The pandemic has transformed consumer behaviour, driving a permanent shift towards online channels. For some retailers, who benefited from a shopfront, the shift online has diluted the customer experience, preventing them from showcasing the features and capabilities of their products or allowing customers to touch, feel and interact with goods. New immersive technologies such as augmented reality (AR), virtual reality (VR), 360-degree video, 3D content and mixed reality, are providing new
new ways for retailers to merge the physical world with the virtual to build trust with consumers purchasing online.
With customer experience emerging as the crucial battleground for retailers, particularly in discretionary categories such as apparel and home furnishings, immersive technologies are moving from a novelty to an essential for retailers seeking to differentiate themselves and deliver differentiated customer experience.
It’s a virtual real world
New Accenture research has revealed that 68 per cent of shoppers want to buy more from brands that allow them to interact or evaluate products and services online using immersive technologies. While the adoption of immersive technologies in Australia is still relatively new, globally we are seeing many big name brands activate experiences to their advantage.
Swedish furniture giant Ikea has an AR mobile app that helps people try before they buy, allowing them to virtually ‘place’ furnishings in their space. The products are 3D and true to scale so buyers can make sure it’s just the right size, design, and functionality for their room before they order it.
Cosmetics giant, L’Oréal and its recently acquired AR and AI entity, ModiFace, have collaborated with Facebook to create try-on experiences delivered through Facebook camera products. With the pandemic preventing shoppers from going in-store to discover new makeup brands, this provides a new way for them to experience products and services.
Closer to home, Australian building company Metricon is using VR headsets to showcase its display homes in regional areas to potential buyers. Virtual tours have also come in handy for real estate agents during lockdown. Thanks to these immersive technologies, buyers and renters were still able to see what they purchased in a way that went beyond static website photos.
Technology drives customer experience
With online retailers needing to adapt to the changing retail landscape and own the customer experience, immersive technologies can help to deepen a customer’s connection with a brand or product by creating accessibility and tangibility. Whether it is trying on a new shade of lipstick and being able to see if it matches your skin tone, to a 360-degree view of a new sofa, you’re that much closer to experiencing the truth about the product.
In our research, 61 per cent of consumers said they would be more likely to buy from a brand that uses immersive technologies, and 47 per cent said that they would pay extra for a product they could customise or personalise using immersive technologies.
For products that have not traditionally been bought online, such as larger furniture and new cars, immersive technologies could drive down perceived purchase risk and build trust and confidence buying sight unseen.
Starting your immersive technology journey
How do you make this hype into a reality? The type of immersive technology that a retailer chooses must be specific to their brand and business objectives.
First, know your brand objective. What do you want your customers to know about your online store and how can immersive technology tell this story?
Second, look at your primary consumers. Map out how your products fit into their lifestyle. Ikea knew its customers wanted to ensure the product they bought suited their living space and designed an AR app to match that before they purchased it. Making an inventory of your products and finding out how or what stops a customer from buying it online and how an immersive tech can help push that sale.
Third, to accurately evaluate the type of technology needed, make sure you assess the best fit on timing, cost, and value delivery.
Lastly, and most critical, reassure customers that their data is safe. At least 64 per cent of shoppers we surveyed had some concerns about personal data (such as biometrics and eye scanning) by immersive technologies that brands use. Do your due diligence on data security. Just like anything else, if you lose your customer’s trust, you lose your customer.