The Sales Potential of Extended Reality: How XR is Changing the Consumer Experience
Extended Reality (XR) technology, which includes virtual reality (VR), augmented reality (AR), and mixed reality (MR), has made significant strides in recent years, revolutionising the way businesses operate. XR provides unique opportunities for companies to improve their sales and increase consumer consideration, and here's how.
Immersive Product Visualisation XR allows customers to visualise products in a more immersive way. This means that instead of simply looking at a product on a website or in a store, customers can now experience it in a virtual space. For instance, IKEA has used XR to create an app that lets customers visualise furniture in their homes before they buy it. This led to a 98% customer satisfaction rate and a 2x increase in sales.
Enhanced Consumer Engagement XR can help businesses improve consumer engagement and create unique experiences that can't be replicated in any other way. For example, L'Oreal Paris launched an AR app that lets customers try on makeup virtually. The app has been downloaded over 20 million times and has led to a 49% increase in sales.
Virtual Events XR can also be used to create virtual events that can be attended from anywhere in the world. For example, the Coachella Valley Music and Arts Festival launched a VR app that let users experience the festival as if they were there. This helped the festival reach a wider audience and generate more revenue.
Training and Education XR can also be used to train employees or educate customers. For example, Walmart has used VR to train employees in various tasks, such as handling holiday rushes. This has led to a 70% retention rate and a 10-15% increase in productivity.
The statistics speak for themselves. According to a report by MarketsandMarkets, the XR market is expected to grow from $33.9 billion in 2020 to $125.2 billion by 2025, at a CAGR of 29.4%. Additionally, a study by ARtillery Intelligence found that XR commerce revenue is expected to grow from $6.3 billion in 2020 to $126 billion by 2026.
In conclusion, XR technology has the potential to revolutionise the way businesses operate and interact with customers. By providing immersive product visualisation, enhancing consumer engagement, creating virtual events, and providing training and education, businesses can increase sales and improve consumer consideration.
With the XR market set to grow exponentially in the coming years, it's time for businesses to start investing in this technology to stay ahead of the competition.
