5 Facts You Should Know About Extended Reality

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In today’s fast-paced world, immersive technologies that extend reality or create a new reality for users are becoming mainstream options. Especially in the business landscape. Moreover, the Covid-19 pandemic has accelerated how companies are transforming their operations through extended reality technology to connect with today’s hyper-connected customers.

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According to a recent report, the extended reality (XR) market size is expected to reach 300 billion U.S. dollars by 2024. This surges increasing demand for extended reality in different industries. Only by opting for extended reality (XR) technology can companies increase operational efficiency, reduce costs and drive more revenue. Moreover, it allows them to interact with their customers in new ways. You can not forget about the sophisticated customer experience you provide thanks to XR!

Sounds interesting, right? Let’s dive into the details below!

What Exactly Is an Extended Reality (XR)?

Generally, we utilize extended reality (XR) as an umbrella term for virtual reality (VR), augmented reality (AR), and mixed reality (MR) technologies. Being the main pillars of immersive technology, they extend the reality we experience by merging both “real” and virtual worlds.

Let’s take a closer look at these technologies below:

  • Virtual Reality (VR): this technology constructs a whole new virtual world by merging the physical environment with the digital one. All thanks to a head-mounted display (HMD) or VR headsets that deliver a 360-degree view of the digital world.
  • Augmented Reality (AR): this technology allows to connect the physical environment with the constructed virtual environment through AR glasses, tablets, smart lenses, and smartphones.
  • Mixed Reality (MR): this technology brings together the virtual and the physical environments through MR headsets. This allows users to interact with and manipulate both physical and virtual items and environments.
extended_reality_xr

Picture 1. The MR spectrum

Industries Transformed by Extended Reality (XR) Technology

Immersive technologies, including AR, VR and MR are developing at a rapid rate. They are transforming how businesses in different sectors operate, communicate and collaborate. Here we have provided a list of business industries that have been changed by extended reality technology:

  • Education and training
  • Marketing and advertising
  • Real estate
  • Manufacturing and engineering
  • Retail
  • Healthcare
  • Art
  • Gaming

Let’s face it. Any field can only benefit from implementing XR into it’s business processes. 

For example, EYE-SYNC uses only the best of XR; VR goggles with eye-tracking abilities to test for visual impairments. An additional example from healthcare is 3D surgical preparation that is now available thanks to XR. Doctors can test movements necessary for performing operations in an XR setting. This allows them to be more prepared when it’s time for the real deal. From games that are made for the youngsters to explore everything around them or to help you visualize new furniture in your home. Possibilities with extended reality are endless!

Interesting Facts About Extended Reality (XR)

Here we are going to fully grasp the facts you probably didn’t know about extended reality (XR) technology. Keep on reading!

1. XR Technology Cultivates Brand Awareness

With fierce competition, it is getting more difficult to grab the attention of potential customers. Moreover, launching new products and services is not enough if you want to grow your business. With the help of XR technology, you can deliver unique experiences for users. You can build brand awareness and foster consumer loyalty.

That’s why more and more brands opt for AR-powered apps! They provide a standalone experience for users. Integrate in-store location-based applications to encourage a seamless “try before you buy” approach.

For example, the AR-fueled apparel and accessories try-on app from Gucci consistently promotes positive experiences with the brand. Not only does it help brands capture the attention of the customers, but it also promotes positive experiences with the brand.

2. XR Technology Increases Engagement

Deloitte’s report cites that almost 90% of companies are now leveraging AR or VR technology in their business. Another study shows that 40% of customers are ready to pay more for a product if they can experience it through AR technology. Also, 58% of customers are more likely to buy a product or service if they have tried it out.

Thanks to extended reality technology, customers get more detailed information and visualization about the products and services. Not only does it help them virtually try out items in various colors or combinations, but they can also test out different patterns and colors on items before making a purchase. With XR technology implemented, brands can attract more customers and increase engagement rates while ensuring a positive experience for consumers.

3. XR Technology Provides Convenience

It’s no secret that online shopping is getting increasingly popular day by day in terms of convenience. With extended reality technology, brands can enhance the shopping experience and make it less time-consuming. Not only does it help consumers reduce the time spent on searching for a particular product or service, but it can eliminate uncertainty from purchase decisions.

For example, the IKEA Place app lets users ‘place’ furniture in their home with just their phone or tablet. As you see, this significantly improves the level of convenience, removes friction before purchase, and delivers a better customer experience.

4. XR Technology Delivers a Groundbreaking Simulation

Thanks to the extended reality (XR) technology, you can provide an immersive training experience and offer hands-on practice. Not only does it help companies train their employees by transporting them to the store floor and engaging with customers they may encounter, but they can also learn how to provide excellent and empathetic services for a great number of personality types.

Only by using extended reality can brands help their employees walk in the shoes of their customers and teach them how to serve consumers better and deliver a more personalized customer experience.

5. XR Technology Creates Positive Associations

With extended reality solutions in place, brands can create and implement a plethora of exciting and emotional campaigns to present products in new ways. Based on the set of unique visual cues you show in your brand campaigns, you encourage consumers to draw conclusions about the qualities of your brand.

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Not only does it help you connect with your audience in a way that activates their emotions, but it allows you to produce positive brand association. Once a consumer creates a positive association, they begin to prefer your brand over other similar brands and establish loyalty. For example, the North Face outdoor apparel brand launched an immersive VR experience of the Nepal landscape to allow customers to identify with the brand’s identity.

XR Technology Challenges

Unfortunately, brands may face some challenges when implementing XR technology. Let’s take a closer look at them below:

Consumer data and privacy issues: when using XR technologies, brands collect and process detailed personal data,  locations, and behavior. This helps them identify users’ preferences, deliver targeted advertising and content, etc. However, customer data can be compromised or stolen. With that in mind, brands should focus on data protection to avoid personal data breaches.

High Cost: unfortunately, the cost of XR technology implementation is high. While AR technologies, like social media filters, are accessible for any smartphone user, VR and MR technologies require expensive equipment to be used. This provides some difficulties for brands when investing in XR technology.

Difficulties in licensing technology and IP:  the issue of using third-party IP may happen if you don’t have appropriate licenses for any third-party imagery, characters, music, and other content used in your XR products.

 Potential infringement: with the rapid growth of a variety of software solutions, there are new possibilities for competitors to infringe or otherwise violate a brand’s XR-powered software solution.

Ready to Bring XR to Customer Experience?

In today’s tech world, customer experience is becoming a differentiator in customers’ relationships with brands. Today’s customers expect a more intuitive experience from their brands. Moreover, they are becoming more open to the concept of trying all kinds of extended reality.

With that in mind, brands started to recognize the game-changing abilities to introduce XR technology into their operations. Virtual demonstrations, holographic products, try-before-you-buy approach are just small samples of the potential XR can deliver to your business! Be brave and try to implement extended reality in your business. We are sure it will have a great impact on the ones most important in every business field- customers!

Bogdan Ivanov is a CTO at DDI development. He is a professional with an advanced degree in software development, and 7 years of experience in building a technology strategy for all the company’s projects. He has a deep understanding of emerging technologies, network security, compliance, and operational security.

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5 Facts You Should Know About Extended Reality was last modified: July 1st, 2021 by admin
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