Virtual reality refers to the form of technology that allows humans to experience events generated from a simulated computer reality. Augmented reality, on the other hand, assists in providing data through a live-video or real-time in an artificially created reality. Through technological advancements, firms can merge these realities to generate new realities where physical and digital elements can interact in real-time, and such improvements refer to as mixed reality. Digital developments have also enabled leaders to provide other features such as 360-degree view and interaction in real-time. Extended reality refers to the combination of Virtual Reality, Augmented Reality, Mixed Reality and the 360-degree view through one platform.
Extended Reality Evolves the Retail Industry
Researchers have proven that Extended Reality will redefine the way people interact with technology. It assists retailers to help improve various elements in the corporate environment such as marketing and advertising and training employees. In addition, it also helps in the development of creative products and services and ease of access to customer data.
According to Industry Experts, the Extended Reality market is slowly but continually growing with more companies opting for technologically advanced methods to provide a premium experience. In addition, experts predict that the market will be worth $110 billion by the year 2025. Eighty percent of the executives believe that implementing Extended Reality solutions will help in limiting the factor of distance. Also, this will assist firms in training employees easily as well as bridge any communication gaps between employees and customers.
Advancements in Technology
With the rise of cloud computing, 5G networks and seamless processing of data across multiple digital platforms, it has become effortless for retailers to adopt the technology to update existing technologies and make them more appealing to consumers in the market.
Progress and development in Virtual Reality, Augmented Reality, Mixed Reality and 360-degree video technology will ultimately lead to advancements in Extended Reality technology.
One major limitation of Extended Reality is the cost that retailers incur to acquire, install and continuously update the technology. As a result, this development becomes less appealing to small and medium-sized enterprises. Another major limitation would include the lack of privacy and security of customer data. And lastly, this technology reduces the need for communication and long-term relationship management between employees and customers.
Improving Shopping Experiences
But despite the limitations, Extended Reality technology is proven to attract customers due to the unique and customized experience provided to customers. Studies have shown that more than 55 percent of customers prefer to shop from companies that offer more technologically advanced and personalized merchandise and experiences. Research has also proven that firms that incorporate this technology are more prone to increasing customer satisfaction and retention.
According to a recent market study, firms using technological advancements can gain access to consumer data effectively and efficiently. Therefore, firms can access this information with ease and at real-time due to the advances in cloud computing technology. It also helps to improve the digital presence of a company and increases click-rates online by more than three times.
Although the technology is relatively new, it can still create a new medium of conversation between a company and its customers as well as increase growth and profitability rates of the corporation in the marketplace.
Written By: Binoy Matthew
Lead Code Architect