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  • Writer's pictureVineet puri

The Importance of Virtual Reality (VR) and Augmented Reality (AR) in Customer Experience (CX)

Updated: Dec 20, 2023




In today's digital age, customers have come to expect personalized and engaging experiences from the brands they interact with. Companies have responded by investing in new technologies to enhance the customer experience, and virtual reality (VR) and augmented reality (AR) are among the most promising. VR and AR are already being used in a variety of industries, from gaming and entertainment to education and training, and they have the potential to transform customer experience in many ways.


Virtual reality, which creates a fully immersive computer-generated environment, and augmented reality, which overlays digital information in the real world, can provide customers with new ways to engage with brands and products. They allow customers to explore products and services in a more interactive and engaging way, and they can create more meaningful connections between customers and brands.


For example, retailers can use VR and AR to let customers "try on" clothes and accessories without ever having to leave the store, while home builders can use VR to give customers a virtual tour of a home before it's built. Automotive companies can use VR to let customers test-drive cars from the comfort of their own homes, and travel companies can use VR to give customers a virtual tour of a destination before they book a trip.


But VR and AR are not just about providing customers with new ways to engage with products and services. They can also be used to improve customer service. For example, customer service representatives can use VR and AR to provide customers with remote assistance, allowing them to "see" what the customer is seeing and provide more accurate and helpful assistance. And VR and AR can be used to provide training for customer service representatives, allowing them to practice handling difficult situations before they have to do it in real life.


Another potential use case for VR and AR in customer experience is product demonstration. For example, an automaker might want to showcase the newest model of a car before it's released. A company might be able to give customers a virtual walk-around of the vehicle, highlighting key features and specifications. Or even let customers customize the vehicle based on their preferences and visualize the end results.


However, VR and AR are still relatively new technologies, and there are some challenges to overcome before they can be widely adopted for customer experience. One major challenge is the cost of VR and AR technology. While the costs of VR and AR headsets are dropping, they are still relatively expensive, and businesses may have to invest significant sums of money to acquire the technology and create content. Additionally, both VR and AR need a high-speed internet connection, which is not available in some regions.


Another challenge is that there is still a lack of standardization in the VR and AR industry. There are multiple platforms and headsets available, and it can be difficult to develop content that works across all of them. This makes it harder for businesses to create a consistent customer experience across different VR and AR devices.


Despite these challenges, VR and AR are rapidly evolving and the technology is becoming more accessible for businesses. As the costs come down and the technology becomes more sophisticated, it's likely that we'll see more and more companies adopt VR and AR for customer experience. For businesses that want to remain competitive, it's important to start thinking about how VR and AR can be used to enhance customer experience and stay ahead of the curve.


In conclusion, VR and AR are powerful new technologies that have the potential to transform customer experience in many ways. They can provide customers with new ways to engage with brands and products, improve customer service, and even provide training for customer service representatives. However, there are challenges to overcome, including the cost of the technology and a lack of standardization in the industry.


Despite these challenges, the benefits of VR and AR in CX are too significant to ignore. As customers come to expect more personalized and engaging experiences, companies that invest in VR and AR technology will be better positioned to meet those expectations. As the technology becomes more widely adopted and user-friendly, it can be implemented in industries such as retail, home building, automotive, travel, education and many more.

It's important for companies to start considering how VR and AR can be utilized to enhance customer experience and create a competitive advantage.


In conclusion, VR and AR are powerful new technologies that are transforming the customer experience. Businesses that want to stay competitive should start exploring how they can be used to enhance the customer experience and create a more personalized and engaging experience for their customers. By investing in VR and AR technology, companies can improve customer satisfaction, increase sales, and create a strong competitive advantage.



Framework 1, that is often used to guide CX efforts is the customer journey mapping framework. This framework involves understanding the different steps a customer goes through when interacting with a company and identifying opportunities to improve the experience at each step. For example, a company can use VR and AR technology to create immersive and interactive experiences for customers during the "discovery" and "evaluation" stages of the journey, where they are first learning about the company and its products or services.


Framework 2, that can be applied is the Experience Automation framework. This framework helps in automating repetitive tasks and providing AI-powered assistance to customer service reps, improving the experience and increasing efficiency. Using VR and AR technology, customer service representatives can provide remote assistance to customers by "seeing" what the customer sees and providing more accurate and helpful assistance.


Framework 3, the Voice of the customer (VOC) framework, can be applied in this context as well. By using VR and AR, companies can gather valuable customer feedback by allowing customers to engage with products and services in a more interactive and immersive way. This feedback can be analyzed and used to improve the customer experience.


In addition, the Design Thinking framework, which is a user-centered approach to problem-solving, can be applied to VR and AR as well. By understanding customer needs and desires, companies can create VR and AR experiences that meet those needs and result in a better overall customer experience.


At the end, while VR and AR technology can significantly enhance the customer experience, it's important to keep in mind that any CX initiative should be grounded in a well thought out CX framework to drive sustainable impact. By taking a holistic and strategic approach, companies can ensure that their investments in VR and AR technology will result in a better customer experience and a competitive advantage in the long run.


SaaS Industry Soars: How CX Transformation Benefits Businesses

The SaaS (Software as a Service) industry can benefit from the use of virtual reality (VR) and augmented reality (AR) technology in several ways:


Improved product demonstration and training: SaaS companies can use VR and AR to provide customers with more interactive and immersive demonstrations of their products. By allowing customers to explore and engage with products in a more realistic way, companies can improve customer understanding of the features and capabilities of their software and increase adoption. Additionally, SaaS companies can also use VR and AR to provide training to customers, which can be more effective and efficient than traditional training methods.


Enhanced customer service: SaaS companies can use VR and AR to provide customers with remote assistance in real-time. For example, a customer service representative can use VR and AR to remotely access a customer's computer, "see" what the customer is seeing, and provide more accurate and helpful assistance.


Increased engagement and adoption: By providing customers with more engaging and personalized experiences through VR and AR, SaaS companies can increase customer engagement and adoption of their products.


Increase customer satisfaction: SaaS companies can leverage VR and AR to improve the overall customer experience by providing a more personalized and engaging experience that meets the customer's needs.


Cost savings: By using VR and AR, SaaS companies can save money by reducing the need for face-to-face interactions, travel, and other expenses associated with traditional customer service and training methods.


Competitive advantage: Companies that are early adopters of VR and AR in their CX strategy can gain a significant competitive advantage over those who are slower to adopt the technology.


However, it is important to note that while the benefits of VR and AR technology in the SaaS industry are clear, implementing them may not be easy. VR and AR technology can be expensive to implement and maintain, and there is still a lack of standardization in the industry. Additionally, creating content and experiences that work across different platforms can be challenging. Therefore, companies should carefully consider the costs and benefits before investing in VR and AR for their SaaS offering.



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