Determining Feasibility and Calculating ROI for Using Immersive Technology in Marketing and Branding

Immersive technologies are transforming how companies engage with customers. Before diving into augmented reality (AR), virtual reality (VR), and mixed reality (MR) investments, it’s crucial to evaluate feasibility and calculate the return on investment (ROI) to ensure success.

In a previous post, Boston Engineering asked you to Explore the potential of Immersive Technologies in Marketing and Branding.

Central to the article was highlighting the the ways that interactive brand experiences and immersive product demonstrations are reshaping the way companies market and position their brands. Immersive technologies are powerful tools that are revolutionize how companies develop and maintain marketing differentiations. 

How do you know if these technologies are right for your company’s marketing and branding  process? And once you’ve decided to explore them, how can you accurately calculate the return on investment (ROI) to justify the cost? 

This blog will explore the best ways to determine if immersive technology is right for your marketing and branding efforts and how to effectively calculate ROI. 

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What is Immersive Technology? Immersive Technology is the interaction of advanced software, devices, and data allowing users to experience information in new and empowering ways. Augmented Reality, Virtual Reality, and Mixed Reality from Boston Engineering are tools available today to elevate your organization’s capabilities, competitiveness, and agility.

Immersive Technology addresses today’s operational, service, and sales challenges with a nod to the future of business: better information and faster delivery that strengthens companies against uncertainty, while building competitive advantage.

Learn more about Immersive Technologies at Boston Engineering

Assessing Feasibility for Immersive Technology in Product Development 

Before diving into immersive technology, it’s important to evaluate whether these tools are a good fit for your company’s specific needs.

Here are the key steps to determine feasibility: 

Understand Your Target Audience

The first step in determining feasibility is to assess whether immersive technologies align with your target audience. Key questions to consider include:   

• Does your audience engage with technology? If your target market is tech-savvy or comprises younger demographics, they are more likely to engage with AR/VR content. 

• Do they consume visual and interactive content? If your customers already interact with highly visual or interactive content, immersive technology can enhance their experience. 

• How does your audience access your brand? If your customers primarily interact with your brand online or through mobile devices, AR/VR technologies may provide value through enhanced digital experiences. 

Evaluate Your Marketing Goals 

To determine if immersive technology is feasible, your marketing goals must align with the potential benefits of AR/VR. Evaluate whether your brand needs:  

• Enhanced customer engagement through immersive storytelling or product visualization. 

• Stronger emotional connections with your audience by placing them in experiential marketing campaigns. 

• Differentiation from competitors by offering cutting-edge, memorable experiences. 

Analyze Your Product or Service

Certain products or services lend themselves better to immersive experiences. To assess feasibility: 

• Is your product complex or customizable? Immersive tech is ideal for demonstrating how your product works or allowing users to configure it to their preferences. 

• Is your product visual? AR can help customers visualize products in their real-world environments (e.g., furniture or apparel). 

• Does your product require education or explanation? VR/AR can provide immersive tutorials or hands-on product demonstrations. 

Consider Available Resources

Immersive technologies require investments in hardware, software, and content creation. Some factors to consider include: 

• Do you have the budget for AR/VR hardware and software? Evaluate whether your budget can accommodate the upfront investment in AR/VR tools, including development and ongoing maintenance. 

• Do you have a team or vendor capable of creating high-quality immersive content? The success of immersive experiences depends heavily on the quality of content, so consider whether your team can handle this or if you’ll need external support. 

Competitor and Market Trends

Finally, feasibility can be influenced by competitor adoption and market trends: 

• Are your competitors already using immersive technologies? If immersive technology is becoming more common in your industry, it may be important to adopt these tools to remain competitive. 

• Are customers expecting immersive experiences? Customers, especially in industries like retail, automotive, and real estate, are beginning to expect immersive interactions, so staying ahead of expectations can provide a competitive advantage. 

How to Calculate ROI for Immersive Technology in Marketing and Branding

Once feasibility has been established, the next step is calculating the ROI of integrating immersive technology into your marketing strategy.

Here’s how to do it: 

Define Your ROI Metrics 

To calculate ROI, you need to establish the specific metrics that define success. Common metrics for immersive marketing campaigns include: 

• Increased engagement: Measure how much time users spend interacting with your immersive content compared to traditional methods. 

• Brand awareness: Track increases in brand visibility, such as social media mentions, shares, and viral content generated by AR/VR experiences. 

• Conversion rates: If the immersive experience directly links to a purchasing opportunity, measure whether conversion rates improve after implementing AR/VR. 

• Customer retention and loyalty: Track whether immersive brand experiences lead to higher customer retention or brand loyalty over time. 

Estimate Development Costs

Accurate ROI calculation depends on understanding the total cost of developing immersive technology. Consider: 

• Content creation: Immersive experiences require high-quality 3D assets, interactive features, and tailored storytelling. Estimate the cost of developing these assets. 

• Platform and software development: If you’re building an AR app or VR experience, calculate the cost of developing the platform, licensing software, and ongoing maintenance. 

• Hardware costs: VR headsets, AR glasses, or other devices may be required, depending on the experience you’re offering. 

Compare Traditional Marketing Costs

To understand the financial impact of immersive technologies, compare the cost of traditional marketing tactics with AR/VR: 

• Digital ad campaigns: Compare the cost of running standard video ads or social media campaigns versus immersive marketing experiences. 

• Event marketing: If you frequently invest in event booths or trade shows, assess whether an immersive VR/AR experience can provide more value for less investment. 

• Print and media advertising: If you typically rely on print or media ads, calculate whether an interactive AR campaign can achieve similar goals for a comparable cost. 

Estimate Revenue Impact

To estimate the revenue impact of immersive technologies, consider: 

• Uplift in sales or lead generation: Track the percentage increase in sales or leads generated by customers who engage with your immersive experiences compared to those who do not. 

• Improved customer satisfaction: Use surveys or feedback to measure whether customers who engage with AR/VR experiences are more satisfied and more likely to make repeat purchases. 

Measure Long-Term Benefits 

Immersive technology can deliver long-term value beyond short-term sales, including: 

• Brand loyalty and advocacy: Customers who have memorable immersive experiences are more likely to become repeat buyers and brand advocates. 

• Enhanced brand perception: Brands that adopt cutting-edge technology can boost their overall reputation, driving long-term value through positive brand associations. 

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Bringing It All Together: Calculating Total ROI 

Once you’ve gathered all the relevant data, calculating ROI involves comparing the total cost of implementation to the potential benefits: 

• ROI Formula: ROI=(Total Benefits - Total Costs)Total Costs×100ROI = \frac{\text{(Total Benefits - Total Costs)}}{\text{Total Costs}} \times 100ROI=Total Costs(Total Benefits - Total Costs)​×100 

For example: 

• Total Benefits (cost savings, increased speed, reduced errors): $300,000 

• Total Costs (hardware, software, training): $100,000 

• ROI = (300,000−100,000)100,000\frac{(300,000 - 100,000)}{100,000}100,000(300,000−100,000)​ × 100 = 200% ROI 

In this scenario, for every dollar spent on immersive technology, your company would gain $2 in benefits. 

Conclusion: Feasibility and ROI in Immersive Marketing 

Determining the feasibility of immersive technologies for your marketing and branding efforts requires a deep understanding of your audience, product, and goals. Once feasibility is established, calculating ROI is essential to ensure that your investments are delivering value.

By setting clear metrics, estimating costs, and tracking revenue impact, you can confidently explore the world of immersive marketing and unlock the potential it offers for enhancing customer engagement, driving brand awareness, and increasing sales. 

Ready to Start the Immersive Technology Journey? 

With the capability of saving time and money in operations, improving field service, and creating efficiencies in your sales process-- Immersive Technologies are currently available to provide an advantage against competition, and a buffer against uncertainty.

Augmented Reality seamlessly blends the physical and virtual, enhancing user experiences by providing additional information and digital elements without completely detaching them from their surroundings. This intuitive integration makes AR an accessible and cost-effective solution across various industries, from education to healthcare to gaming. By overlaying digital content onto the real world, AR empowers users to access valuable insights and engage with information in a more natural and contextual manner.

Virtual Reality offers a completely immersive experience, transporting users into captivating digital realms. VR's high level of engagement and interactivity makes it an ideal medium for applications that require intense focus, such as gaming, training, and therapeutic interventions. By fully engaging the user's senses, VR has the power to inspire, educate, and transform the way we approach challenges and opportunities.

Mixed Reality seamlessly blends the physical and virtual, enabling users to interact with digital elements as if they were physical objects. This enhanced level of interaction and collaboration opens up new possibilities for product design, maintenance, and training. MR is revolutionizing the way we tackle complex tasks and collaborate across different locations.

Whether you’re seeking to meet rising manufacturing demands, offer more efficient training and service delivery, or revamp marketing & sales efforts, Boston Engineering has the tools to tackle these issues head on and incorporate your specific needs. Let us help you create the roadmap to success: Get the full ROI through Immersive Technologies by working with Boston Engineering.

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