In November 2019, IDCOpens a new window had predicted that the retail companies worldwide would spend $1.5 billion on virtual and augmented reality in 2020. While a few challenges and the COVID-19 pandemic put a dent in several organizations’ investment plans, these immersive technologies have not lost their charm. On the contrary, they have become more necessary for businesses.
According to Accenture’s latest Try it. Trust it. Buy it.Opens a new window report,Opens a new window immersive technologies have moved from being a novelty to necessity in the post-pandemic era. In fact, 64% of leading consumer brands have already started investing in immersive experiences. These developments are due to obvious reasons. While people love their homes and online shops’ convenience and safety, they still want to touch and feel a product before they buy it. Without doing it, everything is guesswork. While brands have tried to address this gap using product videos and return policies, that is not sufficient to instill confidence in shoppers.
This is where immersive technologies become important. On the one hand, they can provide online shoppers with in-store experiences, and on the other, they can improve the in-store experience for customers. An improved shopping experience means better sales growth opportunities.
Learn more: Safety, Convenience, and Flexibility Is the New Trifecta of Superior Customer Experiences Reveals Survey
Here are a few ways retailers can implement immersive technologies to improve their business.
1. Provide Real-Time Product Experiences
One common concern most shoppers have when buying products such as apparel online is that they are unable to feel them before buying them. People are more inclined to purchase something when they try it and are convinced about what they are getting. How can stores make this possible in a virtual world? Using augmented reality (AR), retailers can help shoppers try a particular product before buying it without having to step into the store. For example, retailers can enable AR on their online stores or mobile web applications where shoppers can see exactly how they look. AR also offers benefits such as reduced wait time, improved shopping experience, and sales.
Here is an example of YouCam, developed by Perfect, a company that develops AR tools for beauty retailers. YouCam for Business is a set of artificial intelligence (AI) and AR solutions that help beauty brands provide a better experience to their customers. One of the solutions, the In-Store Magic Makeup Mirror, allows shoppers to try several hair colors and makeup products instantly and virtually. Thanks to the solution, shoppers do not have to wait in long queues to try the products. They also need not worry about running out of makeup samples. The solution further eliminates health and sanitation risks.
2. Offer Interactive Navigation Within Physical Stores
While in-store shopping has taken some beating this year due to the COVID pandemic, it is still relevant. According to an SAP studyOpens a new window , 60% of consumers might shop in-store this holiday season. More consumers can be expected to hit the brick-and-mortar stores once the vaccine is available and in subsequent times. When they enter a physical store, they take time to search for products and sections or to do some research on their phone. Retailers can capitalize on this phone usage to offer in-store navigation to shoppers.
One-way shoppers can use in-store navigation is to locate certain products or sections quickly. Customers often find it overwhelming to navigate around bigger retail or departmental stores. By helping find out the product sections easily, brands can reduce buying friction. Several prominent retailers have already implemented these technologies to help their customers.
An example of a retailer offering in-store navigation is Walmart. The retailer recently redesigned more than 200 stores across the U.S. this year. Besides redesigning its layout, the retailer also provides digital in-store navigation to its customers. Another example of a brand offering in-store navigation is Lowe’s. The brand uses indoor mapping and geolocation technology to provide its customers with turn-by-turn directions. Check out this video.
3. Create 360-Degree Videos To Boost Awareness
Research shows that videos are the best content format to attract customers. According to a joint studyOpens a new window by Graphic Rhythm Designs and Elite Content Marketer, about 54% of consumers prefer videos over other content formats. You can further improve the effectiveness of video marketing by creating 360-degree videos. These videos help you make your storytelling more exciting, engaging, and compelling. Not to forget, these videos are a great way to boost customer experience.
Learn more: 5 Ways Location Intelligence Helps Retailers Drive Better Business Results
One of the best applications of a 360-degree video is providing a virtual tour to your consumers. In these times, when there are several restrictions on movement and people are wary of stepping into brick-and-mortar stores, virtual tours offer them the same experience as being in the middle of the action. Irrespective of whether you are launching a new product or redesigning your store, a 360-degree video can deliver immersive experiences to your consumers.
Here is an example of how Thomson Holidays, a travel operator, used 360-degree video to promote tour packages. The travel operator beautifully captured Iceland’s northern lights. They then paired with a relevant hashtag and added a link to their website. By doing so, the tour operator made it easier for interested travelers to book a holiday.
4. Drive User Engagement Through Games and Activities
Gamification is already a huge industry and is set to become one of the biggest opportunities for marketers. According to MarketsandMarketsOpens a new window , the sector is expected to grow from $9.1 billion in 2020 to USD 30.7 billion by 2025 in market size. The biggest benefit of gamification is that it boosts user engagement. Integrate it with immersive technology, and your customer engagement is bound to go a notch higher. AR gamification is currently gaining momentum and is expected to grow further in the coming few years. With most smartphones also being compatible with AR, it is easier to deliver AR gamification than virtual reality (VR) ones.
One of the top AR gamification strategies in the retail industry includes home item placement. This element of AR gamification provides consumers the ability to place products virtually in real-time environments. Another strategy is in-store assistance, which gives access to shoppers’ support tools through certain applications. Businesses can also create virtual pop-up stores.
An excellent example of gamification is Pokemon GO. While the game became controversial, it popularized the concept of capturing virtual items. People were walking around looking at their mobile screens, trying to catch Pokemon GO characters. Several retail brands saw this as an opportunity to attract people to their stores. Some of them became sponsored locations, while others offered discounts. Starbucks even launched a game themed beverage – The Pokémon GO FrappuccinoOpens a new window .
Pokemon GO Frappuccino
Source: StarbucksOpens a new window
5. Train Staff and Reduce the Skills Gap
While AR and VR play an important role in your marketing strategies, they also play a significant role to train your employees. There are several occasions where you need to replicate real-world instances in your training. However, when you cannot bring those live experiences to your classroom, you can use these technologies to simulate those live scenarios. With the help of AR and VR, new hires can be brought up to speed while also reducing the skill gap in existing employees.
An example of retail companies using immersive technologies for training is the home improvement store, Lowe’s. The company uses VR to empower its employees and employees in a virtual classroom, Holoroom How ToOpens a new window , in a fun and interactive environment. On the one hand, the classroom helps customers acquire certain DIY skills. On the other hand, it helps the employees gain more knowledge about the products, handle real-life customer situations, and serve shoppers better. It also reduces product wastage from employee practice.
Learn more: Walmart Store Redesign: A Retailer’s Guide To Boost In-Store Shopping Experience
Innovate and Renovate With Immersive Technologies
Immersive technologies such as AR and VR are no more fantasy but are already here. They are transforming retail and ecommerce by addressing their pain points and enhancing their processes. These technologies have also helped retailers successfully engage and deliver seamless shopping experiences to their customers, thereby improving sales and brand loyalty. In a world where customers want seamless shopping experiences, immersive technologies will be a factor that will spell success or failure for your company.
Hence, identify where AR, VR, and other immersive technologies fit into your business objectives and offerings and create experiences that bring better results for your company.
What are the ways in which retailers can use immersive technologies? We would love to hear from you on FacebookOpens a new window , TwitterOpens a new window , and LinkedInOpens a new window .