Editorial
The Gist
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Engaging customer experiences. AR and VR help consumers to visualize products, discover services and experience brands in ways that feel interactive and personalized.
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Cross-industry appeal. From virtual product trials to immersive learning experiences, companies in key industries are already integrating VR and AR to enhance CX.
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Major challenges. Limited device availability, development costs and growing concerns about handling user information are proving to be big challenges for brands to manage.
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Potential impact. These advances in VR and AR are set to change the way customers view property tours, workouts, doctor’s appointments and international events.
Virtual reality (VR) and augmented reality (AR) aren’t considered buzzwords anymore. They’re starting to play a real role in how businesses connect with customers. From retail to healthcare, companies are using these tools to offer more personalized, hands-on experiences that feel less like marketing and more like something useful. As this kind of tech becomes more common, there’s a clear need for businesses to look beyond the novelty and seriously consider where VR and AR in customer experience can add value and where they might fall short.
Immersive technologies such as VR and AR can overlay digital elements onto the real world (AR) or create simulated environments (VR). They allow users to explore and experience new worlds. VR and AR used to be things we mostly associated with games or entertainment. Now, they’re showing up in everyday business, not as a gimmick, but as tools that can actually make the customer experience feel more real and less transactional.
Businesses that have started using VR and AR in their operations can set themselves apart in the crowd, especially with more customers expecting things to feel personal or interactive. However, throwing new tech at customers doesn’t guarantee better results. If it doesn’t solve a real problem or make the experience easier, it can over complicate matters.
That’s why companies need to think carefully about how this fits with what their customers actually want. Being first isn’t always enough; it needs to feel intentional. The brands that use VR and AR with a clear goal in mind are more likely to stand out, build trust and stay relevant as things continue to shift.
Table of Contents
- Understanding VR and AR in Customer Experience
- Benefits of VR and AR in Customer Experience
- Challenges of VR and AR in Customer Experience
- Where VR and AR in Customer Experience Already Working
- Making VR and AR in Customer Experience Useful, Not Flashy
- Designing Experiences That Stick
Understanding VR and AR in Customer Experience
While both VR and AR have similar features, they are fundamentally different. VR completely immerses users into a fully computer-generated world, whereas AR only enriches true realities by using digital elements to layer onto a live view. In customer experience (CX), this technology can help brands to provide customers with opportunities to see products and interact with services in a way that’s much more personal and engaging, which also helps limit interactions that might be more passive.
IKEA has created an app, for example, that allows users to virtually fit items or pieces of furniture into their homes to fully visualize what their products would look like in their own spaces. This eliminates guesswork and increases buyers’ confidence. Brands have a powerful opportunity to meet and even exceed rising consumer expectations with VR and AR, especially as those expectations shift toward greater convenience, interactivity and personalization.
Related Article: Augmented Reality: A Leap Toward Enhanced Customer Service & Support
Benefits of VR and AR in Customer Experience
Immersive Collaboration
VR and AR create opportunities for audiences and teams to interact within shared environments. Whether it’s a virtual showroom for customers to explore or a collaborative platform for teams to design new products, virtual environments facilitate more meaningful participation and engagement than traditional digital platforms.
Creating Tailored Experiences
VR and AR in customer experience allow brands to make users feel more seen and understood through personalizing experiences according to their preferences, like virtual try-ons or customized product recommendations. In this way, VR and AR have the innate power to considerably improve long-term loyalty and emotional engagement.
Increased Engagement
Immersive experiences have been shown to increase engagement with customers. For example, 61% of consumers report that they would be more likely to buy from a brand if it offered VR or AR, according to research released by Accenture. When interactions become both more interactive and more memorable, the customer is more likely to engage with the brand for longer.
Virtual Product Testing
AR applications are providing customers an easier way to “try before they buy,” whether that means previewing furniture in a living room or seeing how a car model fits in their driveway. By reducing uncertainty with a virtual test, AR helps speed up purchase decisions and reduces returns across industries including retail, cosmetics and automotive.
Better Customer Retention
The richer the experience, the better the emotional responses. VR and AR can be great tools for improving and building loyalty by providing customers with innovative ways to explore their own experiences with products and services. Companies that successfully apply these technologies into their CX strategies should see better customer retention rates over time.
Challenges of VR and AR in Customer Experience
Technical Restrictions
Access to the needed bandwidth or the latest devices to support VR and AR apps is not something that’s available to all customers. This can naturally exclude users, however unintentional, and limit the potential reach of strong CX advantages. To avoid turning away parts of their audiences, brands have to keep accessibility in mind when designing with VR and AR.
High Costs
It can become very expensive very quickly to develop immersive VR and AR experiences. Costs add up with aspects like 3D content, specialized hardware and bespoke-built apps. The challenge for many businesses is justifying this investment with a predictable return on experience (ROX) or measurable ROI.
Reliance on Technology
When technology used in CX strategies becomes too advanced and immersive, it can potentially put certain customers off who might prefer more simple interactions. Being too reliant can also have negative impacts, for instance, in the event of technical glitches and errors. For businesses to thrive under VR and AR adoption, it’s important for them to maintain alternative, lower-tech options.
Risk of Poor Implementation
VR or AR that has been inadequately implemented can frustrate users with impractical interfaces, counterintuitive controls and overwhelming visuals. Businesses have to prioritize more user-friendly designs and constantly test experiences to avoid this. This makes sure that real customer needs are met.
Data Privacy Concerns
Without proper privacy protocols, businesses and brands can risk violating customer trust and regulatory compliance, especially since VR and AR platforms regularly gather sensitive data like behaviors, locations and possibly biometric inputs. Adhering to data protection laws like GDPR is crucial during the process of launching immersive experiences.
Where VR and AR in Customer Experience Already Working
Patient Treatment
VR can be seen used in healthcare industries, particularly in mental health. Providers are using it as therapy treatment by creating controlled and safe environments. For example, Oxford VR was created to facilitate guided exposure therapy without needing the user to leave their home. This approach can help patients manage conditions like anxiety or confront fears.
Personalized Retail Experiences
Some companies are using AR to incorporate personalized customer experiences. For example, the Sephora Virtual Artist app that allows users to experiment with different shades of cosmetics or different products via a smartphone camera. This helps customers to try on items without needing to physically visit a store.
Training and Education
High-risk industries have been making use of VR during skills development and employee onboarding by creating simulation environments where workers can safely practice certain procedures and protocols within low-stakes, realistic settings. This can aid in employee performance and even employee retention.
Product Testing and Interaction
Vehicle brands like Porsche have showcased immersive VR showrooms, where customers can virtually experience and explore vehicle features and interiors. This enhances their purchase experience before they even visit a dealership.
Related Article: What Are the Top Digital Experience Trends This Year?
Making VR and AR in Customer Experience Useful, Not Flashy
Virtual Property Tours
VR is being used by real estate companies to provide prospective buyers the opportunity to tour homes before purchasing. This speeds up the decision-making process and makes it easier for foreign or remote customers to purchase a property.
Fitness and Travel Experiences
Gamified VR workouts are making exercise more motivating and fun with immersive challenges and virtual coaches helping users get moving, while tourism brands are offering VR previews of destinations, hotels and excursions to give customers the confidence to book a trip by “trying” before they travel.
Medical Consultations
Remote AR-assisted consultations means that doctors and medical professionals can help the patient complete a procedure or rehabilitation movements in real time. This can increase accessibility to care for everyone.
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Virtual Events
From car launches to trade shows, brands are creating virtual environments where customers can experience the breadth of a brand’s products from anywhere in the world without the constraints of travel or physical space.
VR and AR in Customer Experience
Use this overview to understand the most impactful applications, benefits and roadblocks of immersive technologies in CX strategies.
| Category | Examples & Use Cases | Why It Matters |
|---|---|---|
| Product Visualization | IKEA app for furniture placement, Sephora Virtual Artist for cosmetic try-ons | Increases buyer confidence by letting customers see how products fit in their real lives |
| Virtual Environments | Porsche immersive showrooms, VR real estate property tours | Offers immersive exploration of high-investment products or spaces without travel |
| Training & Education | VR simulations for healthcare, engineering, and safety protocols | Enhances employee performance through risk-free, realistic practice scenarios |
| Healthcare & Wellness | Oxford VR for mental health exposure therapy; AR-assisted physical therapy consults | Improves accessibility to treatment and enhances patient outcomes with guided support |
| Retail Engagement | AR-powered in-store guidance and personalized recommendations | Drives engagement and loyalty by making the experience feel tailored to each customer |
| Entertainment & Events | Virtual concerts, product launches, and global trade shows | Expands brand reach with memorable digital experiences unhindered by physical space |
| Customer Challenges | High costs, limited device access, tech glitches, overwhelming interfaces | Can create barriers to adoption and frustrate users if poorly implemented |
| Privacy Concerns | VR/AR platforms collect behavioral and biometric data | Must be managed carefully to maintain user trust and regulatory compliance |
Designing Experiences That Stick
VR and AR can be great tools for improving the customer experience, as they give brands more ways to connect with people and make things feel more personal. But like any tech, they are most successful when they’re used with purpose and when the design keeps the user in mind from the start. Companies must balance innovation with accessibility, simplicity and trust. Those that adopt VR and AR in customer experience strategically, especially with real customer value in mind, will be the ones who create the most memorable and lasting experiences in the years to come.
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