The Emerging Technologies and Their Impact on Marketing

The transformative impact of emerging technologies revolutionises the way businesses craft their marketing strategies to offer personalised experiences and immersive customer interactions that resonate on a human level.

The business world is undergoing a significant digital transformation and the marketing field is no exception. Technological advances redefine the ways that businesses use to capture the attention of their target audience. This paradigm shift creates unprecedented opportunities and challenges by transforming the way brands connect with consumers. The current wave of innovative technologies such as artificial intelligence (AI), machine learning (ML), virtual reality (VR), augmented reality (AR), mixed reality (MR), and extended reality (XR), is shaping the future of customer engagement. The rise of these technologies isn’t about a trend. It’s about a whole new ride!

Artificial Intelligence (AI)

Artificial intelligence (AI) is one of the key technologies used to optimise marketing processes. Its sophisticated tools enable businesses to collect and analyse vast amounts of customer data, derive actionable insights and offer personalised customer experiences. Long gone are the days of the mass marketing campaigns. The future is hyper-personalisation, which is the result of understanding individual preferences, and delivering marketing messages about solutions that feel like one-to-one conversations. To do this, businesses need to adopt AI tools that will enable them to process customer data effectively, leading them to have a complete understanding of their buyer personas, that is, their target customers.

The future is hyper-personalisation as a result of understanding individual preferences and delivering marketing messages about solutions that feel like one-to-one conversations

A notable example is Wendy’s AI Chatbot at a Drive-Thru that has incorporated Generative AI into everyday life. The goal of the technology, called Wendy’s Fresh AI has been to reinvent the Drive-Thru by creating a quicker (reducing wait times) and more consistent (increasing accuracy) ordering experience. The new artificial intelligence ordering service takes place at several chatbot drive-thru locations in the Colombus area.

Source: Nbcnews.com

Another example of such technology used is that of Domino’s Pizza, where AI-powered chatbots deliver instant support and facilitate seamless order processing through Facebook Messenger, Amazon Alexa Skills or SMS with the keyword or emoji ‘Pizza’. Recently, Domino’s and Microsoft have joined forces to offer the next-generation pizza ordering and store operations with Generative AI technology and cloud computing power, transforming the overall experience through personalisation and simplification. The use of AI technology starts pizza preparation even before a customer completes an order online, revolutionising how pizzas are made and delivered.

DHL, the world’s leading logistics company, has made AR a standard in logistics by integrating the technology to optimise its warehouse operations. The workforce can easily identify items and reduce errors in the picking and packing procedures. At the same time, Vision Picking (order picking with smart glasses) can greatly increase productivity and precision throughout the entire supply chain.

AI tools such as chatbots shouldn’t serve to replace human interactions but be used as an aid to create engaging experiences.

Machine Learning (ML)

Machine learning (ML) is considered a subset of AI and plays a pivotal role in marketing by enhancing personalisation through refined segmentation and targeting. ML uses algorithms to make predictions and decisions based on data. It is the technology used to offer trend prediction and profound insights into consumer behaviour by recommending products based on users’ browsing and purchasing history. Through data collection, ML becomes an effective tool to boost sales through upselling and cross-selling.

ML is mainly used for image recognition, text generation and analysis, speech recognition, data (predictive) analytics and algorithmic recommendations.

Machine learning enhances personalisation through refined segmentation and targeting, offering trend predictions and profound insights into consumers’ behaviour

ML algorithms allow marketers to predict which products a customer will like the most. They identify data patterns and group them to homogenous clusters that determine future outcomes. For example, a machine learning model may predict which leads may convert based on their past behaviour and run tailor-made campaigns to optimise their experience. The technology can also identify the probability that a machine will break down at any given time. A point in case is that of Hugo Boss (HB) Smart Factory in Turkey. In the pre-sewing area, HB uses AI and ML to ‘Precognise’ the possible defects in parts of its auto-cutters. This serves as an early warning system for upcoming incidents on cutters.

Another example is that of Johnson & Johnson in the Healthcare industry, which uses ML in a number of different ways. For instance, the skincare brand Neutrogena has an app that analyses the face through a skin scanner device that goes over the smartphone camera, magnifies camera lens and uses lighting to get a clear image. This way, the app displays a set of scores, advising the user on how the skin will change over time. It uses ML technology for intelligent analysis and precise recommendations based on personalised quality data that assist consumers achieve the best skin relative to their age.

Source: Cosmetics-technology.com

ML has the ability to discover deviations from pattern recognition and spot fraudulent activities. In web banking, for example, ML analyses the client’s usual behaviour along with his typical transactions and may spot which transactions are not considered reasonable, therefore, identifying and classifying them as potentially fraudulent.

In the retail business, Starbucks uses ML technology on their mobile app, which provides drink and food recommendations to users based on their previous orders and preferences. These can change according to weather conditions or holidays. Starbucks uses predictive analytics in its machine learning Deep Brew program, which helps in managing inventory, therefore, freeing up employees’ time from manual tasks to connect with customers and personalise experiences. It also helps in picking up the perfect location for the opening of new stores. Thus, it can access purchase insights such as what kind of drinks the customer buys, where and when they buy them and turn this data into targeted promotions such as personalised ads.

ML offers significant insights that ensure accuracy, improve performance and permit businesses to elevate the overall customer experience and increase their engagement.

Virtual Reality (VR)

Virtual Reality (VR) has disrupted traditional marketing channels by providing immersive experiences that captivate audiences. Immersive VR adds significant value by enabling customers interact with live events, shows or experiences from the comfort of their homes. The immersiveness of the experience (the perception of being physically present in a non-physical world) is considered along a continuum where user engagement varies accordingly. In this sense, virtual environments characterised by increased immersiveness should have a 360° view of the surrounding environment, physical interaction with the object(s), freedom of movement within the confined environment, conformance to human vision (where objects in a distance should be sized appropriately), and 3D audio to replicate the way the sound is heard in the real world.

Virtual reality technology enables customers to interact and live immersive experiences from the comfort of their homes

Source: Vodafone.co.uk\

Augmented Reality (AR)

Augmented Reality (AR) is a digitally enhanced version of the physical world. AR has emerged as a potent tool for enhancing customer interaction, offering businesses unique opportunities to showcase products in an interactive and personalised manner. According to Fortune Business Insights, the global AR market is projected to reach $ 1,109.71 billion by 2030.

A characteristic example is that of Pepsi. The company wanted to bring the “unbelievable” nature of the drink to life all over Britain, so it decided to make interesting the dull experience of waiting for a bus to arrive. By using AR, it turned a bus shelter’s wall into a fake window that appeared to show “unlikely subjects” making their way down the street. A film crew captured the public’s reactions, making the unbelievable bus shelter an internet sensation.

AR technology has already taken its place in the market. Major brands use augmented reality shopping experiences by popularising the try-before-you-buy model. L’Oreal’s Virtual Try-On Makeup Genius app makes it possible with AR technology to try on different makeup shades without leaving your couch. Customers simply upload their selfies and try chosen products virtually, enabling them to find the perfect makeup foundation match for their skin tones.

Augmented reality technology enables businesses to showcase their offerings in an interactive and personalised manner

A world-class collaboration between Saola Studio and the Muséum national d’histoire naturelle in Paris revolutionised the Museum exhibition concept through REViVRE (To Re-Live), the first immersive experience project in augmented reality. Using AR technology, the Museum brings back to life animals that we will never see again. Through this unique augmented reality experience, visitors become aware of the extraordinary species that once walked on the same ground as us. In total immersion, they move around before their eyes, for the first time before their extinction.

AR seems to be one of the most promising experimental technologies of this decade. As AR technology continues to evolve, we expect to see brands create deeper connections with their audiences by delivering increasingly innovative and memorable experiences.

Mixed Reality (MR)

In the convergence of virtual and augmented realities, Mixed Reality (MR) reshapes consumer perceptions and interactions with products and services by redefining the boundaries of engagement. MR blends the physical and digital worlds seamlessly, offering unprecedented marketing possibilities.

MR skyrockets user experience through immersiveness and interaction. It is quickly moving from an emerging technology to our new reality. Whilst it is still in its infancy, organisations have already begun adopting such technology to make processes safer and more efficient. MR differs from virtual reality (VR) and augmented reality (AR) in the following sense: in VR, one is fully immersed in the digital world; in AR, digital objects are overlayed on the real world; in MR, digital objects are not just overlayed on but anchored to the physical world, where the interaction with them becomes feasible.

In 2022, BMW demonstrated the use of such technology at the Web Summit in Portugal by creating an MR brand experience – a masterpiece of innovation – where drivers get behind the wheel wearing a VR headset. With BMW M Mixed Reality, the vehicle itself becomes a game controller and drives through a virtual course avoiding obstacles and collecting so-called “BMW M coins”. People are driving around a futuristic city rather than a parking lot. What makes the experience unique is using real-life interactions with real-time sensors, whilst using steering wheel, gas pedal, brakes and all.

MR technology is more engaging on multiple levels to VR and AR individually as it allows the user to directly interact with the experience. Through MR, the user participates actively on a physical and emotional level rather than participating passively through mere observance.

Mixed reality redefines the boundaries of engagement by allowing users to directly interact with the experience

Rémy Martin has launched a global brand mixed reality experience for consumers, inspired by the brand’s core values of creativity and craftsmanship. MR offers an amazing opportunity for storytelling where consumers are invited to participate in an interactive experience on which the Cognac Grande Champagne and the Cognac Petit Champagne vineyards are holographically displayed. Customer engagement is achieved through Rooted in Exception experience, bringing the company’s story to life and allowing them to see, smell and taste this unique cognac.

MR offers countless opportunities for brands to create engaging, immersive and personalised experiences. As brands become more innovative, we shall expect the adoption of this technology by businesses to stay ahead in the competitive landscape.

Extended Reality (XR)

Extended Reality (XR) is an all-inclusive set of technologies that combines virtual reality (VR), augmented reality (AR) and mixed reality (MR) to create more immersive and realistic interaction experiences. XR technology fosters brand loyalty by creating memorable experiences that define, through transmedia storytelling, an entirely new dimension of engagement and interaction.

Whilst MR is a combination of AR and VR, XR is broader and encompasses both MR and any other immersive technology that blurs the lines between real and virtual. Such technologies include, and are not limited to, the Internet of Things (IoT), the 5G network and digital twin technologies. They also include future realities immersive technologies might create.

Source: Onirix.com

The benefits derived from the use of XR include immersive experiences, enhanced visualisation, remote collaboration, safety and training, accessibility, medical advancements, innovative marketing and increased efficiencies.

XR can be used to facilitate remote collaboration, allowing teams that may be at any place of the world to work together in a virtual environment as if they were in the same physical location. Microsoft Corporation exemplifies this by using remote assistance, where technicians gain immediate access to remote experts. The technology allows them to execute field repairs by communicating via video feeds and having access to 3D objects that are placed in the physical environment.

Source: Microsoft Corporation

XR forms an essential part of industrial processes in the Industry 4.0 era as it increases safety levels, productivity and overall business efficiency. In manufacturing, personnel training takes place through virtual experiences, learning step by step the mechanisms of their work. At the same time, the technology assists in executing the required tasks. Siemens is a great example of the adoption of such technology where the staff showcase how XR can support training, operation and maintenance in the energy business.

The top industries that are transformed through XR are Retail, Healthcare, Gaming, Education and Training, Architecture and Design, Marketing, Manufacturing and Engineering, Real Estate and Entertainment.

Another company that has incorporated XR technology into its manufacturing and maintenance processes is that of Europe’s top aerospace firm, Airbus. Technicians can retrieve digital overlays of manufacturing guidelines to streamline intricate tasks, which reduces the likelihood of human error. Such a methodology accelerates production, boosts efficiency but also elevates safety beyond standards.

XR extends beyond Visuals and Audio to cover Haptics, that is, virtual reality devices that involve technologies, which use the sense of touch. Unlike the other technologies, XR is based on sensors everywhere, attempting to replicate, change or replace objects of the real world to create an alternative reality. XR is the future of marketing as it has the ability to bridge the gap between the real and virtual worlds. It blends them by digitally enhancing all human senses. This technology is used either to provide more information about the actual environment to enhance our senses, or to create artificial experiences, assisting marketers to capture consumers’ attention and reach audiences across the world.

Extended reality blends the real and virtual worlds by digitally enhancing all human senses

The NBA is another case in point as it has created a virtual court-side experience for its fans. The purchase of virtual tickets, at a substantially lower cost than the actual ones, has enabled the fans to gain access to live NBA games through their VR headsets. The 360° view and the real-time statistics coupled with the feature of changing camera angles have increased the sense of involvement and connection to the game, making them feel as if they were physically present. Also, during the pandemic when the season was cancelled, the technology allowed the fans to have access to the archives and relive games. Thus, not only do the fans experience the game but the NBA has created a new revenue stream.

XR enables people to experience stories themselves rather than listening to them. It allows marketers to live in their audience’s ‘personal space’, enabling them to create hyper-personalised campaigns by understanding their behavioural patterns through interaction. Moreover, it has an incredible potential to assist brands offer interactive solutions, engage with their audiences, shape customer perceptions and transform marketing at large. XR is not the future but the present of Immersive Technologies.

Synopsis

Technology is expected to continue to advance at a staggering rate in the next years and marketers need to adapt their strategies to remain competitive. Incorporating the emerging technologies of artificial intelligence, machine learning, virtual reality, augmented reality, mixed reality, and extended reality into marketing strategies is no longer a trend but a necessity for businesses that aim to connect with their audience on a deeper level.

As consumers’ expectations evolve, brands must use technology to become more innovative and offer groundbreaking solutions that deliver exceptional experiences. Marketers face several challenges regarding the adoption of such technologies and need to align their strategies with Industry 4.0 principles so as to enable businesses to reap the significant benefits offered by these technologies.

The future of marketing is bringing new possibilities and the companies that adapt their strategies to harness the full potential of these innovative tools, will position themselves at the forefront of the competitive landscape.