Introduction
| “The global Virtual Reality (VR) in automotive market size is projected to grow from USD 3.19 billion in 2024 to USD 37.13 billion by 2032, exhibiting a CAGR of 35.9% during the forecast period.” |
Car buying experience has changed drastically, and when I say ‘experience,’ it means the customer experience (CX) during the buying journey that ‘drives’ decision-making for most of us. Their buying journey starts early the moment they wish to buy the next powertrain and search online. The new-age digital native customers demand extraordinary features, performance, and safety but do ample research before the final purchase, so the journey starts long before stepping into a dealership.
The above study from Fortune Business Insights also boosts the idea of aggressive use of Virtual Reality (VR) in the automotive world; I mean, you can’t ignore the skyrocketing CAGR growth of 35.9% projected from 2024 to 2032. It reflects the adoption of VR technology to offer an immersive, engaging, and connected experience while shopping for your car, where your customer demands interaction and engagement at every touchpoint they cross paths.
How Audi Does It?
Audi VR experience showroom, Audi’s Digital Configurator, and Audi City are the perfect examples of digital transformation leaps in automotive retail where a fully functional virtual reality (VR) application or environment is used for customer consultation at dealerships. Audi VR experience sales tool empowers Audi dealers to showcase the entire model range, equipment variants, and other personalized possible models in an immersive and extremely realistic true-to-life virtual experience with three dimensions and 360 degrees of interior and exterior viewing perspective with true light and sound effects.
| “With the VR experience we have developed a full-fledged sales tool for Audi dealers. It offers our customers more information and certainty when making their purchasing decision, as well as a special excitement factor,” said Nils Wollny, Head of Digital Business Strategy/Customer Experience at AUDI AG at the time. |
Video courtesy: Publicis Sapient
With this Virtual Reality (VR) experience, automotive dealers can blend digital innovation into their bricks-and-mortar capability to transform the journey. You might wonder what makes Audi City so special for a seamless car-buying journey. Audi City defines urban dealerships powered by digital technology as immersive ‘Digital Showroom Experience’ with the physical space. The concept is to display the complete Audi portfolio on floor-to-ceiling projection surfaces or the powerwalls controlled by visitors using multi-touch tables assisted by Audi sales experts. If you’re someone who wants to see as many details as possible, including the entire model lineup, colors, specs, functions, and equipment options right at the dealership, then Audi City is for you.
And, the dealerships can easily manage this VR-powered digital dealership in a small space-efficient way around urban areas with minimal or no inventory for a futuristic car buying experience. Audi City connects with the nearby Audi dealership and continues the further sales process based on the customer experience. According to Audi Media Center reports, the positive impact of the VR experience showroom is reflected in car sales; it helped to increase the car sales figures by 70 percent, with 60 percent being the new buyers.
Video courtesy: Audi Ireland
Audi AR - Going a Step Further
Moving ahead with the Augmented Reality (AR) based virtual car showroom and dealership, I have found this Audi AR Experience. Audi A7 has been showcased using Microsoft HoloLens technology in this Audi AR Experience dealership in AR with a mixed reality environment. Augmented Reality (AR) is a technology that touches customers at points before they visit the showroom. Automotive brands are in a unique position with AR to engage their audience for a targeted digital content campaign by using data-generated customers’ insights.
AR technology empowers automotive dealers to widen their reach and promote complete online buying without visiting the dealership. AR doesn’t require expensive gadgets; it works right there from your smartphone or tablet with the right value proposition to the buying journey. It also adds value to the traditional in-showroom experience.
Let’s say one customer wants to check out the color options available and the interior of different models during a showroom visit; then, a sales executive can assist with the AR experience app even if the model is physically unavailable. In the similar lines, Porsche launched the ‘Mission E Augmented Reality’ app that allows its audience to digitally experience the upcoming model before the actual availability at the dealership. Even the interactive driving mode enables an augmented reality test driving experience before visiting the showroom.
Video courtesy: Jaguar F-Pace Augmented Reality application
BYOC! What’s That?
Let me take you through another example of an augmented reality-based dealership named ‘AR Jaguar Car Showroom’ that provides a hyper-realistic walkthrough of your favorite Jaguar models. This AR app is a virtual showroom where you can check out your desired car at any location without visiting the actual showroom and see your personalized configured car in action. Automotive brands like Porsche, Audi, Ford, Jaguar, Mercedes-Benz, and more are ready with their AR/VR or mixed reality based digital-virtual showroom with exclusive features like ‘Build Your Own’ car, exterior and interior view, 360 view, virtual test drive, and more to ease the car buying journey and minimizing the decision making.
There’s a slight difference between an actual dealer showroom and a highly advanced virtual showroom; unlike a physical showroom, the virtual one gives you real-time hyper-realistic personalization of your choice to experience the advancements and performance of chosen features or add-ons. Interestingly, it’s not a difference; instead, it is bridging the gaps between dealerships and online shopping for a seamless omnichannel consistency experience. Driving success with omnichannel CX strategies for automotive dealerships is the next-gen transformation of dealership and prospect buyer engagement.
The future of mobility has turned its eyes towards the new era of innovation, where ease of buying is an experience. It goes inside the fine details like interior, trim, materials, color, engine performance, music system, climate-controlled seat, speed, light, and other custom options. Augmented Reality (AR), Virtual Reality (VR), and mixed reality are at the core of this transformational journey.
Closing Remarks
Taking a close look at these two technologies at the automotive dealership experience, the intent is to help the audience find the ‘right car’ where Augmented Reality (AR) provides engaging digital content to shortlist the brand and models, and Virtual Reality (VR) drives them for an immersive real-like experience for further decision making. The role of AR and VR in automotive dealerships is to improve engagement, ease test-drive availability, increase the likelihood of purchase, and minimize the inventories at the dealer network.
Online virtual showroom, in-showroom offline experience, or a blend of these two channels; the automotive brands and dealers are focused on providing a seamless customer journey to achieve the satisfaction milestone for customers and their sales figure milestones with ease. At Krish, we help automotive brands accomplish this with our expert consultation and technical expertise to take a leap in the automotive digital transformation. Share your thoughts here and connect with me to discuss the upcoming concept in the automotive digital transformation journey.
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Devansh Shah is a seasoned expert in digital commerce and transformation with extensive experience in driving innovative solutions for businesses. With a strong background in technology and a passion for enhancing customer experiences, Devansh excels in crafting strategies that bridge the gap between digital and physical retail. His insights and leadership have been pivotal in numerous successful digital transformation projects.
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