Virtual reality will enjoy its first billion-dollar year in 2016, providing new opportunities to businesses that want to create more immersive experiences for consumers, according to a new study.
Digital Predictions 2016, an annual study by Deloitte, identified VR as one of six major digital technology trends for consumer-facing businesses for 2016, saying that with roughly 2.5 million VR headsets and 10 million games likely to be sold this year, the technology is starting to gain some traction in the consumer market.
“Hotels and car dealers can now offer VR tours of their facilities, while the technology could also support brand-building campaigns and reshape shopping experiences,” said the report.
“However, potential obstacles remain, including several usability issues which may put off many consumers. As consumer businesses continue to experiment, the widespread use of VR technology may require further behavioural changes from consumers.”
The report also suggested that the digital revolution will use cognitive technologies to radically change how businesses and consumers interact, with 2016 likely to mark another important stage in the rapid change in customer experience.
Deloitte says machine learning, natural language processing and speech recognition are among the cognitive technologies expected to be adopted by consumer businesses this year. The result will be to enhance the emotional connection between consumers and brands, also making the purchasing processes more convenient.
The ever-increasing speed and capacity of the internet could ring in big changes for business too, with the arrival of gigabit-per-second internet connections broadening the horizons of consumer businesses in 2016. What this means is gigabit broadband will support innovations such as VR and the “Internet of Things,” in addition to increasing the use of targeted television advertisements and constantly improving mobile apps.
Touch-payment services through mobile phones are expected to jump in 2016, with a 150 per cent surge in the number of people adopting touch-based payment services, rising to 50 million users. Using fingerprint authentication, the technology will help speed up mobile payment services. One drawback, says Deloitte, is with touch-based payment services largely designed for apps at present, retailers may also need to develop easier ways to pay on mobile-optimised websites.
Outside of touch payment, mobile devices will also have a wider impact, continuing to play a crucial role in the shopping habits of younger consumers. Widespread laptop adoption will also continue, as consumers use PCs to complement their smartphones and tablets.
Web communication through social media will be one of the most important things for brands in 2016. With 2.5 trillion images to be shared or stored online in 2016 – a 15 per cent increase on 2015 – Deloitte says growth of image-sharing could help consumer businesses use the social media environment as another commercial opportunity, as networking sites begin to offer ‘Buy’ buttons and other functions. Urging caution, however, the report says that brands will need to tread carefully, crafting images that feel authentic, are of interest to the consumer, and are of a high quality so as not to drive customers away.
“A wave of new technology is revolutionising the way people are engaging with consumer businesses," said Ben Perkins, head of consumer business research at Deloitte. "Virtual reality, gigabit internet and mobile touch payments are just some of the innovations that will cause significant disruption across the consumer market.”
“Consumer industries have to be flexible to rapidly changing consumer behaviour. Rising ownership of smartphones and tablet devices, faster connectivity speeds and increasing engagement with brands on social media are the main driving forces behind the consumer market’s digital revolution.”
To read the report in full,
click here.
