How Virtual Reality Transforms Customer Experience
Never before in the history of modern technology has the line between the physical and virtual worlds been so thin.
We spend hours on Facebook, Twitter and Snapchat in a fully digital social environment. On smartphones, we play augmented reality games, such as Ingress, that allow us to interact with computer characters in the background of the objective reality around us. And besides, recently we started to dive into completely fictional worlds with the help of VR helmets.
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Consumer interest in augmented or virtual reality is greater than ever. According to forecasts of Citi GPS , the augmented and virtual reality market by 2025 could grow to 692 billion dollars. According to a study by IDC , another international consulting authority, the number of AR and VR helmets sold in 2021 will reach 99 million units.
According to Oculus chief scientist Michael Abrasch, VR will become the most profound and full-fledged way to interact in the virtual world, fundamentally changing our approach to work and games.
The theme of the future of AR and VR devices causes a lot of controversy, but the ultimate success of these technologies will be determined by their demand among consumers.
To understand how the majority of buyers relate to AR and VR, the consulting company Worldpay conducted a survey of 16 thousand consumers from 8 countries and came to its conclusion that there are visible obstacles that stand in the way of the wide spread of technologies.
According to the survey, augmented and virtual realities are of great interest to consumers, and they are viewed as platforms that can change the way people interact with each other and with businesses. More than half (55%) of respondents from various countries around the world expressed the opinion that AR and VR technologies will become as popular as smartphones in the coming years. Nevertheless, concerns about the confidentiality of data distributed in virtual environments suggest that merchants are likely to have difficulty promoting persuasive user cases, especially in the markets of developed countries.
Consumers around the world have expressed various concerns about VR payments, but the most worrying about this is in Western markets. Only 35% of buyers in the UK and 30% in the Netherlands are ready to try in practice the schemes of buying products in virtual or augmented reality.
The situation is quite different in China, where 50% of consumers say they already use VR or AR at least once a week. This is due to the fact that Chinese buyers are very much focused on mobile experience and this type of thinking that is rare for consumers of most other developed countries makes them open to many other types of interaction with merchants that go beyond traditional digital interaction channels.
Consumers of the most developed economies are more skeptical about changes, and therefore in these markets the emergence of the first payment scenarios in VR will take more time. Only 23% of Dutch consumers believe that VR-devices are safe for making payments, while among Chinese customers this figure is 59%. A similar number (57%) of Dutch consumers, by contrast, consider desktops and laptops safe devices for making payments.
It should be noted that large-scale sales become possible as a result of achieving the right balance of innovations, timely operational decisions and the need for new technologies. This balance varies from market to market. If in most countries of the world only 18% of respondents describe themselves as pioneers in the application of new technologies, in China this figure reaches as much as 44%.
Consumers want brands to interact more closely with them in the digital space. About 60% of Worldpay survey participants want retailers to provide AR and VR experience as part of a larger shopping process. Be that as it may, for the global and successful spread of these technologies, more is needed than just interest in innovation. People need to experience the true need for virtual reality in everyday life, and the task of heating this interest with high-quality and attractive user cases falls on the shoulders of device manufacturers and businesses.
There are other obstacles that need to be eliminated so that the VR helmets are no longer considered curious novelties, becoming mass technology. One of the main obstacles is the high cost of VR devices.
The most advanced models of helmets from Oculus and Vive still cost more than $ 700, as a result for merchants who are already struggling to protect their margin, and buying them into an expensive gamble for consumers, they turn into just an inaccessible product. About a third of the Worldpay survey respondents admit that the high cost keeps them from buying a VR helmet.
Cheaper alternatives like the Samsung VR Gear and even cheaper Google Cardboard, which have really gained great popularity, are seriously lagging behind their advanced counterparts in terms of the effect of full immersion due to limitations of viewing angle and low video resolution.
The optimal scenario of technology introduction will be different for different industries. Gamers will be more inclined to invest in the purchase of high-quality helmets, compared to the average consumer, who only decided, for example, to try VR “to taste”. Anyway, one constant value is characteristic for all segments: users want to get obvious practical benefits from the novelty.
The ability to use a virtual reality helmet may seem very tempting at first glance, but outside the video game industry, where the use of VR is closely embedded in consumer experience, novelty will come to naught over time if you do not provide consumers with an obvious sense of benefits and values ​​that would justify the efforts and The cost of using a virtual reality helmet. In Germany, for example, 36% of consumers did not even try to use VR because they do not believe that there is any need for this.
Equally important is the direct experience of use. As ZDNet journalist James Kendrick says : “The ability to choose a gadget and start using it without having to strain about how it works is not just great. It’s something that all customers expect. ” Only 10 years after the smartphone was introduced to the general public, young children are already learning how to handle their parents' devices even before they start talking. It is this generation that, as an adult, will use VR in everyday life.
One of the difficulties of the VR segment is that the devices are manufactured by technology companies, and the individual user experience is formed by merchants.
Both sides should put themselves in the shoes of consumers if they want to understand the painful points in the process of buying products and services in virtual environments. This concept may include both technical limitations, such as an inefficient interface, and more emotional factors, such as the desire to try on a shirt before buying it.
In any case, the interests of consumers should be paramount when developing VR services. Without having “must have” applications or compelling reasons for using VR on a regular basis, people will continue to treat technology like some new product, as has happened more than once with other similar inventions in the past.
In addition, it is important to distinguish between moving the entire customer experience into a virtual environment and simply using VR to turn brand interactions into a pleasant and exciting experience to stimulate shopping. The first case is much more complicated and requires the merchants to completely rethink the entire process of viewing and paying for goods and services, as well as intra-shop interaction. As for the second option, it is suitable only for temporary customer acquisition.
In the face of high competition and a large number of players in the retail market, both VR and AR can help companies create a deep and unique world strongly associated with their brands. More than half (55%) of the participants in the Worldpay study consider VR shopping to be a more exciting experience than online shopping. Buyers are ready to dive into this experience. Retailers just need to add this experience to their services.
The benefits provided by AR and VR for customers are obvious. Thirty-eight percent of respondents believe that augmented and virtual reality will help them save the time they spend shopping. When it comes to how to apply technology, 63% would like VR and AR integrated into shopping apps, and 59% want to use VR in stores. As people and brands move towards new practices of omnichannel interaction, VR and AR will play a huge role in further improving the level of integration of various channels of interaction between customers and brands.
More than a third (35%) of buyers also appreciate the opportunity to get impressions from the use of products before buying them, either through close familiarization with them, or by testing them in a virtual environment. A very important moment for retailers is that this approach will lead to the purchase of products that are more suitable for each individual buyer and a significant reduction in returns due to the optimization of the selection and checkout stages.
A similar situation arises with things: 47% of buyers report that they would like to be able to virtually try on clothes before buying them.
The previously proposed retail VR applications place much more emphasis on drawing attention to the brand than on consumer experience, using new technologies as a means of tactics. One example of this approach is Balenciaga, a luxury brand that gave its fans the opportunity to watch the defile using VR shows on youtube . Another example is the American retail giant Gap, which recently presented an AR-application , which allows buyers to evaluate how the virtual sample of clothes at home will look like before an order. Nevertheless, no player has yet translated into practice the strategic potential of VR, which allows buyers to simplify the process of making purchases or take advantage of their buying impulses.
The next logical step for AR and VR in retail is the introduction of the possibility of payment in a virtual environment. Currently, 61% of buyers consider the high price of helmets the most important obstacle to making virtual payments. At the same time, 42% are most concerned about the security of such payments. However, if the decline in the cost of virtual devices is a natural and irreversible process, then the search for ways to ensure a sense of security in virtual environments should become a priority for both brands and payment systems.
The heightened interest in VR and AR from the younger generations seems to be quite natural: 67% of respondents from the age group of 25–34 years have expressed a desire to interact with brands with the help of these new technologies. The level of interest also varies greatly from market to market. If in general in various countries of the world, only one in four customers admits that they would be more inclined to make immediate purchase decisions, in China this figure rises to 49%. The level of distribution in some markets is also noticeably small, but like the situation with mobile technologies, VR payments will soon also become quite common.
In order for the line between real and virtual brands to disappear completely, the experience of buying goods or services in a virtual environment should become as simple as regular payment with a credit card in a physical store or an ordinary online payment.
A previous Worldpay study of online payments on how brands should create an e-commerce site showed that customers want more and more confidence in the security of their transactions. The same is true for purchases made in AR or VR environments: security and calm confidence are paramount.
However, at the moment, consumer confidence in the comfort of VR is low. Concerns about the security of AR and VR payments are the second biggest barrier that keeps consumers from making purchases using these technologies, second only to the high cost of VR devices.
Such discomfort is quite normal for new, unfamiliar technologies and, as in the case of shopping on mobile devices, consumer concerns will gradually disappear as soon as the convenience of VR payments outweighs the possible risks in people's minds.
The task to be solved in the near future is to make consumers feel safe when making VR payments.
Methods may be similar to those used today when making online purchases, but the data entry mechanism will require careful setup. For example, how will buyers enter their payment information into the system to complete the transaction? Obviously, they cannot pronounce them publicly, since they cannot know for sure that there is no one around when a VR helmet is worn over the buyer’s head. Another option is to enter data using the virtual keyboard, but this process is still very slow compared to typing on a regular computer or smartphone.
A simpler option is to repeat the experience of entering a PIN code, however, the keyboard must have a random distribution of keys in order to prevent the third-party observers from repeating the buyer's actions. Retinal scans as a security measure are also being studied by experts, but as is the case with fingerprint identification on a smartphone, it will take time for consumers to begin to feel at ease with this method.
Either way, the user experience will either change VR for the better, turning the technology into a suitable payment platform, or force it to leave the stage, as the need to constantly “switch” between the helmet and the smartphone or between the helmet and the gaming console simply won't stand the objective test. Consumers want to be able to search for products and pay for them within the same interface. The starting point for retailers should be to work to eliminate security concerns and data entry tasks, since only by the results of this work can we speak about the emergence of a solid user interface necessary for the success of sales of goods and services in the new virtual environment.
We spend hours on Facebook, Twitter and Snapchat in a fully digital social environment. On smartphones, we play augmented reality games, such as Ingress, that allow us to interact with computer characters in the background of the objective reality around us. And besides, recently we started to dive into completely fictional worlds with the help of VR helmets.
')
Consumer interest in augmented or virtual reality is greater than ever. According to forecasts of Citi GPS , the augmented and virtual reality market by 2025 could grow to 692 billion dollars. According to a study by IDC , another international consulting authority, the number of AR and VR helmets sold in 2021 will reach 99 million units.
According to Oculus chief scientist Michael Abrasch, VR will become the most profound and full-fledged way to interact in the virtual world, fundamentally changing our approach to work and games.
The theme of the future of AR and VR devices causes a lot of controversy, but the ultimate success of these technologies will be determined by their demand among consumers.
To understand how the majority of buyers relate to AR and VR, the consulting company Worldpay conducted a survey of 16 thousand consumers from 8 countries and came to its conclusion that there are visible obstacles that stand in the way of the wide spread of technologies.
According to the survey, augmented and virtual realities are of great interest to consumers, and they are viewed as platforms that can change the way people interact with each other and with businesses. More than half (55%) of respondents from various countries around the world expressed the opinion that AR and VR technologies will become as popular as smartphones in the coming years. Nevertheless, concerns about the confidentiality of data distributed in virtual environments suggest that merchants are likely to have difficulty promoting persuasive user cases, especially in the markets of developed countries.
Are we ready for virtual commerce?
Consumers around the world have expressed various concerns about VR payments, but the most worrying about this is in Western markets. Only 35% of buyers in the UK and 30% in the Netherlands are ready to try in practice the schemes of buying products in virtual or augmented reality.
The situation is quite different in China, where 50% of consumers say they already use VR or AR at least once a week. This is due to the fact that Chinese buyers are very much focused on mobile experience and this type of thinking that is rare for consumers of most other developed countries makes them open to many other types of interaction with merchants that go beyond traditional digital interaction channels.
Consumers of the most developed economies are more skeptical about changes, and therefore in these markets the emergence of the first payment scenarios in VR will take more time. Only 23% of Dutch consumers believe that VR-devices are safe for making payments, while among Chinese customers this figure is 59%. A similar number (57%) of Dutch consumers, by contrast, consider desktops and laptops safe devices for making payments.
It should be noted that large-scale sales become possible as a result of achieving the right balance of innovations, timely operational decisions and the need for new technologies. This balance varies from market to market. If in most countries of the world only 18% of respondents describe themselves as pioneers in the application of new technologies, in China this figure reaches as much as 44%.
Consumers want brands to interact more closely with them in the digital space. About 60% of Worldpay survey participants want retailers to provide AR and VR experience as part of a larger shopping process. Be that as it may, for the global and successful spread of these technologies, more is needed than just interest in innovation. People need to experience the true need for virtual reality in everyday life, and the task of heating this interest with high-quality and attractive user cases falls on the shoulders of device manufacturers and businesses.
Elimination of the cost barrier
There are other obstacles that need to be eliminated so that the VR helmets are no longer considered curious novelties, becoming mass technology. One of the main obstacles is the high cost of VR devices.
The most advanced models of helmets from Oculus and Vive still cost more than $ 700, as a result for merchants who are already struggling to protect their margin, and buying them into an expensive gamble for consumers, they turn into just an inaccessible product. About a third of the Worldpay survey respondents admit that the high cost keeps them from buying a VR helmet.
Cheaper alternatives like the Samsung VR Gear and even cheaper Google Cardboard, which have really gained great popularity, are seriously lagging behind their advanced counterparts in terms of the effect of full immersion due to limitations of viewing angle and low video resolution.
The optimal scenario of technology introduction will be different for different industries. Gamers will be more inclined to invest in the purchase of high-quality helmets, compared to the average consumer, who only decided, for example, to try VR “to taste”. Anyway, one constant value is characteristic for all segments: users want to get obvious practical benefits from the novelty.
The quest for an application that will turn VR into an essential technology continues
The ability to use a virtual reality helmet may seem very tempting at first glance, but outside the video game industry, where the use of VR is closely embedded in consumer experience, novelty will come to naught over time if you do not provide consumers with an obvious sense of benefits and values ​​that would justify the efforts and The cost of using a virtual reality helmet. In Germany, for example, 36% of consumers did not even try to use VR because they do not believe that there is any need for this.
Equally important is the direct experience of use. As ZDNet journalist James Kendrick says : “The ability to choose a gadget and start using it without having to strain about how it works is not just great. It’s something that all customers expect. ” Only 10 years after the smartphone was introduced to the general public, young children are already learning how to handle their parents' devices even before they start talking. It is this generation that, as an adult, will use VR in everyday life.
One of the difficulties of the VR segment is that the devices are manufactured by technology companies, and the individual user experience is formed by merchants.
Both sides should put themselves in the shoes of consumers if they want to understand the painful points in the process of buying products and services in virtual environments. This concept may include both technical limitations, such as an inefficient interface, and more emotional factors, such as the desire to try on a shirt before buying it.
In any case, the interests of consumers should be paramount when developing VR services. Without having “must have” applications or compelling reasons for using VR on a regular basis, people will continue to treat technology like some new product, as has happened more than once with other similar inventions in the past.
In addition, it is important to distinguish between moving the entire customer experience into a virtual environment and simply using VR to turn brand interactions into a pleasant and exciting experience to stimulate shopping. The first case is much more complicated and requires the merchants to completely rethink the entire process of viewing and paying for goods and services, as well as intra-shop interaction. As for the second option, it is suitable only for temporary customer acquisition.
VR technology in the retail market
In the face of high competition and a large number of players in the retail market, both VR and AR can help companies create a deep and unique world strongly associated with their brands. More than half (55%) of the participants in the Worldpay study consider VR shopping to be a more exciting experience than online shopping. Buyers are ready to dive into this experience. Retailers just need to add this experience to their services.
The benefits provided by AR and VR for customers are obvious. Thirty-eight percent of respondents believe that augmented and virtual reality will help them save the time they spend shopping. When it comes to how to apply technology, 63% would like VR and AR integrated into shopping apps, and 59% want to use VR in stores. As people and brands move towards new practices of omnichannel interaction, VR and AR will play a huge role in further improving the level of integration of various channels of interaction between customers and brands.
More than a third (35%) of buyers also appreciate the opportunity to get impressions from the use of products before buying them, either through close familiarization with them, or by testing them in a virtual environment. A very important moment for retailers is that this approach will lead to the purchase of products that are more suitable for each individual buyer and a significant reduction in returns due to the optimization of the selection and checkout stages.
A similar situation arises with things: 47% of buyers report that they would like to be able to virtually try on clothes before buying them.
The previously proposed retail VR applications place much more emphasis on drawing attention to the brand than on consumer experience, using new technologies as a means of tactics. One example of this approach is Balenciaga, a luxury brand that gave its fans the opportunity to watch the defile using VR shows on youtube . Another example is the American retail giant Gap, which recently presented an AR-application , which allows buyers to evaluate how the virtual sample of clothes at home will look like before an order. Nevertheless, no player has yet translated into practice the strategic potential of VR, which allows buyers to simplify the process of making purchases or take advantage of their buying impulses.
The next logical step for AR and VR in retail is the introduction of the possibility of payment in a virtual environment. Currently, 61% of buyers consider the high price of helmets the most important obstacle to making virtual payments. At the same time, 42% are most concerned about the security of such payments. However, if the decline in the cost of virtual devices is a natural and irreversible process, then the search for ways to ensure a sense of security in virtual environments should become a priority for both brands and payment systems.
The heightened interest in VR and AR from the younger generations seems to be quite natural: 67% of respondents from the age group of 25–34 years have expressed a desire to interact with brands with the help of these new technologies. The level of interest also varies greatly from market to market. If in general in various countries of the world, only one in four customers admits that they would be more inclined to make immediate purchase decisions, in China this figure rises to 49%. The level of distribution in some markets is also noticeably small, but like the situation with mobile technologies, VR payments will soon also become quite common.
Improving VR payments
In order for the line between real and virtual brands to disappear completely, the experience of buying goods or services in a virtual environment should become as simple as regular payment with a credit card in a physical store or an ordinary online payment.
A previous Worldpay study of online payments on how brands should create an e-commerce site showed that customers want more and more confidence in the security of their transactions. The same is true for purchases made in AR or VR environments: security and calm confidence are paramount.
However, at the moment, consumer confidence in the comfort of VR is low. Concerns about the security of AR and VR payments are the second biggest barrier that keeps consumers from making purchases using these technologies, second only to the high cost of VR devices.
Such discomfort is quite normal for new, unfamiliar technologies and, as in the case of shopping on mobile devices, consumer concerns will gradually disappear as soon as the convenience of VR payments outweighs the possible risks in people's minds.
The task to be solved in the near future is to make consumers feel safe when making VR payments.
Methods may be similar to those used today when making online purchases, but the data entry mechanism will require careful setup. For example, how will buyers enter their payment information into the system to complete the transaction? Obviously, they cannot pronounce them publicly, since they cannot know for sure that there is no one around when a VR helmet is worn over the buyer’s head. Another option is to enter data using the virtual keyboard, but this process is still very slow compared to typing on a regular computer or smartphone.
A simpler option is to repeat the experience of entering a PIN code, however, the keyboard must have a random distribution of keys in order to prevent the third-party observers from repeating the buyer's actions. Retinal scans as a security measure are also being studied by experts, but as is the case with fingerprint identification on a smartphone, it will take time for consumers to begin to feel at ease with this method.
Either way, the user experience will either change VR for the better, turning the technology into a suitable payment platform, or force it to leave the stage, as the need to constantly “switch” between the helmet and the smartphone or between the helmet and the gaming console simply won't stand the objective test. Consumers want to be able to search for products and pay for them within the same interface. The starting point for retailers should be to work to eliminate security concerns and data entry tasks, since only by the results of this work can we speak about the emergence of a solid user interface necessary for the success of sales of goods and services in the new virtual environment.
Source: https://habr.com/ru/post/322796/
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