TRANSPARENCY SERIES ⋕2 How Virtual Reality is Reviving Customer Trust in eCommerce

Virtual Reality, in technical terms, can be described as a three-dimensional, computer-generated environment that can be explored and interacted with by a person that is immersed within this environment. Sometimes a combination of hardware, software and sensory synchronicity achieves something known as a sense of presence, here the subject feels like they are present in that environment and whilst there, can manipulate objects or perform a series of actions.

This technology has become a lot more popular in the last 20 years, but Sensorama patented in 1962, is a great example of attempts at simulating reality in the form of an interactive personal theatre experience. What we know as VR today is mainly the 360-degree video that enables a user to change perspective as they move their head on an HMD (head-mounted display), rooted in the science of stereoscopy. 

How can VR be applied in eCommerce as a solution to the demand by customers for retailers to be more transparent when selling online?

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Shockingly, 77.24% of shoppers abandon their carts before completing a purchase due to shoppers not being fully convinced about buying online, attributed to the fact that they don’t trust the product will look the same when they buy it. By allowing shoppers to “try before they buy”, provides buyers with additional support they need in the awareness phase of the customer journey. For example, home renovation companies and furniture retailers are beginning to experiment with similar processes.

As the covid-19 pandemic has led to national lockdowns, traditionally, people would come to physical stores to perform their errand or a website. But with this technology, there is an opportunity to create a more engaging way of shopping through the creation of a virtual showroom, where customers can visit from the comfort of their homes. One of the major players in this emerging technology is Lowe’s Holoroom, a tool that gives the user a virtually generated mocked-up version to be spatially aware of how their home could look when kitted out with various items or products.

Right now, the world’s biggest tech companies, from Facebook, Google, Sony to Samsung, are locked in an arms race; each of them hoping to develop the most powerful, technologically advanced mobile VR product. On Amazon alone, you can find almost 200 different VR headset devices already available. According to Reportlinker, between 2018 and 2024, driving the virtual reality (VR) market value from $7.9bn to $44.7bn.

The Holy Grail for marketers and eCommerce companies is attracting customers to their store. Whether in a physical or online, using this technology shows strong promise in helping to achieve this goal. VR will also become increasingly important and desirable in any marketing strategy. Jeff Booth, visionary tech leader said it best when he announced that “interaction leads to immersion, and immersion leads to conversion.”

While elements of VR technology can sound futuristic, there are still shortcomings such as how expensive it is, how it may encourage more social isolation and lead to sight-related health problems. Although research is being carried out to counter these challenges, for now, this method of exploration is capable of bridging the “trust gap” that just might have prevented people from shopping online in the past.

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Sources

Welcome to the Future: Virtual Reality in eCommerce

https://blog.smile.io/welcome-to-the-future-virtual-reality-in-ecommerce/

Hong Kong Virtual Reality. (2018). How AR and VR Can Transform Ecommerce

https://www.hongkongvirtualreality.com/transforming-ecommerce-thru-ar-and-vr/ 

3 Ways Virtual Reality Will Transform eCommerce.

https://www.toptal.com/insights/innovation/3-ways-virtual-reality-transforms-ecommerce 

Did You Know... Science Behind VR is Older Than You Think | Litmos Blog.

https://www.litmos.com/blog/articles/did-you-know-science-behind-vr-is-older-than-you-think 
What is Virtual Reality? - Virtual Reality Society

‍https://www.vrs.org.uk/virtual-reality/what-is-virtual-reality.html