The use of virtual reality has been a hot topic for the past few years, and we are beginning to see fast growth in the immersive space. The common thread illustrates "cool & fun" uses for 360° Virtual content. However the Yellow Elephant in the room for many CEO's is "what is the real benefit ?" Company leaders want to know how does virtual reality help cut cost, and increase sales. "Where is the money ?"
Compared to the traditional methods of marketing and business development, through print and visual (2D). Virtual reality presents itself as a versatile tool, that once implemented forms a new bridge between understanding (knowledge) and practical application (psychological behaviour). This bridge can now be crossed more readily between company and customer, or workforce and organisation.
To understand Virtual Reality and its dynamic capabilities, lets begin with the numbers. To substantiate there is growth, and for good reason. There are many reports on the numbers indicating growth, here is one I found providing great insight. (2019)
As the sector profiles and use cases demonstrate, companies can now use immersive technologies to resolve long-standing challenges and increase productivity, reduce costs and ensure staff safety. As the uptake of 5G becomes widespread, so the power and sophistication of these services will increase, particularly with high capacity and low latency mobile data. This market growth and increasing commercial use is creating opportunities for a new generation of specialist immersive technology and production companies.
As a means to showcase just how rapid things are moving here you will find a more recent analysis,
even if you don't like number crunching, take a skim read, to understand that VR is confidently being used across the board. However the common challenge mentioned is with VR being in its baby form, there is not enough expertise to efficiently adapt it uses to corporate needs, in adequate timing without "wasting money".
We have now established growth, which is all good and well. The question still remains.
To answer the posed question we must first understand that Virtual Reality, allows us to blur the lines between real and immersive worlds. The more we dive into the immersive, we are drawn closer to creating more in depth impact at a core level.
To effectively benefit from virtual reality, the core of humanity must be made paramount. As Virtual Reality pulls on the strings of our emotions and feelings. The benefits are not transferrable to monetary gain in traditional ways that we may be used to. The model: of spending X for a period of Y = a return of Z. A new model must be adapted with the information we have currently have, to position in a way that you can transfer feelings into tangible assets. An updated model that indicates. When X (person/people interact) with (us) A we provide the (feeling) B they are left with Z (experience). You can now establish your brand/message parallel to the feeling you desire to convey.
It is the {end user experience} that becomes the memorable asset. It is here where monetisation can then be strategized. With the right strategy to now maintain your branded experience or company culture, you can now guide exponential results.
X + A * B = Z
X - customer/client/workforce
A - Company/brand/message
B - feeling/understanding/insight
Z - end experience
In turn this can be expressed by the inverse with core feelings as the foundation to the equation
With more patience and foresight we will then see P = (X+A) *B -Z or B to the power of Z.
P representing the long term effectiveness and gain / saving through the use of Virtual Reality.
This mathematical maze is only used as an illustrative example to help understand the the benefits though can be reaped short term moreover can be harvested in full through long term 5 - 10 years. Based on the short term findings.
Here are some examples:
1. Workforce Training
You may be familiar with Virtual Reality being used for training purposes as a growing practice, but why? Is it only to showcases its uses as cool? What are the benefits here.
Traditional:
Creating a complete workforce training programme can cost an average of £700 per employee (UK). Triple the amount in more specialised fields i.e.. finance, oil & gas. Not to mention the amount of time these programmes can take to make. With a disastrous end result with less than 50% of the information being retained. Which can lead to losses over longer periods of time (accidents, law suits, lack of product or service knowledge) having to continually create training with the same effect.
Virtual Reality:
Virtual Reality training programmes can be created within 24 - 48 hrs with the option for continually updates to programmes, aligned analytics can now highlight areas in which employees struggle as well as the decisions taken. This information can easily be represent by automated reports. As immersive training is closer to the core of human interaction, indicated by research in neuroscience and psychology it has been revealed that the brain creates a mental map of an environment via the information it collects through our five senses.
The information then becomes part of our perception of reality. The more information we get through the senses, the more developed the mental maps become. Enabling higher information retention as well as better decision making over time.
2. Advertising and Marketing:
Traditional:
Marketers spend millions a year, only to create seconds of impact. Though tried and tested it is not always effective, resulting in marketing managers taking huge losses. Marketing campaigns can often miss the mark, with the time taken to create a message. Only to have your desire audience lack information retention or a loss in understanding the product, which in turn drives purchasing power. Though traditional methods use core feelings as part of strategy these feelings are not easily transferable to it's consumers.
Virtual Reality:
With the ability to create your branded environment, consumers are now able to interact with your desired experience, not only increasing time spent in / interacting "TSI". Virtual environments allow users to browse at their own will, marketing can be presented in more than one form
Product Placement
Virtual Store Front
Interactive Video
The benefit here is not only the increased time spent interacting with your company, but the likely hood of return customers to experience the feeling that your brand provides.
3. Walkthrough
There is not initially a traditional version to this method of Virtual Reality, the closest example would be personal tour guides or personal shopping experiences. Virtual reality walk through tours are similar to virtual store fronts, the difference is that you can now tailor moments and scenarios that can be personalised to your target audience. The most common example of this would be in real estate.
House viewings can be tailored to potential buyers needs, as well as including relevant information resources, and guides. check out the example here
This use of Virtual Reality can be transferred in other areas,
Retail - Ralph Lauren Virtual Experience
Art - The National Gallery
Safety/Education - Training Solutions
I hope this article has brought you more insight and understanding to the benefits virtual reality in business poses.
A concluding note, as that we push further into this space, from my experience and practice of using virtual reality it is essential that feelings and the cores of human nature must be prioritised when using virtual reality. This not only aids in creating positive and comfortable user experiences, but helps to shape a model for the market place in which billions of lives are to be impacted productively.
As a trailblazer in the virtual reality space, it is my intention to inspire, and educate about virtual reality. I know that the common discussion I have had with clients, often falls with uncertainty about returns. There are substantial returns Virtual Reality is not a gimmick.
This article is to dispel the myth that virtual reality is a gimmick. The rewards require patience.
As well as clear strategies to communicate clearly, virtual reality is a way to shape and mould feels of a consumer, workforce or idea.
If you have more questions, thoughts or would like to create the right strategy using Virtual Reality,
book your free demo here GXI360
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