What is Augmented Reality? | 11 Strategic Benefits of AR for Businesses [2023]

It has now been almost three decades since the term ‘Augmented Reality’ was introduced into the technical vocabulary of the augmented technology industry.

When AR began being used in the first phase by Boeing, it never became popular. No one could even imagine AR apps becoming easily downloadable. But it’s clear that it has quickly taken over all our daily lives.

Augmented Reality has a wide range of applications, including gaming, education, healthcare, retail, and advertising. For example, some AR technologies can be used to create interactive games where digital characters appear to be interacting with the real world or to provide students with virtual educational content that can be explored in a real-world setting.

In this blog, we are going to dive into different aspects of Augmented Reality including its applications for different companies and industries. 

We will also discuss 11 strategic benefits of Augmented Reality for your business.

Let’s begin.

Table of Contents

  • What is Augmented Reality?

  • Use of Augmented Reality in Different Industries

  • Top 11 Benefits of Augmented Reality for Your Business

  • 8 Amazing Examples of Augmented Reality Applications

  • How to Unlock the Potential of Augmented Reality?

  • Building an In-House Team or Outsourcing. Which is Better?

  • Final Thoughts

  • Frequently Asked Questions

What is Augmented Reality?

Augmented Reality (AR) is a technology that superimposes digital information, such as images, sounds, and text, onto the real world. AR works by using a camera or other sensors to capture the physical environment and overlay digital content on top of it in real-time.

The goal of AR is to enhance or augment the user’s perception of reality by adding virtual elements to the physical world. One can achieve this through various devices such as smartphones, tablets, AR headsets, or smart glasses.

Use of Augmented Reality in Different Industries

When Augmented Reality became more popular, most people believed it was primarily geared toward entertainment. Despite its limitations, the technology has quickly expanded into other industries.

Augmented Reality (AR) has a wide range of applications across various industries. Here are some examples of how AR is used in different fields:


AR is being used to create immersive and interactive experiences of learning. For example, AR apps can provide students with virtual lab experiences, enhance textbook content, or create virtual field trips to different locations.


AR technology has revolutionized the gaming industry, providing gamers with new and exciting experiences. AR games are engaging and immersive, allowing players to interact with the real world in new and exciting ways. For example, AR games can place digital characters in the real world, or allow players to interact with virtual objects in their environment.


Doctors and surgeons use AR to provide real-time information during procedures, such as overlaying CT scan data on a patient’s body. One can create virtual simulations for medical and training purposes or patient education with AR.


AR helps to enhance the shopping experience for customers and online shoppers. AR apps can allow customers to try on virtual clothing, visualize furniture in their homes, or see how a product works in real life before making a purchase.


AR helps to provide workers with real-time instructions and information about specific machine during assembly or maintenance tasks. This artificial intelligence can increase efficiency and reduce errors.


AR provides virtual tours of historical or cultural sites. AR apps for mobile devices can overlay digital information on real-world locations, such as providing historical information about a building or showing a virtual reconstruction of a site.

Top 11 Benefits of Augmented Reality for Your Business

11 Strategic Benefits of AR for Businesses

AR has the potential to create new and exciting opportunities for businesses to engage with customers, enhance the customer experience, and increase productivity and operational efficiency.

Here are some main benefits of implementing AR technology:

  1. Offer Unique and Paramount User Experience

AR-powered e commerce companies provide clients with a unique digital experience that combines digital and physical worlds. It encourages customers to purchase a product that is more attractive to them than competitors.

Take Gucci’s tryout virtual program for example. It is allowing users to integrate both virtual experiences with their online shopping experiences to create a whole look. During this process, users may customize shoes, jewelry & glasses and use them for tests.

The second advantage of this approach would have been the customer’s ability to prevent the need to visit a store from their own mobile device or phone. The augmented reality experience is essential for Gucci’s strategy of using the new technology to beat its rivals.

  1. Improve User Engagement

Increasing customer engagement is a key way for companies to use Augmented Reality. Augmented Reality technologies encourage interaction. Consequently, involvement increases user engagement.

Improving user engagement through AR requires a focus on creating an experience that is both interactive and memorable, tailored to the user, and continually updated with new content and features.

By incorporating AR in their marketing strategies, brands can create engaging and immersive experiences that keep users coming back for more.

  1. Increase Employee Satisfaction Index (ESI)

AR technology can help to train employees on machine operation and make companies create a more engaging, collaborative, and productive work environment. This can lead to higher employee satisfaction and retention. By investing in AR technology, companies can create a competitive advantage in attracting and retaining top talent.

A few examples include interactive and immersive training experiences for employees, remote collaboration by allowing employees to work together in real-time, and provide enhanced communication channels, such as virtual meetings, augmented reality presentations, and real-time information sharing

  1. Immersive Training

Organizations spend a massive amount of time training their workers to improve efficiency. Practicing however isn’t usually possible. In the manufacturing industry training requires specialized machinery and an investment in training. Aside from the scale of the modules to be designed, the evaluation processes also pose a challenge.

Augmented Reality can be useful when designing training materials that are user-friendly and don’t use huge amounts of expensive equipment. It can be a powerful tool for creating simulations for various training tasks. Organizations are also able to develop interactive AR evaluation processes using a training module.

  1. Product Development

Although engineers have been using computers as part of 3-D modeling since the 1960s, they can access the software through 2-D windows on the screen, which is making it hard to conceptualize their design concepts properly.

AR allows 3D modeling of objects in the physical world, as well as holograms of physical reality, increasing engineer capacity for evaluating and improving design concepts. For example, by taking advantage of Augmented Reality, an accurate 3D hologram of an ejective building machine can be placed at ground level where it can be explored and even seen by the engineer.

  1. Reduce Costs with Augmented Reality

AR can help businesses reduce costs by improving productivity which is enhanced by virtual training. This can reduce the need for physical training, product assembly, and maintenance, which can be expensive and time-consuming.

It can help in remote sales and marketing, reducing the need for in-person demonstrations and meetings. Also, AR technology can enable remote assistance, reducing the need for on-site support and saving time and travel costs for remote experts. For example, a technician could use AR glasses to receive real-time guidance from a remote expert, eliminating the need for the expert to travel to the site.

  1. Boost Brand Awareness and Engagement

11 Strategic Benefits of AR for Businesses
Source: Unsplash.com

Augmented Reality can help users understand the product or service in an efficient manner. Companies utilizing augmented or virtual reality technology present the product in a simple but informative format.

Ulta Beauty and some other makeup brands have introduced a VR-based virtual test. It gives consumers an easy way to test products before they buy and increases brand awareness.

You will most likely favor products from Ulta Beauty over other brands on the market without any virtual tests. Ulta has reported seeing 700% increased brand engagement with customers since they introduced the AR app.

  1. Augmented Reality Experiences can Help you Go Viral

72% of the users on the internet say that they are likely to share AR experiences with their peers and 53% say they have already shared an AR app or information with their friends and family via social media. Creating viral content is one of the best ways to make your company stand out amongst countless potential clients.

  1. Improve Brand Perception

Using AR advertising strategies can give a brand an innovative edge over other brands that use traditional media. It allows brands to create interactive and immersive experiences for their customers, which can increase user engagement, brand loyalty, and positive word-of-mouth.

The AR experience is simply enjoyable. And everyone knows how important it is that the company offer entertaining experiences for their customers so that the brand can become an active brand for customers.

  1. Support Marketing and Sales Efforts

AR redefines showroom concepts, and product demos and transforms the customer experience. The customer will have more precise expectations and greater confidence in the buying decision.

AR can also help businesses increase sales by allowing online shoppers to visualize products in their real-world environment. This can help customers make more informed purchase decisions and increase the likelihood of completing a sale.

  1. Stand Out from Competitors using Augmented Reality

Implementing AR technology can provide businesses with a competitive advantage by offering unique and innovative experiences that differentiate them from competitors.

Customers today need an innovative product. Combining the many benefits of Augmented Reality with the best products can improve customer satisfaction in a way that stands out against the competition you have.

It’s possible for your product to be successful in the augmented reality industry by allowing you to solve problems with the product and also provide a user experience that goes viral.

8 Amazing Examples of Augmented Reality Applications

11 Strategic Benefits of AR for Businesses | Augmented Reality in Snapchat Filters

AR has the potential to create exciting and innovative experiences that blend the physical and digital worlds in new ways.

These examples demonstrate the potential of AR in gaming, retail, education, and more:

  1. Pokemon Go: This mobile game became a cultural phenomenon in 2016, using AR to allow players to catch and battle virtual Pokemon in the real world.

  2. Snapchat Filters: Snapchat allows users to apply AR filters to their photos and videos, such as adding virtual glasses, hats, or animal features.

  3. Ikea Place: This app allows users to place virtual furniture in their homes to see how it would look before making a purchase.

  4. Mercedes-Benz AR Owner’s Manual: This app uses AR to overlay instructions and information about a Mercedes-Benz vehicle onto the real car, making it easier for owners to understand and perform maintenance tasks.

  5. HoloLens: Microsoft’s HoloLens is an AR headset that allows users to see and interact with virtual objects in the real world.

  6. The Walking Dead: Our World: This AR game allows players to fight zombies in the real world using their smartphone camera and GPS.

  7. InkHunter: This app allows users to see what a tattoo would look like on their body before getting inked, using AR to place a virtual tattoo on the skin.

  8. Amikasa: This app allows users to design and visualize their home decor in 3D using AR.

How to Unlock the Potential of Augmented Reality?

Unlocking the potential and benefits of AR requires a strategic approach that considers the needs of the business and its customers, as well as a commitment to continuously improve and innovate.

To unlock the full potential of Augmented Reality (AR), businesses should consider the following steps:

  1. Identify the Use Cases: Businesses should identify the potential use cases for AR technology that aligns with their goals and objectives. This can involve analyzing customer needs, market trends, and internal processes to determine where AR can provide the most value.

  2. Choose the Right Platform: There are many different AR platforms available, ranging from mobile apps to AR headsets. Businesses should choose the platform that best fits their use case and budget.

  3. Develop High-Quality Content: The success of an AR application largely depends on the quality of the content. Businesses should invest in developing high-quality and engaging AR content that provides value to the user.

  4. Provide Training and Support: AR technology can be complex and unfamiliar to users. Businesses should provide training and support to ensure that users are comfortable and confident using the technology.

  5. Measure Performance: Businesses should measure the performance of their AR application to determine its effectiveness and identify areas for improvement. This can involve tracking metrics such as user engagement, conversion rates, and customer feedback.

  6. Continuously Improve: AR technology is constantly evolving, and businesses should continuously improve their AR applications to stay ahead of the curve. This can involve updating content, improving user experience, and incorporating new technologies and features.

Building an In-House Team or Outsourcing for Augmented Reality. Which is Better?

Many companies are having difficulty finding digital talent for AR, which they lack.

Deciding whether to outsource Augmented Reality (AR) design or to keep it in-house depends on several factors. Here are some things to consider:

  1. Expertise: AR design requires specific technical skills and expertise, including 3D modeling, animation, and programming. If your team doesn’t have these skills, outsourcing AR design may be a good option.

  2. Time and Resources: Creating high-quality AR content can be time-consuming and resource-intensive. If your team is already stretched thin or lacks the necessary resources, outsourcing AR design may help you meet your deadlines and stay within budget.

  3. Cost: Outsourcing AR design can be expensive, especially if you’re working with a high-end design firm. However, outsourcing can also be cost-effective if it helps you avoid the cost of hiring and training an in-house team.

  4. Control and Ownership: Outsourcing AR design means that you’ll be working with a third-party vendor, which can make it difficult to retain full control and ownership over the design process and final product.

  5. Long-Term Goals: If AR design is a core component of your business strategy, it may make sense to invest in building an in-house team. This can provide more control over the design process and allow you to develop a long-term strategy for AR content creation.

To conclude, outsourcing AR design can be a good option if your team lacks the necessary expertise, time, or resources and if you’re working with a reputable vendor who can deliver high-quality results.

However, if AR design is a core component of your business strategy, it may make sense to build an in-house team to retain more control over the design process and build a long-term strategy.

Final Thoughts

AR is a versatile technology that is used in many different industries such as gaming, education, healthcare, marketing, and manufacturing to enhance user experiences and improve productivity.

AR technology offers businesses a range of benefits, including increased customer engagement, more sales cycles improved efficiency and productivity, reduced costs, and competitive advantage. By leveraging the benefits of AR technology, businesses can enhance their operations, improve customer experiences, and increase profitability.

Frequently Asked Questions

1. What are the benefits of augmented reality?

Augmented Reality allows you to cut design costs. In other words, Augmented Reality can improve the maintenance of machinery, reducing errors and allowing quicker solutions to problems.

2. What are the advantages of Augmented Reality in education?

AR technology could enhance student involvement, learning environments, cognitive load, knowledge of materials, collaboration, working memory, and sensory development.

3. What is the benefit of Augmented Virtual?

Augmented virtuality (AV) is a technology that blends the real and virtual worlds, allowing users to interact with virtual objects in a real-world environment. Some benefits include an immersive educational experience, improved visualization of complex data, and improved healthcare with new ways to visualize medical data.

4. What are the benefits of using Augmented Reality?

Augmented Reality is capable of reducing design, production & maintenance costs. Similarly, using the benefits of Augmented Reality in maintenance can help to improve productivity and reduce the time spent to find and identify malfunctions as well as the time required to repair them.

5. What is the difference between AR and VR?

The main difference between AR and VR is that AR enhances the real-world environment by adding digital elements to it, while VR creates a completely simulated environment that users can interact with.

6. Where is Augmented Reality used?

AR is a versatile technology that is used in many different industries and applications to enhance user experiences and improve productivity. These include advertising and marketing, entertainment, education, retail, manufacturing, maintenance, etc.

7. How is AR used in daily life?

AR is becoming more prevalent in daily life and is being used in a variety of ways to enhance the user experience. Some examples include social media filters, shopping apps, engaging learning experiences, AR interfaces for games, etc.

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