How Is XR (Extended Reality) Transforming The Way People Buy Cars
The influence of technology on the world cannot be understated. It has intersected with almost every industry while changing the way businesses function. This has been an outcome of changing customer demands as well as their purchasing habits. The expectations of consumers from businesses in terms of quality, level of service, and speed of service, among other things, have changed as a result of technology.
Therefore, today's brands and businesses have no option but to adopt immersive, cutting-edge technologies to cope with the changing market needs and provide seamless experiences to their customers. According to McKinsey research, enhancing the CX tends to boost sales revenues by 2–7 per cent and profitability by 1–2 per cent.
One such immersive technology that is transforming the customer experience is extended reality or XR. With the changing market dynamics, it has disrupted myriad industries, and the automotive industry is not an exception. It is changing the way people purchase their dream machines. Now customers are getting all the immersive experiences they want in the comfort of their homes, thanks to the emergence of XR.
The "X" Effect: The Transformation of the Buying Journey
Customers today are more connected than ever. With internet penetration and the advent of smart devices, customers’ expectations of their interactions with brands have changed. The days seem like history when people went through 2D websites with static images and videos, which did not cater to any real understanding of the product by the customers. Today, any exceptional experience becomes the expectation of the customer, and XR has enabled a new-age buying journey that is more immersive and intuitive.
XR leverages technology such as AR (Augmented Reality), VR (Virtual Reality), and MR (Mixed Reality) that caters to the needs of customers while enhancing their experience and maximising customer value. It has catered to the demand in terms of contactless and touch-free experiences, which gained traction during the pandemic. When used in conjunction with a 3D product configurator and virtual world experiences such as a virtual car showroom, a virtual test drive, and others, XR can make the customer's journey more engaging on the websites and mobile apps of OEMs as well as dealerships. Overall, it has emerged as a customer-centric approach to make interactions faster, smoother, and more meaningful, as well as a tool for automotive brands to deliver a seamless customer experience.
Immersive Product Visualisation
Through the advent of XR, life has been virtualised in a fresh, imaginative way that goes beyond every day and benefits from a sense of shared presence that cannot be achieved with just images and videos. For the applications in the auto sector, the features of the car are captured using 3D modeling, and WebAR is used to overlay them in any real-world setting, ideally the prospective buyer's home. Automotive brands have adopted XR platforms that allow customers to quickly experience the exteriors of the various variants that are available to them thanks to AR.
Additionally, augmented reality offers users a singular way to view and interact with technical features in a way that they can quickly grasp. Additionally, customers can customize their cars and compare two models, which can simplify the decision-making process. Overall, XR can create a highly immersive experience for clients by making them visualise what a car looks like in different environments.
Seamless In-store Experience
Customers' expectations have changed over time, so XR immerses them in a seamless virtual brand experience while forging relationships with brand consumers. According to a former survey of Accenture, 47 per cent of respondents said that immersive technologies make them feel more connected with products. With the aid of virtual worlds, XR enables the customer's effective participation. Customers benefit from its assistance with product introduction, personalisation, and post-purchase support. They can eliminate the guesswork involved in selecting the right model and vehicle options by having access to VR experiences.
Customers can click a button on their controller while immersed in a virtual reality experience and sitting virtually inside a specific car to instantly change the car's options, including the exterior colour, wheels, and dash colours and configuration. Retail sales staff can also benefit from the technology by offering customers options they might not have considered, which enables them to activate the option and demonstrate its advantages instantly.
Increasing Customer Reach
XR has the potential to completely change the landscape of customer reach. In contrast to virtual reality, which immerses users in made-up environments, augmented reality projects digital content into the real world. Importantly, AR content can be accessed via widely accessible technology, such as smartphones and tablets, so it doesn't require expensive hardware. As a result, automotive dealers can easily interact and connect with potential as well as current customers for alluring business opportunities.
With the help of XR, OEMs, and dealer sales specialists can remotely guide customers as they research and decide which of their products to buy. They can call the customer during this process, connect, and walk the customer through their products in XR while also answering all of the customer's questions. This shortens the retail cycle and strengthens the brand and consumer bond.
All Things Considered
Companies in the fast-paced automotive industry face enormous pressure from continuously appearing revolutionary innovations. Vehicle manufacturers must not only monitor new market trends but also predict and foresee them to stay ahead and provide customers with an immersive experience.
Current market trends can help us understand why it is predicted that XR technology will continue to grow in popularity for a very long time. The automotive retail industry is changing as a result of the use of XR technology by manufacturers and dealers. They have catered to the needs of customers who do not want to visit a car dealership to purchase a car in this digital age. XR reduces the expenses for auto dealers to sell cars while also improving customer accessibility and engagement.
As a result, the market for XR is expected to expand significantly over the coming years, as are the use cases. The global extended reality (XR) market, which reached 29.26 billion US dollars in 2022, is predicted to grow to more than 100 billion US dollars by 2026, according to a Statista report.
.jpg)
