Immersive Technology: How It Will Change Ecommerce
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Ecommerce and digital marketing have now gone beyond having a website and online store. With the emergence of immersive technology, how can it change the online market?
64% of leading eCommerce brands capitalize on immersive technology because of the shift in customer preferences. It was once a novelty but is now a utility for prioritizing customer convenience.
Ecommerce industries utilizing immersive technology today
The global virtual events market size was estimated at $114.12 billion in 2021. Popular virtual event Tomorrowland succeeded in selling a million tickets worldwide. The event featured 60 artists, an alternative to an in-person concert.
The VR gaming market earned $10 billion in 2020 when consumers spent more time indoors during the pandemic. The avatar economy reached $190 billion in revenue. The high demand in personalizing virtual characters and virtual skins motivated high-end brands.
Snapchat collaborated with Jordan, Levi’s and Ralph Lauren to design Bitmoji character outfits. Nike, Gucci, and Louis Vuitton partnered with Riot Games and Epic Games to sell virtual outfits.
Virtual pop-up stores
Burberry succeeded with their launch of Olympia bags through globally accessible virtual pop-up stores.
As a solution on a 2018 review where 72% of customers buy shoes that don’t fit them properly, Nike launched Nike Fit. The app includes a 3600 viewing option and an AR feature for virtual try-ons.
IKEA’s ecommerce sales increased by 43% by implementing IKEA Place. The app allows customers to virtually test what products look at their home, see texture, scale dimensions, and see it on different lightings. This is after some customers who purchase an item from IKEA showroom end up not liking it in their homes.
Multi-dimensional customer experience
The challenge of ecommerce in today’s digital age and more demanding customer base is satisfying customer expectations. To increase purchase delight, give them what they think they would get with immersive technology.
Immersive technology for quality customer experience
Immersive technology has already made improvements to customer-friendliness, from mobile accessibility to relevant recommendations through AI and persuasive, customer-centric content through Extended Reality.
70% of consumers do not purchase on sites that are not mobile-friendly. Cloud computing has cloud hosting options to make websites mobile accessible.
Artificial Intelligence (AI) can identify customers, analyze their data, and make product recommendations based on consumption patterns.
AI can reduce customer service costs by up to 30%. Although 60% of consumers are skeptical of AI chatbots understanding their concerns, immediate interactions with them have a high satisfaction rate around 87.58%.
360° content is a necessary investment. 96% of consumers find videos helpful when deciding to purchase. Customers can see the detailed features by dragging or rotating an image or dome-like photos.
Quality customer service under Extended Reality:
Augmented reality (AR) allows customers to try products in their own environment in their own time. Glasses.com and their ‘Try Them On’ feature let customers check the fit of their glasses before buying them. This makes meeting customer expectations easier.
Makeup and hair dye brands apply the same try-on features.
71% of consumers say that they would shop more often if a business incorporates AR. It works while only using a camera unlike in virtual reality.
Consumers with Virtual Reality (VR) headsets can access virtual showrooms with products on display and try them on their virtual body.
Retailers can also incorporate both AR and VR through mixed reality.
Achieving business goals with value and convenience
Immersive technologies make your customers feel special and valued. 53% of customers build emotional connections to the brand that can do both.
Consumer attention is divided. The harsh competition can overwhelm your business unless you do something engaging, fun, and unique. 61% of consumers are more likely to buy from brands that incorporate immersive technology.
In a survey of 3,000 consumers from North America, Europe, and Asia-Pacific, 47% said that VR, AR, and 3D content makes them feel connected to products.
AR shoppers use their camera to find suitable furniture to fit their space and style. Personal Assistants and chatbots can also help your business answer customer queries at a speed of light.
92% of shoppers choose ecommerce sites with immersive technology than traditional ecommerce with still photos and videos.
Immersive technology allows your customers to assess an item before its physical twin arrives. They can also check other products with an AI-generated product recommendation. The try-on technology can increase conversion rates up to 94%.
What does the future hold for immersive technology?
AR and VR increasing demand shipped 14.94 million device units worldwide in 2022 with annual revenue growth at 18% from 2021 to 2028.
- By 2023, social commerce and visual commerce incorporating AR gain popularity. Chatbots handles 90% of customer concerns.
- By 2024, exponential growth of ecommerce overtake physical retail sales crossing path on the $600 million sales curve.
- By 2025, ecommerce sales forecast can grow by 50% or $7.4 billion in revenue. Business maximizes investments in technology, marketplace, and promotion.
- By 2026, 25% of people spend an hour in metaverse and 30% of companies offer services and products for metaverse.
Immersive technology shapes the new wave of digital consumers and ecommerce. How can entrepreneurs be future-proof?
Build momentum with digital presence
Breathe before you jump into immersive technology. Nurture your online community first. Start with optimizing your website and improving your loading time. No one likes to wait.
Analyze your data. Either you learn it yourself or outsource it. Both ways can see who, where, and when your peak customers are.
Recreate the in-store feel
Your digital presence is the extension of your physical brand. 3,600 images or videos need complete and accurate product descriptions. Similar to a salesperson’s pitch but less talking.
Speak like your brand and engage with your customers virtually. Virtual exhibits and live streams give the experiential content.
Zero-friction digital strategy
Customers are at the center of your business with their high expectations. Digital technology helps you meet those expectations and maintain a positive experience.
Outsourcing gives you access to the expertise and resources you need to streamline your digital presence, from optimizing your web pages, analyzing your data, hands-on customer support, and zero friction automation.