Will 2025 be the year for immersive CX?

From avatars to virtual reality (VR) and augmented reality (AR) wearables and the metaverse, many experience designers and practitioners have experimented with transferring advanced consumer tech developments to their customer’s experiences.

In the world of B2B CX, remote support and technical work has been greatly advanced by VR and AR technology, but in the world of consumer CX the results have been hit and miss. Gaming, virtual tours, beauty try-ons and sports fan experiences have largely fallen into the hit category, however, so far experiences such as immersive ecommerce have failed to see widespread adoption.

But could 2025 be the year that changes?

For VR and AR to take off in a big way, a few stars must align. Not only do consumers need widespread access to the high-speed fibre broadband and 5G networks that power it, they also need to be able to buy – and comfortably use – the technology that brings it all to life.

Recent months have seen the launch of two seminal products that could introduce consumers to AR – and later VR – wearables.

The rise in AR and VR wearables

On September 17, Snap unveiled “the next frontier of AR glasses”, it’s fifth generation wearable. At the most basic level, the Snap glasses allow users to record video for direct upload to Snapchat, but more advanced features enable wearers to use AI effects known as Lenses to “experience the world together with friends, in totally new ways.”

Controlled by the wearer’s hands and voice, the standalone AR glasses connect to a mobile device to “enhance how people naturally interact with the world”. During the official launch, Snap revealed how its Lens technology is already being used by entertainment and consumer brands to create and deliver new experiences:

• LEGO Group has unveiled BRICKTACULAR, an interactive AR game controlled entirely by the user’s hands and voice.
• Lucasfilm, the entertainment company behind Star Wars and Indiana Jones, is developing new experiences that connect users and their friends with the Star Wars Galaxy.
  The details of further launches with Niantic – the company behind Pokémon Go – and Latin American gaming company Wabisabi Games, will be announced in due course.

A week later, Meta unveiled Orion, the project behind it’s “first true augmented reality glasses”. The prototype glasses are only available to Meta staff and "select external audiences", buts its first-generation Ray-Ban Meta smart glasses are available to consumers. They're intended to rival the mobile phone by allowing users to connect to an AI assistant and their friends, as well as take photographs and videos.

Combined, these projects shows where Meta wants to take AR and VR wearables in future; smaller, more fashionable styles are definitely on the cards and this is critical to getting the product into mainstream use. After all, few showed interest in walking about wearing the Meta Quest VR headset, although this and similar products have been somewhat successful in facilitating immersive VR experiences for gaming.

On this point, when launching the Ray-Ban smart glasses Meta said: “We’ve been hard at work for years to take the incredible spatial experiences afforded by VR and mixed reality headsets and miniaturize the technology necessary to deliver those experiences in a pair of lightweight, stylish glasses… Orion is a feat of miniaturization – the components are packed down to a fraction of a millimeter. Dozens of innovations were required to get the design down to a contemporary form that you’d be comfortable wearing every day.”

But will smaller, more stylish wearables be enough to spur widespread consumer adoption and, therefore, more customer experiences to utilize AR and VR?

AR and VR’s missing pieces

During a 2023 edition of CX Talks, Anna Noakes Schulze, digital experience strategist and head of community experience at TheNTWK, said better tech is just one of the factors needed to bring AR and VR in the CX mainstream. Speaking to CX Network this month, she says recent years have brought “significant advances” in this technology and that the latest releases from Snap and Meta “demonstrate innovative features like higher resolution holograms, a wider field of view, and improved gesture tracking”.

However, despite all the progress made toward practical and accessible wearable tech, she says it is unlikely we will see widespread consumer adoption in the near term.

“The two key issues slowing adoption are the technology itself and a lack of compelling AR content,” she says. “AR glasses are still heavy, uncomfortable and have limited battery life. They require robust and scalable software, reliable network connectivity and low latency. Their appearance is an uphill battle as well. Most consumers will not embrace using bulky, unfashionable AR glasses that clash with their style or make them feel conspicuous.”

Another challenge, she adds is the lack of AR content that is “useful, compelling and widely accessible”.

“This speaks directly to the issue of delivering value to AR users and using technology to solve real customer problems. Driving adoption requires a robust content ecosystem that is high-quality and user-friendly. These content issues are still secondary considerations to solving the technical issues but at some point, they must be addressed.”

In short, she says that although wearables have made some impressive strides, “we will still need to see improvements in the technology, content and user experience to drive adoption and revolutionize the way we interact with the digital world”.

Paving the way with digital avatars

Despite the hurdles, AR and VR promise brands and organizations the chance to connect with their audiences on a deeper level and earlier experiments in this space have shown positive results.

In 2022, Indiana University School of Medicine conducted a study into the use of iPad-based virtual pets to remind medical patients who live alone to take their medicine.

Recalling the study, Jeannie Walters, founder of Experience Investigators, says: “They gave the patients iPads in with a cartoon cat, and the cartoon cat would simply say, ‘have you taken your medicine?’ or  ‘How's it going?’ But it was programmed to respond, much like our voice assistants.”

She adds: “The outcomes were really good, and part of the reason why is because people could interact with them, unlike a phone alert, which is just a one-way message. We have to be transparent and tell people they’re dealing with a bot if it isn’t obvious, but if we give bots more personality, people really respond to that.”

Looking ahead, a growing number of CX specialists now believe 3D digital avatars could be the next big tool to help take many forms of service and interaction to a new level.

Annette Franz CCXP, says 3D digital avatars could be the next frontier in digital interaction and engagement, serving as virtual assistants, guides, spokespeople, educators, trainers and more.

Speaking to CX Network she says: “Digital avatars represent the next frontier in digital interaction. They combine AI, advanced graphics and holographic technology to create immersive, life-like representations of individuals or characters in three-dimensional space. They can appear as holograms in physical environments or as part of VR or AR experiences.”

In many contexts, these avatars could also become effective service representatives. J Todd Coleman, co-founder and CEO of Portalis, says: “Digital avatars are the next evolution in customer experience, moving beyond static interactions to real-time, human-like engagements. While the metaverse and virtual influencers opened the door, AI-powered avatars create two-way, context-aware connection.”

He says the future will see “a seamless blend of human and digital agents”, with human agents depended on for the emotional connection and concierge experience that some people may prefer, and their digital counterparts used to scale to demand, communicate effortlessly across languages and integrate instantly with third-party systems, enabling faster issue resolution. 

According to Coleman, industries with high-touch customer interactions, such as retail, e-commerce, finance and healthcare are ideal for digital avatars as they enable dynamic personalization by recalling past interactions, adjusting their tone to match the brand and delivering real-time, contextually accurate responses. “Unlike traditional decision trees, AI agents can access all relevant information instantly to provide the best solution to customers,” he says.

Coleman adds: “The existing customer service model, which often involves frustrating scripts and organizational transfers, will soon be outdated and inefficient. Whether in customer service, brand representation or product recommendations, avatars offer a level of engagement that static systems can’t match.”

Is virtual reality right for every brand?

Kantar's UK lead for customer strategy and insight, Pete Aitken, agrees with Coleman but says “the key is to really think about how the brand shows up in that space, so that it feels connected to the experience in real life.”

Aitken says these technologies are “creating new and exciting ways for companies to meet and serve their customers,” but that the approach won’t suit everybody. “Consideration needs to be given to how these tools meet customers’ needs and the impact they have on the brand,” he says.

“Customers generally want to address issues effectively and easily, often choosing to self-serve because they want to get something done quickly. Inserting an avatar into that experience may not always make sense,” says Aitken.

“VR and AR experiences need to offer customers a genuine benefit, like allowing them to customize a luxury product and have it visualized for them in real time.”

Achieving this requires skill and the skillset required to “craft compelling characters” and personify a brand in such a way is not always available. In fact, Aitken says many brands may wait to see how the experiments and experiences of others play out before making their own move.

As such, organizations should decide whether virtual reality makes sense for them and can be executed correctly. “These new channels are an opportunity to reach customers who are tech-savvy and open to trying something new. Questions to think about from the outset are whether that is a high priority demographic for the business’s growth, and what the size of the prize is,” he explains.

Quick links

• The rise of virtual influencers and what it means for customer engagement
• How Printemps implemented a virtual store in just 70 days 
• 9 strategic ways AR and VR are transforming CX

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