7 Ways to Boost B2B and Wholesale eCommerce Revenue

7 Ways to Boost B2B and Wholesale eCommerce Revenue

by | Apr 13, 2022 | Commerce Strategy, UX/UI Design

For B2B retailers, it’s no longer enough to simply have a functioning eCommerce website. Instead, you must be able to replicate the same B2C website experiences with which shoppers are familiar in their personal lives.

Shoppers want robust product information. They want advanced search capabilities, so they can quickly find the specific products they’re looking for. And of course, they want to do it all from their mobile devices.

As much as 80% of B2B buying decisions are based on a buyer’s direct or indirect customer experience, with only 20% based on the price or the actual offering. Part of this change in expectations can be attributed to the growing millennial numbers in the workforce. For instance, in 2020, close to half of B2B buyers were millennials — nearly double the amount from 2012. Not only are they in the workplace, but millennials are also much more involved in making business decisions. A recent report found that 44% of millennials are making purchasing decisions while 33% say they are key influencers or recommenders in the purchasing process.

 

So, what can you do to capture their needs and create compelling customer experiences?

 

 

1. Enrich your product catalog

 

 

In the beginning, all search engines were “the same,” they relied on keywords and manual inputs. Merchandisers were left to scour Analytics to find out the search terms that are resulting in zero results. At that point, they would update their catalog. But as that kept happening, they would find they were unable to accommodate the number of words necessary in product titles and descriptions. Then, systems opened the back end and enabled merchandisers to add synonyms there, so they didn’t need to keep adding keywords to the front end. Sounds good, right?

 

The problem with this approach, however, is a customer had to be shown a ‘no results’ page first in order for the retailer to know synonyms needed to be added, resulting in a poor experience. By the time the synonym was added to the system, the real customer was gone, possibly never to return. Enter Klevu.

 

Klevu AI helps retailers automatically add relevant synonyms to their product catalog without any manual work. It takes a product feed, considers the context of a store, and injects synonyms so whatever way a shopper is searching, they will find relevant products. For example, if they type in “jeans,” denim will appear. If they search for “beige,” neutral will also appear. And no customers are hit with unnecessary “no results” pages.

 

Klevu’s product catalog enrichment is a huge time saver for B2B and wholesale businesses who may have large catalogs that update frequently, as well as customers who come back to the website over and over again, searching for items their own unique way.

 

 

2. Make your search look sensational

 

 

Once your products are findable by any query, it’s essential to make search the most magnetic journey on your website. It’s a fact that traffic through site search converts 3-5x better than non-search journeys.

 

First, build a search overlay that immediately displays recommendations right when the shopper clicks into the search bar. Second, exposing the search bar in your main navigation encourages the use of search in the first place. When you expose the entire search bar in your website header, you’re not only encouraging the use of search, you can even make search more appealing. Typically, this really benefits mobile journeys. Brands that use Klevu have seen a 44% increase in orders from mobile search when exposing the search bar.

 

As you can see here on GF Smith, a paper manufacturer and supplier, the search bar is not only exposed, it is highlighted with moving text that describes what the shopper can do.

 

an example of strong on site search for b2b

 

 

For a B2B or wholesale brand, you might explain to your shoppers that you can search using complex descriptions like patterns, price range, or brand. A good eCommerce search engine will be able to support natural language queries such as these.

 

 

3. Eliminate dead ends

 

 

Shoppers will abandon the website if they are faced with a dead end like a zero results page, instead of trying a new search or considering maybe the product is there, but it just didn’t surface.

 

B2B retailers often have to factor in a wide range of search terms. Customers may search by SKU, a part or model number, a trade name, or any number of other identifiers. With this in mind, it’s vital to ensure your eCommerce store’s product discovery solution has the most advanced capacity for interpreting shopper intent.

 

Natural Language Processing

 

Natural Language Processing (NLP) based search focuses, not on the keywords, used but on their actual meaning. For example, a customer may search for “spotty socks” and be served with a range of polka dot socks, even if the term “spotty” does not appear in any of the associated product information.

 

This sidesteps the issues that arise from users inputting a wide range of search terms as they try to second-guess what the store they’re browsing will recognize. By bringing up products that are likely to meet the criteria of the customer, but which do not feature any of the words of their search query within their listing, businesses can ensure higher customer satisfaction and better conversion rates.

 

The bottom line – using an eCommerce search engine with NLP processing can boost eCommerce conversion from search by 12%.

 

 

4. Merchandise, but with the help of AI

 

 

AI isn’t creepy, it’s customer-centric. Merchandisers can waste hours over-merchandising their stores only to realize that shoppers are digging for products a different way, using filters and re-ordering. Klevu allows retailers to balance AI and control by merchandising just enough and letting the AI do the rest, based on real trending data.

 

A great example of this expertise in action is in relation to seasonality, which can be incredibly important in the B2B space. Retailers need a way to be able to promote certain products at specific times. Knowledge that certain seasonal shifts are about to kick in means that the right products can be boosted even before AI picks up on the demand and promotes the trend.

 

Additionally, at different times of the year, retailers may wish to prioritize or promote stock within a small window of time that is about to fall out of favor, or that commands higher profit margins. Again, this is all reflective of a deep and personal understanding of your own B2B vertical that should be integrated into your on-site search.

 

A product like Klevu gives you the opportunity to override the algorithms and merchandise in advance. This means that B2B customers have complete control when it comes to fine-tuning their SRLPs and Category pages.

 

In addition, Klevu offers an eCommerce personalization engine that creates eCommerce experiences that align with an individual shopper’s motivation.

 

 

5. Search-powered product recommendations

 

 

Another way to avoid dead ends on your website is to constantly refresh your product recommendations, and include them on multiple page types including homepage, product listing pages including search and categories, product detail pages, and in the basket. Product recommendations featuring complimentary suggestions or recommendations based on recent browsing history can have a real impact on average order values, at least a 7% increase.

 

Making sure you can keep them fresh without too much resource overhead is really important, though. It’s impossible to do this at scale manually, but an AI solution like Klevu Smart Recommendations uses insights from search to constantly refresh product recommendations to be in line with shopper intent.

 

Eurokangas, a Finnish fabric supplier, has a large product catalog, with some merchandising categories containing hundreds or even thousands of products. Eurokangas saw rapid improvements across a range of KPIs after implementing the full Klevu Discovery Suite: Smart Search, Smart Category Merchandising, and Smart Recommendations.

 

Within just 2-weeks, and with minimal manual effort, click-through rates on category pages more than doubled, and conversion rate across mobile and tablet, which make up more than 60% of visits to the site, increased by 20%.

 

 

6. Curate Content With On-Site Search

 

olam spices b2b marketplace on-site search

By integrating high-quality content such as buying guides into B2B and wholesale eCommerce websites, retailers can give trade customers a reason to keep coming back to buy from them.

 

Some on-site search solutions allow store owners to enable content-based results such as blog posts or targeted buying guides that appear in-line with search results. This is fantastic for B2B retailers as it enables them to serve highly-focused and specialized content to customers who are already displaying a strong indication of intent to purchase.

 

An excellent example of this tactic in action comes from Olam Spices. When a search term is entered into its B2B site, products are recalled, but so too are market reports and articles giving a broad range of relevant and interesting industry content. By displaying this content, Olam helps inform and educate customers, while ensuring they find the right product for them. At the same time, the merchant cements its reputation as a leader and expert in its field.

 

7. Get Smart with Filtering & Facets

 

One of the key issues B2B retailers face regarding the product discoverability of their online stores is the tendency towards large and highly technical product catalogs. If customers can’t find what they need on your website, they know chances are good they can find it quickly on a competitor’s site.

 

Give your customers the ability to narrow down search results and help them hone in on the exact product they need as quickly as possible.

 

b2b search in automotive industry

 

Klevu developed an advanced search function for B2B and B2C retailers in the automotive sector that allows shoppers that know exactly what they are looking for, to choose the make/model/year within search. How it works: Within the product data, associations are made between products suitable for different car makes and models and/or years of a car. So, a shopper can drill down to their specific make/model/year and see products compatible with their choice at the top of the product list. As you can see here with Morris 4x4 Center, the chosen make/model/year persists for the whole session, including subsequent searches, until cleared or changed by the shopper.

 

 

So, what’s next?

 

At Klevu, we believe that great customer experience isn’t reserved for B2C retailers and that technology and innovation aren’t the privileges of a chosen few. B2B buyers are digitally savvy, potentially even digital natives.

Klevu has helped retailers power their on-site search, category merchandising, and product recommendations. Typically, the uplift for most eCommerce brands is:

 

  • Conversion from search increases by 6x
  • Average order values increase by 6%
  • Site-wide eCommerce conversion increases by 15%

 

Klevu helps B2B and wholesale brands create magically personal and relevant product discovery journeys that appear effortless, and build brand equity by delighting shoppers at every click, swipe, or search. Get a free product discovery audit at klevu.com/audit

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The Hurdles of B2B eCommerce and How to Overcome Them

The Hurdles of B2B eCommerce and How to Overcome Them

by | May 27, 2021 | Commerce Strategy

Large-scale digital transformations, while increasingly necessary in a growingly digital world, can be daunting and nerve-wracking projects that take a lot of time and investment from many different departments of your business. In the B2B world, these initiatives seem to face even more pushback due to the reluctance of change and adoption of eCommerce in many B2B organizations. Many businesses avoid taking the plunge to really invest in their digital channels due to the risks and fear of failing.

 

After over a decade of experience with these large-scale projects, Redstage CEO Adam Morris and Head of Digital Transformation Matthew Jasper know a thing or two about why companies are reluctant to start an eCommerce initiative and why some of these projects do not come to fruition. Having served over a hundred enterprise companies, from small and mid-market organizations to billion-dollar enterprises, they shared with us what obstacles usually keep organizations from succeeding in Digital Transformation and eCommerce projects.

 

In the first part of this in-depth interview, we will discuss why companies have been avoiding starting these transformation initiatives even in the “new normal” of an almost entirely digital world and what to make sure teams focus on to make sure the project reaches its full potential.

 

 

Why Are B2B Organizations Reluctant To Start Digital Transformation Initiatives?

 

 

I think the challenge is that a core function for us as human beings is that it’s difficult for us to act for the future, right? We’ve been discussing the changing demographics and needs of the buyer with our B2B clients, and it’s something that you can’t really see. When you’re not investing in a digital sales channel, and you’re using traditional methods, it’s hard to see that what are the downstream effects of these changing demographics and needs. What are the downstream effects for your customer experience, for digital natives that are coming in to be your main source of buyers? And what happens is this change happens slowly and is sometimes hard to perceive or see coming.

Adam Morris

CEO, Redstage

Yes. I think one key element is, are companies being proactive about going to kind of a digitally transformed eCommerce strategy? Or are they being reactive? And that, I think, is really what has kept most B2B companies on the slow side in the past. Prior to the pandemic, in order to digitally transform their business, they needed to be proactive and build a roadmap in advance to build out an eCommerce strategy. And most of them didn’t do that because they were chasing the latest thing to react to. But with the pandemic, ultimately, the solution has been digital transformation and eCommerce services to help keep the traditional businesses afloat, leveraging web sales and online sales in that respect.

So ultimately, this strategy has to be shifted from a reactive to a proactive one. So obviously, the pandemic has accelerated a lot of those types of initiatives that should have been happening over the course of the last five, ten, even twenty years, which some of these companies have been around for. But, the B2B space has been some of the last industries impacted by digital transformation in part because they were a little bit downstream or a little bit further nested into supply chains and distribution strategies for some of these other companies. So, they’ve been impacted a little bit further behind, as opposed to the business-to-consumer side of industries. But, that’s partially why they’ve been a little bit slow to react, is because they could get by with business as usual for longer.

Matthew Jasper

Head of Digital Transformation, Redstage

So there are three functions at play when thinking about digital transformation; you’ve got driving new revenue, you’ve got cost savings that might be missed opportunities by not investing in the digital channel, and you’ve got customer attrition issues. From the changing demographics and needs of especially the younger generation of B2B buyers, it’s really hard for some companies to quantify, and then the question becomes who owns that change, right?

Normally, if you’re talking about driving new revenue streams, well that’s traditionally the sales team in a B2B environment. The challenge there is the sales team, a director of sales, a chief revenue officer, their job is really mainly building driving sales teams. Personnel and people management. What is the sales strategy? What’s the funnel-managed pipeline? It doesn’t really include the expertise or KPIs around digital sales. It also has operational ramifications, right, so you need to involve operations, even though they don’t have revenue or sales as KPIs. You also have I.T. that might try to get involved, the CIO is really looking at how to enable business strategy and how to reduce costs. So, this is a cross-functional strategy that I think between the difficulty and challenges of quantifying what the digital transformation will hold for the business, as well as not having a true clear owner inside the organization, it makes it really challenging.

And now, we kind of look at the environment sort of in a post-pandemic world, where we’ve seen the conversation change a lot to okay, well we have to transfer. We’ve seen that the world has to have the digital capability, so we know that we need to change. We need to do five years of transformation that we should have been doing, in one year now. But the interesting part about that conversation is if you dig into why we need to change, the answer is sort of simply well because we have to.

Adam Morris

CEO, Redstage

Yes. I just got off a call with an essential client on the sales side, where they were asking this exact question. They said we know we need to build out a digital solution, and we haven’t done it yet. So, should it live with sales? Should it live with I.T.? Should we build a dedicated digital team or a dedicated eCommerce team? What should we do?

And ultimately, the way which I told them to think about it is you’re building an entire parallel startup that touches all of your business processes. But, there’s going to be somebody who is ultimately accountable for it. Whether it’s the chief marketing officer or the head of product, there’s somebody that’s going to have ownership of this element of the business, but it’s going to touch each individual element of your business. So, if you are the eCommerce operations manager, you might be tasked with figuring out things like how do we get our warehouses or business processes in order to make the digital solution a little bit more efficient? If you are on the marketing side, you might be tasked with figuring what paid advertising solution to use to drive traffic to our website. What does building our marketing pipeline look like on the B2B side of things? What does an Omnichannel marketing strategy look like to drive traffic to our site and then get people to convert? 

So every single element of the business needs to have a stake in the process for a digital transformation when going from a traditional business to a digital one. That comes from buy-in across leadership, as well as accountability for individuals either on the sales or marketing side. 

Matthew Jasper

Head of Digital Transformation, Redstage

Matt, I have something to add there too. You mentioned the word startup, and it’s a very interesting conundrum, and I think this is a blocker for a lot of transformations, especially why B2B companies are so slow to adopt or adapt or transform. We work with mostly larger enterprises, right? And a big challenge is when you’re creating something new, or you’re evolving something that’s in its early stages of maturity, you have to be able to react more entrepreneurial, more agile, right? You have to be able to iterate, you have to be able to test, and you have to move.

So if we’re talking about enterprises, where is this owned? Is it owned by the business unit head? A lot of these business units are mature. You don’t move quickly on purpose, you’re careful and methodical, and that’s going to lead to your success in a mature business. So, how do you balance creating this sort of entrepreneurial iterative culture in conjunction with your I.T. organization that’s going to want to be more methodical? With your business strategy, with your planning and forecasting. All of these things are often at odds with each other, create conflict and create roadblocks. So I think it’s important to acknowledge those issues, and set up a plan and roadmap, and get everybody on board that this is an iterative process. Understand which processes of the core business are going to need to break or need to change, or need to diverge, from what has made us successful to this point.

Adam Morris

CEO, Redstage

Yes, and one last point on that startup mentality versus mature business. Some of our clients have been around for hundreds of years, even. Where they’ve built a model over time by being focused on certain core activities and solving very specific business problems, and building long-term trusted customer relationships with their particular ecosystem. So, given that they’ve been around for so long, they’ve been at a certain scale of business. If you’re generating, you know, a billion dollar’s worth of revenue from traditional models, building a website to sell your products online may disrupt the apple cart, so to speak. Where you lose a little bit of that exclusivity of that trusted partnership with some of your supply chain or your distribution network. So, there’s an element of risk from a B2B customer perspective, whereby opening it up might be weakening some of those ties that have been some of the elements of your secret sauce.

Because of that, you need to navigate that carefully and manage that customer expectation. Where no, you’re not necessarily disrupting your business-to-business network, you’re just trying to support how that buyer wants to do business. They no longer are looking to necessarily be wined and dined in a COVID era, and instead would rather just go to your website and click purchase or maybe get a quote, and then work back and forth via email, instead of even a phone call at times. So, there’s a matter of how do you meet your customers where they are, without necessarily viewing digital as a risk to the business. Which I think is an important point, and maybe some of the traditional hesitancy pre-COVID, to taking your business model and transporting that online.

Matthew Jasper

Head of Digital Transformation, Redstage

 

 

What did we learn?

 

The major factors holding B2B merchants back from reaching their business’s full potential and maximize sales are unexpectedly simple; several departments in your organization need to buy in for a digital transformation to work, yet you need one business head to own the process and see it to fruition. Finally, you need to have an iterative and proactive mindset to these projects, understanding the future benefit while working in the present to see it through step by step. 

 

Often, organizations can see these projects as daunting and too risky to delve into in the middle of the year, or even to delve into at all. Sometimes, you just need an exterior team to evaluate your processes and look at your organization with a bird’s eye view. Contact Redstage today if you need help starting your eCommerce or Digital Transformation journey.

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Four Ways to Win at Convenience in B2B eCommerce

Four Ways to Win at Convenience in B2B eCommerce

by | Apr 16, 2021 | Commerce Strategy, UX/UI Design

Megan Wenzl

Megan Wenzl

SEO Content Manager

Megan Wenzl is the SEO Content Manager at Linnworks, a total commerce solution that connects, manages and automates commerce operations. Megan enjoys creating useful, informative stories to help businesses succeed. When not writing, Megan enjoys spending time with her family.

 

 

In the world of enterprise B2B eCommerce, ever-changing consumer trends continue to cling to one constant — convenience. 

 

In fact, a convenient buying journey has become the cornerstone for success in B2B eCommerce. But what makes a buying journey effortless?

 

Keep reading for four ways to win at convenience in B2B eCommerce to increase conversion rates and revenue.

 

 

Focus on a Frictionless Customer Experience

 

frictionless customer experience with advanced search

 

According to research on total commerce by Linnworks, convenience is defined by a frictionless online buying journey. In fact, 58% of consumers have stopped using a website altogether if they find it difficult to navigate, and 90% prioritize a trouble-free experience. 

 

So what can be done to create a frictionless CX? Every interaction a user has with a brand needs to be smooth and quick to avoid abandonment. Two of the most critical touchpoints are search and check-out. (Two out of three consumers have abandoned a purchase over complicated search and check-out touchpoints.) Offering smart, advanced search and check-out features will encourage buyers to stay on your site at the beginning of their journey and complete their transaction near the end. 

 

Speed is also a significant player in the eCommerce experience. No one wants to wait for pages to load. To increase speed, it’s essential to upgrade software, consolidate integrations, and minimize extensions. 

 

It’s also critical to increase product traceability and avoid human errors like over-selling by automating inventory management and similar processes. Automating inventory management will speed up the user experience and minimize errors across all channels, creating a more frictionless CX. (Read more about the importance of inventory management here.) 

Personalization is Key 

 

 

Ultimately B2B decision-makers are searching for solutions to a problem they’re experiencing. The buying journey needs to be as personalized as possible for them to feel like your company has the exclusive and best answer to their problem.

 

Employing AI technology to extract data can help automate this process. AI software gathers analytics from search, recently viewed, and purchase history. It can also collect demographics like location, company, email — and more to determine what problem a B2B consumer is trying to solve. Then, this data is used to create the most customized web-based experience possible that provides a solution. 

 

During a recent website migration, B2B enterprise company Sea Bags added a new AI feature to their website that collects data from previously visited pages and recent purchases to help consumers find recommended products. The addition of AI technology to personalize the buying journey was a significant contributing factor to an astounding 53% growth in revenue in just three months. 

Upgrade the Mobile Experience

 

mobile online shopping buying experience b2b

 

With the upsurge of easy-to-navigate eCommerce platforms, consumers have come to expect a seamless omnichannel experience. According to the research from Linnworks, 81% of consumers want a buying journey to begin on one device and end on another — without interruption. And to increase traffic and conversion rates, this seamless omnichannel experience undoubtedly should include updated mobile channels. 

 

The current expectation is that mobile purchasing should be as effortless as desktop. To optimize the mobile experience, focus on sleek minimalist design with features that surprise and delight your users — more specifically, micro-interactions. These seemingly insignificant moments pack a big punch when it comes to keeping buyers engaged (and coming back). 

 

High-end coffee giant Jura Coffee saw a hefty increase in mobile traffic and conversion rates after updating its mobile channel design. After creating an experience that closely measured up to that of the desktop, they saw a 55% increase in traffic and a 44% boost to their mobile conversion rate! With statistics like that, most companies can’t afford to continue offering archaic mobile buying experiences. 

Offer Innovative Features

 

innovative eCommerce features shipping inventory

 

At its core, consumer convenience is rooted in innovation. To keep up with the competition and trends in buyer habits, companies have to capitalize on innovation at every turn. Luckily, the fluctuating landscape of eCommerce affords the opportunity to continually offer buyers new and convenient ways to examine products and make purchases with the push of the button. 

 

B2B distributor The Binding Source worked hand-in-hand with Redstage Business Analysts to create a convenient buying experience for their customers with innovative features. Some of the additions to their website that capitalized on convenience were custom product filtering, advanced shipping options, customer segmentation, and payment storage. The addition of these convenient and innovative features helped increase their conversion rate by 170% in just one month! 

2021 MARKET SURVEY

2021 State of eCommerce Report

Answer 5 quick questions for our 2021 State of eCommerce Report to receive a free usability assessment from Redstage!

Learn More

Conclusion

 

To win at convenience in B2B eCommerce, the primary focus needs to be keeping up with innovation and subsequent consumer demand. If you don’t create a personalized and frictionless buying experience or offer innovative features to meet B2B decision makers’ needs, another company will. Contact Redstage to start maximizing convenience for your buyers today. 

Download the Latest Research from Linnworks for More Insights

 

5 Ways M&D Companies Drive Efficiency & eCommerce with Augmented Reality

5 Ways M&D Companies Drive Efficiency & eCommerce with Augmented Reality

by | Nov 5, 2020 | Commerce Strategy, UX/UI Design, Web Development

With Augmented Reality, manufacturers and distributors can increase:

  • speed of production by 30%
  • speed and accuracy of maintenance by 34% 
  • speed and efficiency of fulfillment by 25%

How are manufacturers and distributors dramatically improving efficiency? Augmented Reality applications for eCommerce allow B2Bs to streamline processes and drive incredible value for buyers. Get the full rundown below or watch the second half of our webinar here.

 

The AR Megatrend: Causes & Effects

 

COVID-19 forced a wave of digital transformation across industry sectors, accelerating the 10-year growth previously projected for the eCommerce market. As B2C companies raced to find new at-home buying experiences, B2B companies jumped on the bandwagon. Companies are realizing the dire need for digital technology.

 

2021 MARKET SURVEY

2021 State of eCommerce Report

Answer 5 quick questions for our 2021 State of eCommerce Report to receive a free usability assessment from Redstage!

Learn More

Emphasizing this point, McKinsey’s “B2B Decision Maker Pulse” states your likelihood of being chosen as the primary supplier for a B2B company increases by 100% when you provide an “outstanding digital experience.” Seeking to meet “New Normal” buyer demands, manufacturers and distributors around the world began investing in 10 key areas, namely Augmented Reality.

Here are the top 5 ways M&D companies are using the technology, not only to increase value for buyers but for employees as well.

 

1. AR for Production

 

B2B AR Production

 

For the biggest B2B brands in the country, Augmented Reality is taking the production cycle to the next level. Shipping leader Cerasis determined that factory workers and engineers utilizing augmented reality in production can increase their accuracy and lower mistakes by up to 96%, and complete work up to 30% faster.

AR allows workers to see blueprints in eye view, shortening the time it takes for quality control. Leaving less room for human error and stopping mistakes before they ever happen. Workers can spot and eliminate defects in manufacturing by scanning products or production machinery from the factory floor or remotely.

Global Creative Director here at Redstage, Christopher Yin, had this to say:

 

“Cut the cost of creating one-off examples for showing customers by utilizing AR. Save money on printing, shipping, and returns while also saving the time wasted waiting for customer approval. Send customers AR [model] links to quickly review and approve orders, netting same-day results, and boosting your bottom line.”

 

2. AR for Maintenance

 

B2B AR Maintenance

 

Shutting down your entire production line to run maintenance on one of your machines can cause huge delays on the assembly line and in production. Household name General Electric Renewables utilized Augmented Reality in their maintenance processes at a wind turbine production plant.

AR allowed engineers to work on wiring on the turbines with an augmented overlay, helping GE Renewables improve assembly time by 34%. They accomplished this by using AR to overlay correct wiring conditions over the current project. Technicians at GER are also using voice recognition to identify wiring and determine correct placements, limiting mistakes and potentially harmful accidents.

Engineers can scan over machinery using AR and view necessary information directly in their eye view. From last maintenance date to specific areas there may be a malfunction, augmented reality is keeping engineers safely out of harm’s way while also massively reducing maintenance time.

 

3. AR for Planning

 

B2B AR Planning

 

For sellers of large machinery like assembly lines or presses, the best way to ensure you have the space planned out correctly is to see the machine through an augmented reality lens. In a scientific research report titled, Virtual Planning, Control, and Machining for a Modular-Based Automated Factory Operation in an Augmented Reality Environment, researcher Yun Suen Pai and colleagues outline the importance of minimal friction and misplacement between machinery in a large production area.

According to the report, “AR was used to aid the planning process of manufacturing systems with the key advantage of modeling 3D objects in the actual factory. By using AR as a form of user interface, any user will be able to freely manipulate the overall layout design on a table-top, which is extremely user-friendly.”

In other words, place the machine virtually in the space you have for it beforehand, without the hassle of measurements or human error. Plan for your warehouse move or upgrade with AR before you do it, and limit headaches if there is a mishap. Hololens by Microsoft is even allowing remote teams to get a hands-free view of factories and warehouses, giving managers the freedom of focusing on their plans.

 

4. AR for Virtual Product Models

 

AR B2B Model

 

Jon Wade, Head of Augmented Reality and VR at Shopify, shed some light on the thoughts of buyers when viewing products in 3D. He said that “…when visitors viewed a product in AR before making a purchase, they were 65% more likely to complete that purchase.”

We’ve also designed AR experiences that allow DTC appliance companies to show off their appliances, like coffee machines and stoves, to buyers from the comfort of their own home. The same way manufacturers would plan where machinery would go in a large production warehouse or factory, homeowners want to plan where a new stove or coffee machine will go in their kitchen before buying. View a new appliance in 3D, place it on your counter, move it around and make sure your buyers are confident in their purchase to avoid buyer’s remorse and increase satisfaction.

 

Stove Range

We designed this sample model of an AR stove range to show retailers and manufacturers how popular appliances and machinery can be viewed in a home or business setting from anywhere.

📲 Point your smartphone camera at the QR code to try it out, wherever you are!

 

 

This is the same for B2B buyers as well. Whether you’re selling large industrial appliances to restaurant chains or construction equipment to job sites, utilizing 3D models and Augmented reality for your products can give your customers confidence in their purchase. 

 

5. AR for Supply Chain and Logistics

 

B2B AR Logistics Shipping Supply Chain

 

Distribution juggernaut DHL is making a staggering $300 million investment in AR technology, accelerating their investment in AR and other technologies. DHL Supply Chain North America CEO Scott Sureddin said, “This investment is about a holistic view of emerging technologies that enable our customers to achieve their growth and profitability goals… Therefore, it is important that our customers can benefit from our experiences and expertise with a variety of emerging technologies.”

DHL successfully carried out a project testing smart glasses and Augmented Reality in one of their warehouses. The technology was used to implement ‘vision picking’ in warehousing operations. Their staff members were guided through the warehouse by graphics displayed on the smart glass to speed up the picking process and reduce errors. The project resulted in a 25% efficiency increase during the picking process.

 

The Fastest Way to Implement AR

Augmented Reality is growing in adoption from buyers and sellers alike. Don’t fall behind your competition, be the first in your space to implement AR in both your warehouses and online buying portals. Watch this on-demand webinar with our Creative Director Christopher Yin and Shopify’s Head of AR and VR Jon Wade for the full story, on how AR is changing eCommerce in B2C and B2B alike.

 

 

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5 Ways Augmented Reality is Changing eCommerce and Dazzling Buyers

5 Ways Augmented Reality is Changing eCommerce and Dazzling Buyers

by | Oct 22, 2020 | Commerce Strategy, UX/UI Design, Web Development

“I do think that a significant portion of the population of developed countries, and eventually all countries, will have AR experiences every day, almost like eating three meals a day. It will become that much a part of you.”<span class="su-quote-cite">Tim Cook, Apple (2016)</span>

 

According to the Commerce Department, online sales now account for 16% of all U.S. retail sales. In fact, eCommerce sales in the second quarter of 2020 rose by 44.5% compared to the same period of 2019. More merchants than ever before are investing in online stores as the industry booms. To maintain dominance in the rapidly growing market, leading brands are turning to Augmented Reality.

You can watch a free video version of this post, featuring Shopify’s head of AR/VR Jon Wade and Christopher Yin, Redstage’s Global Creative director to see these examples in greater detail and motion and get insights from the experts.

 

What is Augmented Reality?

Augmented Reality is the practice of using an AR capable device (like a smartphone or smart glasses), to superimpose computer-generated images over real life. This gives users the impression that the superimposed image is in the real world, allowing users to interact with products physically, without ever leaving their home. Take a look at the images below to get an idea.

 

Augmented Reality Example 1

 

We started talking about the AR eCommerce “arms race” three years ago. Today, most US consumers already have devices that support AR experiences (yes, even you). This holiday season, expect Augmented Reality’s importance in retail to truly shine, considering in-store shopping is at an all-time low. Even B2B companies are investing in the technology for a variety of applications, from eCommerce to operations. If you don’t keep up with this trend, you could be part of the 12% of companies falling behind during the pandemic. Continue reading to see a few AR experiences companies are using already, and some you can try yourself.

 

1) A New Standard in At-Home Retail.

Companies like Amazon and Apple are already utilizing AR experiences to bring the in-store experience into consumers’ households. With AR, shoppers can view items like furniture or appliances on their mobile devices, and place 3D product models in their home virtually. Phone and tablet users can view products anywhere, giving them the freedom to see if products fit in the space they are buying it for, prior to purchase. Consumers can ensure items are what they’re looking for, from size to shape and color, all from the comfort and safety of their homes. Check out this Augmented Reality model we built for Jura Coffee machines:

 

 

Jura Coffee Machines

Using augmented reality, we created an at-home shopping experience for Jura. With our AR design, customers can see how Jura’s coffee machines appear on their kitchen counters from home. With in-store traffic at an all time low in 2020, experiences like this help customers see the product without visiting a Jura location. Scan the code with your smartphone to view the model at home!

⬅️   Tap the buttons on the right of the image to see product features and dimensions.

 

 

In this way, AR gives buyers confidence that they are buying the right item and limit returns with Augmented Reality. Shopping for a new couch or coffee machine? Make sure it fits before tapping “buy,” without ever visiting the store.

 

In Home Retail Augmented Reality

 

For Retail, AR’s Future is Clear

Redstage’s Global Creative Director, Christopher Yin, had this to say about AR’s role in eCommerce: “Wayfair, Target, Walmart, Ikea, and every other juggernaut of retail has and will invest large sums in Augmented Reality in the near future, as it is the clear trend. To keep up with the largest companies in the world, you must give your customers unique and memorable experiences to retain them.” The stats speak for themselves:

  • 61% of shoppers said they would prefer to shop at stores that offer AR, as opposed to ones that don’t.
  • 40% of shoppers said they’d be willing to pay more for a product if they could experience it in AR.
  • 71% of shoppers would shop at a retailer’s store more often if they offered AR.

 Source: Retail Perceptions

 

2) Unique Experiences in Consumer Goods

 

In Store Augmented Reality

 
Augmented Experiences Enhance In-Store Buying

While you don’t need a dedicated app to enable AR experiences, these are a few ways top names in CPG are taking the tech to the next level. Augmented Reality is already being used to enhance in-store experiences. Utilizing their branded AR app, shoppers at American Apparel can scan clothing and footwear right on the rack and view information typical of an eCommerce store right from their phone. They can find the right sizes, colors, styles, and even customer reviews all while shopping in the store.

With Sephora’s in-store “magic” mirror, shoppers can try-on different kinds of makeup with Augmented Reality. With facial recognition technology, smart mirrors can automatically detect different facial features and apply a wide variety of cosmetic products directly onto users’ reflections. Remember, 40% of shoppers said they’d be willing to pay more for a product if they could experience it in AR. This applies to in-store shoppers as well.

 

Sephora's augmented reality mirror

Image Source: Retail Innovation

It’s easy to see how experiences like this increase customer satisfaction by ensuring they get the product they want. This prevents the disappointment of out-of-stock products while reducing returns and increasing sales. Bring the online shopping features your customers love to your physical stores and see in-store sales grow in tandem.

 

3) Augmenting Products and Packaging

You may have heard about 19 Crimes Wines, and how they utilize Augmented Reality to give a unique experience to customers purchasing their AR-activated wine bottles. In doing so they provide:

  • A new dimension to wine bottles with video to tell brand stories.
  • New experiences to engage and entice customers in the aisle.
  • A viral marketing sensation that drives sales.

 

Augmented Reality Consumer Goods Experience 19 Crimes Wine

 

 

 

 

Recently, the team at Redstage created an AR concept for Panini, one of the largest manufacturers of sports playing cards in the world. The benefits of this AR experience include:

  • Adding an interactive dimension to playing cards.
  • Encourage use of branded apps to experience AR, encouraging up-sells.
  • Provide new experiences to engage and entice customers to purchase.
  • Allow shoppers to check packaging in-store for AR experiences in the aisle.
  • The potential to revolutionize the playing card and collectibles industry.

 

 

 

4) Augmented Reality Gives Confidence and Freedom in Fashion

There’s nothing worse than buying clothing online that ends up not looking, feeling, or fitting how you hoped. Dodge returns this holiday season by using Augmented Reality to let shoppers virtually try-on clothes. Let them see the fit and cut of clothes in real-time, on their body, or let them walk around apparel items on a virtual model.

Do the earrings match? Is the dress long enough? Most of the time, shoppers don’t know their dimensions off the top of their heads. With AR, 3D product models are based on real dimensions, increasing buyer’s confidence in their purchase. Again, this will undoubtedly lower returns and can grow repeat customers who enjoy the experience.

 

AR for Accessories & Luxury Goods

 

Augmented Reality Try It On At Home Luxury Goods

Image Source: TryOn.Jewelry

Continuing in the theme of “bringing the in-store shopping experience to your home,” it’s just as important for consumers to see how accessories look on their body without visiting the store. Imagine seeing rings on your fingers, a watch on your wrist, or a necklace on your neck, without ever stopping by the jewelry store. All this and more is being implemented by top brands today. Sephora and Covergirl are even using AR for new makeup and cosmetics experiences.

So far, we’ve seen the Try-It-On-At-Home (TIOAH) AR experience implemented for:

  • Bracelets
  • Earrings
  • Makeup
  • Nail Polish
  • Necklaces
  • Rings
  • Watches
  • And more!

 

5) Using Your eCommerce Platform for Augmented Reality

Apparel designer Rebecca Minkoff has been improving conversion rates consistently with AR and 3D models, here’s how:

 

 

Rebecca Minkoff has been using 3D models on their product pages since the fall of 2019. 3D models give customers a 360-degree view of products, increasing interactivity over stationary photos. Jon Wade, head of Augmented and Virtual Reality at a leading eCommerce platform says, “We’ve found that visitors who interacted with a 3D model were 44% more likely to add a product to their cart and 27% more likely to place an order that visitors who didn’t. Furthermore, when visitors viewed a product in AR, they became 65% more likely to make a purchase.”

 

“Visitors who interacted with a 3D model were 44% more likely to add a product to their cart and 27% more likely to place an order that visitors who didn’t. Furthermore, when visitors viewed a product in AR, they became 65% more likely to make a purchase.”

 

Knitted tie manufacturer Broni and Bo is another merchant utilizing Augmented Reality in their online showroom. Enhanced with facial recognition software, customers can try-on knitted bowties and wedding ties before the big day, giving customers confidence that they chose the right look. There’s no limit to the experiences you can give customers with Augmented Reality and 3D models.

 

Bow Tie Facial Recognition

 

 

AR models can bring your product pages to life and automatically display interactive 3D models when viewed on a desktop computer. Increase buyer engagement and make consumers more confident in their purchase from the beginning with AR and 3D models.

 

Misconceptions about Augmented Reality:

 

1) It’s too expensive: FALSE!

Implementing Augmented Reality on your online store is not nearly as expensive as you many think, which is why so many companies are investing in it right now.

 

2) It’s difficult and time-consuming to build AR models: FALSE!

With the right team, who has experience and knowledge, it is both easy and fast to implement Augmented Reality and 3D models into your store.

 

3) Implementation requires additional tech and infrastructure: FALSE!

Most eCommerce platforms, like Shopify Plus, are already set up to allow for Augmented experiences. They take no extra implementations or infrastructure to implement!

Jon Wade, head of AR and VR at Shopify, mentioned this about AR’s ease of use, “Any mainstream browser works for AR, you don’t need any additional hardware, software, or expert knowledge to experience it. It works on all new mobile devices, desktops, and tablets.”

 

4) AR will kill the load-time of my product pages: FALSE! 

The right team can implement AR experiences without sacrificing load time or website performance.

 

Want to Learn More About AR Implementation?

To show you how easy it is to make an AR design, send a .EPS file of your company’s logo to info@redstage.com and we’ll send you an AR model of your company logo for free. Test out the technology and see how quick the turn around time can be.

Watch this on-demand webinar with Shopify’s head of AR/VR Jon Wade and Christopher Yin, Redstage’s Global Creative director to see these examples in greater detail and get insights from the experts.

To learn more about how we can bring your AR dreams to life, visit https://www.redstage.com/augmented-reality-design to schedule your free consultation.