2020 has taught us a lot, and among the lessons learned the biggest was the one on social cohesion. It taught us how important it was to restore the in-person sentiment albeit digitally to keep the customer experience delightfully engaging even in these trying times. Brands like Whole Foods for instance, recently went digital to empower customers with that familiar in-store feel.
Retailers are now adopting advanced tools and technologies with AR/VR (augmented reality) and (virtual reality) at the helm to offer rich, immersive experiences to their customers.
The ground reality
There are countless examples of AR/VR changing customer experiences dramatically for the better. While AR digitally displays information to make sense of the real world, VR helps us understand and experience environments that could otherwise be costly or risky to experience physically. As per the ‘Seeing is believing’ report by PwC, virtual and augmented reality will reach $1.5 trillion and 23 million people globally by 2030 taking the number of people working with AR/VR support to 23.4 million.
AR and VR are adding immense value to the retail sector making way for more immersive storytelling. Jeremy Dalton Head of PwC’s AR/VR team in his book, Reality Check: How Immersive Technologies can Transform your Business says, “AR sacrifices full immersion for a direct connection to the physical world.” It can be helpful in revealing hidden information such as the components that go inside a product. “VR offers the best of all worlds: the ability to create a believable, engaging, and easily repeatable scenario but without the associated cost, disruption, or danger of the real thing,” he adds further.
The product launch of OnePlus Nord in July 2020 was the first product launch in the world that used the power of AR, and the live cross-continent VR product launch of Jaguar’s all-electric I-PACE wowed one and all. Brands are now looking for more creative ways to integrate AR/VR into their marketing mix. Nike Japan too recently took the imagination of fans to the next level with Create with Air Max – an AR-powered coloring book that allows them to decorate black and white drawings of the shoes and watch their 3-D images float in real-time.
The retail landscape
A rich, immersive shopping experience is now becoming a retail industry standard. Retailers can absolutely shake up customer experience through AR/VR by personalizing offers and empowering customers to visualize their favorite products in virtual settings. Says Sylvain Fabre, senior research director at Gartner, “Gartner expects that the implementation of 5G and AR/VR in stores will transform not only customer engagement but also the entire product management cycle of brands. 5G can optimize warehouse resources, enhance store traffic analytics and enable beacons that communicate with shoppers’ smartphones.”
As per the global forecast to 2025 by ResearchAndMarkets.com, the VR market is predicted to grow from USD 6.1 billion in 2020 to USD 20.9 billion by 2025 at a CAGR of 27.9% while the AR market is projected to grow from USD 15.3 billion in 2020 to USD 77.0 billion by 2025 at a CAGR of 38.1% from 2020 to 2025. Research by Vibrant Media had revealed earlier that 67% of media buyers are keen on using AR/VR in their campaigns while GetApp indicated that 1 in 2 consumers in the UK are willing to use AR technology for shopping. With Apple rumored to be working on the next big thing – a VR headset and AR glasses – AR and VR clearly seem to be on everyone’s mind as they build digital transformation roadmaps.
AR and VR together are contributing towards rich, immersive, unforgettable customer experiences. They empower retailers to offer:
Virtual try-ons – Prominent fashion labels Gucci and Hilfiger embedded AR into their apps to offer customers greater clarity while shopping by allowing them to digitally superimpose clothes and accessories onto themselves using their smartphone camera. The ability to scale products on their bodies or in their homes gives them better judgment and helps make informed buying decisions. IKEA Place app, for instance, allows customers to virtually place their true-to-scale 3D models in their space to give them the exact feeling of size, design, and functionality. In a crowded retail marketplace, this ‘try-before-you-buy’ experience could be the game-changer you may be looking for.
In-store experience – It’s something customers are unable to enjoy in current times and a little attention can go a long way. It is the key to forging deeper connections. Retailers need to include AR/VR displays, kiosks, magic mirrors, smart carts, virtual store assistants, and digital fitting rooms depending on the products they sell to make the shopping experience efficient, enjoyable, but contactless. Remember how Levi’s came up with the co-watching video app allowing friends to share screen and shop together? This makes the whole experience not just engaging, but very emotional and intimate.
Personalization – AR/VR allows unprecedented personalization. By employing marketing strategies that work well for mobile, desktop as well as web platforms, retailers can now offer 3D graphics-rich content for better customer engagement. Retailers can now offer more personalized products, and catalogs with detailed views keeping the individual preferences of customers in mind. Personalization also increases the likelihood of the customer returning to the same retailer for more and the possibility of product returns is also less.
Social media marketing – Social media filters are being used frequently now and Facebook investing heavily in AR/VR is proof that immersive experiences are now part of social media engagement. When used correctly on social media, AR/VR can help create new trends, increase impulse buys, and improve brand engagement.
Customer engagement – VR has been helping brands offer simulated experiences to customers through different initiatives such as the one by Volvo where they offered a virtual test drive to customers. This initiative provides the brand a fresh engagement touchpoint to connect without having to wait for them to come down for a visit. This kind of positive engagement is just what is needed as we embrace the New Normal.
Productivity – A study published in The International Journal of Advanced Manufacturing Technology stated that warehouse pickers could complete orders 37% faster using an AR tool. DHL now has expanded its AR-based ‘vision picking’ program to its warehouses across the globe and those who are already part of the program are seeing 15% greater productivity. Time and cost savings in warehouse operations would mean faster fulfillment of orders, fewer complaints, and lower operational costs.
Create a magical customer experience with Trigent
AR and VR have demonstrated a clear return on investment while offering retailers the means and ways to connect and converse with their customers. At Trigent, we help you create immersive experiences that are intuitive and data-rich while putting your customer needs at the core of every initiative. It’s time you embraced the many possibilities AR and VR have to offer to unlock moments of delight for your customers. Allow us to help you push the standards a little higher.
Call us today for a consultation.