Brand engagement through AR and VR is the next step in making memorable, sustainable experiences for your customers. Here, Craig Wildman, Global Managing Director at 2Heads takes a look at why this is the case.
Virtual and Augmented reality technologies could become a solution to some of the issues affecting our favourite high street stores, who have faced a difficult and turbulent 12 months. 2019 saw a staggering 16,000 stores shut up shop across the country and 2020 has already seen one high-profile casualty with Beales plunging into administration. External pressures such as Brexit uncertainty and the continued rise in digital challengers haven’t made matters any easier for retailers, forcing many to rapidly adapt to stay competitive.
Underpinning all of this has been the seismic shift in consumer behaviour: the average person is bombarded with an estimated 5,000 ads per day, making it harder than ever before for brands to cut through the noise and engage with customers. Not only has this over-saturation of promotional content made people less receptive to brand messaging, but consumers have also become significantly more conscious of the brands they are willing to support. Sustainability has gone from fad to major purchasing decision for many; a 2018 study by Edelman showed that 64 per cent of customers globally consider themselves ‘belief-driven’ buyers, up 13 points from 2017 and showing no signs of slowing.
However, the adoption and implementation of AR and VR may prove to be the perfect tonic for both changes in consumer behaviour as well as staving off some of the external pressures facing retailers. As an experiential agency that helps clients stand out at some of the biggest retail events in the world, we believe that the use of AR and VR to drive customer engagement and brand loyalty could be the next major differentiator between those who succeed and those who fail.
Early adopters are already reaping the rewards: IKEA, Home Depot and Macy’s and others have established apps that allow customers to kit out their home without going to a physical store. From a marketing perspective the results have been fantastic, netting positive press, accolades from industry peers and increased interest from consumers. Tangible results have also been promising, with online shopping carts reportedly bigger at check-out and stores seeing fewer product returns. AR and VR adoption could also significantly improve audience attendance for brand launches at flag-ship stores. Virtual attendance could let brands promote inclusively rather than exclusively by creating virtual environments for customers across the globe, so they can be part of the moment at the same time and engage with the brand. From a brand marketing perspective, this pivot away from traditional marketing to creating memorable experiences will also become a critical brand engagement tool.
After all, it’s not always about shouting the loudest and throwing money at an advertising campaign, it’s about leaving a lasting brand message that cuts through the noise and stays with a consumer. Studies show that consumers are more receptive to unique experiences than typical branded messaging. An oft-cited study by Retail Connections in 2016 showed that 61 per cent of shoppers prefer retailers who offer AR over those who don’t, and that 72 per cent of shoppers purchased items they weren’t planning to just because they tried it out using AR. As this tech continues to be refined and current connectivity issues are resolved when 5G finally reaches UK shores, it’s likely that AR or VR will be a must-have addition for retailers rather than just a marketing gimmick.
Aside from a brand engagement aspect, VR and AR could also reduce overheads from physical retailers. For example, beauty brands such as Sephora have AR offerings that allow customers to ‘try before they buy’ acting as an effective substitute for sampling programmes, which can cost upwards of £70,000 to rollout. The ‘try before you buy’ aspect of AR or VR technology could have a significant impact on the sustainability commitments of both brands and retailers.
The sector is still very much in the position of having to prove that they are eco-conscious, and our retail clients at big exhibitions or retail conferences have made it known that they want to provide memorable, sustainable experiences with customer engagement as the focus rather than the physical builds we create at events. Adding to this is the significant carbon footprint associated with hosting large retail events, such as RetailEXPO, that virtual attendance could solve. Instead of forcing both exhibitors and attendees to fly to a specific event, there’s no reason why virtual attendance or AR tech, such as hologrammed speakers, cannot be implemented as an alternative.
Ultimately, retailers that are willing to roll out smart VR or AR solutions will see an increase in consumer engagement, drive brand loyalty and see a boost in customer retention. The happy byproduct of this tech will also contribute to a company’s sustainability commitments, ensuring those who do vote with their wallets will remain loyal customers
