Augmented Product: Examples, Expert Advice, & Strategies

Augmented products refer to the extra features or services companies add to their core products to increase their value. These can include physical elements, like a free sample or bonus item, and intangible offerings, such as additional warranties or customer support. 

By incorporating these additions, businesses aim to enhance the customer experience and make their products more appealing. In this guide, you will explore what makes an augmented product and quote examples to help businesses create their own. 

What Is the Core Idea Behind Product Augmentation?

Product augmentation involves adding extra features or benefits to an existing product to make it stand out. This approach enables businesses to provide greater value than their competitors. By including new features, perks, or services, companies can enhance the perceived value of their products. 

These additions don’t alter the product’s core function but improve the customer’s overall experience. An augmented product example is a product that seems ordinary on its own but can become more appealing when paired with attractive incentives.

This approach is not limited to new products. Augmentation can occur throughout a product’s life cycle, whether during the design phase or as it evolves. Adding features or services later can keep the product competitive and maintain sales momentum. 

These updates are especially useful in industries where many products appear similar, and standing out can be a challenge. In competitive markets, these added benefits often determine which products customers choose, especially when the differences between core features are minimal.

What Are the Mechanisms of Product Augmentation?

Below are some common mechanisms used in product augmentation.

Warranty Extension

One of the most common ways to enhance a product is to offer an extended warranty, such as with augmented reality toys. Manufacturers often provide this voluntarily, even when it’s not required by law. A warranty ensures customers that the product will function as promised for a specific time. This approach helps build trust, especially with products where reliability is a top concern.

Free Delivery

Offering free delivery is another widely used method of product augmentation. Customers appreciate the added benefit of having their products delivered without extra costs for larger purchases. Many businesses use this strategy to create a more attractive offer, especially in consumer-focused industries. 

Free Installation

Free installation can be a valuable add-on when purchasing electronics or technical equipment. Many products, such as home appliances or office equipment, require professional installation to ensure proper function. Including this service as part of the purchase can improve customer satisfaction.

What Are Some Real-World Examples of Augmented Products?

Many companies use augmented products to create more value for their customers, making their offerings stand out in the market.

1. Amazon’s Expanded Services

Amazon started as an eCommerce platform but now offers much more. In addition to online shopping, it provides services like Prime Video and Prime Music. These extra services are designed to keep users engaged and loyal to the platform, offering entertainment options that keep them subscribed to Amazon’s ecosystem.

2. Apple’s Integrated Ecosystem

Apple’s core products are its devices, like the iPad and iPhone. However, the company has built an integrated ecosystem with services that enhance the user experience. iCloud offers secure cloud storage, Apple Music gives users access to music and personalised playlists, and the App Store provides exclusive apps. 

3. Uber’s Value-Added Features

Uber’s basic service is offering rides, but it adds several features that improve the user experience. The app provides real-time updates, a rewards program for loyal users, and an in-app tipping system. These extras give Uber a competitive advantage, making the service more convenient and engaging for its users.

4. Nike’s Personalised Shopping Experience

Nike offers an innovative augmented product through its Nike Fit feature in its app. Using ar product, the app measures customers’ feet to recommend the best shoe size, reducing the chances of returns due to wrong sizes. Additionally, the NikePlus program rewards customers with special access to products and discounts, making their shopping experience more personalised.

What are the Benefits of Product Augmentation?

Product augmentation offers numerous benefits for businesses seeking to enhance their offerings and improve customer relationships. Below are some of the key advantages:

1. Boosts Brand Engagement

Enhanced products can increase how customers interact with a brand. When additional features or services provide value, customers may feel more connected. This can lead to more comments on social media, frequent shares, and larger email lists for marketing. 

2. Builds Customer Loyalty

Augmented products encourage customer loyalty by consistently meeting or exceeding expectations. Satisfied customers are more likely to stick with a brand and recommend it to others, such as friends and family. They may even become brand advocates, sharing testimonials that enhance the company’s reputation. 

3. Encourages Higher Sales

Adding features or services to a product often increases sales. Businesses can use this extra revenue to expand their operations, create jobs, and attract media attention. Growth through augmented products opens doors to new opportunities, helping companies thrive in competitive markets.

4. Enhances Customer Experience

Augmented products improve the overall customer experience by tailoring features to specific needs. Personalisation and seamless interactions make customers feel valued, helping businesses cater to diverse preferences.

5. Increases Competitive Edge

Offering unique combinations of products and services helps businesses stand out. A strategy focused on augmented products creates differentiation, making it harder for competitors to imitate offerings. This gives businesses an advantage in growing their market share over time.

What Are the Key Components of an Augmented Product?

When a product is marketed, it typically has three stages: the core product, the actual product, and the augmented product.

1. Core Product

The core product is the main benefit a customer gets from using it. It is not a physical item but represents what the product provides to the consumer. For example, a pair of running shoes offers fitness and health, while a lipstick enhances beauty. The core product focuses on satisfying the basic needs or desires of the customer.

2. Actual Product

The actual product refers to the physical item or service that is offered for sale. This includes its design, packaging, and branding, all of which make the product unique and recognisable. The actual product must meet the expectations set by the core product. A car, for instance, should deliver on its promise of reliable transportation with features like comfort, performance, and safety.

3. Augmented Product

The augmented reality product includes additional services and features distinguishing it from competing products. These enhancements do not change the basic product but give the buyer extra value. For example, a smartphone might come with free tech support, extended warranties, or exclusive apps. 

While these add-ons may not significantly impact production costs, they can increase the product’s perceived value, making it more appealing to buyers. Offering these extras can justify a higher price and help the product stand out in the marketplace.

How Can Businesses Create Successful Augmented Products?

Creating a successful augmented product requires a well-thought-out approach that aligns with consumer needs and the company’s resources. Here are a few strategies that can help make your product augmentation efforts effective.

1. Research Your Audience

Start by identifying your target market. Conduct market research to understand what your target consumers want. Organise focus groups or surveys to gather insights about their preferences. This research can guide your decisions on what features to add to your product. You can tailor your augmented product to meet those demands by knowing exactly what benefits your customers seek.

2. Consider Your Budget

When augmenting a product, it’s important to consider your budget. If you’re working with limited financial resources, find creative ways to add value without significant costs. For example, offering services like free warranties or after-sales support can add value to your product without costing much. These small additions can make a big impact on customer satisfaction and loyalty.

3. Determine Feasibility

Before moving forward with product augmentation, assess your company’s capabilities. Evaluate whether you have the resources and personnel to support the new features. If your augmented product includes services like technical support or repair, ensure you have enough trained staff to handle the demand. 

4. Use Social Media

Once your augmented product is ready, use social media to spread the word. Platforms like Instagram, Facebook, or Twitter are great for showcasing its added benefits. Share how the new features can solve customer problems or improve their experience. Social media can also create buzz and drive traffic to your product page, increasing sales.

What the Experts Say About Product Augmentation

Conclusion

Augmented products provide companies with a powerful strategy to stand out in a competitive market. By adding extra services or benefits, businesses can significantly increase the perceived value of their products, making them more attractive to consumers.

However, successfully implementing augmented products requires careful consideration and planning. Companies must evaluate which services or features will truly enhance their offering. Also, if you want to optimise your sales channel, inventory, and catalogues, you can do so with one platform, Shiprocket.