Abstract
Technological developments have advanced significantly. Augmented reality and virtual reality are emerging technologies and rapidly gaining popularity. Augmented reality combines the virtual world with real environment using digital visual elements, sound, or other sensory stimuli delivered via technology and creates an interactive experience. Virtual reality creates a 3D-simulated immersive environment. AR and VR are two sides of a coin. Virtual reality replaces what people see and experience whereas augmented reality actually adds to it. The study aims at understanding applications of augmented reality and virtual augmented technologies for optimizing customer engagement and challenges in implementing these technologies for developing customer engagement. The study being conceptual in nature is based on secondary sources. Efforts have been made to collect literature from every possible source including websites, journals, books, theses, etc.
TopIntroduction
The absence of physical contact is a major barrier that has made customers more reluctant to buy. These are the customers that want to see and test products before spending their money. Immersive technology is attempting to break down barriers and remove constraints. Businesses can use various reality technologies to engage their customers by providing them with a level of customer experience nearly equivalent to when they shop in person.
Figure 1.
Growth in market size of AR and VR
Today, augmented reality enables businesses all over the world to engage with their customers and has become one of the digital world's must-have tools. And its current market growth indicates that this technology will grow at an exponential rate. According to a new report published by Research Dive, the global AR market will grow at a 30.9% CAGR and reach USD 65,323.4 million by 2028. Immersive technology has revolutionized the way companies deliver services and products to customers. This transformation significantly improved level of customer engagement in ways that no other technology could. Consumers can have realistic experiences by immersing themselves in virtual reality before purchasing a product or service. This includes everything from making an inquiry to testing the products they like to purchase, as well as after-sales service. Immersive technology touches all of these aspects, making the engagement more interesting, accurate, and effective. (Padua, 2022)
Immersive technology is divided into the following categories:
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Augmented reality incorporates computer-generated objects into the real world.
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Virtual reality completely alters what customers see and experience by superimposing a computer-generated environment to the real world.
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Mixed Reality combines AR and VR into a single experience.
Figure 2.
Augmented reality and virtual reality
Customer Engagement means persuading customers to get involved in the experiences business build for them (Bansal, 2017). As customers are turning into digital customers and try to communicate with the business via digital mode, businesses have to opt for various digital channels to connect with customers (Bansal & Pruthi, 2021). Creating an inclusive atmosphere is the key principle of developing customer engagement (Bansal & Chaudhary, 2016). Augmented reality improves a customer's engagement by incorporating computer-generated elements. As the customer is not engaging with an entirely different reality, the interaction is only partially immersive. Virtual reality completely isolates a customer from the real environment by immersing them in a virtual environment.
Key Terms in this Chapter
Immersive Technology: Immersive technology is the assimilation of computer-generated content with the physical environment in such a way that the customer can interact with the blended reality naturally.
AR User Manuals: AR user manuals are immersive manuals that portray virtual guidance whenever the device's camera is pointed at a product.
Interactive Packaging: It is a strategy used by businesses to make their customers engage not only with the product inside but also with the packaging.
Customer Engagement: Customer Engagement is the interaction between company and customers through each touchpoint to strengthen the relationship with customers.
Augmented Reality: Augmented reality (AR) is a digitally manipulated version of the real physical world obtained via digital visual elements, sound, or other sensory stimuli delivered through technology.
Virtual Reality: The use of computer modelling and simulation to facilitate customers to engage with an artificial 3D visual or other sensory environment is known as virtual reality (VR).
Beacon Technology: Beacons are special augmented reality technologies that communicate with smartphones and tablets via low-energy Bluetooth connections.