Extended Reality isn’t just a solution designed for gamers and tech enthusiasts anymore. As the world accelerates its path of digital transformation, we’re discovering that extended reality could be the key to better connections between colleagues, companies, and customers.
Extended Reality, or “XR”, refers to the full spectrum of digital and immersive experiences available from AR (Augmented Reality) and VR (Virtual Reality). It can also include Mixed Reality, which combines the benefits of AR and VR into something more comprehensive.
On a broad scale, XR is already making its way into the CX environment. Customers can load up apps in a store to scan for information from AR beacons. Beauty and fashion brands are rolling out “try before you buy” experiences through filter-based apps.
Let’s look at some of the biggest stats for XR in Customer Engagement this year.
XR Can Transform Customer Engagement
As of 2020, 3.4 billion phones acquired more advanced AR capabilities, and the number of devices ready to accept these experiences is growing. The AR landscape has been perhaps the most accessible facet of XR for companies to leverage for customer experience because users don’t necessarily need any specialist hardware to get involved.
Already, around 32% of customers say they use AR apps (often for gaming and social media), and IDC believes that the landscape for AR/VR spending will increase at a rate of around 52% over the next five years. Here are some great insights into how AR, VR, and XR are influencing engagement:
- After introducing an AR app to help customers browse interior design products, Houzz CEO Adi Tatarko said that customers using AR spend up to 2.7 times more time using the service. Customers are also 11 times more likely to make a purchase through AR. Source: Houzz
- The XR market is set to hit a value of $1,005.9 billion by 2030, and much of this value comes from the wider adoption of VR and AR technology in the consumer world. Brands are increasingly using XR to connect with customers in a more interactive way. Source: PR Newswire
- 39% of companies are now using AR for the consideration phase, helping customers to visualize products from a distance. A further 16% of retailers saying they’re using AR apps to help with the “sales phase” of the journey, which could include onboarding customers. Source: Poplar Studio and Research Gate
- 1 million customers in the US are already using AR every month, and there are around 1 billion AR customers worldwide. Source: eMarketer
- Since the beginning of 2020, AR engagement has increased by 20%, with conversion rates increasing by as much as 90% for customers engaging with AR, compared to clients without an immersive experience. Source: Retail Customer Experience
- Simple XR innovations like 3D content can increase conversions by 27.96% on retailer websites. SAP Direct Mail saw an increase of around 81.91% uptake in recipients receiving direct mail when including AR in their campaign. Source: Engine Creative
Your Customers Want Extended Reality
Now more than ever, as customers have fewer opportunities to connect with brands in-person, they’re hunting for more immersive shopping interactions. Whether offered as part of the sales experience, or the customer discovery process, XR solutions can strengthen connections between customers and brands. As the technology becomes more accessible, customers are even beginning to expect XR moments from companies.
- 71% of customers say they would shop more if they had access to AR, and 61% they would definitely choose to shop with a store that has VR over one that doesn’t. Source: Eclipse Group
- 40% of customers say they would pay more for a product if they had the option to customize it in AR. This could apply to companies that offer personalized products in the fashion or design landscape. Another 72% of customers said they had purchased items they hadn’t planned on after using AR. Source: Business Newswire
- In 2020, 32% of customers revealed they were already using augmented reality as part of their shopping experience. What’s more, among the AR shoppers, 73% reported higher levels of satisfaction. Source: IBM
- The strongest spending for XR in customer engagement is predicted to come from the Financial Services Industry, at a rate of around 133.9% CAGR. Perhaps this could be a tool for financial brands to build trust with customers. Source: IBM
- Almost 1 in 5 US consumers have used a VR product in 2020, highlighting the growing accessibility of VR technology, as well as AR tools for customer success. Source: ARinsider
- Around 64% of marketers in today’s business landscapes are expecting to use AR and VR in the near future to capture more audience attention. Source: The Drum
- 75% of customers now expect retailers to offer at least an augmented reality experience to help them find more product information or learn about products. Source: Poplar
- Brand awareness increases by up to 70% with the use of creative AR for customer engagement, and AR ads are more successfully remembered and shared by customers Source: Zappar
It’s Time to Bring XR to Customer Experience
Today’s customers expect a disruptive and intuitive experience from their favourite brands. As the XR customer experience statistics above show, customers are keen to rekindle their connections with brands through immersive experiences. Something as small as 3D content on a website that helps a customer to explore a space in greater depth can make a huge impact.
What’s more, customers are becoming more open to the concept of trying all kinds of extended reality. Many agree that they would choose a company with a VR or AR offering over a brand that didn’t have any form of immersive technology to offer. Increasingly, we’re learning that extended reality isn’t just for gaming and entertainment.
In the future, who knows what we could accomplish with XR in customer service? Virtual demonstrations through virtual reality, holographic products that customers can interact with from a distance, and AR-based instruction manuals are all real possibilities.
