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How are AR and VR enhancing customer brand experience?

How are AR and VR enhancing customer brand experience?
How are AR and VR enhancing customer brand experience?

AR VR Branding

Immersive Brand Experiences

Augmented Reality Design

Virtual Reality Marketing

Innovative Marketing Strategies

AR VR Branding

Immersive Brand Experiences

Augmented Reality Design

Virtual Reality Marketing

Innovative Marketing Strategies

Written by:

5 min read

Updated on: August 22, 2024

Toni Hukkanen

Head of Design

Creative Direction, Brand Direction

Toni Hukkanen

Head of Design

Creative Direction, Brand Direction

Technology keeps racing ahead, and let’s face it, people now crave experiences and trends that feel uniquely personal every time they shop. It’s no surprise that businesses are weaving in AR and VR branding to keep customers excited and coming back for more. There’s a compelling statistic that shows 70% of consumers want brands to adopt these immersive brand experiences—enough reason to see why it’s a wise step for many organisations.

Below, we’ll explore how augmented reality (AR) and virtual reality (VR) tap into consumers’ emotions and boost brand loyalty and how these tech-driven shifts can revitalise your connection with customers.

Technology keeps racing ahead, and let’s face it, people now crave experiences and trends that feel uniquely personal every time they shop. It’s no surprise that businesses are weaving in AR and VR branding to keep customers excited and coming back for more. There’s a compelling statistic that shows 70% of consumers want brands to adopt these immersive brand experiences—enough reason to see why it’s a wise step for many organisations.

Below, we’ll explore how augmented reality (AR) and virtual reality (VR) tap into consumers’ emotions and boost brand loyalty and how these tech-driven shifts can revitalise your connection with customers.

Introducing augmented reality

Introducing augmented reality

Augmented reality (AR) sprinkles digital elements into the physical world, often so convincingly that it feels borderline magical. Consider Pokémon Go: virtual creatures pop up on your phone as if they’re roaming right beside you. It’s part game, part AR performance—and it’s ridiculously fun.

In plain language, AR adds digital visuals to whatever you’re actually seeing. Picture arrows guiding your path in real-time or an app that overlays a new sofa onto your living room floor before you buy it. Plenty of people use AR daily—Google Maps even features a Live View mode that places direction arrows on your real-world surroundings.

Augmented reality (AR) sprinkles digital elements into the physical world, often so convincingly that it feels borderline magical. Consider Pokémon Go: virtual creatures pop up on your phone as if they’re roaming right beside you. It’s part game, part AR performance—and it’s ridiculously fun.

In plain language, AR adds digital visuals to whatever you’re actually seeing. Picture arrows guiding your path in real-time or an app that overlays a new sofa onto your living room floor before you buy it. Plenty of people use AR daily—Google Maps even features a Live View mode that places direction arrows on your real-world surroundings.

What is virtual reality?

Virtual reality (VR) is a completely different ballgame. Where AR adds digital features to your normal surroundings, VR swaps them out for an entirely digital environment. Slip on a VR headset, and you might find yourself in a sci-fi lab, a mythical forest, or a rollercoaster simulation—all while still standing in your living room. Some theme parks have caught on by offering VR rides that let you twist and turn without leaving solid ground.

By blending 3D sound, responsive digital objects, and a 360-degree view, VR is already shaking up everything from gaming to brand marketing. It’s designed to grab your attention from the second you put on that headset. If that doesn’t spark your curiosity, maybe you need a better headset.

Virtual reality (VR) is a completely different ballgame. Where AR adds digital features to your normal surroundings, VR swaps them out for an entirely digital environment. Slip on a VR headset, and you might find yourself in a sci-fi lab, a mythical forest, or a rollercoaster simulation—all while still standing in your living room. Some theme parks have caught on by offering VR rides that let you twist and turn without leaving solid ground.

By blending 3D sound, responsive digital objects, and a 360-degree view, VR is already shaking up everything from gaming to brand marketing. It’s designed to grab your attention from the second you put on that headset. If that doesn’t spark your curiosity, maybe you need a better headset.

Role of AR and VR in branding strategies

AR and VR have changed consumer buying behaviour. Their influence can be seen in retail, product demos, and entire brand campaigns. Businesses hungry to set themselves apart have embraced these technologies as powerful assets in their marketing mix.

Role of AR and VR in branding strategies

Immersive storytelling technique

Great storytelling makes your brand memorable, and AR or VR can take storytelling to the next level. Traditional channels—like videos or banner ads—have done a decent job, but AR and VR can be even more captivating. If a child points a mobile phone at an action figure on a shelf, and that figure suddenly comes alive with an interactive story, the “wow” factor is off the charts. This kind of storytelling ignites curiosity, drives consumer interaction, and often leads to higher conversions.

Using gamification for marketing

People enjoy a good challenge, and that’s where gamification steps in. Brands can launch AR apps that let shoppers collect virtual tokens around a store or complete mini-tasks to win discount coupons. It sounds playful, but the results are hard to ignore: around 70% of global companies have used some form of gamification, reporting a 47% surge in consumer engagement and a 48% boost in employee participation. Turning shopping into a game can give customers a reason to spend more time with your brand—and that spells better brand visibility.

Ability to host virtual events

After widespread lockdowns, online meetups became standard. AR and VR have taken them a step further by letting brands host entire events in virtual spaces. The Metaverse Fashion Week 2024 is a prime example, where designers can showcase collections on a digital runway, and audiences can “attend” from anywhere in the world. Not only does this open up your event to a bigger crowd, but it also lets guests experience the show in a more personal way. Some businesses even set up virtual offices or meeting rooms, boosting employee satisfaction without geographic limits.

AR and VR have changed consumer buying behaviour. Their influence can be seen in retail, product demos, and entire brand campaigns. Businesses hungry to set themselves apart have embraced these technologies as powerful assets in their marketing mix.

Role of AR and VR in branding strategies

Immersive storytelling technique

Great storytelling makes your brand memorable, and AR or VR can take storytelling to the next level. Traditional channels—like videos or banner ads—have done a decent job, but AR and VR can be even more captivating. If a child points a mobile phone at an action figure on a shelf, and that figure suddenly comes alive with an interactive story, the “wow” factor is off the charts. This kind of storytelling ignites curiosity, drives consumer interaction, and often leads to higher conversions.

Using gamification for marketing

People enjoy a good challenge, and that’s where gamification steps in. Brands can launch AR apps that let shoppers collect virtual tokens around a store or complete mini-tasks to win discount coupons. It sounds playful, but the results are hard to ignore: around 70% of global companies have used some form of gamification, reporting a 47% surge in consumer engagement and a 48% boost in employee participation. Turning shopping into a game can give customers a reason to spend more time with your brand—and that spells better brand visibility.

Ability to host virtual events

After widespread lockdowns, online meetups became standard. AR and VR have taken them a step further by letting brands host entire events in virtual spaces. The Metaverse Fashion Week 2024 is a prime example, where designers can showcase collections on a digital runway, and audiences can “attend” from anywhere in the world. Not only does this open up your event to a bigger crowd, but it also lets guests experience the show in a more personal way. Some businesses even set up virtual offices or meeting rooms, boosting employee satisfaction without geographic limits.

How AR and VR enhance customers' brand experiences?

Industry projections show the VR market at around $15.9 billion in 2024, with estimates pointing to $38 billion by 2029 (a 19.1% jump). It’s safe to say demand for immersive brand experiences is set to climb higher. By weaving AR and VR into their strategies, brands can create:

How AR and VR enhance customers' brand experiences?

Increases customer engagement

Research indicates that 64% of customers feel more loyal to a brand that integrates AR into its campaigns. Meanwhile, 71% say they’d be willing to shop more if their favourite brands offered AR-driven experiences. Those are meaningful numbers. Whether it’s helping customers navigate a tricky store layout or letting them visualise products at home before buying, AR and VR add that spark of convenience and fun that helps you stay one step ahead of competitors.

Provides personalised services

Customers love individuality—76% say they’re more likely to buy from a brand that offers services shaped around their personal needs. With AR, they can virtually try on anything from shoes to furniture, while advanced apps show product suggestions based on browsing history. This level of personalisation can make customers feel valued and more inclined to return.

Builds an emotional connection

Immersive brand experiences do more than just amuse; they can forge stronger emotional ties between a brand and its audience. VR can transport users into a digitally created world where your brand’s values and backstory feel much more real than a static ad ever could. These encounters have a lasting effect, often sparking feelings of excitement or inspiration that make people remember you long after they remove the headset. It’s hard to replicate that impact through more traditional media channels.

Industry projections show the VR market at around $15.9 billion in 2024, with estimates pointing to $38 billion by 2029 (a 19.1% jump). It’s safe to say demand for immersive brand experiences is set to climb higher. By weaving AR and VR into their strategies, brands can create:

How AR and VR enhance customers' brand experiences?

Increases customer engagement

Research indicates that 64% of customers feel more loyal to a brand that integrates AR into its campaigns. Meanwhile, 71% say they’d be willing to shop more if their favourite brands offered AR-driven experiences. Those are meaningful numbers. Whether it’s helping customers navigate a tricky store layout or letting them visualise products at home before buying, AR and VR add that spark of convenience and fun that helps you stay one step ahead of competitors.

Provides personalised services

Customers love individuality—76% say they’re more likely to buy from a brand that offers services shaped around their personal needs. With AR, they can virtually try on anything from shoes to furniture, while advanced apps show product suggestions based on browsing history. This level of personalisation can make customers feel valued and more inclined to return.

Builds an emotional connection

Immersive brand experiences do more than just amuse; they can forge stronger emotional ties between a brand and its audience. VR can transport users into a digitally created world where your brand’s values and backstory feel much more real than a static ad ever could. These encounters have a lasting effect, often sparking feelings of excitement or inspiration that make people remember you long after they remove the headset. It’s hard to replicate that impact through more traditional media channels.

Challenges of using AR and VR in branding

Although the excitement around AR and VR is definitely real, there are hurdles to consider before implementing these technologies. A few of the most common ones are:

Challenges of using AR and VR in branding

Technological accessibility

AR experiences are often easy to access via smartphones or tablets. VR headsets, however, can be pricey, which narrows down the group of potential users. Add in the need for a fast internet connection—especially in certain regions—and you’ll see that not everyone can comfortably adopt VR technology. This can affect how widely you can roll out a VR campaign, especially if you aim to reach a market with limited resources.

Financial limitations

High-quality AR or VR experiences aren’t cheap. Development costs can vary, but figures of $50,000 to $500,000 (and beyond) aren’t unheard of, depending on complexity and visual fidelity. Smaller companies might find that cost daunting, and cutting corners often leads to compromised user experiences. Competing with large organisations that have deep pockets can feel like an uphill battle.

Technical debt

Some businesses try to sidestep big development costs or speed up production by using stopgap fixes. Unfortunately, these shortcuts can lead to long-term technical debt, which is expensive to fix later. If a patchy VR solution is rolled out and breaks frequently, future repairs may cost even more than doing things properly from the start. In extreme cases, it can undermine brand credibility.

Skill and training

It’s one thing to want AR or VR in your campaign; it’s another to actually build or maintain it. Specialists in 3D modelling, immersive brand experiences, and coding for AR/VR are in high demand, so they can be tricky to find. Training existing staff can also be an option, but it demands time and money. On top of that, your marketing team might need new approaches to manage these interactive experiences effectively.

Although the excitement around AR and VR is definitely real, there are hurdles to consider before implementing these technologies. A few of the most common ones are:

Challenges of using AR and VR in branding

Technological accessibility

AR experiences are often easy to access via smartphones or tablets. VR headsets, however, can be pricey, which narrows down the group of potential users. Add in the need for a fast internet connection—especially in certain regions—and you’ll see that not everyone can comfortably adopt VR technology. This can affect how widely you can roll out a VR campaign, especially if you aim to reach a market with limited resources.

Financial limitations

High-quality AR or VR experiences aren’t cheap. Development costs can vary, but figures of $50,000 to $500,000 (and beyond) aren’t unheard of, depending on complexity and visual fidelity. Smaller companies might find that cost daunting, and cutting corners often leads to compromised user experiences. Competing with large organisations that have deep pockets can feel like an uphill battle.

Technical debt

Some businesses try to sidestep big development costs or speed up production by using stopgap fixes. Unfortunately, these shortcuts can lead to long-term technical debt, which is expensive to fix later. If a patchy VR solution is rolled out and breaks frequently, future repairs may cost even more than doing things properly from the start. In extreme cases, it can undermine brand credibility.

Skill and training

It’s one thing to want AR or VR in your campaign; it’s another to actually build or maintain it. Specialists in 3D modelling, immersive brand experiences, and coding for AR/VR are in high demand, so they can be tricky to find. Training existing staff can also be an option, but it demands time and money. On top of that, your marketing team might need new approaches to manage these interactive experiences effectively.

How can AR and VR affect customer loyalty?

Despite these obstacles, AR and VR still hold strong potential for boosting loyalty. Modern consumers have seen plenty of traditional adverts and promotional emails, so switching things up with immersive brand experiences can really capture their attention.

How can AR and VR affect customer loyalty?

By increasing brand affinity

There’s no substitute for the sense of belonging a customer feels when they can step into a digital portrayal of a product, service, or holiday package. Some travel companies let potential customers “walk through” accommodations or landmarks via VR to get a feel for what they’d actually experience on their trip. According to recent stats, 75% of people claim they feel a deeper connection to a brand after participating in AR or VR sessions. That’s a promising figure for anyone looking to stand out.

Enhancing customer retention

Once a customer bonds with a brand through a memorable AR or VR encounter, they’re more inclined to stick around. Whether it’s an app that sends each user personalised product suggestions or a VR experience that previews a future purchase, well-executed immersion can make repeat visits more appealing. Some organisations have noted sales jumps approaching 90% when AR or VR strategies are part of their offerings—a clear win for any brand that wants to hold on to customers.

Despite these obstacles, AR and VR still hold strong potential for boosting loyalty. Modern consumers have seen plenty of traditional adverts and promotional emails, so switching things up with immersive brand experiences can really capture their attention.

How can AR and VR affect customer loyalty?

By increasing brand affinity

There’s no substitute for the sense of belonging a customer feels when they can step into a digital portrayal of a product, service, or holiday package. Some travel companies let potential customers “walk through” accommodations or landmarks via VR to get a feel for what they’d actually experience on their trip. According to recent stats, 75% of people claim they feel a deeper connection to a brand after participating in AR or VR sessions. That’s a promising figure for anyone looking to stand out.

Enhancing customer retention

Once a customer bonds with a brand through a memorable AR or VR encounter, they’re more inclined to stick around. Whether it’s an app that sends each user personalised product suggestions or a VR experience that previews a future purchase, well-executed immersion can make repeat visits more appealing. Some organisations have noted sales jumps approaching 90% when AR or VR strategies are part of their offerings—a clear win for any brand that wants to hold on to customers.

Frequently Asked Questions

Can small businesses afford AR and VR marketing?

Smaller companies can start with less expensive AR options, such as mobile-based features or social media filters, and expand if they see strong returns.

What kind of tools are needed to experience AR and VR?

AR often works on basic smartphones and tablets. VR, by contrast, usually relies on a specialised headset. Recent advances have made VR a bit more accessible, but it still requires dedicated hardware.

Is AR and VR experience safe to use for everyone?

It’s generally safe, but certain users may feel uneasy or motion sick during extended VR sessions. Businesses should give clear guidance to ensure a positive experience, especially for those trying it for the first time.

Conclusion

Tapping into AR and VR might feel like stepping into uncharted territory—just like ditching landlines for smartphones. With the right investment and planning, these immersive experiences can capture an audience’s imagination in ways standard marketing can’t. Yes, it may take time and resources, but if your brand is ready to pair creativity with a thoughtful AR/VR strategy, you’ll see returns that far outweigh the hurdles. And your customers? They’ll remember exactly who made their reality just a little more vivid.

Frequently Asked Questions

Can small businesses afford AR and VR marketing?

Smaller companies can start with less expensive AR options, such as mobile-based features or social media filters, and expand if they see strong returns.

What kind of tools are needed to experience AR and VR?

AR often works on basic smartphones and tablets. VR, by contrast, usually relies on a specialised headset. Recent advances have made VR a bit more accessible, but it still requires dedicated hardware.

Is AR and VR experience safe to use for everyone?

It’s generally safe, but certain users may feel uneasy or motion sick during extended VR sessions. Businesses should give clear guidance to ensure a positive experience, especially for those trying it for the first time.

Conclusion

Tapping into AR and VR might feel like stepping into uncharted territory—just like ditching landlines for smartphones. With the right investment and planning, these immersive experiences can capture an audience’s imagination in ways standard marketing can’t. Yes, it may take time and resources, but if your brand is ready to pair creativity with a thoughtful AR/VR strategy, you’ll see returns that far outweigh the hurdles. And your customers? They’ll remember exactly who made their reality just a little more vivid.

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Work with us

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work@for.co

FOR® Agency

Design Trial
Coming soon

FOR® Industries

Retail
Finance
B2B
Health
Wellness
Consumer Brands
Gaming
Industrial

We’re remote-first — with strategic global hubs

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