Technology Driving Retail: Extended Reality as Promising Marketing Mechanism

Written By Vania Canales-Canales

When it comes to the growth potential, dare I say survival, of the retail sector, technology is unequivocally in the front seat. Firms that invest in digital customer experience strategies (e-commerce, digital marketing, CRM, ...) will be the prized that reach the finish line. Sure, this is far from front page news, but it is a wakeup call. Especially to actors, both traditional and modern alike, in the retail space. 

The latest trend that offers to stabilize and redefine retail itself is extended reality. For those unfamiliar with the term, extended reality is a digital extension of life as we know it. IBM properly defines it as “a full spectrum of enhanced digital and physical experiences [including] Augmented Reality, Virtual Reality, and Mixed Reality.” To place these terms in a pop culture context, it's the technology behind Pokemon-Go, Snapchat Face Filters, and the Oculus headsets which allows for interacting with and/or overlaying digital features into our daily lives. These technologies have mainly been associated with gaming and social media, but they are steadily weaving themselves into retail’s fabric, with augmented reality (the superimposition of digital objects onto camera views or headsets) taking the lead. As our physical interactions are limited as a function of the virus-ridden times, such overlay features can actively help relieve the customer experience from a key gap in the online customer journey. 

 Augmented Reality’s Role in Retail.

A picture of me virtually trying on Dior’s 30 Montaigne Sunglasses via Dior’s Instagram Filter.

The beauty of extended reality when it comes to retail is the previously unthought of ability to try items before purchase from the comfort of your home, without the physical product in your possession. As shoppers can attest, being able to experience a product is key in order to confidently complete a sale. With in-store shopping experiences limited, if not out of the picture for the time being, businesses could benefit tremendously from bringing the in-store experience online. Augmented Reality proposes an eyebrow-raising solution. According to a study covered in an IBM insights report, customers that use Augmented Reality features are 11 times more likely to follow through on a purchase, primarily because they are allowed to virtually sample the services within their environments. All of this to indicate that Augmented Reality opens the gates to a personalized shopping experience tailored to each individual user. 

This notion has also been gaining headway in both beauty and fashion. Brands such as Armani, Burberry, Adidas, Mac Cosmetics, and several others have been implementing Augmented Reality over the past few months in order to provide shoppers with the luxury of a virtual fitting room. Armani and Mac Cosmetics, for example, have launched a feature that enables users to virtually try on lipsticks through their smartphone camera lenses. Burberry allows fans to embed products via mobile into their environment which allows for a detailed, in-person like look at the products. Adidas gives shoes-enthusiasts the satisfaction of trying on their favorite shoes via the camera section of the app. The list goes on, customer satisfaction is on the rise, and shoppers are feeling closer to their favorite brands, despite the many miles that may separate them. 

Besides being a marketing tactic, Extended Reality, given the times, could arguably be commerce’s next big thing; a similar story as to how Amazon’s success launched e-commerce into protocol. In fact, partners at IBM even propose that “to ignore the implications of Augmented Reality would be akin to ignoring the advent of online shopping.” Although the implementation of such technology is expensive, in terms of budget for significant network bandwidth, onboarding virtual technology designers, and firm resources, it's a promising proposition for brands that strive to connect with their customers, removing pain points in e-commerce and improving the customer journey as a whole. After all, according to a study conducted by Nielsen, consumers listed Augmented and Virtual Reality as the top technologies they’re seeking to implement in their daily routines. Greatly looking forward to seeing how other brands follow and start adopting these technologies.

For those interested in the topic, I would strongly recommend IBM’s Insights Report on Augmented Reality found here.

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Vania Canales-Canales
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