immersive experiences - retailing in the fifth dimension

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July | 2015 White Paper Immersive Experiences Retailing in the 5th Dimension Creating immersive experiences and redefining how customers interact with brands

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Page 1: Immersive Experiences - Retailing in the Fifth Dimension

July | 2015

White Paper

Immersive Experiences Retailing in the 5th DimensionCreating immersive experiences and redefining how customers interact with brands

Page 2: Immersive Experiences - Retailing in the Fifth Dimension

| Immersive Experiences | White Paper | July 2015 2

introduction

Think Blink

At Shikatani Lacroix, we design compelling at-purchase

moments that connect in the blink of an eye.

Our philosophy and strategic design approach,

Think Blink, is driven by a consumer’s motivation to make

a purchase decision. Everything we do is geared to owning

the “at-purchase” moment. Our firm has a well-earned

reputation for designing integrated brand experiences that

effectively connect brands with consumers to drive

measurable results for clients.

About the author Jean-Pierre Lacroix, R.G.D., President and

Founder of Shikatani Lacroix

Jean-Pierre (JP) Lacroix provides leadership and direction to

his firm, which was founded in 1990. He has spent the last 30

years helping organizations better connect their brands with

consumers in ways that impact the overall performance of their

business. In 1990, Mr. Lacroix was the first to coin and

trademark the statement “The Blink Factor”, which today is a

cornerstone principle for how brands succeed in the

marketplace. JP has authored several papers, has been quoted

in numerous branding and design articles, and in 2001 he co-

authored the book “The Business of Graphic Design” which has

sold over 10,000 copies. JP can be reached at

[email protected] and you can follow his thought leadership

webinars at: www.sldesignlounge.com.

Copyright @ 2015 by Jean-Pierre Lacroix. All rights reserved. ThinkBlink, Blink Factor and Trust Ladder are registered trademarks of Shikatani Lacroix Design Inc.

Page 3: Immersive Experiences - Retailing in the Fifth Dimension

| Immersive Experiences | White Paper | July 2015 3

introduction

Many retail trends are making headlines and creating significant

boardroom chatter: omni-channel, big data, digital marketing,

mobile commerce … all shaping how we define retail today, but

these opportunities have one goal in common — creating

immersive experiences, experiences that redefine how

customers interact with brands. The Immersive experiences are

gaining attention and interest of the marketers and designers,

and this discussion defines what immersive experiences are,

and why this engagement category is gaining such attention.

Page 4: Immersive Experiences - Retailing in the Fifth Dimension

| Immersive Experiences | White Paper | July 2015 4

part one

Retailing in the 5th Dimension

Like all trends, there is a pivotal moment when trends

stop being referred to as “game changers” and become

common practice, moving from the most talked about,

landscape shaping factors and becoming the everyday

fabric of the industry.

As a designer, I am on the constant lookout for “the

next thing” that will have a significant impact on how

retailers provide deeper and more meaningful

engagement within the physical retail environments. As

I scan the retail landscape, I believe there is one trend

that stands out above the rest, and which has the

momentum of a tsunami and the capacity to shape the

future of how we shop, buy and interact with the built

retail environments. This new trend is best described as

“immersion”—a retail state where the barriers between

the physical and virtual worlds disappear and become

one. And the new technology and channel proliferation

offer retailers the opportunity to move beyond brand

engagement toward full immersion in a brand story.

However, an immersive brand experience is more than

what we define as brand engagement today. Brand

engagement takes place when an experience provokes

shoppers to act, to create a social media post, initiate a

face-to-face conversation or make a purchase. Mobile

and multi-touch interactive technologies have elevated

this level of engagement to new heights. Immersion

takes place when consumers forget they are shopping

in a store and when they become an active participant

in a story they control.

Page 5: Immersive Experiences - Retailing in the Fifth Dimension

| Immersive Experiences | White Paper | July 2015 5

You know you are immersed in an experience when the

experience blurs the lines between the physical and the

virtual, storyteller and consumer, technology and the

physical space. Immersive design harnesses the

powerful, ever-evolving technologies in order to create

these immersive experiences in which the consumer

whole-heartedly participates as the brands leverage

new insights founded on shopper behavioural science.

The result not only converts a shopper to a customer,

but also builds tremendous bond between the

customer and the brand, between the audience and the

story.

Today, gaming and HD movies represent main

immersion experiences. They allow for the development

of rich stories, and we all have experienced these

immersive moments that, like in a dream, we need to

remind ourselves that what we are experiencing is not

real. The IMAX experience, the use of virtual goggles,

and the interactive dressing room mirrors are just the

precursor of how this technology will impact the role

and design of retail stores, and with the continuous

technology development – higher quality projection

systems, faster computing capabilities, micro

technologies and gesture-enabled interfaces – we are

witnessing the constant evolution of immersive retail

experiences.

“You know you are immersed in an experience when the experience blurs the lines between the physical and the virtual”

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Immersive Experiences | White Paper | July 2015 6

part two

Spotting the Five Types of Immersive Experiences Immersive experiences are gaining attention and interest of the marketers and designers.

Since immersive experiences are founded on storytelling and deliver in a way that allows the

viewer to participate and control some of the outcome, I have identified five types of

experiences ranging from the conventional to the futuristic. These include:

• Product Placement,

• Pop-Up Engagement,

• Gamemersion,

• Immersive Interactive

• Virtual Visualization

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| Immersive Experiences | White Paper | July 2015 7

Product Placement What better way of telling your brand story if not within

a movie that has a relevant and complimentary

storyline? This practice has emerged recently as a

powerful tool to drive greater awareness and visibility

for brands trying to cut through the clutter and own a

60 second slot of attention in consumer’s mind. The

process has evolved greatly to include sponsorship of

major events such as PepsiCo’s Super Bowl halftime

entertainment show. Brands are realizing that reach and

frequency are only relevant when your message is

remembered. Product placement and event

sponsorship allow brands to tell an immersive story that

appeals to customers while their attention also receives

a branded message as part of the experience.

Future: Look for immersive 3D movies that are funded

and developed by large package goods marketers to

both, showcase their brands and, more importantly,

develop the ability to take storytelling to the next level.

“Look for immersive 3D movies that are funded and developed by large package goods marketers”

Page 8: Immersive Experiences - Retailing in the Fifth Dimension

| Immersive Experiences | White Paper | July 2015 8

Pop-Up Engagement The control over power and visibility continues to rage

between retailers and package goods manufacturers.

The ability to control immersive experiences in retail

stores has been traditionally relegated to tasting

booths, one way digital signing and conventional POP.

Vacant, a firm who invited pop-up retailing, was the

first company to develop the concept in 1999 as a way

for smaller companies and non-traditional brands to

have a retail presence. This need to build stronger and

more immersive relationships with customers has

driven many package goods marketers to consider

pop-up retail stores that allow brands to communicate

richer, more meaningful stories. PepsiCo Canada’s 2013

launch of a pop-up space featuring indie bands invites

passersby to stop in and take the challenge, as well as

kick back and relax with friends while listening to music.

Future: Look for smart supermarket operators to realize

the gap in creating immersive experience for brands

and developing boutiques in their stores, allowing them

to move from purveyors of products to the distribution

of immersive experiences.

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Immersive Experiences | White Paper | July 2015 9

Gamemersion The word I have coined captures the blurring of the lines between what is a game and what

is real. The gaming industry has figured the whole immersive experience with top selling

titles outperforming the best movie releases. The games allow for rich HD content that can

be driven by a conventional controller or gesture-enabled technology. With the advent of

3D glass monitors such as Oculus, this immersive experience will bring the ability of gamers

to participate in a near real game to new heights. Using of gaming behaviours as part of

software and web platforms helps increase customer engagement and creates a platform

for an immersive experience. The ability of allowing viewers to compete for points or levels

is another approach to delivering unique stories in compelling ways.

Future: Look to see more interactive touchscreen platforms available at retail such as

endless aisle kiosk to include gamification as a platform to increase usage.

Page 10: Immersive Experiences - Retailing in the Fifth Dimension

| Immersive Experiences | White Paper | July 2015 10

Immersive Interactive The ability for digital technologies to allow viewers to

control the story and engage with brands has been

around since the first touchscreens and gesture

enabled software (over two decades ago). Today’s

games, televisions and computers all offer a higher level

of interactivity and control, from motion sensors to

voice enabled avatars. The cost of this technology has

seen a dramatic reduction while the size of projection

and LCD’s have gone in the opposite direction, and

large screens are the norm. The next wave is the

development of sensory multi-touchscreens for large

LCD panels, computers, tablets and smartphones that

give users the sensory experience of 3D touch on a two

dimensional surface allowing a richer and more

immersive experiences. This coupled with high

definition screens and multi-touch surfaces will allow

numerous customers to experience and control virtual

stories.

Future: Companies are testing LCD-enabled paints that

can transform any room to theatre style experience.

Researchers are working on new types of polymers that

feature novel chemical building blocks and inorganic

elements that allow it to act as an LCD screen.

Page 11: Immersive Experiences - Retailing in the Fifth Dimension

| Immersive Experiences | White Paper | July 2015 11

Virtual Visualization What started as virtual training for aviation pilots 20

years ago has spilled to the retail and package goods

industry applications. This reminisces the scene in Iron

Man where Tony Stark creates his futuristic suit using

3D holographic imaging tools, allowing him to see and

test products in a virtual setting. Although the movie

pushes the current boundaries, retailers such as Lowe’s

and IKEA are already allowing customers use their

smartphones and tablets to visualize home

improvement implications. In 2014, Lowe’s Canada

unveiled the first installations of the Lowe’s Holoroom

(http://www.lowesinnovationlabs.com/innovation-

holoroom/ ), a home improvement simulator that

applies 3D and augmented reality technologies to

provide homeowners an intuitive, immersive experience.

IKEA’s approach leverages augmented reality by

allowing customers to view furniture from the retailer’s

catalogue in the actual customer’s home setting. Only

now, package goods companies are starting to explore

augmented reality applications for smartphones that

links their packaging to deeper brand stories and

experiences. It’s not surprising that Dussault (http://

www.dassault-aviation.com/en/ ), the leader in

augmented reality technology is also one of the world’s

largest military aircraft manufacturers.

Future: Look to science and the military for the next

instalment of immersive experiences.

Page 12: Immersive Experiences - Retailing in the Fifth Dimension

| Immersive Experiences | White Paper | July 2015 12

part three

Know the Six Signs That You Are in a 5D Experience 5D design, better known as immersive experience, is growing as a marketing and branding

practice. With all of this growth, have you ever wondered if you have participated in a 5D

experience or, more importantly, can you spot one when it’s happening? Here are the six

signs that you have participated in what is becoming the next level of brand engagement.

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Immersive Experiences | White Paper | July 2015 13

1) It’s a Sensory Experience The senses impact our view of the world,

our emotions and our behaviour. A 5D

experience capitalizes on all five senses,

stunning realistic visuals, the tactile

feeling as one navigates the

environment, the sound emanating from

the experience, smell, virtual taste and

image association (taste the lushness

found in a photograph of an orange). The

ideal 5D experience needs to appeal to

all of our senses, and also cater to our

sense of balance and discovery.

2) It Allows Participants to be Lost in Time We are talking about a 5D experience

when the participants loose the sense of

time. Gaming is a great example of an

immersive experience often resulting in

players loosing track of time. Immersive

experiences draw viewers in by creating

an environment where time has no value

or influence. For brand marketers, this is

truly an ideal factor where the target

group is so involved in the experience,

that the notion of stopping seems

foreign.

3) Provides a High Level of Storytelling 5D experience is the virtual manifestation

of a well-written story that is visually

delivered while allowing the participant

full control. For an immersive experience

to be relevant, it needs to be anchored in

a story and all of its aspects from the

scene and players to the required

behaviour and rituals.

4) The Experience is Stunningly Real Stunning and realistic visuals are the

common denominator of 5D experiences.

The harder our brain needs to work at

discerning the information, the more

taxing the chore becomes, and the

harder it is for a participant to remove

the boundaries between digital

experience and the reality. The closer to

reality, the more immersive the

experience becomes. The brain no longer

needs to differentiate between the virtual

and the reality. Without the boundary,

the brain’s processing power is now

relegated directly to the reptilian brain,

the brain ruled by reflex and impulse,

deepening the reality of the 5D

experience.

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Immersive Experiences | White Paper | July 2015 14

5) Allows for Multiple Participants Humans are social creatures and the

closer the 5D experience reflects our

social needs, the closer the experience

comes to reality. One of the key

dimensions of immersion is the ability of

being surprised, challenged and engaged

with other participants. The ability to

contribute and help narrate the story

makes the 5D experience that much

more realistic and it deepens the

experience.

6) Intuitive and Instinctive To the best of my knowledge, the top

games do not come with extensive

instruction booklets. The games are

designed to reflect how humans interact

with their environments and as such,

immersive experiences are intuitive.

Intuitive thinking is not a conscious

process and relies on the senses, sixth

sense and instincts versus rational

thinking. Similar to being stunningly real,

5D experiences rely heavily on the

participants’ intuition and instincts to

navigate the experience.

“The ability to contribute and help narrate the story makes the 5D experience that much more realistic and it deepens the experience.”p

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| Immersive Experiences | White Paper | July 2015 15

As I have noted, immersive experiences have been around for quite some time, and brands

are now looking at how they can repurpose existing and emerging technologies in ways that

will allow for their brands to tell richer and more engaging stories in innovative ways. The

true definition of an immersive experience will constantly evolve to a place where the lines

between reality and virtual will blur and become one. With retailers having the ability to

include all five senses, they are well positioned to create immersive experiences that other

channels cannot, and bring the sci-fi scenes from Total Recall a new reality.

5D experiences exist in many forms and anyone who has viewed an IMAX movie, played one

of the leading video games, or visited an interactive display in a museum or art gallery has

participated knowingly or unknowingly in an immersive experience. As the use of this

approach continues to gain momentum, it will become harder to determine what is

immersive and what is real, what is virtual and what is reality.

conclusion