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Flevy Management Insights Q&A
How is the rise of virtual reality (VR) and augmented reality (AR) technology impacting Customer Journey Mapping strategies?


This article provides a detailed response to: How is the rise of virtual reality (VR) and augmented reality (AR) technology impacting Customer Journey Mapping strategies? For a comprehensive understanding of Customer Journey Mapping, we also include relevant case studies for further reading and links to Customer Journey Mapping best practice resources.

TLDR The integration of Virtual Reality (VR) and Augmented Reality (AR) into Customer Journey Mapping offers immersive experiences that transform customer interactions, necessitating strategic updates to accommodate these technologies for improved engagement and data-driven insights.

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The rise of Virtual Reality (VR) and Augmented Reality (AR) technology is significantly reshaping Customer Journey Mapping strategies across various industries. These technologies offer immersive experiences that are transforming how customers interact with products and services, thereby requiring organizations to rethink and redesign their customer journey maps to accommodate these innovations. The integration of VR and AR into customer experience strategies not only enhances engagement but also provides organizations with a competitive edge in understanding and meeting customer needs more effectively.

Understanding the Impact of VR and AR on Customer Journey Mapping

VR and AR technologies have introduced a new dimension to Customer Journey Mapping by enabling more interactive and personalized customer experiences. For instance, VR can transport customers to virtual environments where they can interact with a product or service in a highly immersive manner. AR, on the other hand, overlays digital information onto the physical world, enhancing the real-world experience with additional content. This shift necessitates organizations to incorporate touchpoints specific to VR and AR experiences in their customer journey maps. It's not just about adding a new channel; it's about understanding how these technologies change the way customers perceive and interact with the brand at various stages of their journey.

According to a report by Gartner, by 2022, 70% of enterprises were expected to be experimenting with immersive technologies for consumer and enterprise use, and 25% will have deployed them to production. This indicates a significant shift towards the adoption of VR and AR technologies, emphasizing the need for organizations to adapt their Customer Journey Mapping strategies accordingly. The immersive nature of VR and AR can significantly enhance the exploration and evaluation phases of the customer journey, providing customers with a unique and engaging way to interact with products and services before making a purchase decision.

Moreover, the integration of VR and AR into Customer Journey Mapping strategies allows for the collection of detailed behavioral data. Organizations can track where customers look, what they interact with, and how long they engage with VR and AR content. This data is invaluable for understanding customer preferences and behaviors in a way that traditional analytics cannot match. By leveraging this data, organizations can create more personalized and effective customer experiences, leading to increased satisfaction and loyalty.

Explore related management topics: Customer Experience Customer Journey Customer Journey Mapping

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Real-World Examples of VR and AR in Customer Journey Mapping

Several forward-thinking organizations have already started integrating VR and AR technologies into their Customer Journey Mapping strategies with notable success. For example, IKEA's AR app, IKEA Place, allows customers to visualize how furniture would look in their home before making a purchase. This AR experience addresses a common customer pain point in the furniture buying process—uncertainty regarding size, style, and fit—thereby enhancing the decision-making phase of the customer journey. By addressing this concern, IKEA not only improves customer satisfaction but also potentially reduces the rate of product returns.

In the automotive industry, Audi has leveraged VR to offer potential buyers a customizable and immersive experience of their desired car model. Through Audi's VR experience, customers can configure their car and explore different features and options in a highly realistic and interactive environment. This use of VR technology enriches the exploration phase of the customer journey, allowing customers to engage deeply with the product in a way that was previously impossible in a physical showroom.

Similarly, in the retail sector, Sephora's Virtual Artist app uses AR technology to allow customers to try on makeup virtually. This AR experience enhances the evaluation phase of the customer journey, enabling customers to experiment with different looks without the need for physical product trials. Such an innovative approach not only improves customer engagement but also drives sales by providing a risk-free way for customers to explore and discover new products.

Explore related management topics: Customer Satisfaction

Strategic Considerations for Integrating VR and AR into Customer Journey Maps

While the potential benefits of integrating VR and AR into Customer Journey Mapping are clear, organizations must approach this integration with strategic consideration. It is essential to start by identifying the stages of the customer journey that can most benefit from immersive experiences. Typically, the exploration, evaluation, and post-purchase phases offer the most opportunities for enhancement through VR and AR. Organizations should focus on these areas to create impactful and memorable customer experiences.

Additionally, it is crucial for organizations to ensure that VR and AR experiences are seamlessly integrated into the overall customer journey. This means that these technologies should not stand alone as gimmicks but should be integrated into a broader strategy that enhances the customer experience at multiple touchpoints. For example, VR and AR experiences should be easily accessible, provide real value to the customer, and be consistent with the brand's messaging and aesthetics.

Finally, organizations must consider the technical and resource implications of integrating VR and AR into their Customer Journey Maps. Developing immersive experiences requires significant investment in technology and skills. Organizations should conduct a thorough cost-benefit analysis to ensure that the investment in VR and AR technologies aligns with their overall customer experience strategy and business objectives. Moreover, ongoing measurement and optimization of VR and AR experiences are essential to ensure they continue to meet customer needs and drive business value.

In conclusion, the rise of VR and AR technologies offers exciting opportunities for organizations to enhance their Customer Journey Mapping strategies. By creating immersive and personalized experiences, organizations can engage customers in new and meaningful ways, leading to increased satisfaction and loyalty. However, the successful integration of these technologies requires careful strategic planning, a focus on enhancing specific stages of the customer journey, and a commitment to ongoing optimization and measurement.

Explore related management topics: Strategic Planning

Best Practices in Customer Journey Mapping

Here are best practices relevant to Customer Journey Mapping from the Flevy Marketplace. View all our Customer Journey Mapping materials here.

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Explore all of our best practices in: Customer Journey Mapping

Customer Journey Mapping Case Studies

For a practical understanding of Customer Journey Mapping, take a look at these case studies.

Content Diversification Strategy for Digital Media Outlet in EdTech

Scenario: The organization is a burgeoning digital media outlet focused on the educational technology (EdTech) sector, confronted by the challenge of optimizing the consumer decision journey.

Read Full Case Study

Innovative Customer Journey Strategy for Forestry Education Services

Scenario: A leading provider of forestry education services is facing challenges in enhancing the student experience through effective customer journey mapping.

Read Full Case Study

Optimized Fleet Management Strategy for Truck Transportation in North America

Scenario: A leading truck transportation company in North America is struggling to navigate the complexities of the customer decision journey in an increasingly competitive market.

Read Full Case Study

Cloud Integration Strategy for IT Service Providers in High-Growth Markets

Scenario: A leading IT service provider, specializing in cloud integration solutions, faces challenges in navigating the consumer decision journey in high-growth markets.

Read Full Case Study

Enhancing Consumer Decision Journey for Global Retail Company

Scenario: An international retail organization is grappling with navigating the current complexities of the Consumer Decision Journey (CDJ).

Read Full Case Study

Enhancing Guest Experience in Boutique Hospitality

Scenario: The organization is a boutique hotel chain operating in the competitive hospitality industry.

Read Full Case Study


Explore all Flevy Management Case Studies

Related Questions

Here are our additional questions you may be interested in.

How do generational differences (e.g., Baby Boomers vs. Gen Z) affect the Consumer Decision Journey, and how should companies adapt their strategies accordingly?
Companies must adapt their Consumer Decision Journey strategies to cater to Baby Boomers' preference for traditional media and in-person experiences and Generation Z's inclination towards digital platforms, social responsibility, and personalized experiences to effectively engage these diverse demographics. [Read full explanation]
How are advancements in virtual and augmented reality expected to influence the customer decision journey in retail and e-commerce?
Explore how VR and AR technologies revolutionize Retail and E-commerce by enhancing Product Visualization, Personalization, and Operational Efficiency, driving customer engagement and loyalty. [Read full explanation]
In what ways can organizations integrate customer feedback into the continuous improvement of the customer decision journey?
Organizations can improve the Customer Decision Journey by strategically collecting, analyzing, and implementing customer feedback, fostering a culture of Continuous Improvement and cross-functional collaboration to drive customer-centric enhancements and sustainable growth. [Read full explanation]
What strategies can businesses employ to ensure a consistent customer journey across international markets?
Businesses can ensure a consistent international customer journey by focusing on Local Market Understanding, leveraging Digital Transformation for seamless experiences, and balancing Brand Consistency with local adaptations. [Read full explanation]
How can a mobile-first strategy improve the Consumer Decision Journey in emerging markets?
A Mobile-First Strategy significantly improves the Consumer Decision Journey in emerging markets by aligning with digital behaviors, leveraging mobile usage for personalized engagement, and optimizing for mobile accessibility and transactions. [Read full explanation]
How can Customer Journey Mapping help businesses adapt to changing consumer expectations in the digital age?
Customer Journey Mapping offers strategic insights into customer experiences, guiding businesses in adapting to digital age demands through personalized, seamless interactions and driving Digital Transformation, Innovation, and Continuous Improvement. [Read full explanation]
What role does customer feedback play in refining the customer journey, and how can it be effectively integrated?
Customer feedback is crucial for refining the customer journey, enhancing Customer Satisfaction, Loyalty, and ROI through data-driven decisions, cross-functional collaboration, and continuous improvement. [Read full explanation]
What strategies can businesses employ to enhance the post-purchase experience in a way that promotes customer loyalty and advocacy?
Businesses can enhance post-purchase experience and foster customer loyalty through Personalized Follow-Up Communications, Exceptional Customer Service and Support, and Loyalty Programs and Rewards, driving repeat business and positive word-of-mouth. [Read full explanation]

Source: Executive Q&A: Customer Journey Mapping Questions, Flevy Management Insights, 2024


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