The fact that companies worldwide still haven’t agreed on what the Metaverse is (or will be) doesn’t stop many of them from investing in its future.
Companies are so intrigued by the potential of the Metaverse to become the “next big thing” that they are willing to roll the dice and bet heavily on this very real but yet-to-be-determined idea. This may sound like the technological equivalent of putting the cart before the horse. Companies need help knowing where to start when navigating the Metaverse development. The best place to start is by answering most people’s basic question about the Metaverse: what is it?
What is the Metaverse?
Users are represented by avatars in a shared virtual 3D space known as a metaverse, which may be additional 3D content in the real world. These spaces, which exist even when no one is around, evolve and change due to user choice and interaction. In other words, the same as in the real world. The Metaverse does not have an “end” or general purpose; It is not a digital theme park to be explored nor a game to be won. Simply put, the Metaverse is another world where you can perform the same actions as in the real world. Defenders of the Metaverse often use the word “presence.” You will not only feel that you are in these worlds because of your avatar but also that other people are with you.
Metaverse Businesses
Users are represented by avatars in a shared virtual 3D space known as a metaverse, which may be additional 3D content in the real world. These spaces, which exist even when no one is around, evolve and change due to user choice and interaction. In other words, the same as in the real world. The Metaverse does not have an “end” or general purpose; It is not a digital theme park to be explored nor a game to be won. Simply put, the Metaverse is another world where you can perform the same actions as in the real world. Defenders of the Metaverse often use the word “presence.” You will not only feel that you are in these worlds because of your avatar but also that other people are with you.
It’s like Second Life.
Comparison can be the most effective way to help you understand the Metaverse. In the mid-2000s, a 3D online virtual world called Second Life allowed users to live a second life (The Sims is another popular example).
At its peak, Second Life had a million regular users. These users created avatars and performed the same activities as in real life, such as going out, going to the movies, listening to music, going to parties, playing games, etc. But what made Second Life stand out wasn’t just that its “inhabitants” could freely interact with each other; it also had a global economy, so e-commerce companies are interested in the potential of the Metaverse.
Metaverse potential for eCommerce
The Metaverse will be the cornerstone of the new digital economy, where users can create, buy, and sell goods, even though it may seem primarily aimed at serious gamers and techies. This explains why many retailers are trying to quickly grasp the idea of a metaverse and, in some cases, have already invested heavily in creating their Metaverse. According to Gartner, by 2026, 25% of people will spend at least one hour a day shopping and being entertained in the Metaverse. Given these statistics, it’s no wonder retailers are so bullish on the Metaverse.
How retailers can benefit from the Metaverse
Create a new source of income
Today, there are two options for making retail purchases: online or in a physical store. Retailers now have access to a third revenue stream that has the potential to surpass the first two in terms of sales and profitability, thanks to the introduction of Metaverse. 66% of Google respondents expressed interest in using augmented reality (AR) to help them with their purchases. Shopify found that product interactions with 3D content had a 94% higher conversion rate than those without. As a result, consumers will be able to make more informed purchases, increasing brand profits.
Decreased return rates
Some items are notoriously difficult to purchase online, and their return rates are often high. The customer has ample time to fully immerse themselves in these products’ features, features, and benefits when presented in a virtual environment, reducing return rates and promoting brand loyalty. The Metaverse will not be just a virtual version of your physical or online store. It’s all about generating new ideas and seizing the opportunity to work with your clients to grow your brand.
Conduct a free market analysis
The Metaverse can be a tool for retailers to determine their customers’ real preferences. Before going to the trouble and expense of creating a similar version in the real world, they could test the products in the Metaverse. Consider the recent Decentraland Metaverse Fashion Week as an example of how consumers can use the Metaverse to test products before making a purchase. Some of the most famous brands you usually see at New York Fashion Week have been to the high-profile fashion event in the Metaverse. These companies can choose which virtual iterations of their projects will become real using the information obtained from the air vent.
Some brands were early adopters.
Numerous big-name companies have already dipped their finger into the Metaverse digitally. The immersive world hosted by Decentraland and based on Samsung’s flagship store in Manhattan, the Samsung 837X, was created by electronics giant Samsung. Users can participate in mixed reality dance parties and other live events by visiting the new Connectivity Theatre, Sustainability Forest, and Customizable Stage.
Expansion of the network and cooperation.
B2B companies can now seize opportunities to develop face-to-face relationships with customers through their avatars thanks to the development of metaverse technology. According to a study published in the Harvard Business Review, personal communication is 34 times more effective than any text exchange. This is not surprising, given the importance of non-verbal cues in building rapport and trust between people.
A more immersive customer experience
According to SuperOffice, 86% of consumers are willing to pay more for superior customer service, and 49% have made impulse purchases after having a more personalized experience. B2B sellers will be able to create a more immersive experience for buyers in the Metaverse, and this improved interaction can drive sales.
New marketing and advertising opportunities.
B2B companies will have access to new marketing and advertising opportunities as the Metaverse continues to evolve. Since the Metaverse is still in its early stages, companies that come out now will have a first-mover advantage. Businesses can sponsor metaverse events or create targeted ads that are more likely to attract potential customers.
Increase sales and return on investment
The ultimate goal of any company is to increase sales and revenue, and the Metaverse offers a special opportunity for this. B2B companies can access new markets and revenue streams by creating a digital presence. Additionally, the Metaverse can improve sales performance. For example, a B2B salesperson can host multiple meetings with clients worldwide without ever leaving their metaverse office.
Increase employee productivity
The Metaverse can be beneficial for more than just sales. This technology can also be used by departments such as Human Resources, Customer Service, and R&D to increase productivity. Employees can learn new skills faster with metaverse-based training simulations, and customer service representatives can help customers in real-time with avatars. In addition, this technology can improve employee collaboration and communication. In a virtual environment, remote workers can interact face-to-face, discuss projects, share ideas, and provide feedback.
Where to start?
There are a few things you can do to at least start preparing for the Metaverse, even if you’re not ready to dive in with both feet:
Consider your target audience.
How much time does the audience or customers you’re trying to in the Metaverse? The answer to this question will help you determine how quickly you will dive into the Metaverse. Brands that target younger consumers don’t want to sit dormant for long. What practices are currently popular with your current and potential clients? They will let you know how fast you need to enter the Metaverse.
Look at your competitors.
Start looking at what companies like yours are starting to do in the Metaverse. While the “watch what your competitors are doing” strategy isn’t new, it works. Understanding the concept of the Metaverse and trying to figure out what to do next can take a lot of work. It will be easier for you to participate in the Metaverse if you know what your rivals are doing.
Get balance
Anything new carries risks and rewards by its very nature, and the Metaverse certainly fits the bill. The good news is that the pandemic has made us all significantly more flexible than ever before. The Metaverse can be highly unpredictable and lacking in standards. Will there be failed experiments with the Metaverse? Yes. A few years ago, Second Life made the promise of a metaverse, but it didn’t work. Fortunately, the negative impact on participating brands was minimal and short-lived.
Get innovation
If the Metaverse is a blank canvas, then you need to consider how to let your imagination and storytelling run wild. With a broader range of creative options, you can create experiences that can be surprising and extremely compelling at every stage of the customer journey, from acquisition to customer service and everything in between. Blockchain technology is a decentralized, immutable ledger that makes it easier to track assets and record transactions in a business network.
Increase staff productivity
The Metaverse can be beneficial for more than just sales. This technology can also be used by departments such as Human Resources, Customer Service, and R&D to increase productivity. Employees can learn new skills faster with cap simulations.
The opportunity is real.
Some people believe that the Metaverse is a general idea that will not be realized for some time. Yes, it will probably be ten years or more before the Metaverse takes the final form that the futurists predicted. However, there are now legitimate opportunities for brands to tap into the infancy of the Metaverse—opportunities they can use to become metaverse pioneers and establish a brand presence early on.
Brands need to take advantage of what is believed to be the next big thing by postponing these important first steps or, worse yet, failing to realize the incredible potential of the multiverse. In other words, if you sleep, you lose, both in the digital world and the physical one.
