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Not many years from now, this is how your vehicle’s dashboard is going to look like. With AR and VR becoming the buzzwords of the decade, with gamers chasing imaginary creatures on their smartphones, with the world watching the football World Cup in 360 degrees, this is an image of a very near future. It all started with smartphones becoming common enough to become a vital utility, a machine almost necessary for human survival and the internet connecting the world at ever increasing speeds.
Now, we are moving towards a future where the real world is going to be supported by AR and VR in uncountable fields- education, communication, military, commerce or leisure. The effect on the world of commerce, retail, especially consumer buying behavior is notable.
Ikea is not a new name when it comes delivering functionality, quality, design and value at the same time customizing them to the greatest extents possible. It is also one of the firsts to offer AR experience to its customers. IkeaPlace, is an app powered with AR that lets the shoppers decide on a piece of furniture right in the convenience of their homes.
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Customers can use the app to see whether a product fits the space of their room and the colors complement their furniture. This has many advantages, not only the convenience for the buyers, but also increased sales for the retailer, given the fact that many buyers delay their purchase decision until they are sure that a product will fit their room. This is just one example of how AR can affect consumer buying experience- in this case also quicken up consumer decision making.
Before going further, lets see what exactly AR and VR is, and how these technologies differ from one another.
Augmented reality or AR uses a live view-often captured by a smartphone camera and adds digital elements to it and hence the word augmented. Examples include Snapchat lenses and filters and games like Pokémon Go.
Virtual reality, on the other hand, shuts out the entire real-world experience and immerses the user into another virtual created environment. There are various VR devices like the Google Cardboard or the HTC Vive, that can help achieve this. The user for instance can be transported in the middle of an Egyptian desert or into the battlefields of World War 2.
There’s a new term called mixed reality which combines both AR and VR to create a unique experience where both digital and real-world objects can interact with each other. Devices from Microsoft like Hololens are some notable early entrants.
There are broadly three areas where consumer buying experience can be improved via AR and VR. The first, acquisition, with experiential marketing being the buzzword for marketers, immersive experiences can be created, in store navigation, product trials, customizing offers and discounts on the spot is possible through these technologies.
Second, conversion, in store engagements, remote expert consultations, resolving customer queries will lead to rapid customer conversion.
Last, retention, behavioral nudges, offers, etc. can be achieved through AR and VR.
In fact, these technologies will change consumer behavior along the entire purchase journey. Consider the following areas:
In Store Experience
The entire store experience can be created by integrating AR or VR into the apps. For example, consider the Loreal Makeup Genius app. This app lets you select your product and see how it suits you.
Customization
For industries where product customization is both important and at the same time, difficult, these technologies prove to be a boon. For example, in the paint industry where each customer has his/her reservations about the décor of their room, AR helps them visualize how the color will finally look.
Experiential VR Campaigns
Many organizations are creating experiential VR campaigns to help customers experience their services while at home. This can prove to be a major step ahead of competitors, especially in the hospitality and services-based industry where customer conversion and repeat purchases only occur after first time experiences.
Theatre-style Immersion Experience
360-degree video streaming achieves immersion experiences for consumers. For example, in the entertainment industry, this will help a viewer to enjoy a live football match at the ease of his home. VR headsets have been rolled out by major airlines.
Virtual Stores
With e-tailers on rise, we see the entire consumer purchase journey being simplified, from selection to deliveries, the only constraint being try-ons. AR and VR are giving rise to virtual stores where customers can try on a product before buying it. Lenskart is one of the firsts to offer these services through their website in India.
It wouldn’t be an exaggeration to say that the entire retail landscape is about to change drastically in the coming years. With AR and VR removing most constraints that come while online and offline shopping, things are going to get increasingly easier and convenient for buyers. Marketers, as they say- “Customer is the king”, need to be increasing agile and receptive, not only to the changing customer needs but also to the changing technologies.
References
- https://www2.deloitte.com/content/dam/Deloitte/au/Documents/consumer-industrial-products/deloitte-au-cip-retail-trends-vr-ar-retail-020517.pdf
- https://www.fi.edu/difference-between-ar-vr-and-mr
