XR: Not Just a Shiny Object
The conversation could be around "should we have a presence in the metaverse?" or "what role might blockchain play in our business model and customer journey?"
The reality is that scalable XR use cases in B2C and B2B sectors are delivering eye-opening improvements in business results and efficiencies at this very moment. Ori Inbar, founder of Super Ventures and AWE (Augmented World Expo is the largest XR based community and conference series globally), recently provided his perspective on the state of XR today at Traction's Future Proof Project virtual roundtable series, which is an invitation only community of marketing leaders across B2C and B2B verticals focused on Web3 technologies and use cases for businesses.
Ori led with an overview of the evolution in spatial computing as the foundation for XR, and AR truly scaling into B2C and B2C businesses globally. Spatial computing enables immersive 3D experiences that feel more natural and expansive versus 2D. Also, do you don't have to make a decision whether to invest in XR or AR, both technologies seamlessly integrate in many use cases providing a continuum of mixed reality.
XR is a $30B Industry and a significant part of the marketing wallet already with big tech already heavily invested, ranging from Apple, Meta, Snap and Google to Qualcomm, Samsung, Sony, Alibaba and Amazon. 1.5B users globally use some form of XR and AR in their daily lives, with 1.1B socializing in AR, 800M playing in AR, 600M shopping in AR and just 171M utilizing VR (due to the current restrictions of bulky headsets needed to activate VR). Even the headset technology for VR is soon going to evolve into more elegant, smaller and user-friendly VR devices like the upcoming, much anticipated XR device release from Apple.
Let's first look at the business impact in the B2C space, with retail and entertainment being two leading sectors where use cases are vast. Retail brands using AR like Home Depot, Walmart, Samsung, and Sephora, are seeing 4X increases in brand engagement and 11X increases in "try before you buy." This is not only resulting in increased conversion rates and total revenue, but reductions in returns, increased average order value (AOV) and increased LTV. AR also opens up a vast array of new, enriched location-based customer experience options, and 75% of consumers today utilizing AR experiences with brands are satisfied.
On the enterprise side, automotive, oil/gas/utilities, and aviation/aerospace are leading the way in spending on mobile AR productivity. Amazing results are being delivered, like 30-50% increases in productivity on production lines and in distribution and fulfillment networks with the use of AR versus without AR.
As you can see, the mixed reality revolution isn't coming, it's already arrived! The only question is what will be the game plan for your business and team to utilize this technology to not only deliver improved business results, but maintain a competitive advantage?
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