Kansas City-based Epigraph has partnered with its first big retailer, becoming the exclusive augmented reality and 3D content provider for Ace Hardware, which has more than 5,000 stores worldwide.
"It validates the use case and business case for AR and 3D even further," Epigraph CEO Jasper Mullarney said.
The startup's technology can be found on Ace's website in the form of 3D product tours and an augmented reality QR code that allows customers to envision how a product will look in their space.
In 2019, Epigraph started working with outdoor power tool-maker EGO, which sells its products to Ace. That relationship opened the door to starting a six-month pilot with Ace in which Epigraph had to validate the return on investment for its 3D and AR technology and meet Ace's standards. As part of the pilot, Epigraph enhanced its technology.
"It was a pretty big bet. There was a lot of upfront investment in our technology, in our infrastructure and things like insurance and policy to go live on a major retailer like Ace," Mullarney said. "At the beginning, we were pretty confident that the numbers would be there and that users would respond well to this. ... It's a big bet that paid off."
The technology spurred customers to spend longer on the website and made them more likely not only to add items to their cart, but then buy them. They also spent more money and had markedly lower return rates than those who didn't engage with the AR option.
“Epigraph’s technology has delivered a significant improvement in both engagement and performance for Ace vendors — our customers really love it,” Brian Kritzberg, Ace's digital merchandising manager, said in a statement.
In the future, Ace plans to add more vendors to the AR and 3D program, Kritzberg said.
For Epigraph, the Ace contract comes with an additional benefit. The brands that sell to Ace now are asking Epigraph to launch AR and 3D presentations of their products for other retailers, such as The Home Depot and Lowe's. Epigraph also is in talks with several outdoor grill and plastic shed manufacturers.
"These brands are approached by thousands of different companies a week in the adtech and martech agency space trying to sell them on different things that provide value," Mullarney said. "This (relationship with Ace) gives us a way to cut through some of that. ... It makes the conversation much easier to have."
Epigraph also can back up its offering with analytics showcasing the potential ROI, which moves conversations forward faster.
In the future, Epigraph envisions adding another compelling component for Ace. Brick-and-mortar stores have limited space for stocking inventory, but Epigraph can expand that virtually. Customers could scan QR codes on the sales floor to view additional options, experience a product in 3D or augmented reality, and then place an order.
In addition to Ace, Epigraph's technology is used by brands such as Milwaukee Tool, Saatva and upscale home furnishings company RH. Its technology also is live on The Home Depot, Lowe's and Wayfair websites, as well as overseas in places such as France, Australia and New Zealand. The startup has grown to 17 employees and plans to reach 25 by year's end.
