IBM
Research scientists this week unveiled a first-of-a-kind augmented
reality mobile shopping app that will make it possible for consumers to
pan store shelves and receive personalized product information,
recommendations and coupons while they browse shopping aisles.
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