow, CEO, Hidden Creative Ltd +44 (0)161 236 8181 or email [email protected]


The basics Augmented reality for marketers

WHAT IS IT? HOW CAN IT BE USED?WHY SHOULD I CONSIDER USING IT?

OK, let’s get the definitions out of the way. Augmented reality is a term for a camera enhanced view of a physical real-world environment, where virtual elements are merged with the real-life scene creating a ‘mixed reality’ of virtual elements and the real world. The ‘virtual elements’, given their nature, can consist of anything. This could be 3D models, video, web information…anything. The point here is that your mind is the only boundary.

Imagine pointing your smart phone’s camera down the road and in return being presented with information or data relative to nearby interest points such as shops and attractions. How about entering a department store and having instant access to a guide to all the individual contents and a personal, virtual concierge that directs you to their location.

Another example might be you sitting at home in front of your webcam, trying-on augmented luxury watches. Lastly, how about bringing a brochure or other marketing document to life and putting your product in the hands of your potential client thanks to a 3D AR experience.

All this and far more is possible with augmented reality technology.

As a marketing and sales tool, the scope for augmented reality is endless. Any sales person will tell you that the ability to put a self-demonstrating version of your product in your client’s hand is crucial, but not always possible, or is it? AR makes it possible for clients to visualise any products regardless of size or location.

There is scientific evidence that shows by simply touching a product for a few seconds, an attachment is created that often leads to buying or even paying more for the item.

Marketing and sales teams assisted by augmented reality are able to achieve this type of connection. This is especially powerful as research into the psychology of sales indicated that people become personally attached to a product within the first 30 seconds of contact when presented with a physical or virtual item.

Augmented reality has a place in almost every business. It depends on how you communicate internal and external messages or reach out to your potential clients as to how you approach the use of AR.

There is nothing more conducive to a sale than putting your product or service right in the customer’s hand. The basis for the technology is to immerse the audience in the subject. Sticking to this core value will keep you on the right track when developing the idea for your experience.

The immediate uses come in many forms and are evolving quickly. For examples of commercial, industrial and consumer uses of augmented reality please turn to page 7.

Appendix 1

Business

Augmented Reality Marketing; a Revolutionary Sales Technology