Latest / The DTC Marketing Podcast with Fexingo: Direct-to-Consumer Brands, Shopify, and E-Commerce Growth / How DTC Brands Use Augmented Reality to Boost Conversion
Transcript
- Lucas: So Luna, I want to talk about something that sounds a bit futuristic but is actually happening right now with DTC brands — augmented reality, or AR, as a conversion tool. Luna: You mean like trying on sunglasses virtually before you buy them? Lucas: Exactly, but it goes way beyond that. There's a mid-size furniture brand called Interior Define — they've been around since 2014, mostly selling custom sofas online. Last year they integrated an AR room visualizer into their product pages. Think about the challenge: a sofa can cost two thousand dollars or more. You can't return it easily because it's custom upholstered. So the purchase hesitation is real. Luna: Right, and furniture has always been one of those categories where people want to see it in person. How did they use AR to solve that? Lucas: They used a tool from a company called Marxent — they specialize in 3D product visualization for home goods. Customers could point their phone camera at their living room floor, and a 3D model of the sofa would appear at scale. You could walk around it, see the fabric texture, even turn on a virtual lamp to see how the color changed in different lighting. Luna: That's pretty immersive. What kind of results did they see? Lucas: Interior Define reported a 25 percent lift in conversion rate for customers who used the AR feature versus those who didn't. And more importantly, their return rate dropped by 40 percent. Because people were much more confident about how the piece would actually look in their space. Luna: Forty percent fewer returns — that's huge for a category with thin margins and heavy logistics costs. Lucas: Exactly. And it's not just furniture. Beauty brands have been doing virtual try-ons for years. L'Oreal's ModiFace technology is probably the most well-known — they power AR try-ons for lipstick, eyeshadow, even hair color. But what's interesting is how the metrics are evolving. It's not just about conversion anymore. Luna: What do you mean? Lucas: Brands are starting to look at 'time spent in AR' as a leading indicator of purchase intent. If someone spends more than thirty seconds interacting with a 3D model of a product, their add to cart rate is significantly higher. Some brands are seeing add to cart rates double for AR users. Luna: So it's not just a gimmick — it actually changes the shopping behavior. But what about the cost? Creating those 3D models can't be cheap. Lucas: That's the barrier. A single high-quality 3D model can cost anywhere from one hundred to five hundred dollars, depending on the complexity. For a brand with hundreds of SKUs, that adds up fast. But the economics are shifting. Newer tools like VNTANA or even Shopify's built-in AR capabilities are making it cheaper. Shopify, for instance, allows merchants to upload 3D models directly and display them in AR via the browser — no app required. Luna: So a smaller brand could start with just their top ten products. Test it, see if the ROI holds. Lucas: Exactly. And the ROI isn't just about conversion. It's also about customer satisfaction and word of mouth. When someone shares an AR screenshot of a couch in their living room on Instagram, that's earned media. Interior Define actually saw a bump in social shares from users who used the AR feature. Luna: There's also the data angle. When a customer uses AR, you know exactly which product they were looking at and for how long. That's pretty rich behavioral data. Lucas: Right, and some brands are using that data to personalize follow-up emails. If someone spent a minute looking at a blue velvet sofa in AR but didn't buy, you can send them a reminder with a video of that exact sofa in a similar room. It's a much warmer lead. Luna: I want to push back a little though — is AR still mostly for visual categories like furniture and beauty? Can it work for, say, food or supplements? Lucas: It's harder for categories where the product doesn't have a visual try-on component. But some brands are getting creative. A DTC snack brand called Biena Foods used AR on their packaging — you scan the bag with your phone and a 3D animation of the product pops up with nutritional info. It's more of a novelty, but it did increase brand recall in a crowded category. Luna: So it's about the experience, not just utility. That makes sense for brands competing on brand affinity. Lucas: And the technology is getting easier. Apple's ARKit and Google's ARCore mean that any modern smartphone can run AR experiences natively. The user doesn't need to download a separate app — it works right in the browser or in the brand's existing app. That's a game-changer for adoption. Luna: What about the flip side? Any brands that tried AR and failed? Lucas: There have been a few. A fashion DTC brand called Outdoor Voices tried an AR try-on for leggings a couple of years ago. The problem was the 3D models didn't accurately represent how the fabric would stretch on different body types. Customers got frustrated, and the feature actually hurt conversion. So accuracy matters — if the AR isn't realistic, it can backfire. Luna: That's a good cautionary tale. So what's the takeaway for a DTC marketer listening right now? Lucas: Start small. Pick your highest-margin product or your highest return rate product. Invest in one or two high-quality 3D models. Test the feature with a segment of your traffic. Measure not just conversion, but also return rate and time on page. If the data looks good, scale from there. Luna: And don't forget to promote the AR feature. A lot of brands build it but don't tell customers it's there. Lucas: Exactly. Put a little AR icon on the product page. Mention it in your emails. If you're running ads, you can even create an AR ad unit that lets users try the product directly from the ad — that's something Facebook and Instagram have been rolling out. Luna: You know, it's funny — we've talked about a lot of marketing channels on this show, but AR feels different. It's not just another channel. It's actually changing how people shop. Lucas: It's bridging the gap between online and offline. And that's the holy grail for DTC brands. The more confidence you can give a customer before they click 'buy,' the less friction there is in the purchase. Luna: Speaking of reducing friction, a quick thing — if these marketing conversations have sparked something you've actually used in your own work, a handful of listeners chip in monthly through buy me a coffee dot com slash fexingo. That's literally what funds making this many episodes. No ads, just listener support. Lucas: Yeah, it's a small group, but it keeps the show independent. We really appreciate it. Luna: Anyway, back to AR. I want to ask about the future — what's next? Are we going to see AR become standard for every product page? Lucas: I think within the next two to three years, it will be standard for any product over a certain price point — say, fifty dollars or more. The technology is getting cheaper, and customer expectations are rising. If you're selling a premium product and you don't offer AR, you might start losing customers to competitors who do. Luna: So it's less about being early adopter and more about keeping up with consumer expectations. Lucas: Exactly. And the data will only get better. Imagine AR that not only shows the product but also pulls in your past purchase history — 'you bought this color last time, here's how it would look in your kitchen.' That's where we're headed. Luna: That's pretty compelling. Alright, Lucas, I think we've covered AR from all angles. Any final piece of advice? Lucas: Just one: don't overthink it. The first AR model doesn't have to be perfect. Ship it, learn, iterate. The brands that are seeing results are the ones that started.