There’s an interesting pattern to be noted here. Mainly how we’re “putting our foots in our mouths” with regards to our oscillating assumptions of technology’s influence on our buying behaviour. 35 years ago, the consensus was: “A home computer? Why would I ever want to buy one of those.” Never mind buying anything online. 8 years ago--like the predictions of a mental asylum patient for the end of the world--people ridiculed the iPhone. Yet, here we stand in 2015 with millions of iPhones sold. History doesn’t lie. And it tells us that, just because we can’t currently wrap our heads around a new technology, or understand how it can impact us; that doesn’t mean it isn’t viable or will not be useful in the future. Now new waves of technology are crawling out of their primordial ooze, and are ready to make their debut as viable additions to the way we shop. I'm talking about Augmented and Virtual reality.
[krown_button url="http://www.locodor.com/projects/vrmatch/" size="medium" style="color" target="_self" label="VR MATCH Campaign"] Store owners will let customers try clothing and accessories in a virtual “store”, place furniture into their customer’s houses within an app on the smartphone, and show people how to assemble and use products step-by-step with “live” customer support.
They’ll let customers flaunt potential purchases to friends, and make their brands more fun, personable and engaging. They’ll crank up the potency of their storytelling, segmented marketing, cross-selling and upselling. In essence, store owners will soon be bridging the gap between physical and online retail. Sounds like a crossbreed between a marketer's deepest desires and a tech geek’s saliva-inducing fantasies, right? But it’s not. Today, top brands like, Lego, Rayban, BMW, North Face and Marriott Hotel are testing the waters with augmented and virtual reality. So before rushing into their futuristic applications, let’s look at how they are currently being used.
So, we know AR and VR are growing in popularity, but how exactly will they impact the ecommerce world in the next 5-10 years?
Virtually Furnishing Homes and Helping Make Decisions
When homeware retailer Ikea conducted research on buyers, they found that:- 14% of customers have bought wrong sized furniture for their rooms
- Over 70% say they don’t really know how big their homes are
- And 33% admit to being confused about measuring up
Beautifying Customers Online
According to James Bergenstein of The Science Project “Virtual reality and augmented reality shopping still isn’t to a point where you experience the same sensuality of trying on clothes and seeing how they complement the contours of your body”. But it’s getting closer. FaceCake’s software Swivel, is proof: Customers enter a virtual dressing room. And with a few lazy swipes in front of a screen, they see how different dresses, scarfs, necklaces and accessories look on them. So how does it work? A computer/phone camera, or a Microsoft 360 Kinect scans the customer into a chat-box-style video screen. Clothing, jewelry and makeup is then selected on-screen and placed on to the customer’s body. Shoppers can also raise/lower their arms, turn around, and experiment with what fits best. And by snapping images of their possible new outfits and uploading them to social media, they can get quick feedback from friends and family, making the virtual experience feel closer to the real thing. Swivel also includes an engine that recommends items to shoppers based on both, their personal preference and behavior in the virtual fitting room. The software looks at:- How long the user spends looking at a specific item
- What the user shares on social media
- What the user tries on more than once
Elevating Efficiency And Diminishing Logistical Time Drains
DHL’s recent pilot program used smart glasses to test “vision picking” in one of their Netherland warehouses. Pickers were equipped with head mounted displays like Google Glass (which is now being distributed only at workplaces) and the Vuzix M100. An interactive interface then showed where items belong, and gave pickers real-time graphical information about aisles, product location and quantity.Image via DHL
The results? Enhanced staff performance and less errors: The implementation of augmented reality boosted picking efficiency by 25%. DHL also believes that AR will enhance other areas of business. “The technology significantly supports our staff and brings exciting value to our customers. However, this is just the first step in our innovation journey as we believe augmented reality will become relevant for even more supply chain areas” says Jan Willem of the DHL supply chain Benelux.AR and VR Will Enrich Day-to-Day Activities
Augmented and virtual reality will stop being tech novelties. They’ll be as common as smartphones, tablets and PCs in the next 4-6 years. The following statistics and projections support this theory:- According to Digi-capital, the augmented reality market is projected to generate $120 billion dollars in revenue by 2020.
- Let us know if you have a VR company and looking to raise money and/or are interested in investing in one?
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- Statistica forecasts active virtual reality users to reach 171 million in 3 years time
- 60 million users across smartphones, tablets and smart glasses will use augmented reality apps, says Juniper Research
- Research from the Digital Marketing Bureau states that over 864 million smartphones have AR technology enabled in them
- According to CCS insights, hardware shipments of VR devices will increase from 2.2m in 2015 to 20m in 2018
They’ll Inspire Riveting Stories and Energize Customer Experiences
AR and VR transcend mere technological evolution. They actually penetrate the realm of deeply-rooted psychological and emotional needs that are necessary to motivate a buying decision. Think about it: If consumers base their buying decisions mainly on feelings and experiences, and direct touch interface devices (like tablets and smartphones) increase psychological ownership, imagine how immersive technologies like AR and VR--that not only involve touch, but push the boundaries of technological interactivity--will springboard the power of stories and emotionally driven selling to unchartered emotionally engaging heights? Case in point; for a wailing child, the patching up of bleeding cuts doesn’t sound like a cause for fun, does it? But it can be. With Band-Aid’s Magic Vision app it can trigger joy, laughter and precious bonding time: (AR technology turns pain into pleasure) Parents place a Muppet band-aid on their kids and scan it. An interactive Muppet character then appears on screen and allows kids to:- Snap up photos with Miss Piggy as she struts along the red carpet
- Swing Kermit the frog while he plays his banjo
- Shake a giggling Gonzo off the screen