Chapter 1: Introduction to Snap's AR for Enterprises

Snapchat is expanding its augmented reality (AR) features to cater specifically to large enterprises, aiming to assist them in gaining more customers. The platform’s AR features, available through Lenses and Filters, are already popular, with over 250 million users engaging with them daily.

Since the beginning of 2021, Snap users have utilized shopping-oriented AR lenses over 5 billion times, exploring clothing and accessories from various e-commerce platforms like Amazon and Flipkart. Now, Snap is extending these capabilities to enterprise clients through its AR Enterprise Services (ARES).

This SaaS (Software as a Service) offering includes four primary functionalities. The first is an AR try-on feature, allowing users to virtually sample different clothing, footwear, and accessory options. Users can even upload their images to visualize how these items will look on them. Secondly, a 3D viewer lets customers examine products from multiple perspectives. The third functionality involves fit and sizing recommendations tailored to the user’s body shape. Lastly, the enterprise manager facilitates the hosting and management of digital assets, the creation of AR experiences via Snap’s SDK, and access to performance analytics. Snap's team also provides support to customize solutions for clients.

Businesses can seamlessly integrate these features into their websites or applications, enhancing customer interaction during the checkout process. This launch follows Snap’s acquisition of Fit Analytics in 2021, a startup that helped online shoppers find their ideal clothing and shoe sizes. The company subsequently augmented its AR Lens creator studio with features related to commerce. In April 2022, Snap introduced virtual try-on tools and capabilities for converting images to 3D assets, thanks to its acquisitions of Forma and Vertebrae. Additionally, Snap launched the Lens Cloud back-end service to support lens developers.

Snap is now packaging all these services for its corporate clientele.

“Over the last decade, we’ve focused on delivering enjoyable and personalized AR experiences to Snapchat users. In the next decade, we’re excited to extend our premium AR technology to business websites and applications. We aim to enhance the shopping experience for consumers and revolutionize businesses worldwide with our AR Enterprise Services,” stated Jill Popelka, head of AR enterprise services at Snap.

Snap has commenced trials of its SaaS product with select clients, including eyewear company Goodr, fashion label Princess Polly, and Mongolian brand Gobi Cashmere. Snap claims these retailers have experienced increased conversion rates, enhanced product engagement, and reduced return rates.

In Q4 2022, Snap's earnings report indicated stagnant revenue compared to the previous year, along with a net loss following a profitable Q4 in 2021. To regain positive cash flow, the company has adopted various monetization strategies, including the launch of its Snapchat+ subscription, which has reportedly gained over 2 million paying subscribers.

Despite these challenges, Snap is optimistic about its enterprise solutions, especially as 92% of Gen Z users are reportedly comfortable using AR shopping features. Furthermore, a collaborative study by Publicis Media and Snap anticipates that the AR retail market will reach a valuation of $1.2 trillion by 2030.

Chapter 2: Key Features of Snap’s AR Enterprise Services

The first video titled "Building Fashion and Retail Experiences with Snap AR" explores how Snap's AR tools can transform retail experiences by enhancing customer engagement and interactivity during the shopping process.

The second video, "Growing Your Business with Snap AR," discusses strategies for leveraging augmented reality to boost business growth and customer satisfaction in the retail sector.