Augmented reality (AR) and virtual reality (VR) are at the forefront of technological innovation in e-commerce, and their potential to transform the UX for the e–commerce industry is nothing short of revolutionary. These immersive technologies promise to provide customers with completely new ways to interact with products and services, which in turn can significantly impact their decision-making process and overall satisfaction.
Augmented Reality
Augmented Reality (AR) is a technology that combines the real world with virtual elements. In AR, we view the physical world through a device, such as a smartphone, with additional digital images, information, or effects overlaid on the real environment. It’s like blending two realities – the real and the virtual – into one visual experience.
One of the key advantages of AR in e-commerce lies in the sphere of experience-based shopping. For example, AR allows customers to try on clothing and accessories virtually, bringing the fitting room experience directly to their homes. Not only does such an attractive product presentation increase customer confidence in making the right choices, but it also reduces the likelihood of returns, which is a major concern for e-commerce companies.
Additionally, AR gives customers the opportunity to visualise products in their own environment. For example, they can see how a piece of furniture fits into their living room or how a new appliance complements their kitchen. This level of interactivity gives customers a greater sense of control and a deeper understanding of the products they are considering, ultimately contributing to more informed purchasing decisions.
Virtual Reality
On the other hand, Virtual Reality (VR) is a technology that immerses the user in a completely virtual world, replacing the reality they see and experience. VR requires specialised equipment, such as VR headsets, which block the user’s field of view, allowing them to be fully immersed in a different virtual environment. There’s no connection to the outside world in VR, as the entire experience takes place within the virtual environment.
Using VR, the idea of a virtual storefront is becoming more and more common. Customers can explore digital replicas of physical stores, navigate the aisles, browse products, and make purchases in a simulated yet highly realistic environment. This not only replicates the in-person shopping experience but also allows companies to expand their reach beyond geographic boundaries.
Virtual Reality (VR) holds tremendous potential to transform the eCommerce experience, yet it faces substantial challenges that temper its widespread adoption. The cost barrier is still significant for many. Therefore, VR remains a hefty investment for the average consumer. The physical design of VR gear also poses a hurdle – it’s often heavy and cumbersome, far from the sleek, almost invisible headset showcased in movies like “Free Guy” that might be the future of this kind of IoT. Another case is that a VR headset should not be worn for a long time as it might cause a headache – this can tell anyone who has ever tried a virtual ride.
For the moment, the prevalence of VR technology is low, limiting its utility for broad applications. Businesses are hesitant to develop 3D virtual stores when only a tiny fraction of customers might engage with them and with no guarantee of purchase. VR’s future is undoubtedly bright, and its possibilities are vast, but until it becomes as lightweight and common as a pair of sunglasses, its role in everyday eCommerce remains a vision not yet fully realized.
AR or VR – Which One is the Future?
In addition to enriching the customer experience, AR and VR have the potential to disrupt the competitive landscape. Companies that successfully implement these technologies can stand out from the competition by offering unique shopping experiences that are memorable and enjoyable even for whole families. This distinctiveness can be a significant factor in attracting and retaining customers, thereby enhancing brand loyalty, extending customer lifetime value, and ultimately driving profitability.
The transformative potential of AR and VR extends to all e-commerce industries, from fashion and interior design to automotive and real estate. The adaptability of these technologies is expanding the horizons of e-commerce, and companies that leverage them can excel in providing customers with innovative, engaging and deeply satisfying online shopping experiences. As AR and VR evolve and mature, their integration with e-commerce will become not just a trend but an integral part of the future landscape of the industry.
However, although AR technology can be widely implemented thanks to the popularity of mobile devices, we haven’t reached the point of common and vast Virtual Reality usage yet. Some futurologists, like Kate Levchuk, see the potential of VR as endless in an AI-driven world but requiring improvements in terms of IoT and wearables. We can expect that if this technology expands and becomes cheaper and lighter, VR might become a part of the everyday shopping experience.
Gamification as a Way to Increase User Retention
Gamification in eCommerce harnesses the compelling elements of game-playing to enrich the online shopping experience, fostering customer engagement and brand loyalty in innovative ways. In the upcoming years, we can anticipate several trends and applications in this arena:
Similar to earning points in games, eCommerce platforms can have reward systems and reward customers for a variety of actions, such as frequent purchases, social shares, or product reviews. These points could unlock special discounts, early access to sales, or exclusive products, driving engagement and repeat business.
Interactive challenges or missions can be set for customers, encouraging them to engage in certain behaviours, like checking out new product collections or participating in community discussions. Completing these could earn them badges, rank advancements, or special perks.
Visual indicators of advancement, like progress bars found in video games, could be implemented to encourage customers to fill their carts to a certain level to unlock a reward or to progress through different levels of loyalty programs.
Time-limited quests can create urgency and encourage daily visits. For example, customers might be invited to find and click on a hidden item somewhere on the site each day, leading to small rewards or entries into larger contests. That can be especially beneficial for FMCG stores.
Allowing customers to personalize their shopping experience or create avatars that earn new features or clothing as they shop can increase the time spent on the site and foster a personal connection to the brand.
Leaderboards can tap into the competitive spirit by showcasing top shoppers or those who have completed certain challenges. This can also be tied to social media, where customers can share their achievements or rank.
Educational games, on the other hand, can help customers understand the products better. For instance, a skincare brand might create a game that teaches customers about skin types and appropriate products, rewarding them with product recommendations or discounts.
Gamification can also build a community around a brand by encouraging users to participate in forums, share their experiences, and help each other. Engaging with the community can earn users special status or rewards.
With the increasing use of mobile devices for shopping, gamification strategies can be specifically tailored for mobile users, utilizing app notifications to engage users with games or challenges on the go.
As gamification strategies grow more sophisticated, the key will be to balance fun and engagement with the ultimate goal of enhancing the shopping experience. Gamification has the potential to make shopping more interactive, rewarding, and personalized, which can lead to increased customer satisfaction and loyalty.
Leveraging the Power of Community: Social Commerce
Social commerce, a dynamic and rapidly evolving concept, has become a powerful force in the e-commerce world – according to Statista, it’s forecasted to exceed the amount of six trillion U.S. dollars by 2030.
This new trend has changed the traditional relationship between consumer and retailer, allowing companies to interact directly with customers on social media platforms. It’s not just about marketing your products on these platforms; it’s about enabling a complete shopping experience within the social media ecosystem.
One of the key benefits of social commerce is the ability to expand your customer base. By being present on popular social networks, companies can reach a wide and diverse audience, reaching potential customers who may not have found their e-commerce sites through search engines and apps. This increases the reach of e-commerce companies, making them more accessible to a global audience.
Moreover, social commerce fosters a deeper level of engagement. Customers can not only discover products but also engage in discussions, share their experiences and look for recommendations in their social networks. What helps users with decision-making is also User–Generated Content (UGC).
User-Generated Content (UGC) refers to any type of content, such as text, images, videos, reviews, or other media, that is created and shared by individuals, users, or consumers. It’s the creator who makes the difference – people like us rather than professional content creators or organizations. UGC is often shared on social media platforms, websites, forums, or other online communities and can play a significant role in marketing, brand building, and community engagement. This level of interactivity can significantly influence purchasing decisions. It’s like shopping in a brick-and-mortar store with friends and family, creating a sense of community and trust around products and brands.
One of the key benefits of social trading is the liquidity it offers. Users can browse, ask questions and make purchases without having to leave their favourite social media platforms. This convenience is becoming increasingly valuable in a dynamic world where reducing steps in the purchasing process is desirable.
Personalisation is another significant benefit. Social media platforms are treasure troves of data, enabling companies to gain a deeper understanding of their customers. With this information, companies can provide personalised recommendations and offers, tailoring the shopping experience to individual preferences without the fear of abusing legal regulations connected with sharing personal data with 3rd-parties.
Fundamentally, social commerce is not just a trend – it is a transformation of how e-commerce works. By integrating shopping directly with social media platforms, companies can leverage the power of social interaction and community building to attract and retain customers. This new paradigm represents a dynamic shift in user experience, offering a more immersive and interactive way to shop, fostering brand loyalty and pushing e-commerce into an exciting and promising future.