Kmart is a leading Australia retailer, offering a wide range of products at competitive prices. In the face of the pandemic, Kmart recognised a need to adapt and cater to a more virtual buying experience for consumers. With store clostures and general apprehension among the public to venture outside of the home, Kmart launched an Augmented Reality and Chat experience to accompany their home and living product offerings in August 2020.
The ingenious KBot used AR to show customers how new home décor products would look within their own environment, and all customers had to do was use their camera to see how varying couches, and décor would fit in their own space. This was accompanied by conversational AI which provided information about product. Kmart used paid media to direct users to the experience, and created a seamless user experience for online shopping combined with an element of fun; which allowed users to imagine their dream home and improve confidence in their purchase decision.
The campaign led to great outcomes for Kmart, with users who visited kmart.com.au via the KBot experience having a 34% higher conversion rate against the site average and spending 9% longer on the site. The average cost per click (CPC) was 26% lower in comparison to other ads with similar objectives. These results indicate that consumers who engaged with the KBot experience were more likely to browse and purchase, which increased revenue for the business.
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