Did You Know You Can Now Shop in VR?
- The “Try Before You Buy” Goes Digital (and Awesome): Remember when trying on clothes involved squeezing into a jam-packed fitting room? VR and AR have turned that script on its head. Now, customers are able to see products in their home, “try on” outfits in a virtual mirror, and see even furniture in situ without leaving their couch. It’s like a personal shopper on steroids.
- Goodbye Static Catalogs, Hello Interactive Experiences: Goodbye to Static product images & boring descriptions. E-commerce: VR makes product catalogs interactive and immersive. Customers can now stroll through virtual showrooms, closely inspect products from all angles or even interact with them virtually before buying. It’s controversial, but it’s all about engagement, and it really cranking up interest.
- The Disappearance Threat Is a Real Thing (But in a Good Way): The title is not click bait; it is a gut check, Businesses that do not adopt these immersive technologies will be left behind. The “disappearance” is not about going out of business entirely; it’s about disappearing from customers’ minds as they move towards more immersive and engaging tech-enabled shopping experiences.
- Beyond the Hype, There’s Hard Data (and ROI): This isn’t Pollyanna about shiny tech for shiny tech’s sake. Some numbers are also pretty impressive for VR/AR in retail - more engagement, higher conversion rates and ultimately happier customers. And we’ll dig into the metrics to show you that this isn’t smoke and mirrors and help you calculate your own potential ROI.
- We Need Action, Like, Yesterday: Relax, this is not the end of the world here – just an action: You know — the one that plays well with your existing retail strategy, no matter where you are on the technology spectrum. It’s not only about being state-of-the-art; it’s about maintaining your edge over competitors and making your customers happy.
Prepare the VR/AR landscape to explore. After reading this post you’ll know how to prepare yourself to not only survive, but succeed in this new era of retail. Let’s dive in!
Exploring the glittery, occasionally buggy, landscape of retail VR/AR! This is the latest in a look at some of the key trends shaping this space, with an emphasis on actionable insights for strategists:
Positive Trends:
Improved Customer Experience (CX) is King:
- Trend: Augmented reality try-on features like virtual makeup or glasses and virtual reality showrooms are increasing consumer engagement. Customers have a better understanding of products before they purchase it, leading to fewer returns. This is particularly impactful for online shopping where you don’t get to physically experience the product.
- The benefits would be in the way of you having notable conversion rates, increased customer satisfaction, as well as better brand loyalty.
- Example: IKEA Place app it lets you “place” furniture in your home in AR, a massive success with their customers.
- Actionable Insight: Focus on creating immersive, user-centric AR/VR experiences that provide utility, not just novelty. Map out a rollout plan, beginning with a few of your biggest product verticals.
Hyper-Personalization:
- Trend: Hyper-personalized products recommendations and shopping journeys enabled by VR/AR data Think of a VR store that adjusts the store layout and promotions based on your browsing history.
- Impact: More relevant product discovery and improved average order value, as well as the sensation of being understood as a customer.
- For example, luxury brands are exploring the use of VR as a means to provide exclusive, tailored shopping experiences, by presenting their offerings in a personalized setting.
- Actionable Insight: Use data to fuel personalized, adaptive AR/VR content. Think of the “recommendation engines”, but this time in a 3D atmosphere. Just make sure that you are giving sound user privacy concerns.
The Omnichannel: The Rise of “Phygital” Retail:
- Trend: Merging online and physical shopping experiences. AR overlays in stores creating product detail, and VR experiences extending the store environment to customers at home.
- IMPACT: STORE TRAFFIC INCREASE, SHOP TIME AND BRAND ENGAGEMENT
- For instance, Sephora has an AR virtual try-on mirror in-store that works in synergy with its online experience.
- Actionable Insight: Build a cohesive phygital strategy. AR in store should feel like an extension of your online channel, and VR can be an amazing “extended aisle” of your physical store.
Adverse Trends:
Hurdles to Adoption & Glitches in Tech:
- Trend: VR hardware can still be expensive and clunky, and AR experiences aren’t always fluid or dependable. This may result in user frustration and low adoption.
- Effect: Longer unanticipated ROI accrual on AR/VR investments Negative perception on our brand if the experience is not polished
- Example: Early AR “try-on” apps that failed to accurately track faces led to low adoption and negative user feedback.
- Takeaway: Start with user testing before rolling out iterative changes. Emphasise fiction experiences for AR that are easy-to-use on smartphones, a more mainstream given technology. Find experienced developers to avoid tech bloopers.
Creating Content Can Get Expensive:
- This has resulted in a segment of 3D modeling, VR, and AR content that can be very expensive and time-consuming to create.
- Impact: Could deter adoption among smaller retailers using VR/AR. May create a “rich get richer” phenomenon
- From: The Future & You by Ian Morrison, PhD, Ian Morrison & Co. __ Actionable Insight: Consider low-cost content creation tools and partnerships with VR/AR experts. Or, you could concentrate on producing fewer, higher-impact engagements. Focus on high ROI product categories for your first investments.
Measuring ROI is Tricky:
- Trend: There is significant churn and having a new feature attributed to sales is often the objective at hand. Not all engagement provides equal value, and traditional metrics are unable to encompass this.
- Lead to: Hard to justify investment, making it difficult to obtain budget for future projects.
- Alexis Pappas: “Have a North Star to guide your VR/AR experiences. Go beyond immediate sales to long-term customer engagement metrics. Compare results from these technologies using A/B testing.
In Summary
The VR/AR retail world is thrilling, but a strategic approach is needed. Commit to creating truly useful and pleasurable customer experiences, study the early movers and don’t knock a clean rollout. So don’t get too distracted in the flashy, but instead laser focus on what you give value to your customer and path to your company.
Industry Applications:
- Fashion Retail: Think of trying on clothes, virtually. Online retailers use AR apps to let customers ‘see’ how an outfit would look on their body right through the phone camera. That cuts down on returns and also improves the online shopping experience by providing a better sense of fit and style before purchase.
- Furniture and Home Goods: Customers can place a 3D model of a sofa in their own living room before purchasing it via an AR app. This helps to visualize size, fit and style in their own space. This tech, which we see a lot in IKEA’s app, builds the buyer’s confidence tenfold, particularly with larger or pricier purchases.
- Automotive — Several car brands have introduced VR experiences into their dealerships. Potential buyers can try out different models, customize features, and even view a virtual test drive, all without leaving the showroom. This increases engagement and rules the purchase journey.
- Health care (pharmaceutical): AR can improve the experience of patients through interactive guides for medications. Scanning a prescription box can superimpose instructions, dosage information and even tutorials directly on the user’s view of the real world. This enhances medication adherence and minimizes errors.
- Manufacturing: Factory workers can wear AR glasses to overlay instructions and schematics over equipment with which they are working. This means faster training processes, fewer errors, and improved efficiency of manufacturing operations.
- Technology (Electronics) — Picture purchasing a new TV. AR apps allow you to imagine the size of the TV on your wall, where it would go, as well as compare different models. Stores can also use VR to make interactive kiosks that showcase product features and benefits.
- Real Estate: Businesses in this sector are also using VR to offer virtual tours for potential buyers looking for properties globally. This saves time, broadens their audience and can even lead to properties being sold while they are still in the construction phase via interactive, immersive interior experiences.
- Cosmetics: Makeup brands use AR applications to let consumers virtually sample makeup shades and products before they buy. These apps may also give personalized recommendations, based on the user’s skin tone and preferences, which will allow them to find the right products more easily and boost sales.
Key Strategies:
- Ar and Influencer Marketing– Augmented Reality (Ar)Try On brings a better In Store Experience: AR technology allows customers to “try on” products, from clothing and accessories to makeup, using their smartphone or in-store tablets. It also lessens the need for physical samples and generates customer interest. Sephora developed Virtual Artist AR try-on tools, which it has continuously augmented by adding products and features to its app, allowing shoppers to test looks both at home and in store.
- Virtual Showrooms and Product Demonstrations with VR: Businesses are using VR to design and create immersive virtual showrooms, allowing customers to walk around and examine products in a realistic 3D environment no matter where they are. At IKEA, for example, they have been visualizing customer products in whole room environments to customize the experience in their virtual showrooms. Geographical limitations are elastic̶instead of continuing to sell the same products to fewer customers, brands are extending their reach with personalized shopping experiences.
- Strategic Partnerships for Content & Platform (Inorganic): Companies are getting into partnerships as an inorganic growth approach that will help them ramp up content offerings quickly. One such remarkable collaboration is the recent amalgamation of a 3D modeling platform and a fashion retail corporation that has accelerated the mode of developing virtual apparel/garments for AR/VR shopping. These partnerships help accelerate the incorporation of new technologies and content, driving adoption.
- The 10 Facts About AR Are: Acquiring Specialized AR/VR Tech Startups (Inorganic): Retail businesses are in reasonably close proximity to announcing the takeover of smaller tech startups. It lets them acquire next-gen tech and talent. For example, a large furniture retailer would buy a startup focused on the creation of solutions that use AR for helping the placement of the ordered furniture inside a customer’s house — a direct investement on an rolution to drive better customer engagement and sales.
- Key Data Analytics in AR/VR for Customized Fit: Organizations are investing in data analytics in AR/VR to provide customized shopping experience. Retailers have also provided more customized product suggestions and promotions by examining consumer interaction trends in virtual environments. That includes tracking how shoppers interact with virtual try-on capabilities, then using the data to refine product placement and offers.
- Creating Cross-Device AR/VR Shopping Solutions: Retail brands are looking for solutions that span beyond only one domain, such as physical AR mirrors or mobile AR applications. This provides more accessibility for AR/VR shopping experiences and promises a consistent brand experience. For instance, a clothing brand plans to introduce AR try-on capabilities through its mobile app, website, and even dedicated screens installed in retail stores.
Outlook & Summary: VR/AR Retail Revolution: Is Your Business Ready to Disappear?
Here’s the lowdown on what to expect, and what you really need to remember:
- All This Brings Us To The Next 5-10 Years: It’s Go Time (Finally!). VR/AR will go from “cool demo” to core business So we’re talking super-immersive virtual showrooms, augmented reality try-on tools that don’t suck, and smart glasses that can provide personalized in-store navigation. We’re very early in the lifescale of this tech, and will start seeing adoption ramp.
- Beyond Gimmicks: Real ROI. Put novelty aside; VR/AR in retail is about efficiency. Look forward to a boost in customer engagement, lower rates of returns (due to more successful virtual try-ons) and data-based personalisation that’ll have each and every shopper feeling like a VIP. This is more than tech; it’s a profit driver.
- The Convergence is Real. VR AR is often separated with how it hits gaming and entertainment: Retail is the sleeping horse, and will likely catch up — if not overtake. That technology, which has made VR gaming more realistic is exactly what will also create hyper-realistic virtual stores. Data that AR uses to find its way around virtual worlds can also be used to place products in your physical store. If you look at the entire VR/AR market, retail is among the biggest beneficiaries.
- Key Takeaway: Adapt or Fade. It’s not a recommendation; it’s an act of self-preservation. If brands are going to embrace these technologies, those who stick to traditional methods risk being left behind. Innovation is not merely optional, it is increasingly becoming mandatory.
What’s in your toolkit? Don’t overcomplicate it. The technology might be intimidating, but the approach should be tactical. Consider how VR/AR can reach real solutions, and immerse themselves more fully into the customer journey.
So given the velocity of VR/AR, the omnipresent impact around the corner, are you poised to WIN or are you content letting your retail strategy… wait for it… fade away?”
